All reviews
Home / Reviews / It Works!
Weight-loss wraps and supplements · Legacy unilevel MLM, now absorbed into an acquirer’s binary plan

It Works! Global

A 25-year founder-owned wrap and supplement brand that fell roughly 89% from its 2014 peak and was sold in January 2026 for $30 million of stock - after which its website, its back office, its income-disclosure page and every distributor’s replicated site began redirecting to the buyer, with no published migration terms.

Reviewed July 29, 2026 Founded Business started 12 April 2001 · incorporated 1 February 2011 · sold and control transferred 26 January 2026 Confidence: Medium
D-GRADE
4.4/10
Weighted composite

SOLD FOR PAPER, TERMS UNPUBLISHED

The last income disclosure that exists anywhere is 2022, showing $87 a month gross at the rank where 85.13% of distributors sat - and the plan that produced it has since been retired with no migration, conversion or grandfathering terms published anywhere.

The question you came with

Can you actually make money with It Works!?

NO No - not on the numbers this company publishes

No. Not because the numbers are bad, though they are, but because the deal on offer today is not written down anywhere. The compensation plan people signed was retired rather than merged. The only current US plan on file is the acquirer's own, versioned 10-04-2026, and neither company has published a migration, conversion or grandfathering document saying what a legacy rank, a genealogy position or a residual stream turns into.

The last published economics were already inside the cost of participating. The 2022 disclosure put 85.13% of all distributors at the entry rank, with an average monthly gross of $87 - $1,044 for the year - against a modeled $795 to $1,315 to hold the $35 renewal and the 80 BV autoship. The company states in terms that its figures are gross before any expenses are deducted, and that expenses can run to several hundred or thousands of dollars annually.

No median has ever been published, in any year, and with a $15,441 high sitting inside that bottom rank the average is doing work a median would not do. There is no disclosure at all for 2023, 2024 or 2025, the 2022 page now redirects, and every distributor's replicated storefront redirects to the buyer. The whole business cleared in January 2026 for $30 million of stock, with no cash.

The good parts belong in the same breath. Cancellation is at any time in writing for any reason, the renewal is $35 rather than punitive, resalable kits are repurchased under contract, and statutory refund rights apply in six states and territories. The acquirer's plan also activates on four personal customer points rather than on self-purchase volume, which is a genuine structural improvement on the one it replaced.

What it costs to be in
$99–$199

kit price is from a single secondary review and is not confirmed in any company document; then $35 a year to renew, and an 80 BV monthly autoship - modeled at roughly $55–$90 - or 150 PBV a month to stay commission-qualified

What would have to change
  • A published migration document. What a legacy rank converts to, what happens to a genealogy position, whether a residual stream survives, in writing from one of the two companies rather than inferred from which domain a link now resolves to.
  • A current income disclosure. The last one located anywhere covers 2022 and its page now redirects, and the acquirer does not appear to publish a US disclosure at all, so the plan a person would join today has no published outcome attached to it.
  • A median, alongside the average. Every statement It Works! ever published gave average, high and low and never a median, with a $15,441 high sitting inside the rank that held 85.13% of the field.
  • A Fast Start that pays for customers. In the current plan, $1,840 of the $2,875 available - 64% of it - is paid for enrolling Partners with Ultimate Kits and for those Partners doing the same thing again.

That call is computed, not chosen - the rule reads three of the nine published dimension scores and is printed on the methodology page. It describes this company's plan and the figures it publishes about the people already in it. It is not a prediction about you, and nothing on this site is advice.

$87
Average monthly gross at the entry rank
where 85.13% of distributors sat in the 2022 disclosure, the last one that exists
$30M
Sale price, January 2026 - all stock, no cash
roughly 0.5× the buyer’s own forward revenue guide for the asset
~89%
Fall from the peak revenue on record
$538M in 2014 against a ">$60M" 2026 guide - peak-to-guidance, not peak-to-actual
None
Published migration, conversion or grandfathering terms
the plan participants signed was retired; no document says what it converts to

Legal status

LEGAL - no court or regulator has found It Works! to be a pyramid scheme, and no FTC enforcement action, complaint, consent order or civil penalty against the company could be located in any source reviewed. The file contains an FTC warning letter dated 24 April 2020, sent as part of the COVID-era sweep of multi-level marketers, which quoted earnings claims from the company’s own corporate social accounts as well as from distributors and required both to cease them within 48 hours - a compliance warning, not a finding of liability. It contains a Direct Selling Self-Regulatory Council monitoring inquiry decided 30 October 2019, which is voluntary industry self-regulation carrying no fine, no injunction and no admission. It contains a putative independent-contractor misclassification class action filed 19 July 2023 in California, whose docket, certification status and outcome could not be verified - a filed complaint is an allegation and nothing more. And it contains a Better Business Bureau pattern-of-complaints alert currently displayed on two live profiles with a C+ rating and no accreditation, which is a private ratings body’s finding rather than a regulator’s. No state attorney general action and no foreign regulatory action were found - which is not the same as none existing.

Confidence: Medium

Primary sources fetched directly where possible. Everything we could not verify is listed at the bottom of this page by name.

What this actually is

Follow the money

A Florida weight-loss and personal-care company founded in 2001 by a former high-school teacher and his wife, built on a topical body applicator - the Ultimate Body Applicator, relaunched in 2021 as the Skinny Wrap - and later a broad supplement, coffee and skincare range, sold through US independent distributors on a unilevel plan with generational overrides at the Diamond ranks and above.

The single most important structural fact is that this is a post-peak business that shrank by roughly an order of magnitude before it changed hands. Revenue on record ran $27 million in 2010, $456 million in 2013 and $538 million in 2014, the peak on record. On 26 January 2026 the business was sold in a deal entered and closed the same day, and the buyer guided to over USD 60 million of additional revenue in 2026. That is roughly an 89% fall - and the qualification matters, because it is a comparison of a 2014 actual against a 2026 forward guide. No audited or company-confirmed revenue figure for any year between 2015 and 2025 could be located, and the buyer disclosed no trailing revenue in the deal announcement, its year-end report or its first interim report afterwards.

The price is the sentence a prospective participant should read twice. USD 30,000,000, settled entirely in newly issued shares through a directed set-off issue with no cash, plus an earn-out of up to USD 4,000,000 over five years also payable in paper. That is roughly half of one year’s forward revenue, for a 25-year-old consumer brand together with its inventory, its intellectual property, its distributor agreements, its customer agreements, its distributor database and its customer register. Healthy direct-selling assets transact at multiples of earnings, in cash or cash and stock. An all-paper deal at half of forward sales is the signature of a seller with limited alternatives and a buyer unwilling to put cash at risk on the asset’s durability.

What happened next was established here by direct observation on 29 July 2026 rather than from any company statement, because no company statement exists. itworks.com returns an HTTP 302 to the acquirer’s US site. The distributor back office does the same. myitworks.com/Legal/Income/ - the canonical address of the It Works! income disclosure statement - redirects to the acquirer’s US site, so the disclosure no longer resolves at its own address. And individual distributors’ replicated storefronts redirect to the acquirer’s generic US homepage rather than to any page crediting that distributor. The products survive as a brand-shop category inside the acquirer’s catalog, under the acquirer’s checkout. The only current US compensation plan on the acquirer’s public file library is its own, versioned 10-04-2026 - issued after the acquisition. The two plans were not merged; the legacy plan appears to have been retired.

That leaves the gap this grade turns on. Neither company has published a migration, conversion or grandfathering document. A distributor’s asset in this industry is a position in a genealogy under a specific set of rules; when the plan is replaced, rank is re-mapped at the acquirer’s discretion rather than by contract, the qualification metric changes from volume to personal customer points - which can strand builders whose volume came from their downline’s autoship rather than from personal customers - and residual streams tied to legacy generational bonuses have no guaranteed equivalent. The earn-out gives the acquirer a five-year incentive to grow sales, but no corresponding obligation to protect any individual’s income. The acquirer’s Q1 2026 interim report says only that it acquired the operations during the quarter and had not yet achieved full synergy effects: no distributor counts, no attrition data, no comp-plan commentary. Equity research on that quarter noted that the contribution from acquisitions seemed lower than the analyst had assumed.

Where distributors sat in 2022 - the last disclosure that exists

It Works!’ own 2022 income disclosure statement, as a share of all distributors. Income figures in that document are gross, before any expenses are deducted, and no median is published in any year. The published percentages sum to 100.02 through rounding and are reproduced here unaltered.

85% 10%
Entry rank - average $87/month gross, low $1 (85.13%)Executive, Ruby and Emerald - $407 to $1,186/month average (10.19%)Diamond and above - $2,806 to $23,226/month average (4.70%)
ProductPricePays
Distributor kit (required to enrol)
The plan and the policies reference a Basic Kit and a Business Builder Kit without stating a price anywhere. This range comes from a single secondary review and is not confirmed in any company document. The Business Builder Kit is also the trigger condition for the Diamond Bonuses paid up five upline ranks.
$99–$199
one-time
Annual renewal
Due on the anniversary date under the 1 March 2024 distributor agreement; non-payment within 30 days cancels the agreement automatically. As renewal fees in this industry go, $35 is genuinely low and it belongs in the credit column.
$35
annual
Monthly autoship to stay commission-qualified
The plan requires an 80 BV monthly subscription, or 150 PBV of personal volume, or the kit purchase. The BV-to-dollar ratio is not published, so this dollar figure is modeled from current member prices - roughly one to two core products a month.
~$55–$90/mo
recurring
Skinny Wrap (the signature product)
Formerly the Ultimate Body Applicator, relaunched under this name in April 2021. The only independent adjudication of its claims described the depicted results as very modest and acceptable, and asked that they be disclosed as temporary.
$78 retail / $55 member
per unit
~30% spread
TFXX (ThermoFight successor)
The predecessor product is the one whose substantiation a self-regulatory body examined in 2019 and found satisfactorily conducted with reliable, statistically significant results - conditional on disclosing that study subjects followed a strict diet and exercise regimen.
$64 retail / $45 member
per unit
~30% spread
It Works! Greens Multi
At or above premium-retail benchmarks for a functionally comparable greens powder. The retail-to-member spread of roughly 30% is also the ceiling on a participant’s margin when selling at full retail price.
$57 retail / $40 member
per unit
~30% spread
Keto Coffee
One of several coffee SKUs in the current catalog at $64–$71 retail. Coffee is the category where the price gap against open-market alternatives is widest and the differentiation argument is hardest to make.
$64 retail / $45 member
per unit
~30% spread
30-Day Drop System Kit
The largest bundle in the current catalog. Kit bundles generally carry subscription pricing between $31 and $130 a month, which is the practical shape of the autoship a qualified distributor holds.
$253 retail / $125 subscription
monthly bundle
~50% spread
Background check

Who runs it, and what they ran before

MP
Mark Pentecost
Founder; President of It Works! before and after the sale

A former high-school teacher and basketball coach who started the business in 2001 and built it to a reported $538 million of revenue by 2014. No regulatory action, fraud judgment or criminal proceeding against him could be located in any source reviewed, and the trade press consistently described the company as debt-free and family-owned across its whole life - both of which cut in his favor relative to the median founder profile in this category. Trade press reported in July 2015 that he bought a private island for $14.5 million. That is a fact rather than an allegation, and it is recorded here only as context on where the margin went during the peak years, because the same year’s disclosure commentary put distributor expenses at roughly $1,000 annually against $937 of average gross income.

CP
Cindy Pentecost
Co-founder; listed as Secretary/Treasurer on the Better Business Bureau file

Co-founded the business with her husband in 2001 and has been a fixture of the founding narrative - teacher’s wife, spare room, first wraps - that a prospective distributor will meet in almost every recruiting presentation. No regulatory action, fraud judgment or criminal proceeding against her could be located. The Better Business Bureau officer list is not a corporate filing and may not reflect the January 2026 change of control; it is recorded here as indicative rather than authoritative.

On
Ownership note
Control passed to a foreign listed buyer on 26 January 2026

The agreement was entered and closed on the same day. The structure was hybrid: an asset purchase of the US business - inventory, distributor agreements, customer agreements, IP, the distributor database and the customer register - plus a share purchase of 100% of the Irish international company. The fixed price was USD 30,000,000, settled entirely in newly issued B-shares through a directed set-off issue of 1,843,840 shares at SEK 145.62, with no cash. An earn-out of up to USD 4,000,000 over five years, contingent on sales performance, is also payable in shares. Total dilution to the buyer was 4.83% of shares and 2.24% of votes. The buyer guided to over USD 60 million of additional revenue in 2026, which values the whole enterprise at roughly half of one year’s forward sales.

Gn
Governance note
What could not be established about ownership

The research asked specifically whether private equity had ever owned, recapitalised or taken a minority position in the business. Nothing was found across trade press, deal databases or the buyer’s investor materials, and the consistent description of the company as debt-free and family-owned argues against a recapitalisation having happened. The January 2026 announcement names no institutional seller. This report therefore asserts no private-equity involvement at any point - the honest position is that none was verified, not that a search proved a negative. The Pentecost family separately operates a holding vehicle, Pentecost Group, whose website could not be retrieved; the relationship between that vehicle and It Works! equity is not established here.

Registered address

Palmetto, Florida, USA
908 Riverside Drive, Palmetto, Florida - the address on both Better Business Bureau profiles, the first opened 25 April 2011 and the second 16 May 2013. The operating decisions no longer sit there. Since 26 January 2026 the business has been a subsidiary of a listed European direct seller already reviewed on this site, and its chief executive is the decision-maker for the combined group; the acquirer’s chief marketing officer holds the product-portfolio decision and has said publicly that the group will evaluate which of the acquired products suit its test-based nutrition strategy. The founder retains the title It Works! President and Founder, which is a brand-continuity role at a subsidiary of a foreign listed parent. One genuine consequence of that change is positive: the parent is audited and reports quarterly, so a prospective participant can now read group revenue, margin and profit figures that were never available while the business was private. The parent does not, however, break out It Works! separately, publish a US income disclosure statement, or disclose distributor counts or attrition. Florida Division of Corporations filings confirming the post-acquisition officers and registered agent could not be retrieved, so the officer list on the Better Business Bureau file - which still names the founders - may be stale.

Compensation plan

What has to be true for you to get paid

To coverYou need
Enrol and hold the business for one year $134–$234
kit at $99–$199, unconfirmed, plus the $35 renewal
Stay commission-qualified every month for a year ~$660–$1,080
80 BV autoship modeled at $55–$90 a month from current member prices
Cover the full qualification cost from retail margin alone ~$2,650–$4,400 of retail sales
at the roughly 30% retail-to-member spread, before shipping and samples
Beat the entry-rank average from commissions more than $1,044 a year gross
$87 a month at the rank where 85.13% of distributors sat in 2022, expenses not netted

Read this twice

This arithmetic comes from two published documents and one modeled input, and the modeled input is flagged. Published: the $35 annual renewal in the 1 March 2024 distributor agreement; the 80 BV monthly subscription or 150 PBV alternative in the compensation plan; the 2022 income disclosure showing 85.13% of all distributors at the entry rank with an average monthly gross of $87 and a low of $1; and the current catalog, where member prices on core products run $31 to $58. Modeled: the dollar value of 80 BV, because the company does not publish the BV-to-dollar ratio anywhere in the public plan document. On the member price list, one to two core products a month puts the autoship at roughly $55 to $90, so a full year of qualification costs roughly $795 to $1,315 including the renewal. Set that against $1,044 of gross income at the entry-rank average and the typical participant is inside the cost band before a single sample, event ticket, flight or advertisement. The company corroborates this from its own side twice over: the disclosure commentary in 2015 acknowledged distributor expenses of around $1,000 a year against $937 of average gross income, and the current disclosure footnote says expenses can be several hundred or thousands of dollars annually. Three fairness points belong here. The 80 BV can in principle be met by genuine customer orders rather than self-purchase, and someone with a real Loyal Customer base is not spending that money at all. The $35 renewal is genuinely low by the standards of this industry. And cancellation is available at any time, in writing, for any reason. The problem is not that the entry price is punitive - it is not - but that the ongoing qualification cost sits on top of the typical gross outcome rather than under it, and that no disclosure published since 2022 lets anyone check whether that is still the shape of it.

Run your own numbers

Drag the sliders. Nothing here is stored or sent.

-
Cumulative net, after costs
Retained retained loyal customers -
Commission that month -
Total commissions earned -
Total you paid in -
Net -

Thirty per cent retail on a customer spending about $65 a month, against the roughly $90 a month it costs to stay qualified. Two warnings the slider cannot show: the legacy plan was retired rather than merged and no migration or grandfathering terms have been published, so the payout rules modeled here are the last documented ones rather than the current ones; and the most recent income disclosure is 2022, which put the 85.13% at entry rank on an average of $87 a month gross. Your own subscription cost of $90/mo is included.

Your money

What it costs to replace this yourself

Current catalog prices verified 29 July 2026 against typical open-market equivalents at comparable positioning. Comparators are bands, because formulations and serving counts differ and because the honest criticism of this range is not that the products are bad but that nothing in them is hard to buy elsewhere for less. Note that the body wrap has no true open-market equivalent with an evidence base behind it - the comparison there is against the category, not against a matched product.

What they sell youWhat you'd use insteadYour cost
Skinny Wrap - $78 retail / $55 memberDrugstore or salon body-contouring wrap kit, comparable count~$15–$30
TFXX thermogenic - $64 / $45Green-tea and caffeine thermogenic from a mainstream supplement brand~$18–$32
It Works! Greens Multi - $57 / $40Third-party-tested greens powder, same servings~$20–$35
Collagen Ultra - $53 / $37Hydrolysed bovine or marine collagen, same grams~$18–$28
Keto Coffee - $64 / $45MCT-and-butter instant coffee sachets from an open-market brand~$22–$35
Simplypure shampoo and conditioner - $47 / $33 eachSalon-brand sulphate-free shampoo and conditioner~$16–$28 each
It Works! Cleanse - $62 / $44Two-day herbal cleanse from a mainstream retailer~$15–$25
30-Day Drop System Kit - $253 retail / $125 subscriptionAssembling the equivalent from open-market components~$60–$110
80 BV monthly autoship to stay qualified - ~$660–$1,080/yrBuying only what you use, when you use it$0
$35 annual renewalNo renewal, no rank, no qualification month$0
Total as sold
~$1,000–$1,500 in year one
Total, built yourself
~$200–$450 of comparable consumables

Price-to-value

Roughly a two-to-three-times premium at the individual SKU level, which is what third-party commentary reports and what the list price supports. That premium is defensible in principle if the product does something the alternative does not - and for exactly one item in this range there is real evidence, because a self-regulatory body examined the thermogenic substantiation and found it reliable and statistically significant. It is much harder to defend for a greens powder, a collagen, a shampoo or a coffee. The structural gap is bigger than the per-unit one: the $35 renewal and the 80 BV monthly autoship convert a product preference into roughly $800–$1,300 of committed annual spend, against an entry-rank average of $87 a month gross. And the products can now simply be bought from the acquirer’s brand shop by anyone, with no kit, no renewal and no qualification month.

Odds of profit

Three operators, five horizons

Probability of cumulative net profit

Hover any point for median, top decile and bottom quartile.

0% 25% 50% 75% 100%3 mo6 mo1 yr3 yr5 yr 17% 15% 13%
Product-first distributor - joins mainly for member pricing, buys what she uses, two or three friends as Loyal CustomersPart-time wrap seller - 10 hrs/wk, a Loyal Customer list plus some enrolling, holds the 80 BV autoshipFull-time builder - 30+ hrs/wk, kit-based enrolling, events and travel, driving the Diamond bonuses

Product-first distributor

joins mainly for member pricing, buys what she uses, two or three friends as Loyal Customers

HorizonP(profit)Median
3 mo 14% −$210
6 mo 16% −$330
1 yr 17% −$520
3 yr 17% −$1,200
5 yr 17% −$1,900

Part-time wrap seller

10 hrs/wk, a Loyal Customer list plus some enrolling, holds the 80 BV autoship

HorizonP(profit)Median
3 mo 9% −$480
6 mo 12% −$820
1 yr 14% −$1,400
3 yr 15% −$3,600
5 yr 15% −$5,500

Full-time builder

30+ hrs/wk, kit-based enrolling, events and travel, driving the Diamond bonuses

HorizonP(profit)Median
3 mo 4% −$1,200
6 mo 7% −$2,300
1 yr 10% −$4,100
3 yr 13% −$9,800
5 yr 13% −$14,000

Methodology note. ANCHORED to It Works!’ own 2022 income disclosure statement: 85.13% of all distributors at the entry rank with an average monthly gross of $87 and a low of $1; Executive at $407 average, Ruby $660, Emerald $1,186, Diamond $2,806, Double Diamond $5,367, Triple Diamond $9,551, Presidential Diamond $13,481 and Ambassador Diamond $23,226; Ambassador Diamond representing 0.14% of all distributors and taking on average 48 months to reach; 4.50% receiving zero income; and the statement’s own words that these are gross figures before any expenses are deducted and that expenses can be several hundred or thousands of dollars annually. Anchored also to the published cost side: the $35 annual renewal, the 80 BV or 150 PBV monthly qualification, the roughly 30% retail-to-member spread and the current member price list. MODELED by us: the dollar value of 80 BV, because the BV-to-dollar ratio is not published; the kit at $99–$199, which comes from a single secondary source; the expense side beyond renewal and autoship, because the company names expense categories without ever costing them; the share of each cohort in cumulative profit; and the cohort definitions, which the company does not segment. Two further cautions specific to this report. First, no median has ever been published in any year, so these medians are ours and not the company’s - with a $15,441 high sitting inside the bottom rank, the published average is not a safe proxy for the typical outcome. Second, and more importantly, the disclosure these tables rest on is now four years old and describes a compensation plan that has since been retired. Nothing here models the acquirer’s plan, because no income disclosure for it exists.

Go-to-market

Where you are actually allowed to promote this

Platform policy reads, not verifications. Check every one before you spend a dollar - enforcement changes faster than the written policy does.

Channel
Status
Notes
Distributor replicated websites
GONE - THEY NOW REDIRECT TO THE BUYER
Verified by direct observation on 29 July 2026: an indexed distributor storefront on the itworks.com subdomain returns an HTTP 302 to the acquirer’s generic US homepage - not to any page crediting that distributor. Under the legacy policies the replicated site was the only web page a distributor was permitted to operate. That single permitted asset no longer resolves to them.
Selling on social networks
PROHIBITED ON PAPER - AND UNIVERSAL IN PRACTICE
The 2015 policies state that distributors shall not use online blogs, chat rooms, social networks, online auction sites or any other online forum to sell the products or the opportunity, except through approved replicated websites. The company nonetheless built its entire growth engine on Facebook - the founder’s own line was that today’s gathering place is not the mall, it is Facebook. The gap between the written rule and the observed practice is the enforcement story of this file, and a distributor operating in that gap is exposed to a policy that can be enforced selectively.
Your own website, blog or domain
PROHIBITED
The policies permit a web page only through the company’s replicated website program. You cannot own a domain, build search equity or create a marketing asset you could ever sell - and, as above, the replicated site is now a redirect to somebody else’s homepage.
Income claims
PROHIBITED, WITH A MANDATORY HANDOVER THAT NO LONGER WORKS
Specific income amounts, earnings ranges, hypothetical examples and lifestyle claims involving luxury cars, homes or vacations are all prohibited, and a distributor must give any prospect a copy of the income disclosure statement whenever the business is presented. The 2024 agreement adds a bar on income guarantees and on disclosing personal income without approval, with one exception for posting actual weekly bonus emails. The handover requirement is now unperformable: the last statement is 2022 and its canonical page redirects.
Health and therapeutic claims
TIGHTLY RESTRICTED
No claims as to therapeutic, curative or beneficial properties may be made except those in official company literature, and no distributor may claim the products are useful in the cure, treatment, diagnosis, mitigation or prevention of any disease. Testimonials require written approval from the compliance department before publication anywhere. For a weight-loss range this is the right rule, written correctly.
Before-and-after photographs
PERMITTED WITH A MANDATORY DISCLAIMER
Photos must be the distributor’s own or used with written permission and must carry a stated individual-results disclaimer. The rule exists and it is reasonable on its face; the 2019 self-regulatory inquiry nonetheless documented before-and-after photos depicting weight loss within 12 to 48 hours, which is the enforcement gap again rather than a drafting failure.
Speaking to the press
PROHIBITED
Independent distributors are not authorized to speak to any media source, including radio, television or reporters. Combined with mandatory arbitration and a class-action waiver, a participant cannot publicly discuss their own business with a journalist or aggregate a grievance with others.
Bonus buying, inventory loading and the 70% rule
EXPRESSLY PROHIBITED
Bonus buying is described as strictly and absolutely prohibited, covering fraudulent enrollment, phantom distributors, excessive non-resalable inventory, cross-sponsoring and any other artifice to qualify for rank advancement not driven by bona fide purchases by end-user consumers. A 70% rule bars ordering more product until 70% of the previous order has been sold or used, and order transfers are capped at five a month and 1,000 BV. These are genuine consumer-protection provisions and they are not universal in this industry.
Paid search, marketplaces and post-acquisition rules generally
UNDOCUMENTED
No clause specifically addressing pay-per-click, brand-keyword bidding or third-party marketplaces could be located in the retrievable documents, and the most recent policies located are dated 21 July 2015. Whether the acquirer has issued replacement terms to former distributors is unknown. Get any channel permission in writing from whoever now administers the account before spending money against it.
The evidence

Red flags and green flags

Red flags

15
1The whole enterprise cleared for $30 million of paper, with no cash
Fixed price USD 30,000,000, settled entirely in newly issued shares through a directed set-off issue of 1,843,840 shares at SEK 145.62, against a buyer guide of over USD 60 million of additional 2026 revenue. That is roughly 0.5× forward revenue for a 25-year-old brand plus its IP, inventory, distributor agreements, customer agreements and both databases. The earn-out of up to USD 4,000,000 over five years is also payable in shares.
2Roughly an 89% fall from the peak on record
$538 million in 2014 against a ">$60 million" forward guide for 2026. The qualification is important and is stated here rather than buried: this compares an actual to a guide, because no audited or company-confirmed revenue figure for any year from 2015 to 2025 could be located and the buyer disclosed no trailing revenue in the deal announcement, its year-end report or its Q1 2026 interim.
3The entire web estate now redirects to the buyer
Verified by direct observation on 29 July 2026: itworks.com, the distributor back office, the income-disclosure page at myitworks.com/Legal/Income/ and individual distributors’ replicated storefronts all return an HTTP 302 to the acquirer’s US site. A distributor’s own storefront URL now delivers visitors to a generic homepage that does not credit them.
4The compensation plan participants signed up for has been retired
The only current US plan on the acquirer’s public file library is its own, versioned 10-04-2026 - issued after the acquisition. It is a different structure, a hybrid binary rather than a unilevel, with a different qualification metric: personal customer points rather than volume. The legacy plan PDF still resolves on the old static file host, but the domain that served the enrollment funnel to it is gone.
5No migration, conversion or grandfathering document exists publicly
Neither company has published terms for how legacy rank, genealogy position or residual income convert. Rank re-mapping therefore happens at the acquirer’s discretion rather than by contract. The migration is inferred here from live-domain behavior and plan versioning, not from any published term sheet - and that inference is exactly the problem.
6No income disclosure statement for the three most recent full years
The last one located anywhere is 2022, and its canonical page now redirects. No 2023, 2024 or 2025 statement was found on the static file host, in search, or on the acquirer’s US site, and the acquirer does not appear to publish a US income disclosure statement at all.
7No median has ever been published, in any year
Every statement gives average, high and low and never a median. With a $15,441 high sitting inside the bottom rank, the published average systematically overstates the typical outcome. No published It Works! figure should ever be described as a median, and this report does not do so.
8Entry-rank gross income sits inside the cost of staying qualified
$87 a month at the rank where 85.13% of distributors sat is $1,044 a year gross, against a modeled $795–$1,315 to hold the $35 renewal and the 80 BV autoship. The company states explicitly that expenses are not deducted and can be several hundred or thousands of dollars annually.
9A Better Business Bureau pattern-of-complaints alert, live on two profiles
The verbatim text - "Business has failed to resolve underlying cause(s) of a pattern of complaints" - was displayed on both live profiles on 29 July 2026, each rated C+ and neither accredited. This is a private ratings body’s finding, not a regulator’s: no legal force, no penalty. The signal is not volume - 34 complaints in three years is low for the claimed distributor base - but recurrence, and the BBB does not publish a date for the alert.
10Recruitment-triggered cash bonuses in both the old plan and the new one
Legacy: Diamond Bonuses of $80, $40, $15, $10 and $5 paid up five upline ranks, triggered by a new distributor enrolling with the Business Builder Kit, enrolling two Loyal Customers and hitting 150 PBV or an 80 BV autoship within 30 days. Current: $1,840 of the $2,875 Fast Start - 64% - is paid for enrolling Partners with Ultimate Kits and for those Partners doing the same.
11A documented gap between the written policy and the observed practice
The policies ban income claims, lifestyle claims and unapproved testimonials. In October 2019 a self-regulatory monitoring inquiry documented distributors promoting six-figure incomes, unlimited income potential, retirement inside two years and before-and-after photos showing weight loss within 12 to 48 hours. In April 2020 the FTC quoted the company’s own corporate social accounts - not rogue distributors - on a $15,000 bonus and on earning $500 a month.
12GLP-1 medicines are compressing this category structurally, not cyclically
The medicalisation of weight loss is reshaping a market repeatedly sized at around $135 billion. A consumer who would once have bought a $55 wrap or a $45 thermogenic now has a pharmacologically effective, physician-supervised alternative. This is not a company-specific failing - it is category-wide, and it is the most important forward-looking fact in this file.
13Mandatory arbitration with an express class-action waiver
Plus a six-month post-cancellation non-solicitation covenant and a blanket prohibition on speaking to any media source. A participant with a grievance cannot aggregate it, cannot litigate it and cannot publicise it.
14The repurchase obligation is worded around kits, not inventory
The policies commit to repurchasing resalable kits from a terminating distributor. Accumulated autoship product - the inventory the 80 BV monthly requirement actually creates - is not covered by that wording. The statutory refund rights in Maryland, Montana, Louisiana, Massachusetts, Wyoming and Puerto Rico are broader than the company’s own general policy.
15The buyer has expressly reserved the right to cull the product line
Its chief marketing officer has said the group will evaluate which of the acquired products suit its test-based nutrition strategy, with the review run on quality, regulatory compliance and revenue potential. The acquirer’s core identity is blood-test-based nutrition, which is a fundamentally different proposition from a topical body wrap. The It Works! range currently survives as a brand-shop category inside somebody else’s catalog.

Green flags

9
1A self-regulatory body substantiated one core product claim
In its 2019 monitoring inquiry the Direct Selling Self-Regulatory Council examined the study behind ThermoFight X and found it satisfactorily conducted, producing reliable, statistically significant results - requiring only that future claims clearly and conspicuously disclose that subjects followed a strict diet and exercise regimen. That is more evidentiary support than most weight-loss direct-selling products carry, and it should not be buried.
2The wrap claims were not found false
The same inquiry described the depicted body-wrap results as very modest and therefore acceptable, recommending only that results be disclosed as temporary and that the two component products are sold separately. That is a mixed finding, and the fair reading is small, real-ish and temporary - not fabricated.
3Twenty-five years founder-owned, and described throughout as debt-free
The business started in April 2001 and stayed in the founding family until January 2026. No private-equity ownership, minority stake or recapitalisation could be found at any point, and the trade-press description of the company as debt-free argues against one having occurred. No regulatory action, fraud judgment or criminal proceeding against either founder was located anywhere.
4A low entry price, a low renewal, and cancellation at any time
$35 a year to renew, a kit reported in the $99–$199 range, and a contractual right to cancel at any time in writing for any reason. There is no high-ticket entry, no licensing fee and no five-figure mastermind. Statutory buyback rights apply in Maryland, Montana, Louisiana, Massachusetts, Wyoming and Puerto Rico.
5A genuinely strict written compliance policy
A blanket ban on disease claims, mandatory written pre-approval of testimonials, prohibition of specific income amounts, ranges, hypothetical examples and lifestyle claims, a mandatory income-disclosure handover, an explicit bonus-buying prohibition and a 70% rule barring reorders until the previous order is sold or used. The paper is strong; the criticism in this report is about enforcement, not drafting.
6A real non-distributor customer class existed
The Loyal Customer program created a wholesale-priced buyer class with rank credit flowing from having them, and at peak the company claimed over a million recurring customers. The three-month lock-in is a genuine weakness - it generated exactly the cancellation complaints on the BBB file you would predict - but a company with a large repeat customer base is materially better placed on the Koscot question than one without.
7It published unusually granular income disclosures for many years
Per-rank high, low and average income, rank distribution across all and active distributors, and months-to-rank data, with the gross-not-net caveat stated explicitly. The numbers were poor and the absence of a median is a real flaw, but publishing this much detail was above the industry floor for the years it was done.
8The parent is listed, audited and reports quarterly
Financial opacity drops materially against a private founder-owned seller: group revenue, margin and net profit are now disclosed on a quarterly cycle and the acquisition sits in audited accounts. This is a real transparency improvement on what came before, even though the parent does not break out It Works! separately or publish a US income disclosure.
9The acquirer’s plan is more customer-anchored than the legacy plan
Monthly activation under the current US plan requires four personal customer points rather than self-purchase volume, and the customer-career ladder pays a rising direct-sale rate from 10% to 30% as personal customer counts grow. On Koscot grounds that is a structural improvement - which is why this section says so, notwithstanding the recruitment-weighted Fast Start alongside it.
What would move this grade

We would like to be wrong about this

Upward

  • Publication of a migration document specifying exactly how legacy rank, genealogy position and residual income convert into the current plan, with any grandfathering terms stated - the single largest available upgrade, because it is the absence that caps this grade.
  • A current US income disclosure statement covering 2025 or 2026 under the new ownership, ideally with a median, a net-of-expenses figure and a cohort-based first-year retention and earnings breakdown, plus a disclosed customer-to-distributor ratio.
  • Resolution of the Better Business Bureau pattern-of-complaints alert with the rating moving into the A range on either profile, alongside a dismissal or defense verdict in the July 2023 misclassification action with the docket public.

Downward

  • Discontinuation or material culling of the It Works! product line by the acquirer - already expressly reserved in its chief marketing officer’s statement that the group will evaluate which acquired products suit its strategy.
  • Evidence that legacy distributors lost rank, residuals or genealogy position in the migration without compensation, or failure of the five-year earn-out or a write-down of the acquisition in the parent’s audited accounts.
  • Any FTC, state attorney general or foreign regulator enforcement action as distinct from the 2020 warning letter, class certification in the misclassification action, or continued non-publication of an income disclosure into 2027.
The better trade

Grade is D−. Real product substantiation on one item and a genuinely cheap entry, attached to a business that fell roughly 89% from peak, sold for $30 million of stock, and whose current terms are not published anywhere.

Start with what is actually good, because it is real and it is unusual. In 2019 a self-regulatory body examined the substantiation behind the ThermoFight X weight-loss claim and found the underlying study satisfactorily conducted, producing reliable, statistically significant results - asking only that future claims disclose that subjects followed a strict diet and exercise regimen. In the same decision it declined to call the body-wrap claims false, describing the depicted results as very modest and acceptable and asking that they be labeled temporary. The company was founder-owned for twenty-five years, consistently described as debt-free, with no private-equity recapitalisation traceable and no regulatory action, fraud judgment or criminal proceeding against either founder anywhere. The entry economics were mild by the standards of this industry: a kit reported at $99 to $199, a $35 annual renewal, cancellation at any time in writing, statutory buybacks in six jurisdictions, an express bonus-buying ban and a 70% rule. None of that is window dressing.

The economics of participating are where it turns. The 2022 income disclosure - the last one that exists anywhere - puts 85.13% of all distributors at the entry rank, where the average monthly gross was $87 and the low was $1. Annualised that is $1,044, against a modeled $795 to $1,315 a year to hold the $35 renewal and the 80 BV monthly autoship, before samples, events, travel or advertising. The company says in terms that its figures are gross before any expenses are deducted and that expenses can run to several hundred or thousands of dollars annually; its own 2015 commentary put them at roughly $1,000 against $937 of average gross income. No median has ever been published, and with a $15,441 high sitting inside the bottom rank the average is not a safe proxy. In the 2019 self-regulatory proceeding the company’s own regulator-facing figure was an average distributor earning $51 a month. Ambassador Diamond, where the headline incomes live, is 0.14% of all distributors and takes on average forty-eight months to reach.

And then the file simply stops. On 26 January 2026 the business was sold for USD 30,000,000 in shares, no cash, with a five-year earn-out also in paper, against a buyer guide of over USD 60 million of additional revenue - roughly half of one year’s forward sales for the brand, the IP, the inventory, the distributor agreements, the customer agreements and both databases. By 29 July 2026 itworks.com, the back office, the income-disclosure page and individual distributors’ replicated storefronts all returned an HTTP 302 to the acquirer’s US site, verified directly here. The only current US compensation plan on file is the acquirer’s, versioned after the acquisition, built on a different structure and a different qualification metric. Neither company has published a migration, conversion or grandfathering document. Equity research on the first quarter inside the group noted the contribution from acquisitions seemed lower than modeled. So a person considering this today would be joining an opportunity whose rules are unpublished, whose payout has not been disclosed since 2022, and whose product category is being compressed by GLP-1 medicines. That is the cap, and it is why the grade sits a band below its arithmetic.

1

Buy the one product with real substantiation, as a customer

If the thermogenic is what you actually want, it is now available from the acquirer’s brand shop like any other consumer good - no kit, no $35 renewal, no 80 BV autoship, no qualification month and no rank. That is the honest version of this relationship for almost everyone who currently holds a distributorship for the discount. The one claim in this range that an independent body examined and did not find empty is a claim about a product, not about an opportunity.

2

Before enrolling, ask for the migration terms in writing

Ask whoever is recruiting you three questions and get the answers in a document: which compensation plan governs the account you are being asked to open; what happens to rank, genealogy position and residual income earned under the legacy plan; and where the current income disclosure statement is published. If the answer to the third is a 2022 PDF whose canonical page redirects, you have learned what you need to know. A plan you cannot read is a plan you cannot underwrite.

3

Do the $87-against-$795 sum before you sign anything

Both sides of it are on the record. $87 a month gross at the rank where 85.13% of distributors sat, against $795 to $1,315 a year to stay qualified - and the company states that expenses are not netted. The question is not whether anyone can win; 0.14% reached the top rank and took four years to do it. The question is what specific reason you have to believe you are not the modal participant. Write it down and be honest about whether it is a plan or a hope.

4

Sell into the category without the plan

Search demand around weight management, GLP-1 side effects, protein and fibre intake, and what body wraps actually do is enormous and rising, and almost none of it is well served. Honest, sourced comparison content - including on the temporary-results finding, which a distributor is contractually restricted from discussing freely - is a merchant business with genuine demand. It requires no kit, no renewal, no monthly volume, no arbitration clause, and no permission to speak to a journalist.

The last income disclosure that exists shows $87 a month gross at the rank where 85.13% of distributors sat, against roughly $795 to $1,315 a year to stay qualified. It is four years old, and the plan behind it has been retired.
Scorecard

Nine dimensions, weighted

Comp structure & KoscotDoes the plan pay for recruitment or for sales to real customers?
20%
4.0
Two plans have to be graded because the participant’s position moved between them. The legacy plan paid a workable unilevel - 10% on levels one and two, 5% on three to five, with a 5% enroller bonus that paid on personally enrolled Loyal Customers as well as distributors - but its cash triggers were recruitment-shaped: a $100 Fast Start for enrolling a distributor who qualifies inside 30 days, and Diamond Bonuses of $80, $40, $15, $10 and $5 paid up five ranks whenever a new distributor enrols with the Business Builder Kit and hits 150 PBV or an 80 BV autoship within 30 days. The current plan is the acquirer’s: activation on 4 personal customer points rather than self-purchase volume, which is a genuine structural improvement, but $1,840 of its $2,875 Fast Start - 64% - is paid for enrolling Partners with Ultimate Kits and for those Partners doing the same.
Securities exposureAny passive return on capital? Howey, staking, tokens, withdrawal friction.
15%
8.0
No investment contract, no passive-return promise, no token, no staking and no equity or securities offering to participants could be located in any document reviewed. Compensation in both the legacy and the current plan is paid on product movement, and no securities regulator has ever been involved with the US business. The deduction from a clean score is narrow and it is about verification rather than suspicion: the only governing documents retrievable are the legacy ones - a 2015 statement of policies and procedures and a 1 March 2024 distributor agreement - and whether the acquirer has issued replacement US terms to former It Works! distributors is unknown. The absence of an investment-contract problem is confirmed against paperwork that may no longer be the operative paperwork.
Ownership & track recordWho runs it, what did they run before, and what happened to it.
15%
5.0
Twenty-five years founder-owned, consistently described in the trade press as debt-free, with no regulatory action, fraud judgment or criminal proceeding located against either founder anywhere. That is a materially better starting point than the category norm and it is why this score is not lower. Against it: control passed to a foreign listed parent in January 2026 for stock at roughly half of forward revenue, the founder’s continuing title is a brand-continuity role rather than a control position, and the Florida corporate filings confirming who now holds the officer and registered-agent positions could not be retrieved. The 2015 purchase of a $14.5 million private island, during the years the disclosure commentary put distributor expenses at roughly $1,000 a year against $937 of average gross income, is context a participant is entitled to weigh.
Product reality & demandWould a rational buyer purchase this if no income offer existed?
12%
4.0
The best evidence in this file is on the product side and it should be said plainly. In its 2019 monitoring inquiry the Direct Selling Self-Regulatory Council examined the substantiation behind ThermoFight X and found the underlying Dulloo study satisfactorily conducted, producing reliable, statistically significant results - conditional on disclosing that subjects followed a strict diet and exercise regimen. It also declined to find the body-wrap claims false, describing the depicted results as very modest and acceptable while asking for a temporary-results disclosure. Against that: unadjudicated consumer complaints on the Better Business Bureau file report severe gastrointestinal problems, dizziness and elevated liver enzymes; the acquirer has expressly reserved the right to cull the range; and GLP-1 receptor agonists are structurally compressing the entire topical inch-loss and thermogenic category.
Participant economicsReal cost in, realistic money out, and whether they publish the numbers.
10%
2.0
The 2022 income disclosure is the last one that exists anywhere, and it is the reason for this score. It puts 85.13% of all distributors at the entry rank, where the average monthly gross income was $87 and the low was $1. Annualised, that is $1,044 gross against a modeled $795–$1,315 a year simply to stay qualified - the $35 renewal plus an 80 BV autoship - before samples, events, travel or advertising. The company states explicitly that its figures are gross income before any expenses are deducted and that expenses can be several hundred or thousands of dollars annually. No median is published in any year, and with a $15,441 high sitting inside the bottom rank the published average overstates the typical outcome. The company’s own regulator-facing figure in 2019 was $51 a month.
Price-to-valueWhat the same capability costs on the open market.
8%
3.0
The retail-to-member spread across the current catalog is roughly 30%, and that spread is also the ceiling on a participant’s retail margin at full price. The absolute prices are high: the Skinny Wrap at $78 retail and $55 member, a greens powder at $57 and $40, a collagen at $53 and $37, a shampoo at $47 and $33, coffee at $64 and $45. Third-party commentary puts the premium at two to three times comparable retail alternatives, which is secondary and uncorroborated but consistent with the list. The wrap has the clearest problem: the only independent adjudication of its claims described the results as very modest and asked that they be disclosed as temporary, which is a hard proposition to resell at $78 against a pharmacological alternative.
Payout sustainabilityCan the company fund the plan out of margin, or only out of inflow?
8%
4.0
The pool the plan is paid out of has collapsed. Revenue on record ran $27 million in 2010, $456 million in 2013 and $538 million in 2014; the buyer guides to over $60 million of additional revenue in 2026. That is roughly an 89% fall, and the honest qualification is that it is peak-to-guidance rather than peak-to-actual, because no audited or company-confirmed revenue figure for any year from 2015 to 2025 could be located and the buyer did not disclose trailing revenue in the deal announcement, the year-end report or the Q1 2026 interim. The clearing price is the other half of the picture: $30 million of paper, no cash, plus a five-year earn-out also in shares. Equity research on the first quarter inside the group noted that the contribution from acquisitions seemed lower than modeled.
Marketing conductIncome claims, regulator run-ins, hype, deadline stacking.
7%
3.0
The written policy is genuinely strict - a blanket ban on disease claims, mandatory written pre-approval of testimonials, prohibition of specific income amounts, earnings ranges, hypothetical examples and lifestyle claims involving cars, homes or vacations, and a requirement to hand a prospect the income disclosure statement whenever the business is presented. The observed compliance was not. In October 2019 the self-regulatory council documented distributors promoting six-figure incomes, unlimited income potential, retirement inside two years and before-and-after photos showing weight loss within 12 to 48 hours. In April 2020 the FTC quoted the company’s own corporate social accounts - not rogue distributors - on a $15,000 bonus and $500 a month. Two bodies, two consecutive years, documenting precisely the claims the policies forbid.
Operator terms & exitWho owns the customer, what you forfeit, how hard it is to leave.
5%
4.0
There are real credits here and they are unusual in this category: cancellation at any time in writing for any reason, a $35 annual renewal rather than a punitive one, a contractual repurchase obligation on resalable kits, and statutory refund rights in Maryland, Montana, Louisiana, Massachusetts, Wyoming and Puerto Rico. Against them: mandatory arbitration with an express class-action waiver, a six-month post-cancellation non-solicitation covenant, a repurchase commitment worded around resalable kits rather than accumulated autoship inventory, and a blanket ban on speaking to any media source. The decisive term is the one that does not exist. The plan a participant signed has been retired and no migration, conversion or grandfathering document has been published by either company, so the current terms are simply not on file.
Weighted composite
4.40
D-

Dimension profile

Further from center is better. Hover any point.

Comp structure& Koscot 4.0 Securitiesexposure 8.0 Ownership &track record 5.0 Product reality& demand 4.0 Participanteconomics 2.0 Price-to-value 3.0 Payoutsustainability 4.0 Marketingconduct 3.0 Operator terms& exit 4.0

Hard caps that bind here

Cap at D− the terms of the opportunity a person would be joining today are not published anywhere. The weighted arithmetic across the nine dimensions lands at 4.40, which is a D band. This report publishes one band lower because two absences compound into a single disqualifying gap. First, the compensation plan participants signed was retired rather than merged: the only current US plan on file is the acquirer’s, versioned 10-04-2026, a different structure with a different qualification metric, and neither company has published a migration, conversion or grandfathering document saying what a legacy rank, genealogy position or residual stream converts into. Second, no income disclosure statement has been publicly located for 2023, 2024 or 2025, the 2022 statement’s canonical page now redirects, and the acquirer does not appear to publish a US income disclosure at all. A grade is an assessment of a stated bargain. Here neither the rules nor the payout of the current bargain are on the record, and an opportunity whose terms are undocumented cannot be graded above the floor of its arithmetic band.
Cap at C the modal participant was structurally loss-making on the company’s own last published numbers. The 2022 disclosure puts 85.13% of all distributors at the entry rank with an average monthly gross of $87 - $1,044 a year - against a modeled $795–$1,315 a year in renewal and autoship simply to stay commission-qualified, with the company stating in terms that its figures are gross before any expenses are deducted and that expenses can run to several hundred or thousands of dollars annually. No median is published in any year, and a $15,441 high inside the bottom rank pulls the average upward. No score elsewhere lifts a file above the C tier when the operator’s own document shows the typical participant’s gross income sitting inside the cost band required to earn it.

The lowest binding cap wins, regardless of the weighted arithmetic.

Sources consulted

What we read

Every source below links to the document itself. Tier 1 is a primary record - the company’s own plan, policy or disclosure, a court filing, a regulator’s decision or an SEC filing. Tier 2 is a self-regulatory or secondary regulator record, tier 3 reporting or academic work, tier 4 an open-market price comparison. Where a document can be moved or withdrawn, an archived copy is linked beside it. If a link is dead when you try it, that is a correction we want.

  1. It Works! 2022 Income Disclosure Statement, United States (PDF, chart-income-disclosure-2022-color-US-EN)
    Income disclosureTier 1It Works! Marketing, Inc. · 2022archived copy

    It Works! 2022 Income Disclosure Statement (chart-income-disclosure-2022, US EN) - 85.13% of all distributors at the entry rank; entry-rank high $15,441, low $1, average $87 a month; per-rank averages from $407 at Executive to $23,226 at Ambassador Diamond; Ambassador Diamond 0.14% of all distributors at an average 48 months to reach; 4.50% receiving zero income; average monthly income across all distributors $304; income stated as gross before any expenses are deducted, with expenses described as potentially several hundred or thousands of dollars annually

  2. It Works! income disclosure landing page (myitworks.com/Legal/Income/)
    Income disclosureTier 1It Works! Marketing, Inc.archived copy
  3. It Works! 2021 Income Disclosure Statement, United States (PDF, chart-income-disclosure-2021-us-en-001)
    Income disclosureTier 1It Works! Marketing, Inc. · 2021archived copy

    It Works! 2021 Income Disclosure Statement - entry rank 85.24% of all distributors, average $57 a month, low $1; 3.63% earning nothing; average monthly income across all distributors $202; identical gross-not-net and expense language, supplying the year-on-year trend

  4. It Works! Marketing, Inc. United States Compensation Plan, document reference cmp-compplan-us-en-009 (PDF)
    Compensation planTier 1It Works! Marketing, Inc.archived copy

    It Works! Compensation Plan (doc ref cmp-compplan-us-en-009) - commission qualification via Business Builder Kit, 150 PBV or an 80 BV monthly autoship; unilevel at 10% on levels 1–2 and 5% on levels 3–5; 5% enroller bonus on personally enrolled distributors and Loyal Customers; $100 Fast Start; Diamond Bonuses of $80/$40/$15/$10/$5 up five ranks; generational overrides from Diamond upward; Loyal Customer three-month autoship and the $600 monthly Loyal Customer Bonus at 60 customers plus 3,000 PBV; rank maintenance volumes from 4,000 GV at Ruby

  5. It Works! Marketing, Inc. United States Compensation Plan, later document reference cmp-compplan-us-en-019 (PDF)
    Compensation planTier 1It Works! Marketing, Inc.archived copy
  6. It Works! Independent Distributor Agreement Terms & Conditions, United States, version 1 March 2024
    Policies & proceduresTier 1It Works! Marketing, Inc. · 2024-03-01archived copy

    It Works! Distributor Agreement Terms and Conditions, United States, version 1 March 2024 - §2.4 the $35 annual renewal due on the anniversary with automatic cancellation after 30 days; §3.6.4 the income-claims prohibition and the single exception for posting actual weekly bonus emails; §15 cancellation at any time in writing for any reason

  7. It Works!® United States Statement of Policies and Procedures, effective 21 July 2015 (PDF)
    Policies & proceduresTier 1It Works! Marketing, Inc. · 2015-07-21archived copy

    It Works! US Statement of Policies and Procedures, version 21 July 2015 - the prohibition on selling through blogs, chat rooms, social networks and online forums; replicated-website-only web presence; the media-contact prohibition; disease-claim ban and mandatory testimonial pre-approval; the 70% rule; the bonus-buying prohibition; §7.3 resalable-kit repurchase; §8.5 arbitration and §8.9 class-action waiver; state-mandated refunds in Maryland, Montana, Louisiana, Massachusetts, Wyoming and Puerto Rico

  8. FTC warning letter to It Works! Marketing, Inc., 24 April 2020 (PDF)
    RegulatorTier 1United States Federal Trade Commission · 2020-04-24archived copy

    FTC warning letter to It Works! Marketing, Inc., 24 April 2020, and the accompanying FTC press release on the multi-level-marketing warning-letter sweep - quoting the company’s own corporate accounts ("earning $500 a month", "she earned herself that $15,000 bonus") and distributor posts, and requiring both to cease all express and implied earnings claims immediately with a response within 48 hours; no enforcement action, complaint, consent order or civil penalty located

  9. FTC legal library entry - Warning Letter to It Works Marketing, Inc.
    RegulatorTier 1United States Federal Trade Commission · 2020-04-24archived copy
  10. FTC press release, “FTC Sends Warning Letters to Multi-Level Marketers Regarding Health and Earnings Claims They or Their Participants Are Making Related to Coronavirus,” 24 April 2020
    RegulatorTier 1United States Federal Trade Commission · 2020-04-24archived copy
  11. FTC business-guidance blog, “New FTC warning letters cite unsupported Coronavirus-related health and earnings claims,” April 2020
    RegulatorTier 1United States Federal Trade Commission · 2020-04archived copy
  12. DSSRC Case #7-2019 - Monitoring Inquiry, It Works! (decided 30 October 2019)
    Self-regulatoryTier 2BBB National Programs, Direct Selling Self-Regulatory Council · 2019-10-30archived copy

    Direct Selling Self-Regulatory Council Case #7-2019, monitoring inquiry, decided 30 October 2019 - the ThermoFight X substantiation found satisfactorily conducted with reliable, statistically significant results subject to a strict-diet-and-exercise disclosure; body-wrap results found very modest and acceptable subject to a temporary-results disclosure; earnings testimonials found materially misleading against an average distributor earning $51 a month; the company denying any violation and citing a robust compliance program

  13. IT Works! Global, Inc. - BBB Business Profile, Palmetto, Florida (file 0653-90096201)
    Self-regulatoryTier 2Better Business Bureau serving West Floridaarchived copy

    Better Business Bureau profiles 0653-90096201 (BBB of West Florida, file opened 25 April 2011) and 0107-1294562 (BBB Serving Central Ontario, file opened 16 May 2013), both at 908 Riverside Drive, Palmetto, Florida, checked 29 July 2026 - pattern-of-complaints alert live on both, C+ rating, not accredited, 34 complaints in three years and 5 closed in twelve months; complaint themes covering billing and cancellation, efficacy, adverse reactions including elevated liver enzymes, refund delays, and undisclosed three-month subscription lock-in; no posting date published for the alert

  14. It Works Global - BBB Business Profile, file 0107-1294562 (BBB Serving Central Ontario)
    Self-regulatoryTier 2Better Business Bureauarchived copy
  15. IT Works! Global, Inc. - BBB complaints detail (file 0653-90096201)
    Self-regulatoryTier 2Better Business Bureau serving West Floridaarchived copy
  16. Zinzino AB (publ) Year-End Report 2025 (PDF) - records the 26 January 2026 It Works! asset acquisition, USD 30m in 1,843,840 B-shares at SEK 145.62, USD 4m earn-out and the USD 60m+ 2026 revenue estimate
    Company documentTier 1Zinzino AB (publ) · 2026-02archived copy

    Acquirer’s Year-End Report 2025 and acquisition releases of 26 January 2026 (PR Newswire and Cision), plus its Q1 2026 interim report and third-party equity research on that quarter - deal entered and closed 26 January 2026; asset purchase of the US business plus 100% of the Irish international company; USD 30,000,000 fixed price settled in 1,843,840 B-shares at SEK 145.62 with no cash; earn-out to USD 4,000,000 over five years in shares; dilution 4.83% of shares and 2.24% of votes; guidance of over USD 60 million of additional 2026 revenue; "not yet achieved full synergy effects"; research noting the contribution from acquisitions seemed lower than assumed

    Not established by this document: The third-party equity research note on the acquirer’s Q1 2026 (the “contribution from acquisitions seemed lower than assumed” observation) could not be located at a public, non-paywalled URL; the acquirer’s primary reports and the acquisition releases are cited instead.

  17. Zinzino AB (publ) press release, “Zinzino announces merger of It Works! into the Zinzino family of businesses,” 26 January 2026 (Cision)
    ReportingTier 1Zinzino AB (publ) via Cision · 2026-01-26archived copy
  18. Same acquisition release distributed via PR Newswire, 26 January 2026
    ReportingTier 1Zinzino AB (publ) via PR Newswire · 2026-01-26archived copy
  19. Zinzino AB (publ) Interim Report Q1 2026 (PDF)
    Company documentTier 1Zinzino AB (publ) · 2026-05archived copy
  20. Zinzino AB (publ) Annual Report 2025 (PDF)
    Company documentTier 1Zinzino AB (publ) · 2026archived copy
Unable to verify

What we could not get

  • It Works! revenue for any year from 2015 to 2025 - no audited, company-confirmed or buyer-disclosed figure exists, so the roughly 89% decline in this report is peak-to-forward-guidance rather than peak-to-actual and is labeled as such throughout
  • The current active distributor count - the widely repeated "over 150,000" figure is undated, company-supplied trade-press content, and no active-seller count from any period after 2015 could be verified; a count that rises while revenue collapses usually describes a cumulative enrollment roster rather than active sellers
  • Whether distributors were migrated or grandfathered, and on what terms - no migration, conversion or grandfathering document from either company was located, and no company statement confirms whether the two plans were merged or the legacy plan simply retired; the conclusion here is inferred from live-domain behavior and plan versioning
  • Any income disclosure statement for 2023, 2024 or 2025; the median earnings figure in any year, which the company has never published; and any net-of-expenses earnings figure, which the company explicitly does not calculate
  • The distributor kit price - the $99–$199 range comes from a single secondary review and appears in no company document; the plan and policies reference a Basic Kit and a Business Builder Kit without pricing either. The BV-to-dollar ratio in the legacy plan and the credits-to-dollar ratio for kits in the current plan are likewise unpublished, so every autoship figure here is modeled
  • The docket number, court, certification status and outcome of the July 2023 independent-contractor misclassification class action, and the substance and outcome of It Works Marketing, Inc. v. Martin (M.D. Fla. 8:24-cv-00329, filed 2 February 2024, an arbitration matter with the company as plaintiff) - no characterisation of either is offered here beyond the fact that they were filed
  • The date the Better Business Bureau pattern-of-complaints alert was posted or last updated - the BBB displays no date on either profile and archived snapshots were unreachable, so this report states only that the alert is currently displayed
  • Private-equity involvement at any point, which was searched for and not found; event and convention costs, for which no pricing schedule exists; Trustpilot ratings, both profiles returning 403 to automated retrieval; Florida corporate filings confirming post-acquisition officers and registered agent; and whether the acquirer has issued replacement policies and procedures to former It Works! distributors - the most recent policies located are dated 21 July 2015

Not advice

This is independent analysis for decision-making, not legal, financial or investment advice. Allegations reported by third parties should be verified against primary court and regulatory records before any decision.

Who writes this

Researched by Claude. Reviewed by an editor.

Every report is researched and written by Claude, Anthropic’s AI assistant, from the company’s own plan documents, policies, terms and regulatory file - then reviewed before publication by Rob Fore, who checks the sources and the stage-label on every allegation.

  • Nine weighted dimensions, published with their weights
  • The editor checks the evidence and cannot change the number - the build rejects any page whose grade does not reconcile to its own arithmetic
  • Every affiliate position we hold is disclosed on the report it touches
  • No company has paid for a grade, and no report carries an affiliate link
Read the About page

Looking at something else?

Enter any company name or website. If a report exists it opens instantly; if not, we start one.

Try:
Common questions

It Works! - frequently asked

QIs It Works! still in business in 2026?
The brand exists; the independent company does not. On 26 January 2026 the business was sold in a deal entered and closed the same day - an asset purchase of the US operation plus 100% of the Irish international company - to a listed European direct seller, for USD 30,000,000 settled entirely in newly issued shares with no cash, plus an earn-out of up to USD 4,000,000 over five years also payable in stock. Verified by direct observation on 29 July 2026, itworks.com, the distributor back office, the income-disclosure page and individual distributors’ replicated storefronts all return an HTTP 302 redirect to the buyer’s US site. The product range survives as a brand-shop category inside the buyer’s catalog, under the buyer’s checkout. The founder retains the title of President and Founder, but the operating decisions - compensation plan, product portfolio, back office - now sit with the parent.
QHow much do It Works! distributors actually earn?
The last income disclosure statement that exists anywhere is for 2022, and its canonical page now redirects to the buyer. It shows 85.13% of all distributors at the entry rank, where the average monthly gross income was $87 and the low was $1 - roughly $1,044 a year. Against that, holding the $35 annual renewal and the 80 BV monthly autoship costs a modeled $795 to $1,315 a year, before samples, events, travel or advertising. The company states explicitly that its figures are gross income before any expenses are deducted, and that expenses can be several hundred or thousands of dollars annually. No median is published in any year, and with a $15,441 high sitting inside the bottom rank the average overstates the typical outcome. The top rank, Ambassador Diamond, is 0.14% of all distributors and takes an average of 48 months to reach. No disclosure has been published for 2023, 2024 or 2025.
QIs It Works! a pyramid scheme?
No court or regulator has found it to be one, and no FTC enforcement action, complaint, consent order or civil penalty against the company could be located. The products are genuine consumables with an independent customer base - at peak the company claimed over a million recurring customers - and a self-regulatory body examined the substantiation behind one weight-loss product in 2019 and found the underlying study satisfactorily conducted with reliable, statistically significant results. The structural criticisms are specific and they are about where the cash bonuses point. Under the legacy plan, Diamond Bonuses of $80, $40, $15, $10 and $5 were paid up five upline ranks whenever a new distributor enrolled with the Business Builder Kit, enrolled two Loyal Customers and hit a volume threshold within 30 days. Under the current plan a participant would join today, $1,840 of the $2,875 Fast Start - 64% - is paid for enrolling Partners with Ultimate Kits and for those Partners doing the same.
QWhat happened to It Works! distributors after the acquisition?
This is the gap that drives the grade, and it should be stated as a gap rather than as a finding. Neither company has published a migration, conversion or grandfathering document. What is verifiable is that the legacy compensation plan appears to have been retired rather than merged: the only current US plan on the buyer’s public file library is its own, versioned 10-04-2026 and therefore issued after the acquisition, built on a hybrid binary structure and qualifying participants on personal customer points rather than on volume. That change of metric matters, because a builder whose volume came from a downline’s autoship rather than from personal customers can be stranded by it. Rank re-mapping happens at the acquirer’s discretion rather than by contract, residual streams tied to legacy generational bonuses have no guaranteed equivalent, and the buyer’s Q1 2026 interim report disclosed no distributor counts, no attrition data and no compensation-plan commentary.
QWhat is the FTC warning letter and the BBB rating about?
They are two different things at two different stages and neither should be overstated. On 24 April 2020 the FTC sent It Works! Marketing, Inc. a warning letter as part of its COVID-era sweep of multi-level marketers, quoting earnings claims from the company’s own corporate social accounts - including "she earned herself that $15,000 bonus" - as well as from distributors, and requiring both to cease all express and implied earnings claims immediately, with a response within 48 hours. A warning letter is a compliance warning: not a complaint, not a consent order, not a civil penalty and not a finding of liability. Separately, both live Better Business Bureau profiles carried an alert on 29 July 2026 reading "Business has failed to resolve underlying cause(s) of a pattern of complaints," each rated C+ and neither accredited. The BBB is a private ratings body; its alerts carry no legal force and no penalty attaches. With 34 complaints in three years the signal is recurrence rather than volume.
Who wrote this report

Author, editor and publisher

C
Written by Claude AI
Reviewed by Rob Fore · Published by Listech Inc · July 29, 2026

This report was researched and written by Claude, Anthropic’s AI assistant, working from primary documents - It Works!’s own compensation plan, its policies and procedures, its terms of service, its income disclosure statement where one exists, and its regulatory and self-regulatory file. It was scored against nine weighted dimensions that are published in full, with their weights, on the methodology page.

Before publication it was reviewed by Rob Fore, who checks every source link, every figure against the document it came from, and every allegation against its stage-label - an investigation is not a finding, a warning letter is not an enforcement action, and a filed claim is not a verdict.

The editor does not set the grade. The published score is the weighted composite of the nine dimension scores, and the build refuses to emit a page where the two disagree by more than 0.06. A grade moves when the evidence moves it and not otherwise.

Rob Fore has marketed online since 1996, wrote Online MLM Marketing (2014), and is CEO of Listech Inc, the Nevada corporation that publishes this site. He holds affiliate positions in companies graded here - including LiveGood, which this site grades D, SendOutCards, which it grades C−, and the Home Business Academy, which it grades B−. Those positions are disclosed on the reports they touch, and changed nothing on this page.

About the author and our conflicts  ·  Contact the editor  ·  Corrections: corrections@opportunitygrade.com

Stay with it

Tell me if this grade changes

It Works! is graded D- as of July 29, 2026. Grades move when the evidence moves - a new income disclosure, a regulatory action, a rewritten compensation plan. Leave your address and you will get one email if this one does.

One email when the grade moves, and nothing else. We will never use your address to promote an income opportunity of any kind, we do not sell, rent or share the list, and it is stored on our own infrastructure rather than with any company graded here. Unsubscribe removes everything.

Right of reply

Corrections

Every factual claim on this page is sourced, and the ones we could not stand up are named in the unable to verify list above. If something here is wrong, we want to know, and we would rather hear it from It Works! than from a reader.

Write to corrections@opportunitygrade.com. Point at the specific sentence and send the document that contradicts it - a plan document, a filing, an income disclosure, a policy page. We will check it against the primary source, correct the page if it is wrong, and say in the report that it was corrected and when. A grade moves if the evidence moves it.

This address reaches a person, not a form. We do not require a takedown demand, an NDA or a lawyer to accept a correction, and we do not remove a report because a company disputes its conclusion - only because the underlying facts turn out to be wrong.

Other published reports

Every report is written to stand alone. Graded on the same nine weighted dimensions and the same six legal tests. Twelve of 107, spread across the grade bands.

See all 107 published reports →