MonaVie / Monavie scam!
Monavie is a pyramid marketing scheme!
Monavie uses the term multi-level marketing (MLM). It is the same concept as a pyramid scheme. It is a legal way to scam unsuspecting people. The only way to become successful in this scheme is to cheat other people by promising them financial independence. This is the number one way to recruit new members. In reality, the new distributors have a very slim chance in making any profits from this scheme.
In the case of Monavie, its' own 2007 income disclosure statement says that "fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $100 a week".1 In other words, only 0.1% of the distributors see any income from this venture. As such, it is extremely difficult to make any money as a distributor for Monavie.
For example to earn a commission of $300 you have to sell 30 cases or 300 bottles, which they refer to as 3, 000 GSV, each bottle is worth anywhere from $37 (standard pricing) to $27 (bulk pricing), which means you have to recruit at least 30 of your friends/family to buy on a weekly basis at least 4 bottles each. This calculation is based on the pricing and compensation data from their website.2
When you go to a Monavie meeting the first thing they will do is show you testimonials and photos of people in front of nice cars, homes, and yachts. The last thing they talk about is the actual business behind the product. This is to appeal to your emotions and to distract you from the real business. Once you're emotions are worked up it is harder to think logically. This is how they bring people to sign up.
Pay attention to the numbers. To see the truth recreate the financial model behind the distributors compensation structure. Do not get distracted by the sales presentation. They will use language like, "we do not sell... we share" (if that were the case then Monavie should be free of charge for everyone, all the time).
CLUE: The average distributor will never see any money from this company.
The real winner here is Monavie. Because they manage to create 5 million sales distributors, who are also customers, without the overhead burden of a traditional sales force. These people are all hoping to make money when in reality <1% see any profits, the rest will see only losses.3
Ignore all the testimonials and the lifestyle pitch. This is just a way to get you to think with your emotions rather than your brain!
1("A Drink's Purple Reign". Newsweek. http://www.newsweek.com/id/150499/page/1. Retrieved 2009-07-17.)
2The data above are based on various information provided by several Monavie representatives and distributors, and through an objective study of their product pricing and compensation structure, based on company literature, website and input from Monavie distributors.
3Pay attention to the actual numbers, not the numbers they put up in the screen. Calculate the numbers yourself. It will take some work, because the information you need are located in various places and not clearly discernible. They use terms that will confuse the average person, like 200 PSV or 1, 000 GSV, which are meaningless to the average person. This is designed so that it is harder to recalculate the actual compensation and the amount of work required to obtain it. A real business person will not pay attention to the marketing fluff, but only the real financial return of the business!
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