Agel (MLM company)

Infobox_Company
company_name = Agel Enterprises LLC
company_type = Private
company_slogan = Imagine no boundaries.
foundation = 2005
location = Provo, Utah

key_people = Glen Jensen, CEO
Craig Bradley, President
Darren Jensen, COO

industry = Multi-level marketing
num_employees = Over 130
homepage = [http://www.agel.com/ www.agel.com]

Agel Enterprises LLC

Agel Enterprises LLC, a nutritional supplement supplier, is a multi-level marketing (MLM) company and was started in March 2005 in Provo, Utah. Agel's first products shipped in May 2005 and are now sold in 43 countries. [ [http://www.agel.com/company/faqs Agel Company FAQ] ] Agel sells nine different 'gelceuticals', which are the world's first nutritional supplements that are suspended in a gel. [ [http://www.agel.com/company/faqs/products Agel Product List] ] They are sold in single-serving 21 gram bottle-like packets that are notable for being a vitamin delivery system which doesn't need to be taken with water. [http://deseretnews.com/article/1,5143,695218260,00.html Josh Loftin "Provo firm draws 4,000 vitamin distributors", Deseret Morning News, Oct. 13, 2007 ] ] The nine different products claim to target specific maladies to do things such as reduce joint pain, promote heart health, increase energy, and reduce appetite. Some of the supplements are also notable in that they are both kosher and halal certified, making them acceptable for Jews and Muslims to ingest. The company has become especially popular in Israel and many Muslim countries, such as Malaysia and Indonesia. It was recently recognized by the United Jewish Federation of Utah for its involvement in the Israeli business sector.

History

The founder, Glen Jensen, previously worked in other MLM companies such as Nu Skin Enterprises and Neways. [ [http://www.npros.com/exec_bio_detail.asp?execID=151 Glen Jensen Executive Bio History] ] He recently joined the World Federation of Direct Selling Associations. The federation consists of more than 50 national direct selling groups and one regional European association and consists of CEOs from the largest multinational direct selling companies including Nu Skin Enterprises, Avon Products, and Mary Kay. [ [http://www.heraldextra.com/content/view/250711/ "Local News and Notes", Daily Herald, Jan. 3, 2008 ] ] It was recently announced that in September of 2008 the company will be moving from Provo, Utah to the Thanksgiving Point development in Lehi, Utah. This move was done to accommodate the company's rapid growth as well as to put it closer to the Salt Lake Airport, which is important given Agel's large international presence. [ [http://www.heraldextra.com/content/view/235647/ Grace Leong "New business park planned at Thanksgiving Pt.", Daily Herald, Aug. 28, 2007 ] ]

Business Model

To become a distributor there is an initial buy-in and an emphasis on recruiting other people below you in order to receive commissions rather than on actually selling the product. This follows the structure of a complex multi-level marketing two-leg commission model where your recruited sales force are broken down into a "stronger" and "weaker" leg. Commission is 10%, but recruiters only earn from the "weaker" leg of their recruited sales force. In addition, there are many other bonuses that kick in as a recruiter's network expands. [ [http://www.agel.com/opportunity/comp_plan Agel compensation plan] ]

Criticism

Like many MLM systems, Agel has its detractors. As with many MLM companies, the complaints focus on excess predictions of sales volumes and resulting bonuses, high "buy-in" costs as well as the complex commission and reward structure. Agel's company and agents also spend more time and money on marketing the sales model than on promoting the products. Animal testing is also of great concern to many groups.

Detractors also point out that there have been no serious independent studies to attest to the value of Agel products, that they are safe or effective when taken as directed or validating the benefits of delivery through gel. Rather than relying on scientific studies, Agel seems to rely on testimonials, whose reliability is notoriously questionable. [ [http://www.oag.state.md.us/Consumer/edge98.htm Maryland Attorney General - Consumer Publications ] ]

There are also questions about the effectiveness of the Agel products. For instance, the FIT product uses hydroxycitric acid to promote weight loss. Trials were done on rats, but extrapolating that to human effectiveness has been controversial. Along with trials on rats, several human studies have been done showing lack of efficacy of low dosages of hydroxycitric acid. [ [http://www.ncbi.nlm.nih.gov/pubmed/16156903?ordinalpos=1&itool=EntrezSystem2.PEntrez.Pubmed.Pubmed_ResultsPanel.Pubmed_DiscoveryPanel.Pubmed_Discovery_RA Pubmed website] ]

Supporters and merchants who have become involved with Agel say that it is a genuine and profitable multi-level marketing business opportunity. Agel, like most established multi-level marketing companies, has taken steps to address and remove agents who have over sold the potential income opportunity. The success of a member of the Agel organization is said to depend on their own skills to sell the products, on similar skills of the sales force they have recruited under them, on the coaching given and the amount of effort and personal investment they individually put into their sales and recruiting. Actual product sales are, however not as heavily emphasised as marketing and motivational material. Heavy emphasis is placed on recruiting other agents rather than on selling the product.

References

External links

* [http://www.agel.com/ Agel Company Website]
* [http://www.npros.com/dir/agel/ Agel Company Profile on Npros]
* [http://www.macraesbluebook.com/search/company.cfm?company=863455 Agel Company Listing on McRAE's Bluebook Industrial Directory]
* [http://www.dsa.org/forms/CompanyFormPublicMembers/view?id=7F30000DBE6 Agel Company Listing on the Direct Selling Association Website]
* [http://www.npros.com/exec_bio_detail.asp?execID=151/ Glen Jensen executive bio history on NPROS.com]
* [http://www.ripoffreport.com/reports/0/136/ripoff0136879.htm Debate over business model used by Agel]
* [http://www.agel-consultores.com/ Agel Product and business information in Portuguese]
* [http://gente-agel-salud.blogspot.com/ Blog of Agel in Spain]
* [http://chileagel.blogspot.com/ Blog in Spanish for enter in the business]
* List of multi-level marketing companies