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.
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.
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!
It should be regarded as most likely to be an MLM or pyramid scheme.
Think of the movie war dogs, any pyramid scheme will be your strategy
Network Marketing companies are not pyramid schemes. A pyramid Scheme is considered to be when a company charges people to join but does not supply a product. A reputable network marketing company will always supply a product, however some on line companies use cheap e books as a product only to make the business legal. Pyramid schemes are illegal network marketing is not. For example MPB Today, Prepaid Legal, Herbalife, MaryKay and Monavie are all MLM companies that people use to make money from home. The general idea is that once you sign up you are given a product that provides a monetary reward for offering it to your friends and neighbors.
Multi-level marketing and pyramid schemes share similarities but share a crucial distinction. MLM involves legitimate sales of products or services, where distributors earn commissions not only for their sales but also for recruiting others into the network. In contrast, pyramid schemes primarily focus on recruitment, with little to no emphasis on actual product sales, leading to unsustainable structures where only the top few participants profit while the majority incur losses.
What are the essentials of a sound promotion scheme?
Yes. It is pyramid scheme.
A Pyramid Scheme
yes
MonaVie was created in 2005.
MonaVie's population is 450.
Monavie is a fruit drink.
Pyramid scheme
Those people who invested in a pyramid scheme and got out successfully before it crashed got lucky. That's all. The goal of the starter of the pyramid scheme is for those who get paid will re-invest their earnings hoping for the earnings to compound. This will keep the pyramid alive longer.
It should be regarded as most likely to be an MLM or pyramid scheme.
No Monavie has absolutely zero debt
Yes it is.
Yes!