12 Tips to Avoiding Pyramid Schemes & Scams like MonaVie
Posted by Cap in Stop Buying Crap! |
While in the outhouse reading the latest issue of Forbes (free subscription from now defunct airline miles), I spotted an article highlighting the fast rising “multi-level marketing” company, MonaVie.
As a former moron who got suckered into a pyramid scheme back at the naive age of 18 (more on this in future post), my first impulse was to rip the pages apart and ignore the article, but the fear of paper cuts and lack of entertainment in the outhouse kept me reading.
I quickly realized that the authors of the Forbes article shared a similar view with me on MonaVie — if it smells like a pyramid scheme, looks like a pyramid scheme, sells like pyramid scheme — it’s a freaking pyramid scheme.
Based in Salt Lake City, Utah (the capital of multi-level marketing companies, where laws are more favorable to MLMs), MonaVie pitches $39 juices that “blends unequaled nutritional power with unparalleled business opportunity.” As a MonaVie indepdent distributor, you are required to purchase or sell at least four of these bottle per month ($130 before shipping and taxes) before to being able to earn commissions.
Sounds freaking wonderful.
If you or anyone you know are ever in a situation where you are presented with a business opportunity to sell some mystical product, consider the following tips below.
Eight tips from the FTC on evaluating a multi-level marketing program:
- Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.
- Beware of plans that ask new distributors to purchase expensive products and marketing materials. These plans may be pyramids in disguise.
- Be cautious of plans that claim you will make money through continued growth of your downline, that is, the number of distributors you recruit.
- Beware of plans that claim to sell miracle products or promise enormous earnings. Ask the promoter to substantiate claims.
- Beware of shills – “decoy” references paid by a plan’s promoter to lie about their earnings through the plan.
- Don’t pay or sign any contracts in an “opportunity meeting” or any other pressure-filled situation. Insist on taking your time to think over your decision. Talk it over with a family member, friend, accountant or lawyer.
- Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you’re considering – especially when the claims about the product or your potential earnings seem too good to be true.
- Remember that no matter how good a product and how solid a multilevel marketing plan may be, you’ll need to invest sweat equity as well as dollars for your investment to pay off.
Four additional tips from yours truly on spotting pyramid schemes:
- If a “business program” recruiters dismisses your questions because they were “negative” or “unhelpful,” wave the red flag and prepare to run. Fast.
- If the program and compensation plan is so confusing that the recruiter/promoter has trouble explain it clearly, you may be looking at a plan that’s trying very hard to skirt pyramid scheme laws.
- If the product has fanatic distributors who embrace the program’s product and marketing material as if it was the second coming of Christ, be wary.
- Ask yourself this: if whatever products they’re pitching is so wonderful that it justified the higher price tag, why are they being distributed through a multi-level marketing method? If it can “change lives;” “empower your health; and “raise your energy level;” why aren’t they sold through regular retail channel? Why “share” the profit and “dreams” for other independent distributors? Because these people have an underlying good heart to share wealth? Or is it because without a potential distributor and thousands of others, the products can’t be competitive in a real market? If the only ones buying and using the product are the distributors and “downlines,” you’re looking at a pyramid scheme.
Not all multi-level marketing programs are outright pyramid schemes where the business model is unsustainable. There are a few out there with competitive and reasonably priced products. But as the FTC tip said, even if the program is solid and the products are good — as with all worthwhile things in life — you’ll need to invest hard work and time.
- The Bottom Line About Multilevel Marketing Plans – FTC.gov
- MonaVie Scam? – LazyManAndMoney.com
- Climb to the Top – Forbes.com
41 Comments to “12 Tips to Avoiding Pyramid Schemes & Scams like MonaVie”
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August 11th, 2008 at 9:57 am
Ugh, those people drive me crazy. They can act so creepy too. Whenever someone at a book store or supermarkets starts up a conversation for no reason and begins to ask about whether or not I like to make money, I know right off the bat it’s one of these deals.
August 11th, 2008 at 11:23 am
I agree. I’m not a fan of these either. However, from your post:
“Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.”
What makes them “illegal”? Are there certain elements they must maintain to be legal?
August 11th, 2008 at 12:57 pm
Why are you in the outhouse instead of the penthouse? Maybe it’s because you are not in an MLM that millionaire Robert Kiyosaki endorses.
Your caption is “Stop buying crap!” Is that because you are sitting in an outhouse where the crap stays with you, instead of flushing your crap away in the penthouse?
Just trying to figure you out. So far it hasn’t been hard
August 11th, 2008 at 4:37 pm
The FTC has clear guidelines on what constitutes a pyramid; Monavie passes the test with flying colors.
Do you have a boss? Can you make more money than him? Do you have a management team with employees under them and customers under them? Then you are in the pyramid my friend. The MLM system has the potential for abuse, but it also has the potential for pure capitalism to compensate participants by sharing a product that works. The testimonials for this product are unprecedented because it works. $39? I don’t think so. I signed up three people and now I get the juice that solved a lifetime struggle with insomnia for FREE! Get it? By the way, can you show me another U.S. corporation that has gifted a $100,000 Mercedes for ALL its top sales producers? Doubt it. MLM didn’t work for you? No YOU didn’t work.
August 11th, 2008 at 5:15 pm
Miracle Juice? Gives new meaning to the phrase “drink the koolaid”.
August 11th, 2008 at 10:20 pm
I take exception with your generalization of MLM’s. I too have been involved in go nowhere “pyramids”. However, there are legitimate opportunities out there. For example…. a few months ago this internet guru was contacting me almost to point of harassment and I THANK HIM FOR IT DAILY!!! I have improved the health of my family with this MLM and I now have more money than I did by working a 40 hour work week and I do this all from the comfort of my home. Now I spend my days with my kids doing what I want to do. Don’t let anyone steal your dreams! Thanks Brendon. Thank you for all those obnoxious emails and thank you for not taking no for an answer!
August 12th, 2008 at 10:25 am
I think generalizing MLMs to say that they’re all scams might be harsh but you avoid a lot of scams if you do that, which is a good thing. So you throw out a couple good apples with the bad, but you don’t get scammed.
Anytime you are forced to buy something, it’s a scam.
August 13th, 2008 at 9:18 am
It’s a sad commentary on our education and society that we need twelve tips to figure this out. Less collective time drooling in front of TV/Xbox/Wii/PS etc might help.
August 14th, 2008 at 4:41 am
What about Arbonne Intn’l? What about the very convincing CD’s from Dr. Tom Barrett? I was convinced by the tapes but haven’t yet tried anything….is anyone out there familiar with either?
August 14th, 2008 at 6:28 pm
Why are there so many MLMs in Utah? It’s embarrassing. I’ll never forget the day a college roommate’s friend came over and i made her cry when I told her the $1000 she invested in Equinox (big MLM at the time) was a joke. Indeed she did learn the hard way. I lived in Utah for a long time, modern day version of snake oil sellers in my opinion – all of them!
August 19th, 2008 at 3:12 pm
MLMs are based in Utah?
I thought the only things in Utah were awesome skiing & the Mormon church?
This is news to me!
August 27th, 2008 at 12:26 am
I was the guy who made people part with the savings to buy soap to sit in their garages and spare bedrooms. I flew in a Lear Jet around the U.S. presenting multi-media extravaganzas that had people begging to give the company I worked for their cash so they could become distributors. I hired the Mormon Tabernacle Church to sing. I leased a DC-10 to fly top distributors on a joy trip. I literally watched in disbelief at the executives in this company (which, by the way was closed down by the D.A.’s in several states) laugh all the way to the bank. I hated myself for being a pawn in their sick games and at the ripe old age of 23, quit to get a real job. But I fell for this hype myself years later and bought into a scheme to sell homeopathic drugs …. and lost friends and my self-esteem in the process. So, I say, there is no fast way to riches. You must realize that this is a country where anything goes but it will not be worth your soul to sell it to your mother’s friends or your children’s parents. You have to live with yourself. There is not quick rich scheme without Karma.
August 27th, 2008 at 1:01 pm
“If the product has fanatic distributors who embrace the program’s product and marketing material as if it was the second coming of Christ, be wary.”
That’s the truth – I was a secretary at a Cutco office once and the sellers were downright fanatical! The knives were nice but not life altering.
September 7th, 2008 at 11:22 am
I have a deep dark secret. Sadly, my family has been victimized by such scams foisted upon us by people we knew and trusted. One day I shall talk about it in more detail.
September 11th, 2008 at 1:15 am
Would you consider Avon to be a MLM? I was a “independent eRep” for a short while and they required that reps purchase from them packs of Avon books and other sales materials. In the short time I was a rep, I didn’t earn any money, but I incurred a $170 debt buying crap, that I still haven’t payed off (don’t have the money) and they have closed my account so I can’t try to make sales to pay the money. Based on your points, it seems like a pyramid but..I’d like your opinion.
September 11th, 2008 at 1:18 am
Oh yea, my dist. mgr would always try to “encourage” me to develop a “downline”. I didn’t really understand it so I told her I wasn’t that interested, but she always tried. Also, there was always some new miracle cream or what have you that we had to try to get customers to buy.
September 12th, 2008 at 10:08 am
I’ll stick to buying my shtuff from stores. If it takes someone individually marketing something to me without me asking, I KNOW IT’S TOO EXPENSIVE!
Heck, at 40 bucks a pop, it’d probably be cheaper to fly to Brazil, pick the berries myself, and mash them up with a bunch of water. At least I’d know how much acai was in it.
Are the people that drink this stuff sure it’s not some placebo sugar water with wildberries from grandma’s backyard? Is this approved by the FDA and why doesn’t MV say how much “acai” is in it?
If you want antioxidants from fruit that bad, stick with real fruit, you won’t get screwed and you’ll save a little money. Do you realize how much real fruit one could buy with $40! (sorry, $39)
By the way, why are MLM people reading a blog called “Stop Buying Crap”? This blog caters to getting people to stop buying the crap that you all con people into buying. (I used to be in an MLM scheme for a VERY short while, so I feel very comfortable saying this.)
The only people that make money in most of them are the ones at the top. The ones at the bottom never make a dime, and their P/L is usually negative. Oh yeah, a lot of people listened to Hitler too and thought he was great, didn’t mean he was right.
If there is anyone in an MLM scheme, do like amateur day traders, cut your losses now, and get out! Most people don’t make money day trading either.
September 16th, 2008 at 8:41 am
Just take a quick look at the bio of Monavie’s fearless leader. Dallen Larsen’s last company, Dynamic Essentials, was closed down by the FDA for making false health claims. He then moved on to his next scam, hype in a fancy bottle. Monavie truly cares about people’s health huh? It’s about people right? Then please tell me why they use Sodium Benzoate as their preservative? For those that don’t know what Sodium Benzoate is it’s been linked to Parkinson’s disease and other Neurodegenerative diseases. But they really care about your health and not just making a quick buck off of you. Sodium Benzoate can also form benzene, a known carcinogen, when combined with guess what VITAMIN C. But I’m sure that I’m just being negative right? Why cloud the joy of Monavie with facts and science. It’s truly pathetic that anyone is involved in this scam. MLMs in general are shady at best but to prey on sick people and provide them with false hope about the benefits they’ll see from a product that can actually have a serious detriment to your overall health is just sad and completely immoral. When a company like Coca Cola, which clearly isn’t all that concerned about health, removes Sodium Benzoate from their products it has to make you wonder why a “healthy lifestyle” company like Monavie continues to use it. My logical mind tells me it’s because they just DON’T CARE. They want your money, that’s all. Coca Cola removed it because of course they care about the long term bottom line of their company. I’m sure they could see the future lawsuits lining up. Monavie knows there is no future. They will be shut down eventually and then there will be no one left to sue. I truly hope the government does the right thing and closes them down SOON. And hopefully Mr. Larsen will end up in jail where he belongs but I doubt it. See he leaves the false claims to his distributors and insolates himself from the illegal stuff. I read an interview with him where he said “it’s just juice.” Yup it sure is. It’s overpriced juice that is really not good for you at all. Go to the grocery store and get some fruit, go to a supplement store and get some glucosamine. You’ll probably feel better and you won’t be damaging vital parts of DNA in your cells mitochondria. But again I’m sure I’m just being negative. Keep selling the snake oil, after all there’s one born every minute.
November 12th, 2008 at 4:34 pm
Sales Rep from Manavie tells me during a lunch I thought was ‘just between two friends?’ That His Manavie Juice ‘Melts Away Tumors’ and ‘Cures CANCER’ and has many many Other Cuures! This company should be put out of business. We must ALL start carrying ‘VIDEO CAMERAS WHEN THEY SAY THIS SHIT, AND TURN IT INTO THE FDA AND COMPLAIN TO THE GOV’T’. These ‘False Claims’ must be stopped. It is a Pyramid Scheme pure and simple, and millions of MORONS are trying to make a quick BUCK$$$$ and destroying friendships along the way. The assholes at the TOP make ALL the real money. It’s Designed that way…Reps even say, ‘You can make $100,000 in a few weeks’. Joke! Put them our of business…Carry a Tape and Video Camera and turn them in….
November 28th, 2008 at 10:27 pm
To Orlando…May be your friend said the wrong things about the MonaVie…I went to the website to see why so many people were so angry. I did not see one thing about tumors, cancers, and cures. So good look with the FDA shutting them down. As far as making $100,000 in a few weeks with the write product whether it be MonaVie, real estate, wedding cakes, speciality coffee or whatever… you can make that amount of money if you really put your head down and your feet to work. This is the beauty of America. The ugly is that we find it perfectly fine to work hard for a company as a salesman or consumer and drum up $100,000 in sales but when it comes to doing $100,000 in sales for an entrepreneuring friend or family member we go nuts and get extremely evil. There is good and bad in every company. I hope that your friend acheives his goals and more. In these economic times he is trying to increase his income and not wait on someone else to give him what they deem him to be worth. Carry a video camera to record your anger.
December 1st, 2008 at 8:15 am
Tiffaney it has nothing to do with anger or negativity but you have been paying attention in your meetings. People are critical of Monavie because of the fraud being committed by distributors daily to sell an overpriced fruit punch that has no special value. It’s a blend of concentrated juices with Acai and a number of nasty preservatives.
No one cares about people making money but if you’ve been told that you can make money easily in Monavie you’ve been lied to. It’s simply not reality. Here is the analysis of Monavie’s June IDS. This is information released by Monavie and it highlights the money making scam for what it is.
Fact 1
The top 1%(0.77% or 1 out of each 130) received 65% of all the Monavie commissions. (HUGE Red Flag)
Fact 2
The bottom 91% of the entire Monavie sales force, received no company payments.
Fact 3
Of the 9% who did receive a commission check, the bottom 99% of them earned on average only $59 a week, before product costs and all business expenses.
Fact 4
The average income of the bottom 99% of all Monavie distributors was $3.75 a week before all product costs and business expenses.
Sounds like a great opportunity doesn’t it????
You are right there is good and bad in every company. But legitimate companies competing in the real marketplace have to stand behind their claims. Monavie does not make claims you’re right about that. They can’t make claims because the product is nothing special and they know this. Instead they let their distributors make claims behind closed doors during tasting parties. In less than an hour you could find 100s if not 1000s of false and illegal claims posted on websites by distributors. Perhaps you’re naive enough to think that these people just cooked up this info on their own but I’m not. They range from saying that Monavie replaces your daily servings of fruit (it doesn’t look at the nutrition label) all the way to saying it can treat or prevent diseases. Monavie knew this would happen. Larsen’s last juice scam (almost identical in structure just a different blend) was shut down because they made claims and don’t think that the FDA isn’t looking at what’s being said by distributors. The company is responsible even though they’d like you to believe that they are not. It’s just a matter of time before they are publicly humiliated by an enormous fine or just shut down completely.
I have no problem with MLM. I know how it works for most involved so I’d never get involved myself. I have a problem with supplement MLM. It’s very difficult to sell a bottle of juice for $20-40 without lying about its value. If you want to sell knives, or some other product, through MLM go for it and good luck (those systems don’t work out for about 99% too). But to sell a “health” product through MLM is just disgraceful and if you insist on being involved I’d get used to having critics.
Most Monavie reps I’ve seen like to write off their critics as being negative people, people who are ignorant of the facts, or their competition. Just so you know I’m none of the above. You should really do some non-Monavie produced research and AIBMR doesn’t qualify. They are run by a guy with a financial interest in Monavie and they use pseudo science to prove that natural products are beneficial. Shauss has also been busted in the past for faking his credentials and is well known by National Council Against Health Fraud. Monavie is nothing special other than the price tag.
January 10th, 2009 at 12:18 pm
WOW seems like a lot of people are thrown into the fear of not being successful in thier daily lives. Me personally i’ve tried Mona vie and think it is a great opportunity to reach out to people and offer an alternantive to the daily grind, I may not be on the top but I get to meet new people every chance I get, and by the way try explaining to people the mistakes you may have made if and when your were in an MLM or try to convince the people like me who know the benefits of antioxidants and just the overall sense of my health just recently three people in my family were diagnosed with heart ailments and the only thing their doctors offered were pills, and how many of the drugs that the FDA had approved have been recalled, my mom passed last year and when i visited her most of the pills (22) daily never dissolved in her system. Go” Mona Vie” and keep giving us an alternative and ways and means different than the daily grind of haters and nay sayers
January 12th, 2009 at 7:17 am
WOW is right BlackEagle. Since you know so much about antioxidants try explaining this study http://www.mensjournal.com/superjuices-on-trial It would appear that a person would be better off drinking apple juice. This is what happens when a test is performed on Monavie by a lab that doesn’t have a financial stake in the company. What a disgrace.
March 18th, 2009 at 7:58 pm
A friend of mine has been going on and on about the MonaVie product for 2 weeks now. He has told me that the pains in his shoulder have vanished and this juice is the best thing ever,and,oh by the way he says why dont you and your wife start selling this stuff too. WARNING DANGER WILL ROBINSON !!!!! sorry i said it smells like a pyramid to me. No he says, they even give out expensive cars to top producers. WARNING DANGER
April 22nd, 2009 at 9:57 pm
Smoke pot. It is cheaper and does much more for ailments. Don’t get pulled under by schemes.
April 22nd, 2009 at 10:02 pm
Anyone heard of placebo? If you believe something works, then your psycho somatic takes place. The actual product is no beter than a sugar pill. $40 for juice is a bit extreme. I am a Chef and I can create many juices like Jack Lalane. He is still living as far as I know and he is very old. Eat well and exercise!
May 3rd, 2009 at 10:35 am
Wow ! seems to me that Mona vie can be legal in over 12 different countries,if they were illegal they would be shut down by now! sounds like typical amway people who have lost distributors to Mona Vie and now they have to create ” doom and gloom ” websites to cry about being losers in life,( sounds like this website) pyramids are in Egypt.Funny how some people let ” can’t fix stupid” websites like this one make their decisions in life for them,get a life stop whinning!Mona Vie rules!!!plain and simple!
June 8th, 2009 at 6:46 pm
Maybe it should be Drink it , Feel it Share it then shut up?
Why don’t you ppl bag on avon or amway or any vitamin mlm’s?
I think you are a sour puss because you are not filthy rich like the top 50 out of 100 ppl who are in mlm industry…internet facts…the top 50 are in monavie
http://www.businessforhome.org/mlm-500-top-earners/
look for yerself
July 2nd, 2009 at 5:45 am
what a moron, do you even know what a pyramid scheme is??? “A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being deliveredPyramid schemes are illegal in many countries, including the United States,[1] the United Kingdom, France, Germany, Canada, Romania,[2] Colombia,[3] Malaysia, Poland, Norway, Bulgaria, Australia,[4] New Zealand,[5] Japan,[6] Italy,[7] Nepal[citation needed], Philippines,[8] South Africa[9] Sri Lanka,[10] Thailand,[11] Iran[citation needed], the People’s Republic of China,[12] Mexico, Portugal and The Netherlands.[13] ” Can you read this???? now does MonaVie offer product or service?? I hate when people open their big mouth without even knowing what they are talking about…..
September 4th, 2009 at 7:33 am
I’m a monavie distributor & Monavie has a specific list of claims we can or can not make. It is often stated to the distributors it is a juice not a medicine. Anyone making outrageous claims is on their own and out of line. Monavie does not allow these claims. Monavie has a large compliance dept., and is busy trying to track down these people with un-approved claims. Just remember if you work in a corporate environment, that is a pyramid also, you will never make more than your boss or the CEO who is the Pharoh!!
September 4th, 2009 at 7:38 am
You can call any MLM a pyriamid if you like, but I don’t see many opportunities in the economy these days. I personally know some of the people that have quit their jobs, paid off their loans and are very happy at home with their families. I’ve been in it longer than some and I have less results, that’s my fault/issue. No one is “lucky” you have to be working and positioned to take advantage of things that come up. But its just like a treadmill or any excercise equipment, its up to you to do the work for the results you want. Less work, less results, and most times attitude is a BIG issue!!
September 15th, 2009 at 6:06 am
Dear all,
I was randomly browsing the internet and found this article.
I have just joined a network marketing company that I personally think is the best network marketing company around. There is huge growth potential, a great range of products, and a fantastic new payment plan which has changed the way network marketing works.
You don’t have to sell products (I would NEVER join a company that has to sell products) and you can make your money back realistically. I found out about the company whilst in Italy (it’s an american company – of course) through my girlfriend. She wasn’t trying to sell me anything, I just saw her using the products and got curious..
Her parents are factory workers, very simple people, but they are building a strong business for themselves. I really believe this opportunity is something for everyone.
Due to the huge range of payment methods for earning money, it is easily possible to earn your money back in the first month + more. That’s the aim that most people set for new recruits. You recruit 5 people into the business, get the first rank in the system and you will have earnt your investment back + made more money. You then work with a consistent amount of work to build your business. I’m not looking for people who think they can make $10000 an hour, or whatever other people claim. I want people who understand that this is a BUSINESS. There are a lot of companies in this world that fail, 80% of initial businesses fail, not all of them are successful. There are a couple of businesses that have a great business model and work. I feel that what I have found is one of those businesses.
I’d just like to clarify to the negative people above that I’m not a stupid person. I’m studying civil engineering, I have a series of online games which I have spent 1000s of hours coding on my own and I have always obtained grades ranked in the top 1% of the UK. I also did an interesting test conducted by Manchester Univeristy (UK) which analysed all aspects of one’s mind and I received a top 0.5% of the UK for common sense. I can therefore state that I believe this company is great and I have made the right decision.
That’s my part for this forum. I don’t care if you don’t believe me. I don’t care if you don’t understand, I just want to put a positive word in for MY company because I’ll be honest.. the one in this discussion sounds like a crap idea with a crap posibility to make money back.
I wish you all good luck with your lives,
James.
October 26th, 2009 at 9:23 am
Troll
In Internet slang, a troll is someone who posts controversial, inflammatory, irrelevant, or off-topic messages in an online community, such as an online discussion forum, chat room or blog, with the primary intent of provoking other users into an emotional response or of otherwise disrupting normal on-topic discussion. Lots of Trolls in here!
November 21st, 2009 at 10:43 pm
The dude who wrote this obviously wasn’t a part of the same
company I am. I’f he ever was a part of it that is. I’ve been distributing Monavie for 2 weeks and I make twice as much money I did at my day job (after 4 years of college I might add). To all the people reading this trying to figure out if it’s a scam before signing up I tell you this… If you work hard and know what you want ( just like any business) this business will take you places you never imagined. This company gives you the vehicle to do anything you want.
Every business is a pyramid if you look at it. You have…
Boss
Manager. Manager.
Assistant manager. Assistant manager
worker. Worker. Worker. Worker. Worker. Worker. Worker
looks like a pyramid to me.
inc500.com
Monavie.com
do the research yourself :)
February 27th, 2010 at 8:03 am
Just a few things to point out, which makes MLM different from pyramids.
1) Pyramids are unethical unfair & ILLEGAL. A good MLM (such as Mona Vie) is NONE OF THE ABOVE!
2) With a pyramid, you get your money directly from the people beneath you, who have all had to pay more than you for the same product. By the time the product gets to the bottom of the pyramid it’s priced way higher than it’s actually worth & so the guys @ the bottom can’t sell it & so lose out.
In contrast, with a good MLM, EVERYONE gets paid by the SAME compensation plan, DIRECTLY from the COMPANY and NOT from the person below them. And EVERYONE has the SAME opportunity to apply themselves & progress – that’s what I call FAIR!
It’s also interesting – since you specifically mentioned Mona Vie – that with this company it’s quite possible & easy from someone you introduce (who’s “below” you in the structure) to pass you in the ranks, if they apply more effort than you, and thus surpass your income. However, since you introduced them, you still get a commission. Again, that’s what I call FAIR!
(Just incidentally, the traditional distribution chain for products you buy in the shop – from manufacturer, to distributor, to wholesaler, to retail outlet, to end user (you) – is a pyramid, going by my above description.)
3) With any pyramid, you only benefit by keeping those below you where they are. Whereas with a good MLM, the system encourages you to pull people up to (and even passed) where you are.
4) World renowned author, mentor & financial expert, Robert Kiyosaki (Rich Dad, Poor Dad) says that Direct Selling & Network Marketing (another name for MLM) is one of the best ways for the average person to make enough money to become financially free.
So, to all you skeptics out there who are happy to let your boss earn more than you, to be a “slave” to the company (working when they say you have to, for the money they say you’re worth) then just go sit at your desk & continue complaining about your lot in life, if that’s what makes you happy. But don’t criticise those of us who are willing & open-minded enough to actually DO something to get out of the rat-race!
March 19th, 2010 at 9:18 pm
Those that speak harsh on Net Work marketing are people that unfortunately do not understand the value in relational marketing, and if they were informed correctly they may have a more understanding and desire to be part of the MonaVie Team, My wife and family are doing wonderful, its a matter of not hurrying and rushing and not getting sucked into the drive through success syndrome. and at the same time people should not bash other peoples dreams because they don’t understand, I will close with this there are several companies out there though I personally would not be a part of or help other people be a part of. Take care!
May 3rd, 2010 at 11:38 am
fags i do it all the time
May 4th, 2010 at 12:04 pm
Financially free… the new buzz word… How about financially free on the back of your down lines who are on hard times and you promise the glories of the purple juice or special tea or whatever new thing somebody comes up with.
So instead of me paying $40-$60 for a bottle of this crap.. I can go to Costco and buy a bottle for $12 with a stronger concentration and formulation of key ingredients such as acai and feel good at the end of the day that I just did not rip of my family and friends to be “financially free”
May 27th, 2010 at 6:23 am
Actually Mack, it’s probably safe to say that those that speak harshly about MLM have not had success in any type of business. There will always be those that do well regardless of what they do, whether it be mlm or mainstream business, and then there will always be those that are chasing the next shiny object and ignore a successful SYSTEM and do it their way, and continue to fail and fail and fail.
The success rate of MLM is not any different than the success rate in franchising for instance. And it’s definitely a higher success rate than starting a restaurant. The difference in an MLM like MonaVie is I don’t have to hire employees, I don’t have to spend 50k or 150k or 250k on a franchise fee, I don’t have to spend 50-250k on building out offices or a restaurant. I have to spend 39 bucks for the starter kit and if I need to start slowly I can simply retail the product with their preferred customer program, which by the way qualifies me for commissions even if I don’t ever purchase products personally, or I can be a mildly serious business builder and purchase a case a month, or I can be as serious as I want and have stock of 2 or 6 cases a month. Oh ya, I forgot to mention the THOUSANDS you need to purchase in stock each month for your franchise.
Also I find it interesting that all these bloggers know so much more than the FTC these alleged illegal pyramids. I also find it hard to find an actual direct selling company that goes down 13 levels. This is a silly example that those that do not understand the industry continue to use. One thing not on the cute little illustration is a huge variable known as human nature. And if those using the illustration above think it some way resembles the MonaVie plan then they are sadly mistaken and have zero knowledge of the industry or compensation plans.
June 1st, 2010 at 8:54 am
Interesting conversation that’s been happening here. There are a lot of mlm companys out there and they are not all created the same. I work for one as well. There is one very simple way to distinguish between the good and the bad. If you can make a lot of money selling your product without recruiting people-it’s legit. If the only way you can make money is by recruiting people it’s a pyramid scheme. Simple.
June 30th, 2010 at 9:25 pm
why do you cal it a pyrmiad. The definition is that no one can make more than the first. MLM is not a pyrmiad. Look at avon started in the late 1800’s so is typerware. Both huge mlm companies. Just because you do not agree with them does not make then wrong.