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Thursday, May 22, 2008 

Xocai MLM Business - Opportunity Or Scam?

Xocai (or MXI Corporation) has attracted much publicity for their healthy chocolate beverage. They purport to have many scientific reports verifying the quality and effectiveness of their chocolate. They have also positioned themselves as an income opportunity, as Xocai is a network marketing business.

There are some very real concerns and issues about starting or participating in a Xocai business. In this article, I will provide an unbiased review of the pros and cons of developing a business with Xocai, and see if we can find out whether Xocai is a great opportunity...or a great scam.

1. Xocai - The Good

Xocai was founded by Andrew and Jeanette Brooks. The first thing that stands out is the name (Zokay? Zoky?). It is actually pronounced "show-sy", and derives its meaning from two words: xoclatl, which is an Aztec word for chocolate, and acai, which is a potent antioxidant fruit. Put them together and what do you get? Evidently, a tough-to-pronounce chocolate beverage.

The beverage itself is reported to be quite tasty, and chock-full of antioxidants. The health benefits are said to include greater energy, more restful sleep, relief from arthritic pain, reduced inflammation, and even aid in insulin regulation in diabetics. Considering the level of health of the average American, and with people living longer and longer, starting a business marketing what could be considered a "healthy vice" would seem to be a smart move.

2. Xocai - The Bad

Xocai distributors are paid out commissions via a binary compensation plan that supposedly pays out up to 50% on total volume. Good luck trying to prove that - the compensation plan itself is complicated enough to discourage and confuse an M.I.T. graduate.

For the product itself, MXI corporation recommends that you consume the chocolate 3 times daily. For people who love chocolate on tap, this is probably great news. However, if you enjoy sweets in more moderation, then you'll need to be prepared to hand some of it off to others.

Funny enough, that is exactly how Xocai recommends you market the product. Hand it out to other people on your own dime via "tasting parties" or other social gatherings to feast on chocolate.

3. Xocai - The Ugly

Xocai is distributed through network marketing, and like many companies, they teach their distributors to leverage their "warm market" of friends and family to sell the chocolate. This is done with free samples and "sizzle calls" that explain how someone could make tons of money selling healthy chocolate.

The fact is, someone could absolutely make tons of money marketing healthy chocolate - if they know how to market effectively. Trying to build a six-figure income on the backs of friends, family, and work associates is more than just a tough sell - by leveraging your personal relationships for financial gain, you run the risk of actually damaging those relationships. Trying to "sell" and convince people on the legitimacy of your product and opportunity is much less fun and much less lucrative than talking to people that have already expressed a direct interest in what you offer.

In closing, I would say that starting and developing a Xocai business is lucrative if someone knows how to use the telephone, the Internet, and other effective marketing tools. It is not a scam, but like any business, success will be determined by the skill-set of the marketer. Xocai is definitely not a lottery ticket or a stock option - meaning, you do not just buy in and wait for a payout.

If someone does not have the first clue on how to market effectively, then I would suggest they either learn how to be an effective marketer, or else just use the chocolate drink as a health supplement.

This article can be freely published on a website as long as it is not modified in any way including the author bylines and active hyperlinks.

Joshua Fuson is a professional marketer, and has marketed dozens of different products and services. He has participated in the generation of over $14 million dollars of revenue in network marketing in past 4 years alone. To find out how, you can go... here

To learn more about growing a Xocai business, you can go to The Xocai Business Blueprint