It’s Not a Matter of Effort, it’s a Mathematical Certainty. |
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[The following is a guest post by frequent commenter, Jim.]
Often distributors make various claims regarding the failure of distributors due to lack if effort. Most of us have read the reasoning by distributors that people failed because they didn’t utilize the help available from the team, because people think it’s get rich quick and quit when they don’t see instant results or you didn’t work the fool proof system. However, this is not the case. The mathematics of the compensation plan guarantees extreme losses regardless of individual effort.
To prove this I would like to focus on the main structure of the MonaVie opportunity, which is distributors are paid 10% of their lesser leg. This creates in a perfectly balance downline a maximum gross payout of 5% since distributors are only paid on one leg.
Let’s use an example assuming that you and your entire downline purchase $200 per month of juice. Let’s also assume that you have 10 individuals on each side, for a total downline of 20. This means your entire downline is spending $4,000 per month (20 x $200). You would be paid 10% on only one leg, (10% of $2,000) or $200 gross commissions. You broke even. Therefore for every 1 person in the “opportunity” who breaks even, 20 must be cash flow negative. What is true for one individual “tree” is true for all. There is no way for anybody to make money without 20 people losing no matter how much effort or what system you are plugged into, it is a simple case of mathematics.
I am not stating that it is impossible for anybody’s downline to make money, just that the only way to do so is by them bringing 20 additional distributors who will lose into the “opportunity”. It is similar to a poker game, the only way for one to win is for others to lose, 20 others in this particular case. Everybody at the table can’t win no matter how good they may be. While it is possible for any one person to make money, and theoretically lots, it is mathematically impossible for everyone to make money regardless of effort or the system they are “plugged into”.
I believe there are actually many people involved in MonaVie who believe they are helping friends and family have the chance to improve their financial situation. I don’t think everybody in MonaVie is trying to rip off their friends and family. I think many do not see the mathematics and have trusted the one one who introduced them to MonaVie. To those distributors: please see the harm you are doing, please realize the next time you sign up someone you care about that there is less than a 5% chance they will not lose money and the only way for that to happen is for them to bring an additional 20 losers into the scheme.
Thus is the nature of the binary compensation plan when used within an endless recruiting marketing scheme. I am personally unaware of any such scheme which has had even a 5% success rate and there are plenty of them out there (see this Skeptoid article). MonaVie’s own IDS shows less than 2% of distributors cash flow positive.
Now I am aware there any several ways to get paid in MonaVie but most of the lucrative plans are reserved for those at the top and have no effect on the statistical odds of being profitable. First Order Bonus and Star Maker could have a slight impact on this analysis but as these are not recurring income or the major income stream I did not include the impact. To be fair, I also did not include other expenses associated with the “opportunity” such as the cost of travel, juice for tastings, motivational books, CDs, seminars, branding, or marketing materials which I believe would make the potential for profits far worse.
I am very open to hear any potential corrections to the above analysis from distributors, or any others, who may understand the plan better than I do. My goal is to be as accurate as possible without exaggeration so distributors can realize the damage that is required in this “opportunity” and to be able to see the truth that was omitted when they were shown the plan
Originally posted 2010-12-13 08:55:22. Republished by Blog Post Promoter
The above article is intended to be accurate at the time of its original posting. MonaVie may change its pricing, product, or other policies at any time without notice.This post involves:
business, math
... and focuses on:MonaVie Business
At times comments might be disabled or moderated to a time more suiting with my schedule.
Next: The Multitude of Problems with Schauss’ “Double-Blinded, Placebo-Controlled Study” on MonaVie

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December 13th, 2010 at 2:34 pm
JS, thanks for posting this. I look forward to any potential edits and I hope this is helpful for those involved in Mona vie to see that they will hurt the vast majority of those they involve in this opportunity.
December 13th, 2010 at 2:48 pm
So you have to sign up 20 people to break even, and that’s only on the juice expenses. With the math out in the open like this, it is really apparent that the house always wins, with the house in this case being the top of the pyramid.
From what I remember from the tasting meeting I went to, they made it sound like the easiest thing in the world to get good commission from the signing people up. I’d probably make 20 people avoid contact with me (thus destroying family and friend relationships) before I could get 3 to sign up.
I have a question about compensation, Jim. What happens if a person in my downline recruits a person. Do I see any payout from that? Let’s just say that (in a fantasy world) I manage to get 20 people who also get 20 people each to sign up. What’s the payout for me looking like now? Also, you said only one leg can be claimed for commission?
December 13th, 2010 at 4:11 pm
Mackwiz,
Let me first say I was never a distributor although I did have the plan explained to me. My basis for the above analysis was based on that, distributor comments, YouTube videos, and the Mona vie website. Let me also say the plan appears to be purposefully complicated to hide the horrible odds. Here I would ask the former distributors such as Humiliated and Rasheed to clarify my interpritation.
On to your questions…Yes, my understanding is people recruited by people you recruited would be part of your downline. If you recruited 20 who each recruited 20 that would be a downline of 400 people. If each spent $200 that would be $80,000 into the scheme. If the legs were perfectly balanced it would be $40,000 per leg which you would be paid 10% of the lesser leg, or $4,000 per month.
In this example since each of the 20 distributors you brought in each brought in 20 below them (10 on each side), those 20 broke even, as shown in the article. The other 380 distributors lost money. You are the only profitable one out of the $80,000 lost. This is my understanding of the plan. Comments or corrections welcome.
December 13th, 2010 at 5:53 pm
WOWzers. That is 20×20 (400) people, all to make 4 thousand a month. The deeper I go here the more this seems like gambling.
December 13th, 2010 at 6:12 pm
Jim, it is I who needs to thank you for submitting the article.
The article makes a lot of sense and shows the pyramid scheme.
I think you did a great job, Jim of answering Mackwiz’ question. I would like to stress the part of the question that was “in a fantasy world.” That’s where everyone in pyramid schemes live in. Obviously it is mathematically impossible to live in fantasy world very long… and such a 20-1 pyramid scheme out-numbers the Earth’s population very quickly… not that everyone on Earth is even able to purchase (China isn’t involved, many people can’t afford $45 juice, and most people don’t care to be juice salesmen).
Jim made an exceptional point that “the plan appears to be purposefully complicated to hide the horrible odds.” This might be why MonaVie is suing Zrii for its compensation plan. As Skeptoid says, “They are not in the fruit juice business; they are in the multilevel marketing business.”
I would appreciate it if someone wrote an article or two about this via Submit an article! link.
December 13th, 2010 at 6:44 pm
Mackwiz,
Be careful, you’ll give gambling a bad name ;-). The 1 in 20 odds for making money looks a lot worse than a craps table, roulette wheel, or a blackjack table.
In fact it isn’t that bad of analogy. I didn’t want to make a comparison to roulette gambling because a person can’t impact the odds. However, in craps and blackjack, a person can take steps to minimize their losses… just like MonaVie.
December 13th, 2010 at 7:34 pm
So let’s say this happens every month (put any time frame you want) – you are profitable in 3 months and the 20 you added are profitable the month after and those they put in the month after, etc. Of course, there are always going to be 95% “losers” that are just getting started but they have the possibility of being profitable in 3 months. It doesn’t seem all that bad. In any type of network marketing there has to be beginners – it’s the ones that stick it out and finish that make it profitable. Network Marketing is definitely not for everyone, just as professional athletics is not for everyone. It is possible, just don’t expect to get rich without putting in the work.
December 13th, 2010 at 7:47 pm
That analysis was aces ;)
Thanks Jim!
December 13th, 2010 at 8:59 pm
Jim – your correction is incorrect. Since each of them add 20 to each leg, their lesser leg would still be 20 (break even point in this example). Their greater leg would have quite a bit more and they could eventually get paid the additional as their lesser legs continue to grow since this would be “banked” to be paid as their lesser leg grows. It is quite possible to get paid for years to come from your efforts in the first weeks.
December 14th, 2010 at 1:25 am
Hey there. I skimmed through the comments and found that you guys wanted to know about compensation. This is what I know about compensation.
If you recruit 20 people who each recruit 20 people, you’d have 400 people total under you. That breaks out to getting paid out by 200 people each contributing $20. So you’d make $4000… assuming you DO get paid off of your downline’s second leg.
But in MonaVie, you don’t. So that sucks.
Every time one of your personally sponsored people reach STAR, you get $40. So if 20 people get 20 people, you are looking at 20 stars which is $800.
If you attain I believe it was 2000 PV in your lesser leg in a week (that’s 10 people in ONE week buying $200 every month) you are Bronze and are entitled to something like 5% of one generation of your downline. The %age is random it seems.
From their Comp plan: http://media.monavie.com/pdf/us/compensation_plan_en.pdf
01 DIRECT SALES AND PREFERRED CUSTOMER BONUS
This is moot. You earn 25% of the product your preferred customers buy. Direct sales nets you like, zero profit unless you buy 12 cases.
02 TOP RETAILERS BONUS
Moot again. I don’t know anyone who retailed.
03 BULK ORDER BONUS
Who buys 12 cases at a single time? Well, people who get conned by their upline to buy 12 cases at a time because of all the money they save. All for a $75 bonus to the conning upline.
04 FIRST ORDER BONUS
You get up to $40 for the first order your recruits get. But it’s really just 20% of their PV so if they only buy one case, then you’re looking at $20. My “FOB” was $10 even though my sponsor told me it would be $40. Liar.
05 STAR MAKER BONUS
Every star you make nets you $40 if you’re on 200 PV.
06 TEAM BONUSES
You get paid 10% of your downline. They made this complicated for some reason. Most binary comp plans are not as complicated as the “team bonus.”
07 EXECUTIVE CHECK MATCH BONUS
This is what I attempted to explain. They have a neat diagram in the plan, but it tells us nothing.
08 LEADERSHIP BONUS
2.5% of all revenue is reserved for people Blue diamond and above. Higher ranks get higher % of this pool.
09 MULTIPLE BUSINESS CENTERS
Seriously I have no idea what this thing is.
December 14th, 2010 at 7:02 am
Jim, Rasheed,
Thank you for the info! I asked the question about compensation because I have heard from distributors how easy it is to network enough people. Looking at the math under the hood, it seems ridiculous to me. You have to hook 400 people to pull in 4 thousand (is that even after taxes and such? probably end up making less). Imagine if a had a startup juice company and I needed to hire 400 people to net a 4 thousand dollar profit per month.
“02 TOP RETAILERS BONUS
Moot again. I don’t know anyone who retailed.”
Indeed! That’s the MAIN reason why I got very skeptical about MonaVie at the tasting meeting before I even started research. If you can’t make any money retailing, what exactly are you selling, and why at such a high price?
MS,
I didn’t mean to give gambling a bad name! In all honesty, pulling the handle on a slot machine is much easier than restructuring your life around a juice product. What are the odds at blackjack? Surely better than a 98-99% loss rate.
December 14th, 2010 at 7:06 am
Let’s not forget one very important reality, not all 20 people you put in will sponsor 20 each. The real odds is out of 20 personals evenly balanced 10 left and 10 right you would be very lucky to have 2 or 3 really do anything with it beyond 90 days, hence the less than 2% make a real income with it and that is mostly eaten up by the juice and tools expense.
December 14th, 2010 at 7:16 am
Burned Out,
Very true. Like I said, only in a fantasy world one be able to recruit 20 people who in turn recruit 20, and all stay on the system. The odds of that are infintesimal.
December 14th, 2010 at 9:45 am
Looks like they added a few things to the comp plan since I got out but one thing I noticed on the latest IDS is the number of top 2% earners they reference really hasen’t gone up by very much over the last few years. It may have actually gone down, I’ll let someone else do that comparison in detail. It’s kinda odd considering the new product lines and new countries added in the same time frame, or is it?
December 14th, 2010 at 4:38 pm
Great post Jim.
It’s certainly a very unrealistic proposition and the winner in all of this first and foremost is clearly Monavie.
My own friend explored the possiblity of pursuing the business by signing up customers (despite the fact that he hadn’t been able to sign up a single customer in well over a year) and was confronted by the reality of just how modest the “potential” profits actually are (noting Monavie pays on the lesser leg and only 10% at that).
I know my friend’s sponsor (who is an Emerald) at one time had in the vicinity of 3500 people in his downline and in one particularly week was looking at bonuses in the vicinity of $250.00 (and this is GROSS revenue of course).
The IDS is further evidence of the likelihood of distributors not only not making any money, but losing money.
This is the stark reality of a non-retailing and recruitment driven MLM such as Monavie.
December 14th, 2010 at 8:03 pm
I’m guessing since you didn’t approve my 2 comments you are only looking for 1 side of the story. You looked for past or present distributors to respond, which I did without giving an opinion either way – only stating the facts and providing some insight to your story. Please enjoy your 1 sided blog hiding from the facts. Best of luck to your future!
December 14th, 2010 at 10:20 pm
Dan, the problem with your logic is that it doesn’t change the equation. For you to be profitable, the other 19 people (or more) have to lose. This isn’t a month to month or time-frame thing. It is an overall thing. Anytime you get a paycheck, a bunch of people have to have lost money.
The “possibility” of the other 95% “losers” being profitable is just that a “possibility.” Remember that that the 95% would have to recruit another pile of people as well. Thus you get into the case of the 380 people mentioned in comment #3.
You should stop focusing on your odds and think about the rest and how it is mathematically impossible to sustain. Actually focus on your own odds because there is a 99.64% that you’ll lose money as well – http://www.juicescam.com/monavie-is-embarrassed-by-their-income-disclosure-statement-2/.
December 14th, 2010 at 10:22 pm
Dan said, “Their greater leg would have quite a bit more and they could eventually get paid the additional as their lesser legs continue to grow since this would be “banked†to be paid as their lesser leg grows.”
Huh? Is this English?
December 14th, 2010 at 10:27 pm
If you read comments on other articles you’d note that comments from distributors do respond. First time commenters’ comments are automatically put into moderation.
December 15th, 2010 at 4:10 am
Dan, thanks for the comment. I am interested in your imput. Can you clarify if one does have a perectly balanced downline with 10 people on each side that you would only be paid on one leg or would be paid 10% of both legs?
We’re talking the difference between a guaranteed 90% failure rate and a 95% gauranteed failure rate. Would you agree with the article that 95% (or 90% if paid on both legs) of those involved in the scheme have to fail due to the mathematics and not due to lack of effort and regardless of whatever system distributors are plugged into?
Do you agree this is a fact that should be disclosed to all distributors when showing the plan?
December 15th, 2010 at 5:28 am
MonaVie Scam (if that’s your real name) – there will always be consumer’s if there are to be profit makers. The key difference is there is the possibility of making a profit with effort. Those that read this most likely “lost” when they purchased the very electronic device they are reading it on and the internet service as well. There are far less than 5% of the electronic device and internet purchasers profiting from both.
Jim – You are technically paid 5% of each leg which equates to 10% of the lesser leg. There will always be more people putting money in than there is to take out. That is true in any business. The key is that it is possible to make profit from the very business you once spent money on. I absolutely agree that this is a fact and I do disclose this with all potentially future distributors when showing the plan. I’m sure there are ones that don’t and may sour the field for the rest (just like in any business field.) Like I said previously, this type of business is not for everyone but it is the type of business for anyone that is willing to put forth the work and can give you results that no traditional business can provide.
December 15th, 2010 at 7:15 am
Dan stated:
“Those that read this most likely “lost†when they purchased the very electronic device they are reading it on and the internet service as well. There are far less than 5% of the electronic device and internet purchasers profiting from both.”
Not sure what to make of that statement. It sounds like dream logic. The kind of logic that makes perfect sense while you are dreaming, still makes a little sense right after you wake up, then makes no sense whatsoever while you are brushing your teeth.
How do you equate buying computers and subscribing to the internet to a MLM? There is no profit motive in purchasing computers and internet service, what exactly are you trying to say?
“Like I said previously, this type of business is not for everyone but it is the type of business for anyone that is willing to put forth the work and can give you results that no traditional business can provide.”
It is possible to make a profit in MonaVie, yes, much in the same way it is possible to make a profit buying scratch off lottery tickets. Investing in a business that openly discloses a 98-99% failure rate defies all reason, and the “You just have to work harder” line is just a cop out to the harsh reality.
December 15th, 2010 at 7:19 am
Jim, the way that your article describes the compensation plan, is the way that it was explained to me. But, as Burned out says, it is never STATIC due to the extremely high drop out rate,and so you are constantly fighting to get people to “plug the holes” of your own sinking ship. Most months I was no where near even able to cover the cost of my own juice. But, that didn’t matter to me because I was SAVING money by not buying nutritional supplements or even having to buy fruits and veggies (yes, that was how it was ALSO explained to me.)
No one in my upline ever showed me their actual checks received, I was just always told what they made annually and I believed them. I realized after quitting that they were just quoting the IDs number to people because that is what they ought to have been making based on their “level”. I just know that they are ALL financially struggling now and that they are making no where near what the IDs states.
Would it have been nice to make more money? Absolutely. I was told that Monavie would be in every fridge in North America, just like bottled water, it would practically sell itself. Really? Most people that I approached had a visible, negative physical reaction as soon as I said that they couldn’t buy it in the store. When I think back, the people that started on the “juice” were people that completely trusted me, and they got people that completely trusted them involved and so on.
Dan (if that is your real name) what the hell are you talking about? What kind of argument is that? It is flawed on so many levels. I didn’t buy my computer & internet service in order to make money. I bought it to communicate and to obtain information quickly. Actually, if you look at it that way, it HAS saved me about $160 a month on piss juice because I found these sites! My computer & monthly internet fee are MORE then covered! In addition, I bought it from an extremely reputable company who didn’t lie to me about it’s capabilities.
You say that you tell the truth about the plan to your “customers”. Do you also tell the truth about the fact that the juice has very little nutrition for the price (one serving of fruit a day)? Do you tell them to do their “due dilligence” and thoroughly research the product and company (and not by directing them to the Corporate web site)?
I recently bought a pricey couch. The economy is suffering and likely so was the sales person. The sales person told me that the couch manufacturer was very reputable and it was an excellent quality couch. He then told me to go home and research them. He also said “sleep on it, the couch is not going anywhere”. It was clear that he wanted me to be comfortable with my decision. I DID research it on this alleged money pit called my computer and I also asked around at work. He told the truth and I bought the expensive couch, eyes wide open. THAT is how a scrupulous salesperson/business person conducts themselves.
You see, if there was a product/company I truly believed in, I would have no problem telling someone to do their research and make sure they are completely comfortable with becoming involved. That is the RIGHT thing to to. But, my guess is you try to get them to sign up before they are out the door at the first tasting they attend, correct?
I know that you were asked to comment on the “math” of this “business but I can’t help but make this last comment. This is not about selling poor quality & significantly overpriced juice. The only way that the “profit makers” in your “business” profit are when distributorships are sold and if I recall, that makes this a PYRAMID scheme and ILLEGAL. Ergo, your sentence should read there will always be “victims” as long as there are “scammers”.
December 15th, 2010 at 7:49 am
Dan, you’re missing the point.
People buy computers so they can access the Internet. They buy Internet access so they can surf the web.
Do people really buy MonaVie to get healthy? If so, they’d consult a health professional and not a salesman. They’d consult a doctor and not a businessman. Why are suddenly these businessmen giving health advice when they themselves are not healthy?
So clearly not many people buy it because of the healthy reason, and those who do are misguided and mistaken.
They clearly join for the money reason, and when 20 people who want to make more money actually need to LOSE money in order for one person to break even, the purpose is defeated.
For MLMs, I follow something simple. Is the product something I would buy even if there were no business opportunity? If the answer is yes, then we can talk business. That way it can feel good on my conscience that I can promote this product, knowing that I myself like the product.
Unfortunately, MonaVie seems to target people with values and lie about their product so that they can fool people into thinking it’s “anyway” money. They even put that same phrase into the presentations. “MonaVie is ‘anyway’ money.”
It’s not. I for one live on a budget, so I have no daily coffee or whatever. So buying the eMV’s incurred an extra expense on my checkbook.
I never ate 7 servings of fruits and veggies in a day, closer to maybe 2-3, but that was still cheaper than MonaVie, which didn’t even replace one of those fruits/veggies.
So really, what’s so great about MonaVie? I hate it when people say “it’s all about the opportunity not the product” because if it’s not about the product, what the hell are you selling? An opportunity to take money from 20 of your friends?
Try harder next time, Dan.
December 15th, 2010 at 7:51 am
Also, the IDS is severely flawed.
Anyone who gets 2,000 PV in a single week will be a Bronze. For that week. That person makes it onto the IDS. For the rest of the 3 weeks, he gets nothing.
So yes, he makes $200 in a week. But does he make $200 weekly? No. He makes $200 that month because he has no more PV flowing in his legs in the other months.
December 15th, 2010 at 7:57 am
Great posts guys.
Your ex-distributor insight is invaluable when it comes to rebuking MonaVie apologists like Dan.
December 15th, 2010 at 8:48 am
Dan it’s true that when someone buys a product they’re spending money that most likely they won’t make a return on. The difference is that When I bought my computer nobody tried to recruit me into selling more computers. It was a one time cost.
While the average person may not make financial gain from the perchance of a computer the product pays for it’s self in usefulness. For a few hundred dollars I have a product that is not only useful but has lasted for years.
Internet service is a recurring cost but again there is a usefulness factor to consider. For less than $50 a month everyone in my house can use the internet for school, work, entertainment etc.
It’s already been proven that Monavie lacks nutrition so it isn’t very useful. A business where it’s almost certain that you’re going to lose isn’t either.
You said ” there will always be consumer’s if there are to be profit makers. The key difference is there is the possibility of making a profit with effort.”
A consumer is a customer not a distributor.
When I bought my computer I knew that I would be spending a significant amount of money. No matter how much I promote the product the computer company isn’t going to pay me for it. I have no illusions that they will. I’m simply a customer.
When a distributer signs up it’s with the intention to do business. Nobody signs up with the intent to spend thousands of dollars a year on product with an extremely small chance that they’ll break even.
December 15th, 2010 at 9:49 am
Dan, thanks for the quick reply. I have a few more questions/comments.
You said ” You are technically paid 5% of each leg which equates to 10% of the lesser leg.” If that’s so, what is all this talk about in this video: http://www.youtube.com/watch?v=wToI39KSbyM&feature=related. Most of the info I have been exposed to said the same thing, 10% of the lesser leg, which is a bit of a difference. You could have 3 people on your lesser leg and 300 on your greater and only be paid 10% on the 3 people’s expense into the plan. IF it were 5% on both sides, that is 5% of 303 people’s expense, huge difference. Can you clarify again please.
You also said “There will always be more people putting money in than there is to take out. That is true in any business.” I don’t believe this is true at all. Ask the employees at Google how much they put into the business. Wouldn’t a business where all the money put into the scheme comes from the workforce pretty much just be a pyramid scheme?
Finally, you stated “I absolutely agree that this is a fact and I do disclose this with all potentially future distributors when showing the plan. I’m sure there are ones that don’t and may sour the field for the rest (just like in any business field.)” This was your answer to the gauranteed 95% failure rate.
How exactly do you disclose this? How exactly do you tell them that no matter how hard they try, no matter what program they are plugged into, 20 people must fail in order for one person to break even? And knowing this, your distributors sign up and then enroll their friends and family??
I’m curious… current and past distributors: was this mathematical certainty explained to you when you enrolled or is Dan the only one who is not “souring the field”?
December 15th, 2010 at 10:38 am
I saw one of the references to Bronze at 2000 Points, that is 4000 total or 40 cases or about $6000 in one week of sales paying the dist $200 plus the other commisions which are minimal and generally non recuring, not factoring in the 95/90 % drop out rate, profit/power leg balencing act that never works in the real world.
That is for one week, thus to be a solid bronze it would take 160 cases evenly balanced for a total or slightly over $24,000 per monthly sales or right at $312,000 in annual sales to make him/her a before expenses income of about munimum wage, factor in expenses, even the lowets level of the 2% “Top earners” is losing money, lots of it.
December 15th, 2010 at 3:23 pm
Jim – it’s basically the same thing. I believe the comp. plan says 5% of each team but 10% is easier to explain and the same thing. In the YouTube example of 2,000 left and 1,000 right you would take 5% of 1,000 or $50 and 5% of the left equal to the lesser leg which would also be $50 totaling $100. The remaining 1,000 unused points from the left leg get “banked” or “rolled over” to the next week and get used as the lesser leg catches up. This is actually pretty nice because your points never disappear and you can always get paid for it later.
In your example of 3 and 300 (I’ll assume 100 points each) you would get paid on 300 or $30 and you would “bank” 29,700 for future weeks. If the following week was reversed you would get paid $3,000 because of the banked points and zero out your “bank.”
The difference in the Google example is that the Google employees are employees. They probably get paid for their time or service. If everyone that used Google had the opportunity to get paid for using it and recruiting others to do the same, I think you would find similar results and more blogs trying to convince me that Google can’t possibly work.
As far as the disclosure goes I believe the numbers are on the IDS and I always point them out. I also let them know that it’s not something for nothing and it will take effort on their part to be profitable. I don’t believe (and this is just my opinion – I’m sure others will disagree) that you can call the 20 people “failures” just because they are not profitable yet. It takes many “traditional” businesses years before they make their first profit and I wouldn’t consider them failures. I have a friend who recently opened a restaurant and his hope is to make his first profit in year 3.
Like I said before, this type of business is not for everyone, but it is possible.
December 15th, 2010 at 4:11 pm
Dan said, “I don’t believe (and this is just my opinion – I’m sure others will disagree) that you can call the 20 people “failures†just because they are not profitable yet.”
The concerning part about that quote is the word “yet” at the end. If you read the article they will never be profitable. Mathematically, they cant be because for them to be profitable, they have to put another 20 people below them. So you see, when one of those “failures” becomes profitable, that person has created a new set of 20 more “failures.”
I think the point of this article is that these “failures” are necessary with the way the system is designed. There was a appropriate analogy that in a poker game of world ranked players, there is going to be one winner and a bunch of losers… it doesn’t matter how good those players are. Knowing that there has be 20 failures for every success, it underscores why a humanitarian should root for no MonaVie successes… it hurts too many in a negative way.
December 15th, 2010 at 4:56 pm
In the game of poker if you don’t know who the sucker is, it’s probably you.
Dan, I dont consider the people failures. I consider them trusting people who based on the word of someone they respect got caught up in the hype and lies and maybe even a bit of greed and ended up being the dupe in a game with a 95% gaurantee of losing money. Of course some are just knowing con men.
December 15th, 2010 at 8:23 pm
Dan said: “I don’t believe (and this is just my opinion – I’m sure others will disagree) that you can call the 20 people “failures†just because they are not profitable yet. It takes many “traditional†businesses years before they make their first profit and I wouldn’t consider them failures. I have a friend who recently opened a restaurant and his hope is to make his first profit in year 3.”
There are so many flaws to the logic underlying that comment, but allow me to focus on the most glaring examples — banking on a 3-year time horizon for profitability is extremely ill-advised when the company on which it is dependent is illegally marekting their products and could be closed by the FDA tomorrow. The 3 years invested will be a complete and utter waste except for the company and the upline that reaped the profits of your unrewarded labor. Bearing in mind that Dallin Larsen’s diet aid venture with Monarach went belly up within a year or so, and his venture immediately before that (Dynamic Essentials/Royal Tongan Limu) went from start to finish (an untimely demise at the hands of the FDA) in about 2 years. Dallin Larsen had hyped Limu as the “next Microsoft” just like he did with Monavie.
So banking on profitability (and profitability to what extent you did not specify) within 3 years with Monavie takes the poker metaphor a step further. Not only is the venture akin to being the worst poker player at a table of sharks, but also playing for a jackpot that, in the unlikely event you do win, can only be collected (concevably) 3 years later, assuming that the guys who were holding the money for you can still be located.
If you think that this represents a good opportunity for anyone other than the schemers and fraud artists that are running the game, then I have to seriously question whether you have one iota of business accumen or even commonsense.
BTW, you Monavie distributors constantly resort to using strained analogies that begin with “I have a friend who…”. In your case, I have to seriously question whether you actually do have such a friend who opened a restaurant and is planning on being profitable in 3 years. You don’t really do you? You’re just reciting more BS from Monavie’s lame ass playbook. You’re welcome to prove me wrong by providing the name of your friend and the restaurant — AFTER you provide your name and Monavie distributor ID#, as required by that contract you signed and agreed to honor. The fact that you have not done so yet, even after being asked several times, already speaks volumes about your integrity (or lack thereof).
On that basis, you’re definitely Monavie material son. Astonishingly naive, enthusiastic about throwing money into a pyramid scheme with no payoff, and lacking in integrity.
December 15th, 2010 at 8:26 pm
“If everyone that used Google had the opportunity to get paid for using it and recruiting others to do the same, I think you would find similar results and more blogs trying to convince me that Google can’t possibly work.”
The hell? Dude, I know you are trying to make apples and oranges comparisons but that’s way off.
Actually, there is a way to get paid to turn people on to Google, its called advertising, whether using Adsense or plugging Google’s products like chrome in ad banners.
December 15th, 2010 at 8:34 pm
Dan, who gets paid to drink MonaVie? Not many people. So you can’t give that Google example.
December 16th, 2010 at 7:22 am
I think what Dan is trying to say with his other-dimensional logic is that MonaVie is something that you can get paid to consume (by getting enough people under you) and no other business offers this. Hence why he said there is no profit in buying computers and internet access. So in Dan’s logic, MonaVie is the perfect business as you can end up being paid to consume, “if only you work hard enough”.
But as Rasheed said, the odds of this happening in MonaVie are slim, and one usually ends up footing the bill for their own juice (and then some, considering tools and trips). Seems pretty easy to understand but for some reason Dan has this dream world logic… Dan, have you actually made profits in MonaVie?
On another note, that “if only you work hard enough line” feels more and more like a carrot on a stick everytime I hear it. I could say “if only you buy enough lottery tickets”, and then claim each person who fails at winning the lottery didn’t buy enough or didn’t go to the best tarot card reader to get their lottery numbers.
December 16th, 2010 at 9:43 am
I hope that Dan’s logic isn’t that you should work hard to get paid to consume extremely expensive juice. Looking at the IDS, people have to work 300 a hours a year just to break even with their juice costs… and these are the top 13% who are fortunate enough to make money at all.
Breaking that down, that’s 300 hours of work for roughly 1460 ounces of juice (approximately 4 ounces a day for 365 days). To get that many ounces of V8 Fusion Acai Berry, you need to buy 32 bottles at around $4 a bottle each or $128 for the year. So these people who are the top 13% most successful in MonaVie could switch to V8 Fusion, spend $128 for the year, and save themselves 300 hours of work. It sounds like these people are defending working for a $0.43 an hour value in product.
In order to reward themselves with that “incredible opportunity”, these people are willing to live with the guilt of making 19 other people lose money. Wow, ouch!
December 16th, 2010 at 11:22 am
I am glad you touched on that. The product itself doesn’t even compare to Google, computers, or internet access. Even if you break even with MonaVie, the only thing you are really getting out of it is the juice nobody wants to buy, unless you are lucky (already at the top of the pyramid) enough to actually make an income.
I mean if we take Dan’s analogy literally it would be like working for a MLM that sells laptops that look really nice on the outside but are functionally worse than a cheap netbook. Then we sell the laptops retail for 6 thousand dollar, and no one wants to buy it, so what we do is get people signed on as laptop “distributors” who must get other people to sign up. Then the distributors start making claims like “this laptop lets you talk to bill gates directly” so that people will think the price is worth it, despite it actually having a 4kb modem and DOS 1.0 on it.
December 16th, 2010 at 12:44 pm
Dan, Rasheed and Humiliated,
Thank you all for your imput regarding the Mona vie opportunity. We all seem to be in agreement that distributors are paid 10% on the lesser leg, and that for each person who is profitable 20 people must lose money to the scheme.
Dan, would you agree that it is possible for your friends restaurant and all the restaurants in your geographic area to all be profitable? There is no rule of math stating 95% of restaurants must fail. But it is a mathematical certainty that 95% of all Mona vie distributors must fail regardless of effort or system as we agreed. There is no requirement for 20 other restaurants to fail in order for your friends to be successful as we agreed is the case in Mona vie. Does this make sense?
If you are a distributor, ask your upline about the math of this scheme. We can argue till we are blue in the face whether the juice provides energy or helps your body support a healthy immune system or whatever but I don’t think we can disagree on the math of the opportunity. The next time you are in a room with 20 distributors know that on average, only one of you can be profitable. If more than one of you are profitable, then there is a whole other room of 20 people that will waste their time and hard earned money chasing this dream. Ask to see your uplines downline and ask them which 5 out of 100 will turn a profit.
December 16th, 2010 at 12:53 pm
And Dan, in my opinion simply showing the IDS is not honestly disclosing the odds, especially when the fact that 87% earn nothing is in the fine print below. My question was shouldn’t the 95% gauranteed failure rate be disclosed. The IDS does not disclose this and I believe most good people knowing this fact would pass on the opportunity and not involve friends and family in a scheme where the probability of financial loss is so high. Can I ask you if you were aware 95% had to lose money before you read this? Thanks again.
December 16th, 2010 at 3:56 pm
Jim said: “And Dan, in my opinion simply showing the IDS is not honestly disclosing the odds, especially when the fact that 87% earn nothing is in the fine print below. My question was shouldn’t the 95% gauranteed failure rate be disclosed. The IDS does not disclose this and I believe most good people knowing this fact would pass on the opportunity and not involve friends and family in a scheme where the probability of financial loss is so high.â€
And in fact, we’ve seen repeatedly that they try to misrepresent the IDS and downplay its significance (eg, lying by saying that the data include mostly people who are only wholesale customers). What they use the IDS for is to point out that there are a few people that make a lot of money; the downside gets purposely underplayed, naturally. It’s a quick flash of the IDS…”see these guys make millions”…followed by a quick cut to the brochure with the couple standing in front of an exotic sports car/yacht/jet/palm trees etc.
December 16th, 2010 at 4:06 pm
And the top earners are in the center of the IDS, where the human eye naturally looks at first. So when they see millions per year, they’re like, COOL!
That’s what happened to my brother.
December 16th, 2010 at 4:40 pm
Dan states “If everyone that used Google had the opportunity to get paid for using it and recruiting others to do the same, I think you would find similar results…”
Dan, what continues to be notably absent from your description of business is any reference of selling fruit juice to customers. However, I don’t think anyone’s surprised that you’re not addressing this aspect of the business – if you can sell Monavie to genuine customers (i.e those NOT pursuing the opportunity) at the given price of 10x higher than any other fruit juice on the market, you could no doubt sell ice to the Eskimos.
What you’re describing is a pyramid scheme – an unsustainable and fraudulent system where the focus isn’t on selling and earning the majority of profits from non-participants, but rather an endless chain of recruitment where the profits being derived are through the participants themselves whose investments and purchases represent the revenue, the majority of which is transferred to those ranked the highest and who got in earliest. Such schemes are considered fraudulent because they leave the majority of the participants (as much as 99% or greater) at the bottom where no profits are being made.
So yes, of course the outcome is going be the same – greater than 99% losses.
The below attached link is one of my favourites in explaining the pyramid math and why your failure in Monavie is pre-determined from the onset. You’d be doing yourself and anyone who you contemplate recruiting into this abysmal venture a huge service by reading it thoroughly and considering its contents.
http://www.pyramidschemealert.org/PSAMain/resources/nonretail.html
December 17th, 2010 at 7:01 am
Great article. This is a great technical guide. Of course, the common distributor thinks that MonaVie is “not like those other pyramids” and that “your job is a pyramid too”. I was skimming through the PSA site and noticed that many of these MLMs set up operations in other countries. MonaVie has done the same, as referenced in this site:
motminternational.com
This actually scares me on some level. The lengths a group can get people to go to with motivational manipulation is astounding. I mean, they are able to get all these people psyched to near fanatic levels over fruit juice. I think seeing that first hand is what made me so adamant about speaking out.
December 17th, 2010 at 7:32 am
Actually, I believe I was mistaken on the binary (aka team) commissions. The binary structure does not necessarily entail that 20 people per person MUST lose money for that one person to gain money. Let me explain.
Let’s say someone recruits 20 people, 10 in each leg. He breaks even. So now there are two people directly below that guy, each with 9 people in their first legs. Those first two people actually need 1 more in their first leg and 10 more in their second leg in order to break even. So 11 people for the first level of recruits to break even. However, the number never goes below 10. The number will always be between 10 and 30 (if you’re on 300 PV autoship).
So does that make the odds better? Sure, it does, but that’s like taking 2 bullets out of a previously 4-slot-loaded revolver and playing Russian roulette. Just because it’s better, doesn’t make it great.
An interesting thing to note is that if one sells 8 cases per month through preferred customers, they will earn just about enough to pay for 200 PV autoship. Typically that’s 8 people, or maybe 4 couples.
But no one ever does that for some reason. I wonder why.
December 17th, 2010 at 7:48 am
Speaking of MLMs, I received an email from a guy promoting MLM water called Kangen.
http://itsdawater.com/blog/kangen-water-on-the-news/
It seems pretty cool but I don’t see how it’s any different than Brita filtered water. I don’t know any science behind water or what the body needs in terms of water, but it sounds just like Amway’s Perfect Water… which is all just overpriced water.
What do you guys think?
December 17th, 2010 at 8:16 am
Lets back the juice train up here with Dan.
Dan says-
“The key difference is there is the possibility of making a profit with effort. Those that read this most likely “lost†when they purchased the very electronic device they are reading it on and the internet service as well.”
Ahhhh yes, and to clarify, the good ol’ “effort” line and infamous line of how everyone “lost” when investing their money elsewhere.
My god, …the only thing that comes to my mind here, is a nightmare flashback of my Team days. These lines are the oldest in the book that Team has to offer. Interesting how a mentor says, that the effort is oh so good when in, but when finally seeing the truth behind all the legal problems, lies, and deception, we all of a sudden become the bottom feeders, or some competitor of Team and Mona Vie…NOW, we’ve become the “failures/loosers”. It’s quite clear how “Team” works.
Unfortunately, I see distributors like him as nothing more than that little hopeless, squeaky chew toy in the back of a pitbull’s chain-linked, fenced-in backyard.
December 17th, 2010 at 8:33 am
I checked one site that promotes ionized water but disputes the claims that Kangen makes that it is “the best”. Similar to MonaVie, Kangen tries to stifle the competition by claiming some patented process that makes their product the best:
http://www.ionizers.org/kangen.html
I then thought, “What is the scienfific opinion on ionized water?” Well, there is supposedly no empirical evidence that ionized water has any benefit whatsoever over real water, and the buzz is all marketing propaganda, simliar to the marketing buzz for “super fruit”.
Here’s a website from a chemist on the matter:
chem1.com/CQ/ionbunk.html
This stuff is all what some in the scientific community would call “woo”:
rationalwiki.org/wiki/Woo
It should be noted that woo almost always relies on pseudoscience instead of actual science, using scientific sounding technical mumbo-jumbo or greatly exaggerating and twisting actual science (ORAC, Ionizing) to “woo” people over to their product.
December 17th, 2010 at 8:35 am
By “real water” above, I meant “regular water”. Ionizied water is of course, not fake water.
December 17th, 2010 at 8:36 am
Wow, thanks for the quick reply Mackwiz.
Yep, looks like hype to me. How many of these wellness companies do we need to debunk??
December 17th, 2010 at 9:13 am
What in the hell are these companies doing????
It’s WATER for gods sake!
All to make a shallow, dishonest buck.
December 17th, 2010 at 9:19 am
Lol, it’s a good way to promote “anyway money.”
“You already spend $x per day on water, why not get paid to do so?”
I dunno how expensive this ionized water stuff is, but I’d imagine it to be on par with Perfect Water. That is, water that costs anywhere from $1.50 to $2 per bottle. And those bottles are pretty much the size of soda/gatorade bottles.
Ah well.
December 17th, 2010 at 3:05 pm
Brian Dunning’s take:
http://skeptoid.com/episodes/4139
December 17th, 2010 at 4:28 pm
Rasheed asks “How many of these wellness companies do we need to debunk??”
Pfft. All of them so far!
December 17th, 2010 at 9:10 pm
Rasheed said: “Unfortunately, I see distributors like him as nothing more than that little hopeless, squeaky chew toy in the back of a pitbull’s chain-linked, fenced-in backyard.”
Poetry! I’m so proud of you it makes me misty eyed.
December 17th, 2010 at 9:12 pm
AA, yeah I know right?
Vogel, that wasn’t me; that was switch.
I’m not so eloquent with words… haha
Don’t worry, I’ll make you proud of me yet! :P
December 19th, 2010 at 1:02 pm
Aussie, thanks for the link you posted in comment 44. I had read that a couple times over the years and I agree it is one of the best analysis of these schemes. I actually was looking for that link when I wrote the article.
If anybody wanting a thorough understanding of what the Mona vie business is really all about should take the time to read the entire paper. You don’t need to know anything about juice or wellness because Mona vie is not a juice company, it’s a marketing company.
For those who think that this is just more “hating”, this article was written in 2004 which is before mona vie was foundedI believe. It’s amazing how the outline of these schemes is followed perfectly in Mona vie. It’s almost like reading the company bussiness plan or marketing plan. If you can read this article and still not see what Mona vie and all these other endless recruitment schemes are all about, and the GAURANTEED losses to almost everybody then I don’t know if there is any hope for you.
http://www.pyramidschemealert.org/PSAMain/resources/nonretail.html
December 22nd, 2010 at 9:55 pm
Hi – I didn’t read all of the comments here – but your article here is assuming people don’t just want to buy the products and be around the people involved.
I think that’s a flawed assumption – it’s also assuming people are getting no value from the actual product itself. I’m not in Monavie, but I am in Network Marketing and am one of those few ‘lucky’ reps making boatloads of money.
Most of my downline are consumers – isn’t that the case in any company?
-dave
December 22nd, 2010 at 10:12 pm
Hey it’s David Wood, the recruiting legend! You probably don’t know who I am, but you and Ray Higdon are awesome. I think I’m in your downline anyway, somewhere along the line.
Anyway, a person shouldn’t need to buy a product in order to be around the people involved. Maybe pay for a ticket to a meeting yes, but not buy a $130 case of juice.
With MonaVie, the “value” people get from the product is very negligible and is more based on pseudoscience. There are many articles on this site that attest to that, read the article on the placebo effect. Many renown scientist speak against acai scams (and sometimes even MonaVie).
Having consumers is fine, with the company we rep, our product is actually competitive. There are customers who buy our product because they want it, and not buy into the whole business side of it.
With MonaVie, it’s rare to find someone who would buy the juice and not get into the business. I know that for a fact because I used to be in MonaVie.
With NM in general, if the product is competitive and people would be willing to buy it, that’s fine. I for one wouldn’t mind not making money in the company we’re in because I like our product. The income is just a bonus.
With MonaVie, even though I left almost 6 months ago, I still have cases of juice in my kitchen, which are all probably expired and even if they weren’t, I wouldn’t be able to get anything for them (over $200 of juice in my kitchen).
Not only that, but the juice provided no real benefit to my health. I wasn’t aware that 2 oz of juice could cure cancer and do all these awesome things for a person and not be verified by the FDA.
December 22nd, 2010 at 10:21 pm
David Wood said: “Hi – I didn’t read all of the comments here – but your article here is assuming people don’t just want to buy the products and be around the people involved.”
Which article were you reading? This one is about pyramid scheme mathematics. Nice strawman.
December 22nd, 2010 at 10:23 pm
If you just want to buy the product, you should choose to become a preferred customer, not sign a distributor agreement. This article is not intended for those who just want to buy the product. If you want to be around the people involved invite them over to your poker night, for a BBQ, or to play tiddlywinks.
Thus I think the article is quite accurate – there is no flawed assumption. I’m not assuming that there’s no value in the product itself. Almost every product has “some” value. However, given that we know the product lacks nutrition and at two ounces, it doesn’t quench thirst, one would be hard pressed to claim that the product had value.
Most of your downline may be consumers, but you still need to make sure that retail sales are the majority of your income source or else you risk running afoul of the FTC’s pyramid schemes. As for it being the case with any company, I went to the grocery store and bought some juice today. I have no idea if the cashier drinks the same juice. I know she didn’t make a commission on selling me the juice. There were no incentives for her to make any illegal claims about juice. Overall, it was a good experience. MonaVie should try it. If their product is any good, it would open it up to a greater number of markets and generate more profits. However, if the product isn’t all that good, it makes sense that they’d try to wrap it up in an illegal pyramid scheme to make money.
Congrats on being lucky. Rather than be vague about being in MLM, why not tell us which one you are in?
December 22nd, 2010 at 11:12 pm
Vogel, the article wasn’t about mathematics only – it was about the validity of the product (in the sense that, in order for the people to be losing money – the product would have to be worth nothing). In other words – assuming that the people losing money are feeding the one person making money is also using the assumption that the distributors are getting no value from the actual money that they are spending on the juice.
I’m not here to advocate Monavie juice – however I’ve ran into a whole bunch of non-reps who swear by it – so figured I’d throw that out.
I think that there is another flaw in the argument, too – and that’s thinking that the FTC is right at all to regulate business like this with these stupid rules – if someone wants to buy into a scam, do we treat them as a child and say ‘no, bad boy!’ ?
As far as me actually being ‘lucky’ it was half in jest – I worked my ass off to learn how to sell and recruit, and it took me a massive amount of energy and effort to get where I am today, and I probably work harder than anyone else in my company and I’m proud of that, and because of the sheer force of my will and effort, I’m the #1 personal recruiter there – my company is The Numis Network, since you asked.
(I’m not here to promote it, just reading about orrin woodward and stumbled into this)
However, I go back to my original points:
1. Is the FTC right to put ridiculous statutes on business like this? which is the foundation for defining an illegal pyramid scam. I don’t think so, personally, but that doesn’t mean I won’t follow the established laws – I just don’t think they make sense. My Dad was in Amway for 10 years, and happily bought CD’s, books, attended functions, and products without ever having an intent of building a business – he just loved it for some strange reason. Why not let him do what he wants? If someone feels like they’re getting ‘scammed’ why not quit and request a refund and stop buying stuff they don’t want? Is America too retarded to make decisions for themselves?
Like me – for example, I have a product that I love to sell, but say I wanted to, by my own free will, get involved in Cash gifting – (I don’t) but if I did – what’s wrong with that?
2. The entire logic assumes that people are ‘losing’ based on lack of value – which is a personal preference – you cited lack of nutritional evidence for Monavie, but let’s put this in perspective, since I’m not a rep – people spend more than that each month on Fast Food that gives them heart attacks – and because Monavie has no nutritional value it’s a scam? McDonalds uses happy children to manipulate people into having heart attacks – why not talk about the McDonalds scam? How about talk about the huge government scam, and how they want to control our lives and buying decisions and don’t think we can choose for ourselves?
How’s this for a scam – you have to pay for what we want, you have no choice in the matter, and if you don’t pay, you get locked up for life! Why not talk about the way income taxes scams us out of our right to freedom and liberty?
Look – all I’m saying here is that Monavie is the least of our worries – I’d rather my friends and family bought overpriced grapejuice and went to rah rah meetings than porn or McDonalds.
-dave
December 22nd, 2010 at 11:51 pm
Hey Dave,
You said: I think that there is another flaw in the argument, too – and that’s thinking that the FTC is right at all to regulate business like this with these stupid rules – if someone wants to buy into a scam, do we treat them as a child and say ‘no, bad boy!’ ?
1) We are in no position to say whether or not the FTC is “right” or not, the fact is that if we disobey laws, there will be consequences. Just because the law is not always right does not mean that it’s okay to break those laws. We have been given the privilege to live in this country, the least we can do is abide by the laws that govern this country.
Have you ever been scammed on Craigslist, Dave? Consumer fraud is rampant there. A couple years ago I was looking for a private tutoring job at CL, and a gentleman wanted me to tutor his daughter in math for a month and he’d pay me $2000 to cover transportation and fees. He said “I’ll give you my next paycheck instead, and you can just wire over what you don’t want.”
Turns out I was being scammed. Are you saying it’s wrong to make it illegal to scam people like this? To let people learn from the mistake of misleading people?
The books, CDs, functions, etc, are not one and the same with the product that MonaVie sells. I’ll not address the training system because that’s just information and the value is in the eye of the beholder, but look at MonaVie selling overpriced juice. If someone can show WHY exactly MonaVie, priced at $45 per 25 oz bottle, is better than V8 Splash or V8 Fusion, then there’d be a case. Scientifically though, there is nothing that shows MonaVie to be better. Just one “doctor” who says that it’s really good.
I don’t know much about Cash gifting so I can’t say much about the matter. But just because it’s not illegal does not make it ethical.
2) This is a website about MonaVie, not McDonalds. I think everyone knows that McDonalds is bad for them, they just eat at the fast food restaurants out of convenience. Also, I don’t think McDonalds has ever really LIED about their products in order to sell. They just have a TV ad with some people eating them, and that’s about it. They don’t say, “McDonalds will cure your cancer!” or “Lower your cholesterol!” or anything like that. McDonalds does what it is advertised to do: satiate hunger. MonaVie? Not as much.
Using implications and misleading advertising is unethical, and some cities are actually banning the inclusion of toys with Happy Meals. But illegal? No. McDonalds does not do anything illegal, that I know of. MonaVie? How about uneducated salesmen talking about the science about the juice when they can’t even tell me what the hell “resveratrol” does? Most of MonaVie’s reps do not know what the product is, and they sell it based off of what their upline has told them, which is often wrong. I was sold on MonaVie because they said it made your 13 servings of fruits in a day (in just 4 oz), cured x and x, etc… and none of this was substantiated; in fact, it was all flat-out wrong.
MonaVie in the scheme of things will not change much. But it’s not like there are two ultimatums: a person can either buy MonaVie or watch porn/go to McDonalds. I do know for a fact that people who buy MonaVie also go to McDonalds/Burger King and may even watch porn. I don’t know. But there is no ultimatum.
So why NOT protect people from consumer fraud?
Rasheed
December 23rd, 2010 at 12:32 am
Rasheed:
“1) We are in no position to say whether or not the FTC is “right†or not, the fact is that if we disobey laws, there will be consequences.”
That statement is so messed up I could go on for five days. YES, we have to follow laws as they stand, HOWEVER – it is our right and duty to stand up to oppressive governments, and the FTC, like the FED and the Executive branch have waaay too much un-checked power – and it absolutely relates, because we’re talking about the ethics of pyramid schemes – and that goes back to the actual legalities themselves, which if you look at them, are ridiculous.
I have a choice of whether or not I want to get into Monavie – I don’t have to be an idiot and join from rash emotions, I can research it if I choose, cancel, and even get a refund if I desire – I don’t have a choice as to whether or not I have to pay for our oppressive government, or if I want to participate – trust me, I know, I don’t even live in the states anymore and I’m still bound by laws that control me because I was born there.
[Editor's Note: Thank you for not going on for days. I could go on for days about MonaVie. It's why I created this website. Create you own website, make your points there and then maybe submit one link as a starting point. I do this with JuiceScam. I can just send the URL and boom all the information is there. As far as talking about pyramid schemes, check Wikipedia, it is not a US and FTC-only issue. There's a list of 30+ countries there.
As far as not living in the US. It is worth noting that the contact form on your website lists a US address:
If you renounced your citizenship, and didn't earn income from U.S. citizens, and moved out of the U.S., I am pretty sure that the US wouldn't come after you for any taxes. That's your choice.]
One thing worth mentioning though – that craigslist scam, you didn’t fall for that did you? The fact that you’re relating that to direct selling makes me want to throw up with disgust – that guy was blatantly stealing from you – direct selling is selling a product, for which you can get a refund if you don’t want it, that guy was blatantly attempting to steal your money – how is that the same at all?
[Editor's Note: You are right, they are hard to compare. One is a more obvious scam, while MonaVie is a hidden one. If you've been lied to about the health benefits of MonaVie you can't get a refund on all the product you bought. You already consumed the product, so there is nothing left to return. That's why we are discussing this on a website named Juice Scam. It isn't Coin Scam, Cookware Wcam, or even Make-up Scam. I hope you see the obvious difference.]
Also, now we’re arguing about whether or not McDonalds is unethical. Lol. That wasn’t the point of the statement – the point was that people pay for things they want to pay for, that are priced higher than competition, that may or may not have benefits all the time and no one gives a crap.
[Editor's Note: It is you who missed Rasheed's point. McDonalds doesn't lie and say its burgers are healthy and will cure your cancer. If they did, you can be sure I would start a Burger Scam. People pay for things they want to pay for because of how they perceive the value of the product. With MonaVie, they are lead to believe that can cure certain medical conditions, replace the cost of many fruits and vegetables, and even bring about a Lifestyles of the Rich and Famous life. This distorts the market value of the juice. This is why I suggest we put the juice on a store shelf without these lies propping up the price of the juice. This way we are letting people who want to buy the juice, simply buy the juice. Can we agree to this and get this done? Great!]
Like seeing a crappy movie – you might write a negative review – but this kind of passion towards it that you see on this site is unheard of there, but no one is going to ‘regulate you’ out of seeing a shitty movie if you desire. Seeing a bad movie that had over-hyped previews isn’t the same as a guy trying to steal your money or traffic your children on craigslist – and neither is a bad MLM company with overpriced grape juice.
[Editor's Note: Whether a movie is crappy is a matter of subjective opinion. The quality of juice is objectively, scientifically provable. If you don't agree than I'm going to claim that I believe McDonalds to be healthy ;-). Beyond that, comparing seeing one bad movie with the $5000 yearly expense for a family of four of MonaVie is hardly one in the same. It's not like the movie has subliminal advertising that makes you think it is good, so you end up paying to see it again and again.]
What I’m marveling at is the success Monavie had – I’ve never wanted to buy their product or join – yet the absolute speed at which the company grew stretched my mind a bit – I’m still baffled, but congratulate their success.
[Editor's Note: What is baffling is how anyone can consider the product to be successful by any measure. One can simply read the Wikipedia article and see that. It is hard to come up with a more delusional statement. It is on par with "McDonalds hamburgers cure cancer."]
On a positive note, however, it’s amazing how much comments this Monavie blog gets – I didn’t realize so many people were so passionate about hating it. Lol.
[Editor's Note: People here are just passionate about helping other people. I personally find it hard not to be passionate about putting an end to fraud. I realize it might be a foreign concept for someone like you who is looking for the freedom to scam others out of their hard-earned money.]
I’m going to let you guys get on with your ‘unbreakable logic’ and go do something fun.
Merry Christmas,
Dave
December 23rd, 2010 at 12:46 am
[Note, I was composing this as David was replying back to Rasheed and did not see that response when posting this. I then decided to respond to David's comments to Rasheed in line. Sorry for the temporal confusion.]
David said,
This is not entirely true. If we were to take a product with a known, agreed-upon value like say a hundred dollar bill and run the same system the people would still be losing money if you have to recruit between 10-30 people to make your hundred dollar bill back. This does not mean that the hundred dollar has no value. You could do this for any product of any value. Substitute Honda Civics. If you have to get 20 other people to buy Honda Civics to pay for your own it is a mathematical certainty that people will lose money.
However, this gets especially bad in the case of MonaVie where you have to convince people to buy the equivalent of a $200,000 Honda Civic.
David said,
Why don’t we let Wikipedia’s opening paragraph about the FTC handle that one, “The Federal Trade Commission (FTC) is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act. Its principal mission is the promotion of consumer protection and the elimination and prevention of what regulators perceive to be harmfully anti-competitive business practices, such as coercive monopoly.”
You aren’t seriously going to question the value of Consumer Protection? It is something that is enforced in many, many countries. I invite you to look at the number of countries that prohibit Pyramid schemes. I want to emphasize Rasheed’s wise words above about following the laws that govern this country. I suggest that if you find the FTC’s rules “stupid”, you relocate your business to a section of the world that is not bound by such rules. The FTC sets the rules, if you don’t want to play by them, either leave or quit playing.
David said,
Excellent. Good job. However, a great point was made in the article above (or one of the comments) that essentially everyone is playing poker. One person is going to make their money back and the other 20 are going to lose their money (at least with MonaVie’s compensation plan, I can’t speak to Numis’). This happens even if you have a game with the top 20 poker players in the world. It’s the math of how it works. So I give you credit for honing your skills and working hard to be the best poker player you can be. However, that simply means that you’ve indirectly lead many, many more people to much greater financial losses than your gains.
Also, it’s shame that you have to be associated with the Numis Network. I have a great story about an interaction with one of your previous members here: http://www.lazymanandmoney.com/lifevantage-protandim-scam/.
David said,
This is a great question and one that has been answered many times before. You might want to read the comments from “Humiliated” here. She was with MonaVie for 1.5 years (I think). She was lied to about the value of the product by her upline. Websites like this didn’t exist to expose these lies. At one point, she got wise and took the juice to some unbiased nutritionists and had them assess the value of the juice. They told her what we now know, the juice has almost zero nutritional value. She thought she was getting Ferrari quality, when it turned out to be Tata Nano quality. Because it is a juice, this couldn’t be objectively observed. She was scammed. She quit. Do you think MonaVie gave a refund for the $3000 (I’m estimating) in juice that she bought? No.
You said, “Stop buying stuff they don’t want.” Are you serious?!?! People aren’t allowed to not buy the stuff if they want to be in the business and “reach their dreams.”
Before you ask if America is too retarded to make decisions for themselves, you should study the nature of cults. I recommend watching this video that dates back to 2005 around the time MonaVie was started. As you watch it, you can almost match up every technique with MonaVie’s recruiting process. If you really want to know how smart America is to make decisions for themselves, put MonaVie on store shelves at its retail price and let’s see how it sells. Let’s take away the mind control, illegal pyramid scheme, poor business opportunity false billed as being great, and their fraudalent charity.
Rasheed made many great points about McDonalds. I would love to see your answer to Rasheed’s question, “So why NOT protect people from consumer fraud?” You just want to legally scam people? This doesn’t show any character on your part.
I see that you came from reading about Orrin Woodward. It makes sense why you’d go on with your ridiculous comments about “income tax scams.” I’m to believe that you’ve never driven on paved road paid for by income taxes. You do have an alternative to paying income taxes. Make your income in another country without income tax. Drop me a line about how you are enjoying your right to freedom and liberty there.
You underestimate the problem of MonaVie. It isn’t just a few dollars. A family of four wastes $5000 a year on the juice. You invest that over 20 years or so and you are looking at a pretty sizable chunk of change. At just 7% interest that $5000 from the first year becomes more than $19,000 in the 20th year. We don’t have to look at the 2nd, 3rd, 4th years of spending $5000 to see that this number can quickly grow to be hundreds of thousands of dollars. I don’t know about you, but I don’t think porn or the occasional McDonalds’ trip (which does have some healthy food by the way) impacts a family as much as losing a couple of hundred thousand dollars.
However, this website isn’t a competition to find out the worst things to people. Its purpose is to point out the problems with MonaVie and educate people about the harm it is doing. You are welcome to go ahead and start your anti-McDonalds, anti-porn, anti-income tax blogs. Email me the link to them and if I’m interested I’ll go comment about those topics there. I promise you that I won’t come there and talk about MonaVie. I wouldn’t be so rude as to try to change the topic to something else like you tried to do here.
December 23rd, 2010 at 1:10 am
Dave said: “On a positive note, however, it’s amazing how much comments this Monavie blog gets – I didn’t realize so many people were so passionate about hating it. Lol.”
Some people are just passionate about justice. Others not so much. I’m a law student so there’s my background.
Dave said: “I’m going to let you guys get on with your ‘unbreakable logic’ and go do something fun.”
Have fun! Me personally, I like helping people out and I think some of the commenters here are pretty cool/funny. So it is fun commenting here. As I said above, I’m a law student, I have my own passions.
December 23rd, 2010 at 1:34 am
“Rasheed made many great points about McDonalds. I would love to see your answer to Rasheed’s question, “So why NOT protect people from consumer fraud?†You just want to legally scam people? This doesn’t show any character on your part.”
I simply disagree that Monavie, or Network Marketing in general is scamming people in any way – I’ve had great value added to my life from this industry even before I made money at it.
[Editor's Response: You need to connect with the hundreds that have commented here explaining the lies they were told. You should look at websites of high-level distributors like Mitch Biggs who make illegal medical claims. You can disagree that people are being scammed, but it is like holding the opinion that McDonalds Double Quarterpounders are healthy - it doesn't make any sense. As for the industry's value on your life, it isn't relevant. I'm sure Bernie Madoff's pyramid scam had a positive effect on his life.]
“You said, “Stop buying stuff they don’t want.†Are you serious?!?! People aren’t allowed to not buy the stuff if they want to be in the business and “reach their dreams.—
That’s ridiculous – MLM is the easiest business in the world to quit – you just stop ordering and admit that it’s not for you. (unless Monavie is doing something that I’m not aware of )
[Editor's Response: You are talking about a completely different thing, quitting an MLM business. The conversation was that people can stop buying stuff they don't want. It is written to the contracts of most MLMs that to participate in the MLM part of the business they must be on auto-ship. They can't stop buying while they are working the business "opportunity." Of course anyone can quit MLM all-together, but then the Orrin Woodward's of the world chastise you for being a failure and a quitter... just like a cult does if you try to leave.]
“This is not entirely true. If we were to take a product with a known, agreed-upon value like say a hundred dollar bill and run the same system the people would still be losing money if you have to recruit between 10-30 people to make your hundred dollar bill back. This does not mean that the hundred dollar has no value. You could do this for any product of any value. Substitute Honda Civics. If you have to get 20 other people to buy Honda Civics to pay for your own it is a mathematical certainty that people will lose money.”
Well, sure – but if someone buys the Honda from a honda dealer – they still lose the same money? What’s the point?
If THE ONLY REASON they got in was to make a profit, and they never used the product, I could catch your point – but they get value from the product, either perceived or real, that money is not a business expense, it’s a purchase of a product.
[Editor's Response: This is a ridiculous statement. I'll use a quote from the FTC to prove my point: "Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure."
How do you differentiate the people who in the business to make a profit from those that are in it for purchasing product? Easy... Decouple them. You can already purchase the product without the business via the preferred customer program. Now MonaVie needs to allow people to earn the MLM-style commissions without being on auto-ship.]
“You underestimate the problem of MonaVie. It isn’t just a few dollars. A family of four wastes $5000 a year on the juice. You invest that over 20 years or so and you are looking at a pretty sizable chunk of change. At just 7% interest that $5000 from the first year becomes more than $19,000 in the 20th year. We don’t have to look at the 2nd, 3rd, 4th years of spending $5000 to see that this number can quickly grow to be hundreds of thousands of dollars. I don’t know about you, but I don’t think porn or the occasional McDonalds’ trip (which does have some healthy food by the way) impacts a family as much as losing a couple of hundred thousand dollars. ”
I gotcha – but one thing – you’re making the same kind of claims with this statement that you’re criticizing Monavie reps for – making an assumption of a 7% return. This is the nature not just of Monavie – but of bad habits. A 7% return isn’t guaranteed even if a family invests diligently.
[Editor's Response: The 7% return was a reasonable example to illustrate the value of compound interest. If you were to put the money in a FDIC insured bank (i.e. guaranteed), $5000 a year still adds up to $100,000. MonaVie reps don't make reasonable examples which pitching the product. Glad that you conceded the point that it is a very, very big issue though.]
“However, this website isn’t a competition to find out the worst things to people. Its purpose is to point out the problems with MonaVie and educate people about the harm it is doing. You are welcome to go ahead and start your anti-McDonalds, anti-porn, anti-income tax blogs. Email me the link to them and if I’m interested I’ll go comment about those topics there. I promise you that I won’t come there and talk about MonaVie. I wouldn’t be so rude as to try to change the topic to something else like you tried to do here.”
If you look at my comments, they’re not rude – they’re presenting an alternative side of an argument, much like you’re doing in your post.
[Editor's Response: I didn't say your comments were rude in nature. I said that it would be rude to try to change the topic to other products in an attempt to pass the buck. Even if you did miraculously find a non-MLM company that scams people like MonaVie, it wouldn't justify MonaVie. Two wrongs wouldn't make a right.]
You feel like Monavie is a scam and are presenting your view, I think the product may or may not have value since I don’t buy, sell or endorse it, and still don’t think it’s a scam because people can choose to not join, or do something else with their life.
[Editor's Response: This is the laughable Orrin Woodward view that I debunked here: http://www.lazymanandmoney.com/orrin-woodward-scams-monavie-team-lies/. A scam is not defined by whether there is force. Being allowed to quit does not make it not a scam. I encourage you to read that article and familiarize yourself with the definition of "scam" that I quoted from the dictionary there.]
If someone feels ‘controlled’ to the point where they feel like they can’t make decisions, they should definitely quit and do something else.
[Editor's Response: WOW. In one short sentence you came up with with a bunch of idiotic statements. First, many people don't "feel controlled" because that's the nature of the brainwashing. If you are brainwashed to the point where you can't make decisions, you obviously can't make the decision to quit. I encourage you to read this article: http://www.lazymanandmoney.com/my-friend-is-brainwashed-by-get-rich-quick-schemes-help/. Clearly the person, Faith, should quit and do something else, but she has been brainwashed into throwing good money after bad in an effort to recoup her investment.]
You also mentioned (getting a bit out of order because it’s late and I’m tired):
“So I give you credit for honing your skills and working hard to be the best poker player you can be. However, that simply means that you’ve indirectly lead many, many more people to much greater financial losses than your gains.”
Again, this goes back to my original, and only objection to this whole concept – if people are paying for a product, they’re getting the value of the product, not losing money investing.
If the income is being generated from product being sold either to customers or distributors and it’s being consumed/used/utilized – then technically the only money someone is ‘losing’ is the distributor fee if the product adds value.
[Editor's Response: And this goes back to the actual value of the product, which we've established is next to none. It might as well be pocket lint. I mentioned this already above, but if you don't believe me, listen to your own Numis distributor friend Rasheed. They mark up the product 20x on illegal health claims and lies. You might want to read my article on Warren Buffett and Pampered Chef. It is easy to quantify the value of the product that people are getting. It is a reasonable value. So if you are coming from it from a Numis (coin selling) or Pampered Chef (cookware) point of view, you must realize that it is very different from MonaVie. I've said it before, if MonaVie prices the product around that of its competitors like V8 Fusion Acai Berry or Tropicana Pure, I wouldn't mind the product as much. Then you could argue that people are getting "fair value" for their money, not just "some value." As I said before pocket lint has qualifies as being a product with "value", let's not charge $20 for it an pretend its normal.]
NOW – that’s where I can’t vouch personally here for Monavie – since I don’t use or endorse the product in any way, but was my original objection (that and the validity of the FTC reasoning)
As far as myself – I live in another country and love it! (Costa Rica). I pay the local taxes here but you know what? I have to pay USA income taxes to support these organizations because I’m a citizen, and I’ll tell you from personal experience, I like it here a lot better than anywhere else – I flew my wife’s family down for Christmas and they say the same :)
[Editor's Response: Again, you have the choice to renounce your citizenship and stop doing business in the US. I doubt that the US is going to send anyone to Costa Rica looking for you. In the meantime, your website lists an Alaska mailing address. You have the choice, you just pretend you do not.]
I wasn’t bringing up ‘taxes’ for any other purpose than comparing it with the FTC, and that IS on topic to the discussion.
Does the FTC protect consumers? Does the FDA protect the food? Personally, I think it makes all of this stuff more expensive and with-holds scientific advancement, and YES – THAT IS ON TOPIC.
(not trying to be rude – hear out the alternative view here :) )
I prefaced my FTC statement by saying that I play by the rules – why are you attacking me for that? Just because I disagree that the rules are valid don’t mean I don’t abide by them, it means I think that they’re full of it, and I think they hurt business, not just MLM but all small business – creating nonsensical rules isn’t a solution to the problem of people losing money on stuff – lack of good ability to make correct personal decisions is.
I say – empower people to choose their own path and let them suffer from, or profit from the consequences, either good or bad.
That’s why I love the concept of Free Enterprise – it gives me the freedom to fail and the freedom to succeed – combined with the power to choose my own path, whether it’s MLM/Direct Sales or being a Doctor – the choice is mine, and mine alone to make.
[Editor's Response: The problem with this view is that it denounces Consumer Protection. It's not even rationale to argue that there should be no consumer protection. You chose to live in Costa Rica, yet they still have consumer protection laws there.
Your concept of "free enterprise" would also seem to apply to pickpockets. If I want to choose my path as a pickpocket that choice should be mine and mine alone to make. I saw empower people with the freedom to pickpocket others and let my marks suffer from the consequences of not protecting their valuables. The police, like the FTC, shouldn't make nonsensical rules to protect my marks.]
That’s why I don’t get the problem you’re raising – I’m certainly not better than these ‘poor people’, I spent more than I made my first go around in MLM, too – but that education has wound up making me more money than the rest of my family combined in all of their respective professions.
Is that typical? Nope – did I work like hell for it? Of course – and I’m not better than any of my family by those results, but my lifestyle is better by a long shot.
[Editor's Response: Again, it is great that you made this money. As you say, it isn't typical - hence the point of this article about the mathematical certainty that many people MUST lose money for you to make money. For you to make this money (at least in MonaVie, I can't address Numis), others lost many times more than what you made. People shouldn't be carrying this "success" as a badge of honor, but a badge of shame. Using my example above, someone making this money in MonaVie is claiming to be a tremendous pick-pocketer. It's like saying, "Hey, I robbed 20 people today. I made more money than my family combined and I worked like hell for it." That doesn't make it right.]
That’s why I’m fascinated by this discussion by both sides, and I think that calling me rude is the wrong choice of words – I’m just not going to agree with with it – just like I could never convince you to agree with me.
[Editor's Response: I was calling the act of bringing in of external topics like income taxes, McDonalds, etc. rude. I think you've been quite civil and polite in your discussion.]
I wouldn’t try, either. But you still haven’t addressed the two concerns with the original point:
1. Philosophically – is the ruling of the FTC valid at all, and is it right to give them the power to lord over entrepreneurs like they do and regulate us to death? (Personally, I could pay all of my employees more, hire more people, expand my businesses faster, etc if I was taxed and regulated less, and create more jobs and prosperity in the economy)
I don’t care if the ‘rule’ says such and such – of course I follow it, I’m not stupid – I’m saying is it right – and is it the place of so few to have such great power.
[Editor's Response: I thought I had addressed this. Yes it is correct to give the FTC this power. It is a consumer protection agency and I think that civilized countries typically agree that consumer protection is a good thing. It is also important to note that the FTC must go to court to prove a pyramid scheme as it did with Nexgen. So it isn't just the FTC alone, but the US judicial system. There is a system of checks and balance that applies even to the FTC.
As far as "so few having such great power", this government website says that it had 1000 employees in 1999. In contrast, there are 535 members of congress who have a lot more power. I'm guessing that even in Costa Rica and just about every other country, you could find a group of a 1000 government officials who have even more power than FTC. So towards your question of "is it right"? It seems like the world as a whole agrees it is.]
2. Why are people ‘losing money’ when they’re buying the figurative Honda, when they wouldn’t lose money at a honda dealership? Because now they’re in a business? They’re buying a product to use for that money – not an expense – regardless of the perceived value. People pay a premium for things all the time and no one seems to care.
[Editor's Response: I think Rasheed answered this question quite well in the next comment. If you still have difficulties on this, please explain more specifically what they are and I'll try to address them.]
The only other thing I would mention is I apologize about the flaky person from my company – I certainly don’t represent them, which is why I didn’t mention my company in the first place – I thought you’d immediately come up with a finger to point at someone or something negative that was non-related to me.
[Editor's Response: One of the reasons that makes the person flaky is that they moved to a whole new MLM. Suddenly the product of Numis coins that he was trying to sell me on a week ago was no good and this Protandim Fountain of Youth is where it is at. It is hard to trust a person like that. Now I don't know about your story, but you did say that your first MLM venture didn't go so well. I did read that you were involved with Amway, so I am guessing you are flaky MLM switcher as well. You mentioned Orrin Woodward, and he's also a MLM switcher. You can see the whole line with him and Chris Brady moving from Amway to MonaVie.
It's very flaky that people move from one MLM to another. It's flaky that one person couldn't sell both coins and Fountain of Youth pills when the products don't compete. If anything people should be in multiple MLMs because, as salesmen, it increases your chances of making a sale. "You don't like coin collecting? Cool, let me show you this juice or this cookware."
Unfortunately, almost all MLMs are anti-free enterprise and make distributors sign agreements not to work with other MLM companies even when their products don't compete against each other. It's just shady.]
Anyways – have a good night.
-dave
December 23rd, 2010 at 2:15 am
Dave said:
A small premium is understandable. One may choose to buy from the Honda dealership because they’re generally more reputable than a 3rd party dealership, even if it means paying a few thousand more.
What we’re looking at with MonaVie is a $4 juice sold for 10x the price. Have you ever bought something for a whole order of magnitude more than what it was worth?
Having a high price isn’t illegal. In a free market society, one can choose whatever price. However, what is illegal and unethical is false advertising and false claims to justify a high price.
Many people were brought into MonaVie thinking it would pay for their daily servings of fruits and veggies, that it would cure their x and x disease, etc… so they bought into that. It turns out all of those claims were lies, and MonaVie knows that. However, MonaVie does nothing to enforce the rules on false claims. How do I know? Because I’ve filed numerous claims when I was with them. I got an automated response and nothing more. They simply don’t care, it seems.
The CEO also stands by false (until we can see a public IRS audit, this claim will forever be false in my eyes) claims of the company reaching $1 billion in one year, because he said it himself at a meeting.
That’s the reason I left MonaVie. The corporate business conducted business unethically with false claims. Not only that but the juice was overpriced and falsely justified for the high price tag. If it were marketed at regular juice, no one would buy MonaVie, they’d just say, “It’s overpriced.” But since they added some false claims to it, now people buy it.
The reason I’m with Numis is out of the scope of the discussion, but I did my research with that company and find it to be compliant with my own morals and ethics. I also like the product and it does everything it’s advertised to do-namely, nothing. Lol.
I don’t see how my comments here in any way show me to be flaky.
The guys over here (generally) focus on the argument at hand and everyone (except Vogel) attacks the arguments and not the arguer.
December 23rd, 2010 at 2:26 am
Ha ha – I wasn’t talking about you man, you rock – I was talking about the link to the Numis rep who jumped to a new deal – look in the previous comment.
lol.
P.S. We buy stuff at double and triple the price all the time at gas stations, airports, etc – just tossing that out there.
[Editor's Note: That's a convenience fee for the location. You get the same thing at the movies for popcorn or at the ballpark for beer. To compare them you'd have to consider that those places have to sell MonaVie they'd double or triple the price of it as well. You'd then be looking at $80 or $120 bottles of juice.
You need to compare apples to apples, not an apple to a fruit cup in a restaurant.]
December 23rd, 2010 at 2:47 am
Oh, sorry man, my apologies. I seemed to have missed that link. Yeah I saw that article before, I thought that guy was crazy lol.
Sorry again. You rock too, by the way, congrats on the cruise (that I won’t be seeing you on :( )!
Also, the gas station/airport thing is a matter of convenience. If someone is at a theme park and wants water, they either get the drinking fountain water, or they shell out 3 (or even up to 6! Damn!) bucks for bottled water. No one is forcing them to do so, however it’s either that or get out of the theme park and buy a bottled water for $1.
Since the advent of Amazon and Google, many things at stores became overpriced merely because online vendors would sell them for much cheaper. People still bought at retail stores because of convenience.
And just because I have a feeling you’re going to pull the “Starbucks card,” I’ll debunk that real quick.
I personally cant tell the difference between Starbucks coffee and 7-Eleven coffee. Besides the $2 difference. With Starbucks, they have murals in the store, they have music, cool tables, Wi-Fi, etc… we’re paying for environment when we shell out $3 for a Starbucks coffee. Not just for the coffee.
But the people at Starbucks were smart and figured that most people were too stupid to realize this, and found that they could get away with selling $3 coffee for elitists and people who couldn’t manage their money well.
This caught on with the coffee industry and now many franchises are doing this, including Peet’s, and even Ma and Pa coffee shops!
Also, the issue isn’t with the price. Things at airports/gas stations/other inconvenient places with convenience stores don’t make false claims about their overpriced items. People buy them knowing what the items will do for them.
With MonaVie, take away all claims about it and no one will buy the juice, unless they mistook it for some wine.
The thing selling MonaVie is the claims. If the claims were valid, then yes, MonaVie would be justifiably priced and there wouldn’t be any issue with it (in my book).
The thing is, many people are misled about MonaVie’s false claims… and it’s not their fault. They don’t know any better. I once believed that MonaVie was 13 servings of fruits, that it cured my carpal tunnel’s syndrome (the glucosamine did help with the pain, but I get much cheaper glucosamine from Amway), that Mmun would prevent my entire family from getting sick (my mom got sick more times and I got sick once), etc, etc…
After I found that it didn’t work, I left the company. I didn’t want to be caught dead representing a company (and yes, every distributor is a representative of the company, it’s in the P&P’s) that sold a product I didn’t believe in. So I left.
And my upline got mad at me for leaving and basically stopped talking to me, even though we’d been friends for about a year.
My story is http://www.juicescam.com/exmonavie-team-distributor-explains-his-metamorphosis/ and http://www.juicescam.com/the-aftermath-of-quitting-team-and-monavie/
Anyway, I apologize for derailing the conversation.
Rasheed
December 23rd, 2010 at 6:39 am
David,
Hi I’m Jim. I wrote the article, thanks for your imput.
I think you would agree that the vast majority sign on to be a distributor in hopes of being profitable. My point still remains that this not a reasonable hope but rather a gauranteed mathematical certainty that 95% will in fact lose money and that is in a perfectly balanced downline. Since so few downlines are perfectly balanced the historical experience has been far worse that one in 20 being profitable.
Do you agree with the position that no matter how much effort is put forth, no matter which system is utilized that 95%+ absolutely have to be cash flow negative? I am very much interested in your confirmation as you seem to be an expert in MLM.
I believe that if most people understood that the math of the system is structured so that for each person profitable, 20 have to be unprofitable then the vast majority would not become distributors nor involve their friends and family. I think this should be a required disclosure. Do you agree this valuable certainty should be mandatory in an effort toward full and fair disclosure?
The opportunity is presented that anyone and everyone can make it work if enough effort Is put forth and you follow the system. I contend this is a
lie. While any one distributor can make a profit, everyone can not, only less than 5% can. Do you agree?
December 23rd, 2010 at 8:35 am
David Wood said: “I’m not here to advocate Monavie juice – however I’ve ran into a whole bunch of non-reps who swear by it – so figured I’d throw that out.â€
Well that was essentially a statement advocating Monavie. In what way does someone “swear by†juice? I’ve never heard anyone say something like “Phil over there swears by apple juiceâ€. Sounds to me like you’re making one of those vague thinly-veiled therapeutic claims. You can’t be so unquestioning as to simply whatever anyone tells you no matter how implausible…are you?
David Wood said: “I think that there is another flaw in the argument, too – and that’s thinking that the FTC is right at all to regulate business like this with these stupid rules – if someone wants to buy into a scam, do we treat them as a child and say ‘no, bad boy!’ ?â€
That’s not a flaw in the argument; it’s merely wishful thinking on your part. The answer is simple. Yes, the FDA is right to do so – it’s their mandate under US law. If you don’t like the laws, petition for change. The FTC is not the only agency that should be going after Monavie – the company has also repeatedly violated FDA regulations. Of course, you probably hate the FDA too and the US laws that the agency enforces. Apparently the FDA and FTC had good reason to go after Dallin Larsen’s last company – Royal Tongan Limu/Dynamic Essentials. Shut them down, destroyed their inventory, and fined them – about $5 million in total – because Dallin was promoting the juice as a wonder cure. I’m thankful that the feds stepped in and did something about it.
Aside from that, you moral reasoning is shocking. It’s akin to saying “it’s stupid for the FAA to regulate air safety…if people want to buy discounted planes tickets from unsafe air carriers whose planes crash then let themâ€. No one knowingly wants to buy into a scam – they do so because they are misled. The only exceptions are those who buy in because they want to profit by perpetuating a scam. You’re simply a defender of deception and the people who are profiting from doing the deceiving.
David Wood said: “If someone feels like they’re getting ‘scammed’ why not quit and request a refund and stop buying stuff they don’t want? Is America too retarded to make decisions for themselves?â€
OK, you proved your point. You’re a selfish raging a$$hole. The company is going around telling people that their juice cures cancer. How would you feel if I was circling the waters around your ailing grandma, selling her dog pi$$ and promising her that she won’t need chemo? If you don’t see that as a problem, then YOU are the problem. How does someone get a refund if it takes them a year to realize that they were lied to and swindled? The company won’t refund any of their money in such a case. It would take a class action lawsuit (like the one against Dynamic Essentials) – and that might actually happen to Monavie if they don’t go down the toilet first.
David Wood said: “…but let’s put this in perspective, since I’m not a rep – people spend more than that each month on Fast Food that gives them heart attacks – and because Monavie has no nutritional value it’s a scam? McDonalds uses happy children to manipulate people into having heart attacks – why not talk about the McDonalds scam?â€
Perspective??? You flipping twit! Talking about McDs is not putting things in perspective; it is ducking the issue by pulling out a wholly inappropriate analogy (this seems to be the modus operandi of dishonest MLM swindlers like you). First, we don’t talk about McDs here because this site is about Monavie – how can you be so obtuse as to not recognize that. A better question is why aren’t you on a website that’s devoted to discussing McDs? Secondly, McDs isn’t advertising Big Macs as a disease cure. If they did, they would have hell to pay for it. Lastly, two wrongs don’t make a right, and pointing to transgressions of other companies doesn’t exonerate Monavie. It just clouds the issue. It’s a deflection of responsibility.
David Wood said: “Look – all I’m saying here is that Monavie is the least of our worries – I’d rather my friends and family bought overpriced grapejuice and went to rah rah meetings than porn or McDonalds.â€
You really are a class-A apologist a$$hole aren’t you? Since when were those the only choices? You either drink Monavie OR eat Big Macs and watch porn? Are you kidding me? How’s that going to look on Monavie’s brochures …“Monavie…it’s nicer than pornâ€â€¦â€œMonavie…at least we aren’t murderersâ€. Only an idiot would suggest that Monavie is in some way replacing porn and McDs.
You keep saying that you aren’t here to advocate (or even discuss) Monavie, that you don’t drink it, and don’t know much about it. That being the case, you better get up to speed soon and stop speaking in generalities, or all you are doing is adding noise. There are lots of other places to rant about MLM.
December 23rd, 2010 at 10:33 am
I updated David’s comment with some responses. I thought I’d add in a couple of other notes.
Jim, I would guess that David would say that consumers don’t need that kind of full and fair disclosure. They should be smart enough to figure it out themselves or live with the consequences good or bad. At least that’s what he said in the past.
Vogel, I swear by toast and Lattimore’s bear attack prevention pills. I haven’t been attacked by a bear yet. As for the toast, it works for me. ;-).
I liked the FAA regulation analogy much better than I like my pickpocket analogy. Good job.
December 23rd, 2010 at 10:52 am
Vogel and Dave – You obviously did not read this blog post I wrote a five months ago. A reader forwarded me a link to an adult video where a huge R3Global sign was prominently placed in the background. See some screenshots here:
http://amthrax.wordpress.com/2010/07/16/humor-jacked-on-the-juice-literally/
Gives a new meaning to the phrase Jacked on the Juice!
December 23rd, 2010 at 10:57 am
Wow Vogel – that’s exactly what I meant man – you turned an honest debate into a character assault.
Rather than simply answering the questions you flipped out, like a little baby.
lol.
Well, think what you want to think – I tried to be reasonable but it looks like the only way to respond is to start throwing needless hate at you, even though I know nothing about you.
I would now respond, however, it looks like I now have a predictable response that will happen.
1. It will be brought back to a matter of simple opinion, where there is no right and wrong, just what we personally think to be true, and someone will say I’m wrong again, all while ignoring the non-mentioned similar ways that outside businesses and entities do the same exact thing, yet for some reason no one seems to be bothered by it – or think it relates.
2. Vogel will flip out, call me names, defame my personal character, and otherwise get infuriated mad.
I choose to depart :) Have fun guys, and enjoy your Monavie defamation in full, uninterrupted splendor.
Later,
dave
December 23rd, 2010 at 11:13 am
Oh, one more thing I did want to mention – if any of you want to take this to a personal discussion (those of you who are not flipping out and name calling), you’re welcome to personally contact me and I would be happy to answer the questions that were raised and have honest arguments to your heart’s content.
I leave with this – I do believe you’re missing a big part of the story in your crusade for the truth.
In case any of you are wondering why I care (since I’m not in Monavie) – the foundation of this article is an attack not just on Monavie, but on Network Marketing itself and the validity of the model.
My email is: [email protected] – site admin – you’re welcome to remove that or leave it there if you choose, I’m not going to continue in a public argument that keeps turning into a personal assault, it’s pointless, however, I’d be happy to discuss it professionally with anyone.
-dave
December 23rd, 2010 at 11:26 am
David, you have to have character to have it assaulted. You should expect this when you are against consumer protection and other things that help make a place a more advanced civilization.
You can play it off as a simple matter of opinion, but as I showed before, the world doesn’t agree with your opinion of consumer protection. As Vogel pointed out you might as well have the opinion that there should be no FAA and we should let unsafe airlines operate (and not tell people that the airlines could be unsafe as that would be bad for the airlines).
We’ve already explained why all the other businesses do not relate. What business did you mention that we didn’t address? (Please don’t come up with a new one to throw the topic off base.)
Oops, it looks like you are going away. As Orrin Woodward would say, you are just another MLM distributor quitter of this disucssion. It’s a shame that you chose to blame others like Vogel rather than take personal responsibility for your failure here.
December 23rd, 2010 at 1:56 pm
David says-
“I simply disagree that Monavie, or Network Marketing in general is scamming people in any way – I’ve had great value added to my life from this industry even before I made money at it.”
I guess the pastures are green everywhere for David- (#1).
If you simply disagree, please explain in detail what happened to my family and friends. Also, please explain to the readers what specific testimonies, and claims were given in my own livingroom.
Thanks.
December 23rd, 2010 at 2:24 pm
DW said: “Wow Vogel – that’s exactly what I meant man – you turned an honest debate into a character assault. Rather than simply answering the questions you flipped out, like a little baby.â€
Honest??? Be careful, your tongue might fall off. Dude, I haven’t even BEGUN to attack your character, but I have lots of ammunition so be careful about calling me to the mat – I’ll pound you into dust and you’ll end up wishing you’d never opened your mouth. You clearly aren’t here to debate Monavie because you’re talking about everything else but the subject at hand.
A few points you should be aware of:
1. When you purposely choose to avoid the topic of Monavie in favor of soap-boxing about tangential (at best) issues, it makes you look like a clueless simpleton, and your presence here becomes nothing more than a disruption and a nuisance. Get a clue – be aware of your surroundings.
2. You are throwing out vague arguments that seem to boil down to this – advocacy for the rights of MLM victims to be MLM victims. It’s so transparently ridiculous that I wish I could reach out and smack you upside the head. What you’re really arguing for is the rights of MLM victimizers to victimize people. You roll that in with a bit of faux-libertarian anti-government ranting to support your delusion of a dog-eat-dog world where everyone does exactly as they please regardless of the consequences. Your argument is not much different from saying that people should be allowed to murder others if they want to, regardless of the law, and that we should defend the right of people to become murder victims.
In a world without rules, a sniveling little stick insect like you would have been devoured a long time ago. You like the rules when they protect you; you just don’t like them when they limit the ability of MLMs to scam people. You’re the kind of faux “rebel” whose idea of radicalism is buying a Che Guevera t-shirt at the mall.
DW said: “Well, think what you want to think – I tried to be reasonable but it looks like the only way to respond is to start throwing needless hate at you, even though I know nothing about you.â€
You don’t need to tell me that it’s OK for me to disagree with you, pompous dick! You haven’t tried to be reasonable. You’ve tried to be a pussy and dodge the issues, and you’ve succeeded. You purposely avoided the topic of Monavie in favor of making vague appeals on behalf of the rights of MLMers to exploit people. You’ve written pages of text already and yet said basically nothing of substance. You’re a mealy-mouthed, side-stepping apologist. Stop speaking in off-topic vagaries and get with the program.
DW said: “It will be brought back to a matter of simple opinion, where there is no right and wrong, just what we personally think to be true, and someone will say I’m wrong again, all while ignoring the non-mentioned similar ways that outside businesses and entities do the same exact thing, yet for some reason no one seems to be bothered by it – or think it relates.â€
Case in point! All I can say here is….DUDE…WTF are you talking about??? I didn’t think it was possible to use so many words to say so little. Maybe that’s why you should have stayed in school instead of oozing forth into the world armed with nothing more than a high school education. It’s not just about money you know? Your brain is clearly starving and in dire need of nourishment.
DW said: “Vogel will flip out, call me names, defame my personal character, and otherwise get infuriated mad.â€
You defame your own personal character. I merely point out the obvious. Don’t expect to be applauded for using forums like this as your personal piss-pot.
DW said: “I choose to depart Have fun guys, and enjoy your Monavie defamation in full, uninterrupted splendor.â€
Of course you do you pussy! Depart before you get called to the mat! Just drop in, take a verbal dump, and then run away before you have to be held accountable right? That’s the MLM MO.
I can see what kind of a character you are just by reading a few of your posts here and some of your other crap on the web, like the following:
“On March 17 2010 iLearningGlobal canceled their network marketing comp plan and David and I as well as thousands of other Marketers around the world were forced out of business. David has now gone on to become a rising star in a company called Numis Network…When iLearningGlobal shut us out, most of David’s team followed him over to Numis Network.â€
So two things for everyone here to note:
(1) David was hyping iLearningGlobal as a business opportunity, and with a snap of the fingers, the rug got pulled out from under him and his downline…poof…gone! Failure! Dave encouraged his downline to invest years of hard work under his leadership – and he led them off a cliff!
(2) Dave’s alleged success in Numis arose because he brought over an existing downline. That’s not something that an entry level distributor can replicate. You can’t hold yourself out as a teacher of success when (a) you failed, and (b) people can’t replicate your method – you are lying to them and teaching them to be nothing more than obedient sheep.
Congratulations Dave. You’re like the Pied Piper of lemmings. Keeping playing your pipe and luring people to their deaths (financial and spiritual).
Like so many MLMers you deceitfully try to co-opt the moral high ground; and yet you rally against consumer protection, make light of the plight of victims, and conveniently ignore the litany of appalling transgressions that have been associated with Monavie – these range from the use of doctor impersonators to flog the juice as a cancer cure, violation of US laws, gross misrepresentation of the product and business opportunity, fraudulent charities, affiliation with several convicted felons, and a seemingly never-ending chain of lies, liars, and nefarious cheats. Go read up about Royal Tongan Limu, Lou Niles, and the MORE Project for starters, then read up on the fraudulent product claims; and until you can face those facts and recognize them for what they are, you fully deserve to have your character called into question. You disgust me, and rightfully so.
December 23rd, 2010 at 4:24 pm
Dave,
I hope you will choose not to leave the conversation, I think you could add some considerable imput.
You said “Oh, one more thing I did want to mention – if any of you want to take this to a personal discussion (those of you who are not flipping out and name calling), you’re welcome to personally contact me and I would be happy to answer the questions that were raised and have honest arguments to your heart’s content.”
I was hoping you could answer my questions from comment 72 here in a public forum.
December 23rd, 2010 at 7:55 pm
David. I have to say, I am actually quite insulted by your posts. I was involved with Monavie and drank it purely for the alleged health benefits & nutrients I was promised it contained. Like Rasheed, I was told I was getting 13 servings of fruits and vegetables a day. This was proven to be a lie. EVERY distributor I knew spread that lie.
You say “If someone feels like they’re getting ‘scammed’ why not quit and request a refund and stop buying stuff they don’t want? Is America too retarded to make decisions for themselves?” Nice. I guess I was one of those retards.I had no access to information other then what people I TRUSTED told me. I have a trusting nature (well, “had”) so it wouldn’t even have occured to me to doubt what they were saying. A stranger perhaps, but not them. I couldn’t make a rational, informed decision because the only information available was information from my up-line/good friends, which I now know was dead wrong. That is awesome that you support that kind of manipulation of another human being’s trust.
Here is another “glitch” in your theory, as much as I am angry that I was taken for a ride, I don’t want to see my ex-friends in legal hot water because they are not ultimately to blame. They are being promised “financial freedom” and they aren’t giving up. I am mad at them for being ignorant and choosing to remain that way, but they aren’t to be blamed for the lies that are being fed to them. They are told to give their TVs away and don’t read newspapers or the internet. Why do you think that is? It wasn’t until I started researching the product and the company that I realized why. I just pray to the universe, every day ,that they come to their senses and find this website to start them on their journey to the truth.
I think using McDonalds as a comparison was a very poor choice. First of all, it is no secret that their food provides very little nutritionally and secondly , they are not charging $20 a burger. I assure you that if distributors provided full disclosure about the nutritional content of Monavie they wouldn’t sell a drop, well, unless they reduced it to the price of a Big Mac. Man, I am hungry now.
I live in Canada where our FDA laws are much stricter then in the U.S. I have ALWAYS been grateful for this because it protects me and my dear friends, families, colleagues and community. I guess making a buck just ain’t that important to me when it comes to the well being of those that I love.
I know that you won’t be back because your posts screamed of rationalization but I truly hope that you read this. I don’t know enough about the company that you are involved in to comment but you really ought not to have opined about Monavie without knowing the whole story.
BTW, I know lots of people that have moved to Costa Rica to live because the cost of living is lower there then in North America. If you told me that you were living in the south of France and flew your family there, I might be impressed…
December 27th, 2010 at 7:41 am
Seems I have missed out! Did anyone check out David’s website? One look and it was easy to see what this guy is about! Right on the top there is a “special message” from David, and guess what scenery he chose? A swimming pool surrounded by palm trees… what could that mean???
Here is David describing his house:
“I wanted to show all of you how awesome this place I live is, so I took a stroll through the mountains. I usually take a walk up this way, and sometimes I take another route through the wilderness, and there’s this awesome waterfall”
Let’s get some sage wisdom from David:
“Sometimes you need someone to tell you the truth, so you can take your life to a whole new level.
Enough with excuses, poverty, and inaction – let’s make something happen!”
I think I might pay David for his “top secret training”, so he can lead me right off a cliff with his MLM Siren’s songs.
December 27th, 2010 at 1:39 pm
Did you notice that David is charging $10,000 (yes, $10,000…that’s not a typo) for a 3-day one-on-one coaching session and the chance to learn his “top secret†methods. Talk about an overinflated sense of self worth!
December 27th, 2010 at 8:17 pm
I just watched an hour long training video by David Wood and I think he is a cut above the typical MLM dope (think Tim Sales, for example). He is obviously very intelligent, charismatic, and perhaps a sociopath.
In the video he makes a hasty, half-assed mention of the product and then goes on for over an hour about recruiting, recruiting, recruiting. It’s clear that he knows the product is a mere formality, it’s all about signing people up and helping them sign people up. If people question the product, ignore that question and get them to sign on the line which is dotted.
I couldn’t help but think of two things, the first being this:
http://www.youtube.com/watch?v=y-AXTx4PcKI
The second being another charismatic David:
http://en.wikipedia.org/wiki/David_Koresh
But in the end, I also kind of saw his point — if people want to risk their money riding the scam, let them go for it. They may learn something on the ride and some may even make a little money.
But caveat emptor, and this site gives people a counterpoint to all the biased information on the sellers’side. Any true lover of free markets can’t disagree with that.
December 27th, 2010 at 8:32 pm
Not to keep abusing this dead horse, but here is a concise summary of Numis and even a mention of Mr. Wood in the comments following the article:
http://www.sequenceinc.com/fraudfiles/2010/06/01/another-thinly-veiled-pyramid-scheme-numis-network/
December 28th, 2010 at 12:27 am
David states “Most of my downline are consumers – isn’t that the case in any company?”
WTF?? Are your downline actually aware that you consider them to be merely “consumers”? Are these people customers or are they pursuing the opportunity? Are you or these people complying with the anti-pyramiding rules and are the commissions being paid based on the sales of products to non-participants? Does the majority of your income come from non-participants?
Furthermore,there’s no reason to blur the distinction between the bona fide customers and distributors who are pursuing the opportunity. Except in instances where a person has a vested interest in ensuring the line remains purposefully blurred taking into consideration this may well be a factor in determining the legality of such a scheme…
David states “I simply disagree that Monavie, or Network Marketing in general is scamming people in any way – I’ve had great value added to my life from this industry even before I made money at it.”
Any industry which inflicts the extent of losses that is seen in Monavie is a SCAM – particularly considering how people are tricked into signing up in the first instance, the promises of financial freedom and an income potential far in excess of that possible in traditional employment, blah blad. Promises which in Monavie’s case which have failed to come to fruition for greater than 99% of the participants who made the mistake of believing in the promises made and had vital pieces of information witheld at the time they signed up (such as the failure rate – a percentage which they were essentially doomed to make up also).
David also states he made money. If that’s the case, what percentage of his downline can boast the same success? My guess is greater than 99% wouldn’t.
Why is it no surprise that the participants of these MLM/pyramid marketing scams are the precise people who are the actual supporters of these schemes?!
How on earth does David think anyone should take his advice taking into consideration his track record of inflicting losses on the people who made the mistake of listening to him AND his inability to even see one of the most transparent pyramid scams (Numis Network) for just that??? Or most likely is fully aware and just like so many we’ve seen, just doesn’t care.
Un-farking-believable!
December 28th, 2010 at 8:15 am
Vogel,
Unbelieveable. That guy couldn’t pay me to sit down with him. When I see people making motivational videos in front of swimming pools with palm trees, the first thing I think is SCAM. These people are the ambulance chasers of motivational speaking.
AA,
I doubt David has any real customers. Most of his downline is distributors, as he harps on the MLM aspect and glazes over the actual product. I do not consider distributors to be customers in any fashion unless they are actually selling the product on the market, which happens like 2% of the time with ScamaVie.
December 28th, 2010 at 8:26 am
I think that EVERY Numis “distributor” should read that article that CGC posted (very informative BTW) and then follow Mr. Wood’s sage advice:
“If someone feels like they’re getting ‘scammed’ why not quit and request a refund and stop buying stuff they don’t want? Is America too retarded to make decisions for themselves?â€
You read it here folks! No take backsies Mr. Wood!
December 28th, 2010 at 8:30 am
I found this on top of a pile of cow dung outside a starbucks this morning:
Debate strategy for MonaVie defenders on Internet forums:
1. Introduction: Introduce yourself. You may use your real name or make one up. You can also make up some credentials to give your opinions some weight. (Don’t worry, they probably can’t check them out.) Then start asking questions such as: “Why is everyone here so mad?†“Don’t you guys have better things to do?â€
2. Evidence: Think of a question that you don’t see on the page and that you feel your opponents may have difficulty answering. A question you have difficulty answering is usually good enough. Off topic questions are fine.
3. Discover that the question has been answered at least 10 times already (something you would have discovered if you read the rest of the blog.)
4. Ramble on about corporations being scams, the government running the biggest pyramid schemes (Look at the back of a dollar bill for inspiration) and DO NOT under any circumstances answer any questions asked to you. Aim a thinly veiled insult at one or two posters hoping to incite a response.
5. Repeat step 4.
6. Repeat step 4, then 5, then 4 again.
7. By now someone should have insulted your intelligence (Vogel). It is time to threaten to leave the discussion unless everyone promises to be nice to you. Throw out a few more insults.
8. Repeat step 4.
9. Announce you are leaving the discussion because no one is agreeing with you. Fake excuses are fine; remember that they cannot see you to verify what you are saying. Examples commonly used include: “I have better things to do,†“There are people waiting to be scammed,†“I am going on vacation,†“My speedboat won’t drive itself,†“Screw you guys, I’m going home,†“I have money to count.â€
10. Repeat step 6.
11. Repeat step 9.
12. Congratulations! You are now a qualified Monavie Defender! To receive your diploma please send cash or a money order for $600.00 to Monavie HQ, no need to include a letter, we’ll know what to do with it. Or alternatively, get 20 people to sign up for the course and you’ll be eligible to receive your diploma for free*. (restrictions apply.)
December 28th, 2010 at 9:34 am
NotFooled,
That was great! I have been thinking of creating an automated response “BOT” just to show how easy it is to be a “MonaVie Defender”, as they follow a script so solid Speilberg would be jealous.
December 28th, 2010 at 10:47 am
I love it Notfooled!
December 28th, 2010 at 11:08 am
I like this a lot. I might even make this a standalone post so that when distributors do it, we can call them on it. At this point you know it is coming.
December 28th, 2010 at 11:57 am
Mackwiz said: “Vogel, Unbelieveable. That guy couldn’t pay me to sit down with him. When I see people making motivational videos in front of swimming pools with palm trees, the first thing I think is SCAM. These people are the ambulance chasers of motivational speaking.”
Amen! The first thing I think of is the owner of the property coming home in the middle of David’s steath shoot, and then chasing him away while hitting him with a broom. Either that or his mother interrupting to say “Davey, lunchtime…I cut the crust off your PB&J just the way you like it” to which DW would testily reply “Not now Ma, I’m trying to do millionaire stuff…quit bugging me…and there better be a big glass of milk with that.”
BTW, great post NotFooled!
December 28th, 2010 at 11:59 am
I’m sure the rest of you guys noticed the pattern too. It was starting to irritate me.
December 29th, 2010 at 11:48 am
It’s been 6 days since David Wood last commented. I’m dissapointed that he has left the conversation but I would like to address a couple comments in case he is reading and would like to rejoin and conversation.
David said “In case any of you are wondering why I care (since I’m not in Monavie) – the foundation of this article is an attack not just on Monavie, but on Network Marketing itself and the validity of the model.”
The article is not an attack on all network marketing models, only the endless recruiting scheme models. I don’t think the article would apply to models such as Pampered Chef, Tupperware, Avon or jewely parties that market directly. Rather it applies to the schemes where the true sale is the ability to sell the opportunity to others who will enroll others to sell the opportunity.
I get what you are contending that the distributors are getting juice and that has some value (although that value is questionable).
Would you then agree with this statement:
“95% of all distributors have to be cash flow negative regardless of effort or system they employ due to the mathematics of the scheme, but everyone gets juice”?
Finally, you said ” It will be brought back to a matter of simple opinion, where there is no right and wrong, just what we personally think to be true”
Would you agree math is not a matter of opinion? And would you agree that the math in this article is accurate? Again, I welcome your comments.
May 11th, 2011 at 4:56 am
Interesting post, I would bet that there are people in Monavie making a boat load of money.
Every company has to come up with a comp plan that will be able to support a downline, I dont think that they think of a way to scam as many people as they can, if they did this they would not be around long.
Just my 2 cents
May 11th, 2011 at 8:08 pm
Numis Scam states “Interesting post, I would bet that there are people in Monavie making a boat load of money.”
No need to place bets – the 2009 IDS confirmed that a group representing 0.053% of the sales force got the lions share of commissions and averaged over $7000 per week. Fewer than 12% of the sales force averaged less than $50 per week and 87% of the sales force made zero in the first instance.
The numbers prove that very, very few are making a boat load of money. More importantly however is that greater than 99% of the sales force are losing money.
Numis Scam states “Every company has to come up with a comp plan that will be able to support a downline, I dont think that they think of a way to scam as many people as they can, if they did this they would not be around long.”
Aside from the fact that what’s factored into the cost of the products is the compensation plan that has to be supported, Monavie have had nearly 6 years to make the distribution of monies fairer on distributors – however this hasn’t occurred.
So how is it not a scam to continue to have in place a compensation plan that is so top-weighted and where the majority of funds are being transferred up the chain to the highest ranked? And how is it not a scam when this fact isn’t divulged to participants from the onset?
Furthermore, how is it not a scam under circumstances where the company promote and reinforce behaviours amongst distributors which only benefit the company and the very few who are profiting?
For example, we all know that a pyramid scheme is characterised by distributors not selling any products and services to non-participants, but rather from the recruitment of other participants into the scheme. Pyramid schemes are a form of fraud – in the vicinity of 99% of all participants will always be at the bottom where no profits are able to be made.
From the onset, distributors are asked peddle a grossly overpriced product thus making retail selling virtually impossible. You will note that out of the 9 ways to earn commissions in Monavie, only 2 of these relate to selling (retail mark-up and retailers bonus) – the remainder relate to recruitment activities. The big dollars are not promised for selling any products but rather for building a huge downline (that is, recruitment).
So again I ask, how is it not a scam from the onset to introduce a compensation plan which provides the fewest rewards to the front line distributor for making the sale and have no policies and procedures (no interest, in fact) in ensuring that distributors are being paid based on bona-fide sales to customers? We know for a fact that distributors are also engaged in rank and bonus buying – activities which again continue to benefit the company and those who are profiting, but not the average distributor.
Monavie are entirely responsible for the losses amongst the sales force – they fraudulently promote the scheme as an opportunity which it clearly isn’t and a scheme where all of the policies in place (or lack of policies in place to ensure the legality of the scheme and to ensure distributors are engaged in sustainable business practices) are really only designed to benefit only the very few.
Numis Scam concludes “Just my 2 cents”
I’m thinking that’s all it was worth. Sorry.
May 12th, 2011 at 11:01 am
Numis,
There definitely are people in Mona vie making a boat load of money. According to the 2009 IDS, there 34 people who averaged over $1,000,000. My understanding is the distributor numbers are over 3,000,000 now. So that would make the historical success rate of making a boat load of money 1 in 100,000 roughly. The figures show that less than 1% have been cash flow positive. Can anyone name one non-MLM publically traded company with such a low ratio of million dollar earners? And of course no non-MLM company has over 99% of it’s workforce losing money, not even Walmart or McDonalds.
Ligitimate companies do not need to come up with comp plans to “support a downline” because legitimate companies do not have a downline. But endless recruiting product based pyramid schemes have never had comp plans in which even 5% of distributors were cash flow positive. The nonprofit Consumer Awareness Institute analyzed the data on MLM companies and found Amway’s comp plan inflicted losses on 99.99% of distributors, but they have been around the longest of MLM companies. So they can in fact last as long as there are fresh dupes to sell the dream of financial freedom to.
September 14th, 2011 at 7:48 am
I’m sure this has already been covered, but just in case it hasn’t. The break even point in monavie is not 1 in 21, its actually closer to 1 in 31. A case of juice costs about $140 plus shipping. 1 case gets you 100pv. Monavie makes 35-40% profit right off the bat because of breakage built in to their pv/bv ratio.
So, using these numbers you would need to generate about $150 in commission to pay for 1 case. That’s 15 on your left and 15 on your right on 100 pv which would equate to 1500pv on each side. 1500×10% is $150.00
That’s 1 person out of a total of 31 making enough to cover 1 case.
Do you think this affects attrition? LOL SIGN ME UP!!
September 17th, 2011 at 10:31 am
Good analysis Mike!
September 20th, 2011 at 5:46 am
I was going to post a correction to your original post, but when I scrolled to the bottom here my friend Michael had already corrected your computations. One in 31 is totally correct. Screw the FOB and BOB and Starmaker, that is all fluff. Remember, MLM is about “residual” or “recurring” income..hahahaha! And only 1 in 31 can earn enough residual to break even. That is a maximum success rate of around 3.2% based on their own mathematics. Throw in mitigating factors such as skill level, positioning, upline, spillover, etc, etc, and it will actually look like something closer to the mv income disclosure statement. Look at this document less than .5% of all distributors can even pay for their own juice. Simply amazing! And I simply love the redefining of who a customer and distributor really is. Classic!
http://toddhartog.com/income-disclosure-statement.pdf
September 20th, 2011 at 6:26 pm
Mike and Brent, thanks for the clarification.
So you’re saying you need to bring in 30 friends and family, and they each need to spend $140, a total of $4,200 and that’s just to break even? You don’t even get paid to do all that work and cause $4,200 in financial damage.
I guess to be fair, everybody got juice, but for $4,200 I could have had:
55″ Sony 1080p LCD HDTV $1,350
Infinity Home Theater System $180
2 Dell laptops $250 each = $500
Sony Cyber Shot 14.1 megapixel camera $100
Garmin GPS $150
IPad 2 $500
Xbox 360 with Kinect $300
Samsung Blu Ray player $90
Copy of the movie “Believe” $10
Ipod touch $200
Frigidaire refrigerator $450
6 cases of beer $170
Take my lady out for a nice dinner $200
http://www.bestbuy.com/ (except the dinner)
I have to believe people just don’t see the damage that they are doing. Can you imagine the rage if someone broke into your house and stole all the above items, or stole them from somebody you care about? But yet people unwittingly do this to those they love and care for.
Even worse than buying the trinkets mentioned above, these dollars are often sorely needed to help these people save for their retirement, to provide a good education for their children, sometimes even just to pay the rent.
Unfortunately, these schemes seem to do best in times of high unemployement and during economic downturns, just when people need their dollars the most. Often the people drawn to these schemes are those in financial despair, looking for a way out and they just don’t see the mathematical guarantees of the exponetial losses that must be inflicted.
September 20th, 2011 at 6:33 pm
Brent and Mike, or anyone else for that matter, can you tell me if there is a required amount of people, or pionts, below you to reach the different ranks? What exactly determines the different ranks.
Thanks for any help.
September 20th, 2011 at 8:11 pm
Jim,
If you want a complete “corporate” explanation of this wonderful opportunity you can view it here http://media.monavie.com/pdf/us/compensation_plan_en.pdf Aside from spending a bunch of time looking at it I’ll break it down real quick.
The ranks are as follows: distributor..ahem..I mean wholesale customer, star, star 500, star 1000, bronze, silver, gold, ruby, emerald, diamond, blue diamond, Hawaiian blue diamond, black diamond and a few more ranks that the average American has almost zero chance of ever reaching. That last statement would actually apply to the last 6 ranks listed.
I would like to point out that aside from the breakage built into the pv/bv ratio there is another “breakage/theft” mechanism in place. It’s the 500 point requirement. Yes, you must have 500 pv on both legs before they will pay you ANY team commissions. So if you generate 500 left and 490 right you are out of luck. Go sell/buy more juice.
The rank requirements are as follows: star 500= 500 left and 500 right, start 1000= 1000 left and 1000 right, Bronze= 2000 each leg and 1 star 500= 1 person in your personal team that has 500pv left and 500pv right. Silver= 3000 each leg and 2 star 500’s, Gold= 5000 and 3 star 500’s. These, as you are surely aware, are called “structural requirements”. If you do not have to requisite star 500’s you are “leaving money on the table”. So just do what all of us were taught to do by our upline and go down and purchase more juice in someone else’s business or one of the “other” wink, wink, positions in your downline.
Since leaving Monavie I have been in a few other companies and have seen all the dishonesty I can stomach. Backroom deals, break insertions, etc. etc. I finally figured most of it out then I met Brent Hansen and he taught me about the math. It was the final piece of the puzzle. Since then I have been watching what goes on in the industry in a whole other light. It’s the comp plan/plans?
I have analyzed a lot of comp plans in the last year and I can tell you that I am hard pressed to think of a comp plan worse than Monavie’s, outside of Amway perhaps. It is an absolute joke. It’s nothing more than a wealth transfer mechanism and now they are taking their dog and pony show to underdeveloped countries and selling those poor people on a dream that 99.6% of them will NEVER realize. If you ever read this dallin you should be ashamed of yourself. You need a paradigm shift buddy.
If you needed further proof (I’m sure you don’t) just look at the MV 2009 IDS. I know they recently released a new one but the numbers are so bad I can’ help but conclude they have deliberately muddied the waters by eliminating the first column in their IDS. If you want to read further here is a link to an analysis I did on that IDS: http://www.facebook.com/photo.php?fbid=1830900383765&set=a.1058656118141.10506.1578053256&type=1&theater
September 21st, 2011 at 8:15 am
Mike, I am curious, how did you feel about the whole religious aspect of the biz? Dallin did a mass baptism at on of the R3G conventions last year and it made me queasy to see this blatant abuse of one’s faith. Did you find that when you were involved? Not only are they leveraging people’s friendship for sales, but also their religious faith and there is something so wrong about that to me. I see that a lot of the MLMs out there are Christian or Mormon based.
September 21st, 2011 at 2:14 pm
Math aside how about the mitigating factors that exist in binary compensation plans? For a perfect example of what goes on behind closed doors (or in this case in a public forum) read these posts on the Amthrax blog.
http://amthrax.wordpress.com/2011/08/16/orrin-qrush-the-many-blogs-of-orrin-woodward-part-one/#comment-9822
September 21st, 2011 at 2:17 pm
Mike, thank you so much for the info. I’m glad you found this site.
I’m not familiar with what a “break insertion” is, can you explain? Did you experience this or any back room deals within Mona vie?
I agree they deliberately muddied the waters by eliminating that first column. Why would you not include it if the numbers continued to look positive.
September 21st, 2011 at 2:50 pm
Mike or Brent,
To dive a little deeper on the levels. Let me see if I understand you correctly. Let’s take someone who is Silver, they need a minimum of 3000 (30 cases)each leg, at $140 each. They can have up to 5000 point (50 cases) each leg before being catorgorized as Gold.
Let’s assume right down the middle, that a silver has 4500 points, or 45 cases each side. That’s 90 cases total, each at $140, total paid in by thier downline would be $12,600. The distributor would be paid 10% of the lesser leg, or $450, less the cost of juice $140, means a profit of roughly $300. Does that sound accurate? $12,600 paid in the scheme in order for a Silver to make $300?
Would it also be correct to assume this as a best case scenario, one in which both legs are even and structural requirements are met. Would you agree the amount paid in could be considerably higher if the legs were unbalanced, and the distributor would still only be profitable $300?
September 21st, 2011 at 4:45 pm
Jim, Mike, and Brent,
I want to thank you for getting into this in more detail. It is extremely valuable. I’ve been reading, but I’ve been quite busy looking into Protandim – another health MLM scam.
I should mention that we’d discussed the compensation in detail posts like: http://www.juicescam.com/monavie-is-embarrassed-by-their-income-disclosure-statement-2/. It came to the same conclusion as Mike’s Facebook post, around 99.6% of people lose money when considering the autoship. It can get a lot worse when you factor in any tools purchased, conferences attended, etc.
September 21st, 2011 at 5:47 pm
Yes Jim, all of your assumptions, as well as your mathematics are absolutely correct. You are correct also in assuming that we are talking about a best case scenario. If you stacked one person breaking even on top of another however, the ratio could theoretically be reduced to 1 in 23, but the MV I.D.S. clearly shows that with all mitigating factors in place, less than .05% of all associates can actually cover their autoship expense. Scam is correct in saying that much more money is lost on tools, tickets, travel etc. If you look at Dr. Taylor’s statistics, the odds are actually higher that you can profit from roulette than from most of the top MLMs in America.
A break insert is when a line of sponsorship is broken and a new position is created within the geneology tree to “insert” a person above an exisiting distributor. Some new companies are using a “holding tank” feature in their back offices to place people in a hold pattern thus allowing people to be positioned above teams who already have volume.
In a binary, if someone is inserted into a position with a huge team on one side, they can simply reach profitability quickly by placing their existing team into a single inside leg. Break inserts are usually reserved for the big hitters in MLM who have teams already in place that can be easily manipulated into position. I know of lots of people who have benefited from break inserts.
September 21st, 2011 at 6:29 pm
To All: break inserts do happen but not always. They are not always necessary. If you will read the post Brent linked all of you on here http://amthrax.wordpress.com/2011/09/21/binary-discussion-on-facebook/ you will see what I mean. “Leaders” often stack multiple positions underneath them in the event they come across another “leader” to entice them to come over. This way they will be able to benefit off work that they did not do.
I was the beneficiary of one of these deals. I moved into the position and started to build it but stopped. During my stint with this particular company the owner instructed me to do the same thing, buy multiple positions. This is of course against the policies and procedures so we put them under family members names.
I went to another company with a different leader who got “placed”. As a result I was placed very near the top of the tree. It was through this process that I started to really understand what it truly involved in building this business.
It is very common. Dallin Larsen did this with Robert Dean on top of the millions he “allegedly” paid him. Rob only built one leg and he hit black diamond in 4 months. Orrin Woodward was an EDC in Amway before he started feuding with them. He was reportedly making $4-500,000 a year. Within months of moving to MV he was a presidential diamond reportedly earning $2-3 million. I was told he was given a position by Ken Porter and only had to build one leg. Even if he built 2 he would still be making a boatload of money. He has or had a huge organization. But “smart leaders” don’t build 2 legs. I certainly wouldn’t. I doubt Orrin did.
Read the thread with Ken Stewart. This is how it is done. Period. I don’t care what anyone says to the contrary. The “system” that the “leaders” teach from the stage on how to build a business is for suckers and rookies i.e.: the masses. The ironic thing is that the big checks that these leaders are “earning” are on the very backs of the masses they are deceiving.
September 21st, 2011 at 7:28 pm
Thanks for the explanation regarding inserting.
Brent, you bring up a good point about the tools etc. Can you give me a good estimate of what someone new who was dedicated and plugged in might expect to pay in tools, conferences, travel, etc. Is there a minimum expectation of someone interested in the opportunity?
Mike, you said “Since leaving Monavie I have been in a few other companies and have seen all the dishonesty I can stomach. Backroom deals, break insertions, etc. etc. I finally figured most of it out then I met Brent Hansen and he taught me about the math.” Do you mind if I ask how long you were involved with mona vie and mlm in general? Nobody in your downline had ever figured out the math of the scheme and brought it to your attention? It’s been here on the internet for years, all you have to do is look. I can’t believe distributors are not constantly having to explain questions about the math. If you were presented with the math, was there some standard answer to overcome the objection?
Again, I’m glad you stopped by. I have to admire your ability to realize the problems and make a stand to educate others. I appreciate your time to answer my questions as well.
September 21st, 2011 at 8:02 pm
Lets just do a quick estimate of a typical month’s worth of “business expenses” for tools, training and travel. This does not include any products at all. This is not the top packages available from the different systems, just a middle of the road, or conservative estimate, of someone who is “plugged in”.
4 weekly open meetings for you and your wife @$5.00 per head = $40.00
4 meals for two people after the open meetings to spend time with your “leadership or mentors” = $80.00
2 monthly seminar tickets @$25.00 ea. = $50.00
Seminars usually are 2-3 hours away so there is a meal sometimes two depending on location
= $30.00
Weekly CD packages and Book of the Month for a total of $75.00
Miscellaneous Cds, magazines, and brochures to leave with prospects after business the introduction to the “opportunity”. = $100 per month.
Gas and other meals while out “building the business” = $200-$300 per month.
Total: $575.00 to $675.00 per month. I personally had several $1,000 months. One of the last meetings I conducted while building mv cost me a case and a half of juice which cost approximately $200. So that one meeting with materials was probably about a $250.00 meeting.
Now who is the genius?
September 21st, 2011 at 8:05 pm
@Jim, not to seem naive or rude, what makes you think the common person understands the math? I have had the discussion with top-earners in the industry who do not even understand the math of their own compensation plans. It is nuts!
September 21st, 2011 at 9:03 pm
How did you figure out the math Jim? I was in amway first for about 3 years aprrox. 17 years ago. I swore off MLM after that convinced it was useless. When I saw the binary in Monavie I thought, this is going to be a piece of cake. Who can’t build two legs?
I then went on to hit Ruby in 10 weeks. I started making money. That was all I needed. It never dawned on me to ask the question until MV fell apart and I went to the other companies. I started noticing some common threads. So I started asking the right questions. You have to know which questions to ask. I think the process is a little different for everyone.
Most people get in, lose money, listen to all the BS about how it’s their fault, then quietly slip away just wanting to forget they were ever “stupid” enough for trying. Or they believe that they just didn’t “have what it takes” or “didn’t work it hard enough”
There’s nothing wrong with them quitting and disappearing. I think it sad if they believe that line that they were fed by their upline. It is a systematic reprogramming that starts from the minute you get in. It’s very seductive.
When I started to struggle I went through all the things that everyone, and I mean everyone goes through. But I am not used to losing so I wanted to know exactly what the process was, so I started gathering information. I’ve been doing this for the past 18 mos. I now have enough info to make $100s of thousands of dollars in the mlm arena. I just don’t have the heart to do it. I find it morally objectionable.
I can tell by the fact that you didn’t know what a break insertion is that you probably haven’t been at the level that Brent and I have. So I wonder if you understand the whole picture. I’m don’t mean to sound condescending here. But you go through a lot. This industry is extremely crooked as I’m sure you are aware.
As far as understanding the numbers and why i didn’t catch on sooner, I like to use a quote about inflation that draws, in my opinion, a very fitting parallel. Pay attention to the last part of the last sentence.
It says: There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
One in a million……what an interesting thought.
September 22nd, 2011 at 7:40 am
Jim,
That third paragraph doesn’t read very well. I hope you understand the spirit in which it was written. If I made an incorrect assumption please accept my apologies. If I assumed incorrectly would you mind sharing some of your mlm history? Thanks
September 22nd, 2011 at 7:42 am
Now I can’t even count! Its the sixth paragraph ….
September 23rd, 2011 at 7:24 am
That was very educational, thanks Brent and Mike. I swear I have to read the compensation plan in many different permutations before it really sinks in!
I know that Jim has been on here really trying to understand the mechanisms of the MLM machine and his curiousity has benefitted us all. If I may speak to the “why aren’t we asking the questions” or “understanding the math” question, I think there is so much else going on when you first “join” that the actual comp. plan is secondary. In my own experience, I didn’t have ANY experience with MLMs but I knew that Amway was an MLM/cult. I was told that MonaVie was DIFFERENT because it was a “binary plan”. I didn’t quite understand what that meant and when the Diamond in our group started explaining it, I went to my happy place. The explanation was so complex and confusing (and I took a year of accounting in university…ok…only got a c+), I felt like a moron because I looked like the only person in the room that didn’t “get it”, so I didn’t ask questions, hence my visit to my happy place.
There are also several other “diversions”, the cars, boats, “charity”, alleged health benefits, it is like a circus, you don’t know where to look. It is all about the razzle dazzle, the more complicated they make it sound, the more impressive and credible it seems. As a result, people accept the simplest version of what they are told and don’t dig any deeper.
Also, I think your motivation for becoming involved is a huge factor. For me, I was thrilled about the alleged health benefits and went around babbling about the 13 servings of fruits and veggies in a daily serving. I think the “business” aspect was always secondary to me because I had a full life that I loved outside of MV. Lesson learned. My “losses” were fairly unsubstantial but what is worse is that I, in my own small way, helped to perpetuate this scam and line the pockets of Dallin & Brig.
Finally, I seriously believe that one of the reasons people don’t ask questions is that you don’t want to offend the person that got you involved. It is rarely a complete stranger that “enlists” you, it is generally a person that you care about and trust. I felt like I was questioning their integrity by asking the questions, and once things started to look “off” to me, I was still not wanting to “rock the boat”. It is a very unsettling feeling when you are used to living your life asking questions about pretty much everything!
September 28th, 2011 at 8:26 pm
Mike, no offense taken, no need to apologize. In fact, you’re entirely correct, not only have I never been at your level, I’ve never been in MLM, I just know people who are. Actually, I’m grateful you and Brent made the correction that it’s not 20 people who have to lose in order to break even it’s more like 30. I think this is important for people to see, for them to realize that the business is not about juice, but is about the opportunity and the opportunity is rigged from the onset.
You asked how I figured out the math. For me, I figured out the general scheme the first time I saw it. No offense, but to me it was fairly obvious that it was just a pyramid scheme with a bottle of juice attached. I understand not everybody does see this and it is my hope to help others understand the math. That being said, clearly you both understand the compensation plan better than me and I look forward to any other clarification and input you can provide. My goal is not for me to make mona vie look bad but to be as accurrate as possible and let the facts of the math speak for themselves.
Brent said “@Jim, not to seem naive or rude, what makes you think the common person understands the math? I have had the discussion with top-earners in the industry who do not even understand the math of their own compensation plans. It is nuts!”
I find that very interesting. I don’t think it would be reasonable to believe that those at the very top do not know what the scheme is all about and the associated math. Perhaps they play ignorant when asked. But I do think you can be profitable, even quite profitable, and still be an unwitting dupe in the scheme. I don’t doubt that there are many involved who through group think and other psychological influences truely believe this is an honest to goodness legitimate opportunity to change their lives for the better. I don’t think the epiphany comes just because one reached a certain level, but rather through a critical evaluation.
That being said, what responsibility does the successful distributor, or any distributor, bear? Clearly anyone who has been around MLM for even a short period of time hears the objection that it looks like a pyramid scheme, even if it’s just from the diamonds talking about how it isn’t one. At some point isn’t it just willful neglect not to see what’s behind this criticism? Wouldn’t you want to research and read what the opponents say, if nothing else so you can see their “errors” and be able to explain them to your prospects? Does your upline telling you not to read negative information alleviate one from this responsibility?
Once you look, there are multiple legitimate experts who spell out the math and the math is irrefutable. You seemed to say that nobody ever asked about the math. This basically means nobody ever looked, or looked hard enough, but really it’s easy. I find this very troubling. Is the psychological influence so great that nobody dares go against the instructions of their leaders and the group?
When I first started looking into mona vie I was actually very surprised that everyone seemed to be arguing over the miraculous benefits of the juice, which luckily Vogel, Food Tech, Candice, Lattimore, Lazy man and others were doing an outstanding job of researching and refuting. I mean, they really crushed it. If you’ve got the time, go read the archives on lazyman and money, it’s gold. And still people show up here and elsewhere with miracle health claims, which by the way makes mlm’s involved in health products potentially physically dangerous on top of financially damaging. This led me to think of the following analogy:
Have you ever seen a street magician do the trick where he puts a quarter in someone’s hand, grabs them by the wrists, bangs their hands together a few times and viola!…they open their hands and the quarter has miraculously disappeared? This is my analogy to mlm. While everyone is amazed and argueing how or whether he made the quarter dissapear, even people swearing that it happened because they saw it with their own eyes, they fail to realize the magician has taken the watch off the wrist of the dupe during the trick.
Just as we know through science, logic and reason that the quarter did not dissapear, as long as the focus is continued to be placed on whether or not the juice actually works, the theft of the scheme will continue to be successful.
There is no way I can convince a true believer, especially one who has experienced a placebo effect, that all of these miracle juices are nothing more than just plain juice. All the science and logic just isn’t going to work. But I do believe I can present a good person with the facts of the math and the damage that must be inflicted, and that I hope can influence them.
While I may not be able to convince someone who experiences the quarter dissappearing that they didn’t experience what they think they did, I can point to their wrist and show them their watch is missing.
September 28th, 2011 at 9:30 pm
Damn good post Jim! Ah, you reminded me of the good old days. Remember Lattimore? He was our Lao Tzu. He, Food Tech, Candace, Lazyman, and many others, yourself included, have done the world a mitzvah. Cheers.
September 28th, 2011 at 9:36 pm
…I failed to thank Humiliated too…my bad. And Anonymous Aussie too…how could I forget! Sorry if I forgot to mention anyone else by name.
September 29th, 2011 at 4:09 am
Love the magician analogy Jim. Unfortunately for most in the mlm world there is a very misunderstood theory called cognitive dissonance. When someone holds two conflicting beliefs at the same time, they change their beliefs to avoid internal conflict. Michael brought this to my attention, and I am thoroughly convinced that this theory answers almost all underlying problems within the industry. If you are following the “Troy Dooly” thread on Amthrax, you will find a perfect example of cognitive dissonance on the part of Troy Dooly. He has totally reprogrammed his thinking and belief system to toe the party line. I understand it because I have been there before, and believe many of you have as well. Thank you!
http://amthrax.wordpress.com/2011/08/16/orrin-qrush-the-many-blogs-of-orrin-woodward-part-one/#comments
September 29th, 2011 at 8:13 pm
Continuing with the discussion of analogies, I’ve often thought of that magician analogy while reviewing the company’s scientific claims and research, because in a sense, I’m a magician too and I can see through every one of their scientific tricks. I’m watching a second-rate magician pull sleight of hand and dazzle the audience, none of them realizing that The Amazing Dallinski (with the help of his loyal assistant Schaussie) didn’t really saw a woman in half, he used a set of fake legs; he didn’t pull a hankie out of his nose, he pulled it out of his sleeve; the rabbit was in the hat the whole time; and the coin didn’t disappear, he just cupped it in his left palm.
The other analogy I find irresistible is that of a movie set (MLMs modern day version of the classic snakeoil traveling medicine show). The movie set that Monavie creates is designed to resemble a real corporation; the execs and kingpins are all actors and the distributors are the audience. I think that a lot of the people who get roped into Monavie have no clue what a real corporation looks like or how it’s run, so the movie set version looks to them just like the real thing.
My favorite character in the production is the bellowing, belittling, braggart millionaire executive. That always seems to play well for the audience because they think that’s how a CEO really acts, probably because they closest they’ve ever come to one is watching Trump on The Apprentice or Mr. Howell on Gilligan’s Island.
The other movie set, for the distributor training events, is designed to resemble something akin to a stockholder’s meeting (with a healthy dose of 3-ring circus/variety show thrown in for entertainment value). The rubes in the audience don’t seem to know that at a real corporate meeting, the execs don’t stand on stage bragging about how much money they made to motivate the secretaries, salesmen and janitors; they don’t show slides of their vacation in Bora Bora; and they don’t rub dirt in their employees’ faces by presenting the VP with the keys to an expensive new sports car.
The other movie set they use is the scientific seminar, reminiscent of what you might see at a biotech startup R&D meeting or a medical research conference, except the big difference is that the script read by the lecturer at the podium on Monavie’s set consists of jargon-laden misleading nonsense and the bobbleheads in the audience don’t know enough to realize how bad the actor’s performance really is.
Monavie’s sales tools concession is like a blend between a movie theater popcorn stand and a tacky souvenir shop at a second rate tourist trap.
But wait! There’s more! 10 cents from every $50 ticket to “Monavie: The Movie” goes to your local distributor and a hundredth of a penny goes to drug-addicted orphan baby prostitute landmine victims in some third world country.
September 30th, 2011 at 4:04 am
I would like to throw out my thanks there too to all of you. I’ve been a little off the radar of late. I’m still doing things with general MLM under a new MLMmyth.org domain.
You guys give amazing viewpoints that I hate to see them buried in comment #108 of a post like this. Often the posts apply to the issues with MLM that are deeper than just MonaVie, so I think it made sense to create an umbrella site to deal with those general level issues.
I still mention the Lattimore’s Bear Attack pill argument on the LifeVantage Protandim posts. What a visionary Lattimore and his friend Barry were!
September 30th, 2011 at 5:43 am
Awww..I miss Lattimore, Food Tech and Candace! You guys were the pioneers Vogel! I wish they would pop by and say hello!
Vogel, you have a really good point. So many of the people that I saw getting involved with MonaVie were not savvy to the ways of the Corporate world, they hadn’t had to sit in on a (yawn) budget meeting etc.. I think I almost break into hives when I hear “meeting with the VP” or “solution gathering seminar” at my job..and I love my job (well…most days)!
The conventions don’t even come close to one that would happen in the “real world” with singers, preachers, fake doctors etc. I wouldn’t be surprised if Dallin & Brig don’t walk out in a fog of dry ice and the sound system blaring “Stairway to Heaven”! It is EXACTLY what you say..a well orchestrated show. But, to the ignorant (read inexperienced) masses it is very effective.
JS! How exciting! I can’t wait until you get the new site up and running!! Any idea when that will be?
September 30th, 2011 at 3:41 pm
@Vogel, love your analogy as well. It’s all just selling the illusion. And you’re right about Humilliated and Aussie, thank you both very much for continueing the cause. I try to help here when I can but the dedication of this core group is truely admirable.
@Brent, I am familiar with cognitive dissonance, in fact I believe Aussie, Humiliated, or maybe both of them have brought the subject up prior. I think you are right, this form of justification is not uncommon. What are your thoughts on that cognitive dissonance was first coined referring to cults. Having extensive experience with MLM and mona vie in particular, looking back do you now consider them to be cults?
As for Troy Dooley.. I went and read that entire thread at Amthrax. I do not think Troy is experiencing cognitive dissonance, it seems to me as though he is fully aware of the math of the schemes. Unless I missed it, and I spent hours reading that, although you brought up the math in detail, he never addressed your points. He seemed very willing to talk about subjective matters and how people should behave and identity issues, but when it came to the math, he was suspiciously quiet.
I believe you mentioned that you had conversations with Troy on his blog, if so did you discuss the math with him and can you link the discussion? I looked on his site but didn’t see it.
Getting back to cognitive dissonance, this was in part the point of my previous post… that people can be subject to mental manipulation. That people can claim that their experience was different than the critics, that the juice just being juice is a matter of opinion, they can be influenced by lies about science that they simply can not understand, they can be fed conspiracy theories about big pharma and the government, etc. All of these tactics can be employed to explain away when confronted with conflicting facts that threaten the beliefs of the group. But you can’t explain away math to even the least reasonable person. But math is not subjective and not subject to interpritation. 2+2=4 and if someone tells you 2+2=73 it is clearly not true, anyone who claims they can not see the answer is 4 is either a legitimate idiot (probably institutionalized) or a charlatan who is looking to hide the facts.
September 30th, 2011 at 3:41 pm
Vogel, you crack me up……Gilligans island, Dallinski, funny stuff!
September 30th, 2011 at 5:08 pm
Man, you guys took the engine apart. That is some front page material.
And now for something to make your stomach turn:
http://www.youtube.com/watch?v=lTVodiuIgNQ
I like the first top comment.
September 30th, 2011 at 7:04 pm
Brent: “Vogel, you crack me up……Gilligans island, Dallinski, funny stuff!”
I can’t help myself man, this stuff is so comical at times, and I have to keep my wrath balanced with humor so that I don’t get my yin-yang all out of whack. Lattimore was the real master of Monavie satire though…brilliant and powerful. A complete absence of humor on the part of every ardent Monavie distributor that’s ever posted here has always been one of the biggest red flags about this company, unless of course you happen to find humor in comments like:
“Monavie cure grandmas CANCER! You guys are negativ and probebly think farmasooticals are the bee all and end al. LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!”
October 2nd, 2011 at 9:55 am
Here is a recent comment from Amthrax’s site that I thought you would all have fun with. Asking everyone to come up with a ‘better’ idea than;
LIFE/TEAM/Orrin/MonaVie/Amway/etc., not without the criteria though ..lol :)
Rykel permalink
October 2, 2011 10:14 am
Hi friends, I just finished reading up on your comments about the upcoming LIFE business model, and cannot help but ask… “OK, so LIFE/TEAM/Orrin/MonaVie/Amway/etc. sucks because “most” people cannot make more money than they spend on the business… but do YOU have a better idea?”
And please note – your “better” idea MUST allow a breakeven earning ratio of 1:2 minimum. By this I mean, “Find 2 and you get yours FREE!” Not only that, it MUST give the participants a shot at stardom and freedom. Thirdly, it MUST give the participants a chance to become part of a “community” of like-minded, positive-thinking, hungry-for-a-better-life individuals. Last but not least, the participants MUST make more money right from the get-go – and significantly more money than they spend on whatever expenses they so need to incur in the course of building the business (your idea).
With that said, I hope to hear some solid responses… as the saying goes, “It is always easier to criticise, than to offer a more creative solution.”
p/s. Amthrax, my apologies… I have been away because we just had two watershed elections in Singapore and I was pretty involved as campaign manager. (election agent)
October 2nd, 2011 at 9:58 am
Gotta love the ‘shot at stardom and freedom’!
October 2nd, 2011 at 1:12 pm
The stardom line is particularly funny: How many people can name the CEO of Amway? I can’t. Stardom in the MLM world is extremely relative; I doubt many MonaVie distributors could name a top distributor in, say, Pampered Chef.
To be a star in the eyes of the general public, there aren’t that many paths. You’re not likely to be noticed in the corporate world unless you climb to the top of a really big company. Stardom is most common where people themselves can be said to be the product – sports, politics, film, or writing come to mind.
October 2nd, 2011 at 1:38 pm
I was thinking a ‘good idea’ would be take up babysitting. Definitely wouldn’t have to worry about the ‘break even’, it pays more and it doesn’t take much to convince a little child you are a ‘star’…most think their parents are..and if you really wanted to ‘create a community of like-minded’ then babysit more children or open a day care..lol
October 2nd, 2011 at 1:43 pm
Oh and once you’re done with the babysitting job..back to Freedom! :) …LOL
October 3rd, 2011 at 8:07 pm
@Vogel, wrath balanced with humor, thanks for the heads up, I guess I should display both simultaneously huh? Gilligan’s island, hahaha, I am still chuckling, and its been days. Dry ice, fog, stairway to heaven, love it, love it, I never knew that commenting on blogs could be so entertaining.
@Jim, I honestly believe that Troy has never been hit head on with the things that Michael and I have been hitting him with. I think part of cognitive dissonance require one to make a decision one way or the other, then think up every justification possible to support that decision. The only way I can understand is through my own experience, I have been there, so I have empathy. I know every one liner for MLM, and could smack down even the best critic. I chuckled the other day as I recalled a story that I shared with Michael about showing Amway to a millionaire friend of mine. He smiled at me and said, “Brent, don’t you know these things cannot work.” To which I responded, “yes they do and I will show you.” He said, “when you have your mercedes bought and paid for by money you have earned from mlm, come back and I will join you.” I glared at him and said, “see you soon.” Now who is the ASS here. Twelve years came and went in that opportunity, and I burned up 4 cadillacs (hahaha) but never got the elusive mercedes benz, nor the six figure passive income I had bragged about.
I was probably the poster child for cognitive dissonance, so I know what internal conflict feels like first hand. As for Dooly, when I brought these equations to him and many others, they simply tried to redefine “success” in an mlm. After all didn’t you know Jim that according to the DSA over 70% of all of those who sign up, do so to simply receive a discount on the products? It is not about business at all, they simply LOVE MLM PRODUCTS, and join because they want a little better price.
Furthermore, there is a whole multitude who join simply for the comradery, friendship, or to be part of something. According to Troy, all of these could be counted as “SUCCESS” in mlm, therfore my mathematics simply do not explain the whole story, and do not provide an adequate explanation of success and failure in an MLM. Kind of funny as I logged into my MV back office for the first time in 3 1/2 years and discovered that there was 1 single case of juice sold throughout my team of 600 plus associates last month. Now where are all those who simply joined for a discount? Is it possible that the DSA is full of it?
You know Jim the DSA is the ultimate source of all light and knowledge right? After all they are the prestigous governing body of MLM, they are the industry watchdogs, and when they speak it is gospel.
Now that you bring it to my attention, you are right, Troy never did come at me with anything to dispel the reality of mathematics, interesting.
@SYT, babysitting and lawnmowing would both be great alternatives. Both would provide more income than most of the MLM models out there. Great thinking! I hit another pro MLM guy before with the fact that my friend makes more off of his boxer who has one litter of puppies a year, than most people who take MLM serious. He was pissed off at me and explained how engaging in MLM was simply worth it if for nothing else than the tax savings alone. Afterwards I brought it to his attention that the average American pays zero income taxes, and he did his best to baffle his way out of that comment as well.
The story is always the same with these guys, they have all experienced dissonance, and it takes some sort of come to Jesus realization that they are engaged in models that HURT PEOPLE, STEAL FROM PEOPLE, AND ROB PEOPLE OF THEIR DRIVE AND INTEGRITY. ENOUGH SAID FOR NOW!
October 4th, 2011 at 12:25 pm
Brent, regarding Troy I suppose I will never be 100% positive about someones private thoughts and beliefs, but it seemed obvious to me that he was avoiding the math question.
Your right, Troy and the DSA may attempt to deflect criticism with claims of retail demand, alternate definitions of success, etc. But I think we both know the true draw is the opportunity and you have the facts of the math of the opportunity. If you can ever get Troy or any voice for MLM to admit that 97% have to fail, that is the smoking gun. Don’t let them get away with calling it a “probability” of failure, it is a 97% certainty of failure in an internal consumption endless recruiting scheme.
I read your facebook exchange and it seemed like a part of the defense was that all businesses have a high probability of failure. While the true statistics are exagerated by MLM advocates, no business that I am aware of outside mlm requires 97% to fail. There’s a huge difference between experienced failure rate, probability of failure and certainty of failure. Mlm is the only one rigged before you start.
October 4th, 2011 at 1:55 pm
@Jim, you are dead on when you said that there is a “certainity of failure”, one of the most interesting things I have found is that most MLM guys cannot differentiate between mathematics, and statistics. Many of them are more than anxious to quote statistics as justification for their models, but success in an mlm is determined by mathematics. There is no way that you and I can become a victim of statistics, but we both can become victims of mathematics.
I wonder which exchange you read between Troy and I, there have been quite a few, on quite a few different points.
October 4th, 2011 at 2:29 pm
@Brent, I read the Amtrax exchange between you and Troy under the Qrush topic. I also read the exchange you and mike had with the diamond you linked from facebook on this thread. If you can link me to any additional threads where you discussed the math with Troy or any mlm authority, I would love to read it.
There is a definite difference between probability and certainty. I could flip a quarter 100 times and although the probability is that I will have 50 heads and 50 tails, there is no certainty. Mona vie’s comp plan guarantees at best I will have 3 heads and 97 tails (when heads is considered the winner).
October 4th, 2011 at 7:16 pm
@Jim, I actually have files of conversations all tucked nicely away waiting for the right opportunity. Screen shots are an amazing thing.
The sad thing is about all of this is that it doesn’t have to be this way. Any company could create a model that would be viable for the masses. It seems however that they are all satisfied with their day in the sun, a quick burst of growth followed by plateau and decline.
Greed stops them from creating a “real” business model. I spent 30 minutes on the phone yesterday with an Amway corporate rep asking them about the mathematics of their deal. I haven’t been around the stairstep for about 6 years now so I wanted to refresh. Funny thing is, even the corporate people believed that it was a viable model.
Sometimes I think I might be the crazy one, its like being in the matrix or something. Blue pill red pill?