Xocai: Can Healthy Chocolate Really Give You a Successful Business?

Xocai was found in May,2004 and is based in United States of America. The founder Jeanette Brooks also happens to be the founder of Pure De-lite products. The key products Xocai offers is Xocai active which is health drink chiefly developed from cocoa powder and various fruits. Xocai chocolates, protein bars and Xocai nuggets also form a major chunk of its products. The major products advertised along with their taglines are:

• Xocai Nuggets – “The Healthy Chocolate”
• Xocai Activ – “The Ultimate Active Lifestyle Antioxidant Beverage”
• Xocai Powerhouse Cookies – “The Healthy Snack”
• Xocai X Power Squares – “The Ultimate Antioxidant Treat”
• Xocai Omega Bar – “The Essence of Health”

Xocai in last few years has spread from US to Canada, New Zealand and Japan. It has now reached Australia too with its promises of multi layered compensation plans. The chocolates which offer a lot of benefits and are claimed to be helpful in weight loss also boast of a great taste. These chocolates are not available in shops but can only be purchased through the distributors. But it is not the chocolate but the networking plans and the huge promises that have generated more interest in the company over years. Google search results a variety of opinions and a majority of them also raise question about the networking model and whether it resembles a pyramid structure which is not only a kind of scam but also illegal in most parts of the world. As the major promotion is done online and not much advertising or direct contact it has caused suspicions to be higher.
The Xocai compensation plan though clearly highlights its strategies and company makes it clear that it pays out 50 cents out of the every dollar earned to promoters and distributors and that is one of the reasons they state that it makes the entire idea extremely lucrative and rewarding. There are four ways in which one can be associated with the company and the enrolling fees and the perks associated differ accordingly.

The Xocai campaigners describe their entire strategy as “Multi level Marketing” which is completely different from a Pyramid Structure which is usually unsustainable. They employ this alternative marketing strategy which is completely different from time-tested traditional models. But this model also raises suspicion and has some similarities to the pyramid model in the ways the promoter has to pay a fees for joining and his commissions depends on the selling he/she makes or the newer clients they adds to the present structure.

For the entire strategy to work the product needs to have a huge market and even though healthy chocolates do form a niche segment, it would be too optimistic to think of them being a major market player in a short time considering the highly elastic and competitive market present in the developed nations it is targeting. For Xocai to be a completely successful model so that everyone ends up making some money the product have to speak for themselves and the demand needs to increase exponentially otherwise it would end up as those crumbled strategies where only few end up being richer and the majority ends up as the one just coughing up the commissions.

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