[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 PromoterThe 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.
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