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We looked at the actual complaints, the legal record, and the business model. Here is what the evidence shows.
Is Kajabi a Scam? The Honest Answer
We looked at the actual complaints, the legal record, and the business model. Here is what the evidence shows.
✓ Legitimate Company
No, Kajabi is not a scam. It's a legitimate SaaS company (course platform) founded in 2010 with a standard affiliate program. Unlike MLMs, there's no multi-level structure, no recruitment requirements, and no questionable business practices. It's used by thousands of course creators and has a solid reputation in the knowledge commerce industry.
⚠What “Scam” Actually Means
A scam, in the legal sense, means deliberate fraud: false promises made with no intention to deliver, money taken with no value provided, or outright deception about what you are buying.
Examples of actual scams: OneCoin (fake cryptocurrency, $4-25 billion stolen), BitConnect (Ponzi scheme with fake trading bots), or "work from home" schemes that take your money and disappear.
Most MLM complaints are about the business model being unfavorable, not criminal fraud. A bad business opportunity is not the same as a scam. Kajabi sells real products and operates legally.
What People Actually Complain About
Must be a paying Kajabi customer ($89-399/month) to join the partner program
Business Model Issue
12-month inactivity cliff requires 3 new referrals/year or you lose partner status
Legitimate Concern
60-day payout delay on commissions
Business Model Issue
High product price ($89-399/month) limits the target audience for referrals
Business Model Issue
New partners on tiered structure, not automatic 30% rate
Legitimate Concern
What the Legal Record Shows
No regulatory actions, FTC investigations, or fraud charges. Kajabi is a legitimate SaaS company that has operated since 2010. It's not an MLM and has never faced the pyramid scheme scrutiny that MLMs encounter.
Red Flags vs Normal Business Complaints
🚨 Actual Red Flags (Signs of Fraud)
- No real product or service being sold
- Guaranteed returns promised for no work
- Anonymous founders or unverifiable company info
- Money comes only from recruiting others
- Unregistered with financial regulators
⚠ Business Model Complaints (Not Fraud)
- Low per-customer residual makes income difficult
- Monthly purchase requirements to stay qualified
- Upline income claims do not match typical results
- Products priced higher than retail alternatives
- Most participants earn little or nothing
Kajabicomplaints fall into the “business model” category, not fraud. They sell real products legally. Whether it is a good opportunity is a separate question.
Our Verdict
Kajabi is not a scam — it's a legitimate software company with a standard affiliate program. The complaints are about business model choices (subscription requirement to be a partner, inactivity cliff, payout delay), not fraud. At $26-120/month per referral with no recruitment requirements, it's actually a stronger income opportunity than most MLMs.
Related Resources
Full company review with pros, cons, and ratings.
Per-customer residual, team size needed, and key gotchas.
Contract fine print: non-competes, termination clauses, and more.
The pyramid scheme question answered with actual definition.
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