Tuesday, November 8, 2016

13 shocking facts about Vemma you should know

Sometimes the health and wellness MLMs really start to blur together, and this is one of those generic ones that sounds like all the rest but still offers an intriguing opportunity.

Vemma stands for Vitamins, Essential Minerals, Mangosteen, and Aloe. They want to make you healthy and they want to make you money. Does this mean I’m involved?

This video explains everything:

Make sense? Either way, here’s 13 shocking facts about Vemma you should know.

#13. Free product every 6 months

Vemma offers its distributors a loyalty program that sends them their monthly autoship products for free every six months, assuming they’ve been on auto-ship for a certain amount each month for those 6 months consecutively.

They have to pay taxes and shipping on the product, but it’s still one of the better loyalty programs out there. [1]

#12. $19.95 annual fee

In order to become a distributor, you have to pay a $19.95 fee to purchase Vemma’s Internet Marketing Tools. This fee is a yearly recurring subscription.

Through this subscription, you get access to Vemma’s back office, an affiliate marketing website, and a mobile app.

#11. Simple plan of action

They offer their affiliates (what they call their distributors) a simple game plan for reaching their goals and earning money with Vemma.

Upon becoming an affiliate, their first goal is to get 10 customers who purchase product, netting them commission.

After that, they mine their 10-person customer base for 2 people who are interested in joining the affiliate program. These two people become their first tier recruits.

They help these 2 affiliates duplicate their own success, and so on and so forth, thus building their downline. [2]

#10. You don’t get to earn right away

Most MLMs let you earn commissions the second you’re signed up as a distributor.

However, Vemma requires that you enroll at least one affiliate or PEQ customer on both your right and left teams before you’re eligible to earn any income at all.

This means you could put forth a lot of time and effort before you even see a dime.

#9. 20% Retail profits

Affiliates earn commissions in the form of retail profits.

Since they get a 20% discount for enrolling in auto-ship, they automatically earn 20% in commission on every sale.

#8. 10%-15% team bonuses

If you’ve got 50 PV every month as well as two affiliates or PEQ customers, one on each of your two teams, you get a 10%-15% bonus of the profit team’s weekly sales.

Your profit and power teams (right and left legs) both have to reach and maintain a minimum of 150 points each first.

Now, 15% of 150 only equals out to a $22.50 bonus for that week, so it’s usually not a huge bonus.

#7. 5% matching bonuses

If you generate 50 PV every month and have four personally enrolled affiliates or PEQ customers (2 on each side), you qualify for the matching bonus.

This bonus pays up to 5% on all of your personally enrolled affiliates’ team bonuses. If you’ve got some stellar first tier recruits, this can really pad your paychecks.

There are also matching bonuses available on your second, third, and fourth tiers.

#6. Sells the big three health and wellness products

Vemma products fall into the big three categories:

  1. Energy
  2. Nutritional
  3. Weight management

Their product lines are Vemma nutritional drinks, Verve energy drinks (regular and sugar free), and Bod-e fat burning beverages.

#5. Aloe and mangosteen

This is Vemma’s selling point – their focus on essential vitamins and minerals and the health benefits of mangosteen and aloe.

These are two super popular ingredients in health and wellness MLMs (just look at Xango and Forever Living), but they’re popular for a reason. They seem to work.

#4. Over a decade in business

They’re certainly not the first MLM to try and turn a profit off mangosteen and aloe, but they have been around since 2004.

In 2013, they reported $221 million in revenue before even hitting their decade mark, which is impressive for sure.

#3. Shutdown by the FTC

However, less than two years later the Federal Trade Commission filed a lawsuit against Vemma, going so far as to completely freeze the company’s assets and seek relief for consumer complaints. [3]

The FTC alleged that Vemma was an illegal pyramid scheme and also cited its predatory recruitment practices that focus heavily on promising college students massive paychecks they never receive.

Judges first ruled that Vemma must cease normal operations and appointed someone to monitor all the company’s business practices. During this period, Vemma couldn’t pay out commissions, recruit new members, or offer rewards for sales.

#2. Settled recently and resumed operation

Vemma just settled with the FTC in September 2016.

The full details of the settlement are not yet available, but it included an agreement on the part of Vemma executives to submit to a permanent injunction and a monetary fine. [4]

#1. Future is unclear…

It’s been mere months since the settlement with the FTC was reached, so it’s impossible to tell what the future holds for Vemma.

While getting shut down by the FTC is an MLM company’s worst nightmare and often a fatal blow, they seem to have survived it, which is definitely promising.

However, whether or not they’ll be able to recover and get back up to the revenue levels they had in 2013 remains to be seen.

On top of that, they did have to submit to some restrictions by the FTC that have yet to be disclosed. How those restrictions will affect distributors and customers is unknown.

While the FTC shutdown put a damper on the company’s growth and sales, they still have some room to rebound. But should you waste your time?

It’s not that I’m a Vemma hater, I’m not. But as far as money making goes, I wouldn’t recommend it.

If you like automated ways to build passive income, there are better ways.

(and you can trash those old MLM habits, too)

via http://mlmcompanies.org/vemma/

No comments:

Post a Comment