[The following is a guest post from Anonymous Aussie, a frequent commenter on this website. I think it was intended to be a regular comment to the original article, but I think the mathematics that she points out is something that should be highlighted and are grounds for further discussion.]
MonaVie Distributor Tom states “Show me any company in the world (with revenue about $1 billion a year) that has that many distributors making more than $160K a year. If you use company’s materials stick to what they say.”
Monavie states they are making $1 billion in revenue though they do not release financial information to support such claims and therefore, this statement remains unproven. See MonaVie – Is MonaVie the Fastest Company to $1 Billion Dollars in … for more information on that.
Secondly, what percentage of any revenue earned was from bona fide sales to persons not associated with the scheme and what percentage is from the investments and purchases from its own sales force?! Monavie do not disclose this information either however, judging by Tom’s description that he is consuming everything that he buys, as does his downline (and as does his upline whom he is duplicating), I’d say not much and it serves Monavie well to withhold such a vital piece of information from the public.
Monavie hopes the average distributor is unable to perform basic arithmetic (and this is an accurate assumption in Tom’s circumstances), however we’re able to elicit from the information provided in the 2009 Global IDS the real opportunity that Monavie represents to the average distributor/consumer (again, the distributors are the consumers).
If ALL the distributors were included in the Income disclosure statement (that is, the 87% who did not qualify for commissions â€“ 620,431), the figures would confirm the following facts:
Total distributors = 713,139
Royal Black Diamond and above through to Bronze Executives (2570) = 0.36% of the total sales force.
The above 0.36% of distributors were paid 53% of the total commissions and averaged $1516.70 per week.
Star 1000 through to Distributor level (90,138) = 12.64% of the total sales force and averaged $37.33 per week
$37.33 per week clearly represents a LOSS when all costs are factored into (autoship, training tools, phone calls, travel, attending seminars, etc).
The remaining 620,431 distributors (87%) earned ZERO.
Clearly it’s accurate to say that 99.64% of the ENTIRE sales force LOST money.
The top weighted compensation plan is further confirmed when you consider that those ranked Royal Black Diamond and above through to Ruby Executives (377) who equate to 0.053% of the total sales force received 37.53% of the total commissions paid.
The above group of 0.053% averaged $7227.87 per week.
Even with the Gold, Silver and Bronze Executive earnings included with the remaining distributors (through to distributor level), this group of 92,331 (12.94% of the total sales force) still only averaged $49.13 per week.
Lets not forget again that 620,431 of the sales force earned absolutely ZERO.
Monavie have misrepresented the facts surrounding this farcical opportunity and fraudulently promoted a scheme whereby they elude to inform people as at the time they sign up that greater than 99% of the entire sales force are losing money.
Tom, the hypocrisy lies with a company who has policies and procedures in place which are necessary to ensure the legality of the scheme but which they do no enforce in any way at all, thus leaving the business in the incapable hands of uninformed, gullible and money driven distributors such as yourself.
Originally posted 2010-06-24 20:59:48. 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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