MONA-VIE SCAM
MonaVie claims to be the fastest growing private company in the world. It markets a premium quality nutritional product formulated with the acai berry. Discover inside facts about MonaVie’s business and its distributor’s earnings.
MonaVie opened its doors for business in January, 2005. It has claimed to be the fastest growing private company in the world, and reputedly does business on 5 continents. Company literature states that “ MonaVie develops and markets scientifically formulated, premium quality nutritional products, specifically for person-to-person distribution.” It further states that “Our products feature an exclusive blend of the powerful acai berry, found only in remote regions of the Amazon, and other nutrient-dense fruits, each selected for its specific nutritional properties.”
My intention here is not to express an opinion either for or against this company, its management, or products. Rather, my goal is to provide information to interested readers who may be searching for a reliable home-based business opportunity.
First, let’s consider a few of the advantages when you work from home:
- Freedom from the demands of a boss telling you what to do
- Freedom from a long commute
- Work when you want and where you want
- Freedom from office politics
- Determine your own work attire (gym shorts and flip-flops are often okay)
- Tax advantages that accompany owning your business
- Earnings based primarily on how hard you choose to work
These advantages would apply to any home business, including MonaVie.
MonaVie literature states: “At MonaVie, our mission is to change and improve lives around the world by introducing unique nutritional products, offering a rewarding business opportunity, and by giving back through our charitable initiatives.” They ask the following: “Is it time that you want, or more time? Health, or better health? An income, or a bigger income? Freedom, or greater freedom? Whatever your goals are, MonaVie can help you achieve them.”
Regarding the business opportunity, an article by Tony Dokoupil from the August 11, 2008 Newsweek Magazine states in regard to distributor earnings: “… according to MonaVie’s 2007 income disclosure statement, a federally required printout of their distributor earnings. More than 90 percent were considered “wholesale customers,” whose earnings are mostly discounts on sales to themselves. Fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $100 a week. And the dropout rate, while not disclosed by MonaVie, is around 70 percent according to a top recruiter.” Dropout estimates from other reports approach 90% within the first 90 days.
Let’s look at income figures reported by MonaVie for its “active distributors.”
The heading of the official company report reads: “The Income Disclosure Statement is a reflection of MonaVie’s rewarding opportunity.”
Analyzing this statement, 97% of active MonaVie distributors receive an average income before taxes and expenses ranging from $23 per week to $172 per week. This report clearly excludes customers or distributors who have not met sales requirements within any of the preceding 8 weeks to be considered “active.”
Let’s look at the business opportunity from the standpoint of an individual sales representative. The initial cost to join is approximately $40. Costs to be considered “active” approximate $200 per month It appears that the majority of people who actively work their business barely break even or make a small profit. Nonetheless, many of them remain enthusiastic fans of the products.
Is the MonaVie business model a pyramid scheme, or a legitimate form of marketing? The 97% figure referenced above represents many thousands of distributors who generate the majority of revenue for the company. These 97% earn very small incomes when compared to the top two or three percent. For instance in the top category—Royal Black Diamond Executive—7 people each earn between $1.5 million and $3 million per year. Such a disparity in earnings is not uncommon in this business model.
The business model of multilevel marketing–also known as network marketing—was reasonably effective for many years. One attraction is the small investment to get started. Critics feel that the current marketplace is oversaturated with multilevel marketers. Thousands of companies exist, selling lotions, potions, magic juices, weight-loss formulas, food supplements, and more. People who have been recruited in the past resist invitations to attend sales presentations thinly disguised as “opportunity” meetings. This is true whether the presentations take place in someone’s home or a rented meeting room. Many believe that the MLM business model has become stale and worn.
Most people do not enjoy selling. Unfortunately, this is exactly what’s required to be successful in MonaVie or any form of multilevel marketing. Attempting to recruit and sell your “warm” market–family members or loyal friends–can permanently damage these valued relationships. Many find it emotionally exhausting that they must continually motivate others; however, this requirement is absolutely essential if your business is to flourish. The hope is that new representatives will repeat the process and sell their friends, family, and others on both the products and the business opportunity.
This observation is not unique to MonaVie, but applies to all home businesses that utilize the MLM business model. Your income in MLM depends not only upon your personal efforts, but to an even greater degree upon how effectively you motivate others to work who are in your downline. Thus, it’s your responsibility to 1) teach them about the products and the business, 2) teach them how to sell, and then 3) keep them motivated on a daily basis. Estimates are that from 70% to 90% of all distributors quit within their first year in multilevel marketing.
In recent years, many home business entrepreneurs have found greater success by marketing their products or services on the Internet. This business model provides significantly more control of one’s income and work requirements. Some refer to the money they earn as internet marketing magic. Your own efforts determine your success to a much greater degree in internet marketing than with MLM.
Click HERE for more information about the MonaVie Scam
7 Responses to “MONA-VIE SCAM”
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Currently traveling between Scotland and Leeds, reading this on my Iphone. Will read it in full when I get back, and I will also post a backlink on my website. Thanks.
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