Did Jon M. Taylor, Ph. D Predict a MonaVie Ponzi Scheme?

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I came across an article from 2004 by about a Utah Study on tax returns. There is a ton of useful information here, but one item in general made me stop reading the article and post it here. In particular it was point #2 on a list of 7 bullets from the findings:

“2. Most recruiting for Utah MLMs is done outside Utah, presumably because heavy market saturation in Utah has stiffened resistance to buying into the MLMs. So MLM promoters go to other states, and then from one foreign country to another to keep the scheme going. Or they sometimes start new product divisions to cycle the pyramid anew. MLMs like Nu Skin and Usana become, in effect, Ponzi schemes, by recruiting new investors in their schemes to pay off earlier investors.”

Remember that this was written in 2004 before MonaVie existed. The prediction is eerily on target when applied to MonaVie. They company did expand from one foreign country to another. That’s not typically a bad thing. Successful companies do expand to other countries. However, this does look like the kind of thing that MonaVie’s been doing since it has started declining in the US, and interest is fading overall. Since MonaVie has been afraid to put out an IDS since the middle of 2009, it draws some legit concern that they had trouble keeping it going.

Mr. Taylor then predicted the company would start a new product division. For MonaVie this would be its weight loss product RVL. The company’s failure to expand due to the pyramid scheme of the business plan has caused it to ask its distributors for more money through another product.

Is Jon M. Taylor a reincarnation of Nostradamus? Not likely. It’s just the predictable nature of companies like these.

Originally posted 2011-03-09 13:58:47. 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.

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3 Responses to “Did Jon M. Taylor, Ph. D Predict a MonaVie Ponzi Scheme?”
  1. Vogel Says:

    Bingo! Spot on! Monavie’s flurry of international product launches occurred not long after they stopped updating their IDS:

    Hong Kong – February 8, 2010
    UK – May 8, 2010
    Poland – May 15, 2010
    Germany – May 18, 2010
    Malaysia – March 1, 2010
    Korea – March 24, 2010

    The “new product divisions to cycle the pyramid anew”, in the words of Dr. Taylor, is reflected by Monavie’s sudden foray into the business of selling diet aids — the RVL line, which pre-launched in November 2010 (but in reality it’s just a rehash of Dallin Larsen’s failed products from the old days of Monarch Health Sciences, the predecessor to Monavie).

    They are clearly following the M.O. that Taylor predicted, and it’s obvious that they follow this M.O. for the reasons Taylor provided; to prop up the sagging fortunes of distributors in the US by recruiting new overseas victims for the pyramid scheme. But the foreign expansion won’t benefit anyone other than the company, a few of the new overseas executives, and the handful of US kingpins who were granted the overseas ‘franchises’ (it would be interesting to know whether the pins had to pay for the rights to Monavie’s foreign mini-pyramid markets).

    Expanding the distributor base in foreign countries offers the small-potatoes US distributor nothing but increased competition. They certainly won’t see a penny of the revenue that Monavie is taking from those foreign markets. If anything the peons should be livid because their funds were used to build the overseas businesses and yet they will see no benefit.

    It’s more than a coincidence that Monavie chose to divert its attention to countries where English speakers are the minority – those prospects will have a harder time finding critical commentary on sites like this – how convenient.

  2. Anonymous Aussie Says:

    The life cycle of these pyramid scams is so predictable and Jon M Taylor certainly described Monavie to a tee. It’s fascinating reading.

    You can also see how expansion to other countries (after interest in the opportunity dying in the previous countries due to having no loyal CUSTOMER base) would mean Monavie protecting their own income stream by also protecting that of the highest ranked – to keep from moving themselves and their downline elsewhere. So few stand to gain and they only serve to take care of each other.

    The little people don’t matter, nothing is done to benefit the average distributor except to keep on churning through the recruits, replacing the dropouts and selling the mirage of “financial freedom”.

  3. Danny Says:

    That’s true, in malaysia internet is not widely used to the group of elderly people. It seems monavie sales are not affected badly over here, I could see the weekly rank advancements monavie are malayisian and korean.

 
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