Recently, I wrote a post about the product, Mona Vie, which is sold through a Multi-Level Marketing system. In case you are not familiar with the product, it is a super juice of some sort with exotic ingredients, such as Acai Berries and Kyrptonite. I questioned the ability for the juice to cure all the ailments that is claimed by the many distributors out there, and the viability of the business model to actually make money for those same distributors.
The number of comments on that post was pretty incredible. Many of the comments, not surprisingly, defended the quality of the juice. The juice was credited with healing, curing or aiding in the following areas: multiple sclorosis, weight loss, joint pain, high blood pressure, mood swings, something about ORAC values in Leukemia cells, insomnia, headaches, stomachaches, arthritis and gas reduction. I'm serious. It does all this. Read the comments for yourself. They don't lie.
Of course, there were comments that defended the business model, and in fact the MLM business model in general. Frankly, being a money blog, this is what interested me. I could give a damn about the juice. If it tastes good, doesn't kill people, and can sell, maybe I'll sign up to make some money. But do I really want to be one of those MLM people out there?
So, here were the arguments in favor of multi-level marketing.
- The only way commissions are earned is through the sale of the product. Building a "downline" can build commissions, but only if the downline sells juice. The fact that commissions are only tied to the sale of product makes it not a pyramid.
- The corporate structure of CEO>VP>Director>Manager>Peon is a pyramid scheme.
- It's sales, just like being in sales for a big company. You get paid commissions for making sales.
- MLMs generated over 40 billion in revenue last year, so they can't be scams
I guess so.
So, not a scam? Sure, why not? Still something about it bothers me. Let's say you walk in to your local used car lot, and see a cherry red Mustang. A salesperson spots you and walks over. "Sure is purty, ain't she?" he asks. "Yea," you reply, "how much is it?" Used car salesperson responds, "well, I'm not supposed to let her go for anything less than $35 grand, but I like your style. For you? Let's make it an even $34 grand." "Wow, really?" you exclaim, "sounds great, let's start up the paperwork."
No scam happened in our little used car skit. But something just ain't right, you know?
Same feeling I get with all these Mona Vie juice sellers. If someone tells me that he has felt healthier since drinking a juice that he buys at Whole Foods, I may give it a try. If that same guy tells me that he feels healthier, and he would be glad to sponsor me to be a distributor in his downline, the red flags go up.
This is the problem with the MLM. Not that it's a scam. But your consumers are your salespeople. There is no greater way to sell a product than third party endorsement. Third party endorsement happens when someone else compliments you or your product. If you compliment yourself or your own product, it will always be met with skepticism. With an MLM, your consumers are your salespeople. Anytime someone says, "I tried it and it's great," the red flags will always go up.
You're absolutely right. It is the fact that the salesperson is endorsing the product that makes it sketchy (or at least look that way).
The other thing is that most of these people are trained not to let you try the product (sometimes, not to even let you know what it is) until you attend some rah-rah session where the *really* slippery salespeople can take a crack at you.
Bleh.
That's why I've only gotten to one MLM deal in all of my years of marketing. The transparency sold me... "Here, try this site. if you like it, tell other people about it. If you don't, well, have a nice day."
But, as I said, you don't see that too often :-)
Posted by: Lee | March 25, 2008 at 09:45 AM
Have you even tried the juice? No? Well then I guess you just have an opinion and everyone knows about those lol... I have a skincare salon for what 26 years now and yes I am one of "those" people that sell Monavie. I sell it and dont pressure folks and I even give it away to a select few that I think maybe interested. It costs me $$$ and I still give it away. When I do sell it I dont make nearly as much on a bottle as I do on a skincare product. Why because this stuff really does work. The company give .50cents on the dollar back to us the distributors and it give a big chunk of change back to the orphans and familys in the Amazon. It you just took as much time looking into the product and the company as you did typing this, you would all know this.. If anyone would like some info please just let me know. I love talking about it and helping people to feel healthy and yes wealthy...
Sirrell
310 316-7707
www.purplejointjuice.com
Posted by: Sirrell | April 05, 2008 at 09:31 PM
I'm not sure about the 'Fixing whatever ails ya' kind of sales promotion, but around where I live there is a company ( http://www.arthursjuice.com/ for anyone who cares) which if I'm just not feeling quite right I usually pick up three of their smoothies. Since one of the best advice you can get for making sure you get what your body needs to function is simply to Eat from the Rainbow it's really easy since they have a great selection.
After drinking one a day for a few days your body just feels better. It's kind of hard to explain, but you're never as sore after working, your never as tired after concentrating, and you just seem to sleep better, wake up more rested.
I don't believe that it's going to cure cancer, reverse time, or anything at all . . . but they taste great and keep your body working with proper nutrition. Plus, you don't have to con your friends in to buying it, since it's just at the grocery store.
Posted by: Traciatim | April 06, 2008 at 07:50 AM
You are absolutely correct. Half the time people that try to sell you things are only looking out for there own commission.
Posted by: Roman | April 06, 2008 at 09:43 PM
You have to be so careful with commission focused sales people. You end up with a sub-standard product while they pocket your hard earned cash
Posted by: Pension | April 12, 2008 at 09:24 AM
I agree with the contention that the traditional MLM approach is flawed, due to the fact that the consumers recommending the product are also the salespeople. A common statement heard by network marketers is that it is just like recommending your favorite movie to a friend; the only difference is now you get paid for that recommendation. Anyone see the problem with that statement?
Once you ARE getting paid for the recommendation, the dynamic changes completely. If your friend knew you'd be getting four dollars if he goes to see that movie, he'd start to wonder about your motive.
That being said, I actually think MLM's are a viable business option, and people like Robert Kiyosaki and Donald Trump agree. The leverage that is created using the MLM model can lead to tremendous wealth. The problem with network marketing is in the marketing, ironically. It tends to be done with outdated methods that simply don't work in this 'information age' we are currently in.
There is something new called 'InterNetwork Marketing', and it is changing the face of MLM's, hopefully forever, but certainly for the better. People can take a much more professional approach to building their business, and only speak to people who have expressed a genuine interest in learning more about what they have to offer, as opposed to uncle Edgar, who is only listening to you to be polite, but has no interest in your 'opportunity'.
I have been studying this new model for quite some time now, and have begun to work as an InterNetwork Marketing Coach. If you or someone you know likes the idea of residual income, but dreads the thought of approaching your friends and family to build your business, I encourage you to take a look at this. This is NOT get-rich-quick, but you can do very well with it, if you are willing to learn and work consistently each week.
If you want to learn more, click on my name to be brought to my website. There you will find some articles and my contact information. I encourage you to read the content there before contacting me, because this may not be right for you. If you like what you read, though, then I look forward to helping you establish a better way to build a business.
Posted by: Lane | April 16, 2008 at 03:34 PM
I agree with Roman.. We have to be very careful with commission focussed sales... We cannot afford to lose our hard earned cash so easily..
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Posted by: eCurrency Arbitrage | July 12, 2008 at 01:56 AM
You don't have to distribute Mona Vie to buy Mona Vie. If you don't want to be a distributer, don't, just buy the product. It's not a requirement. There are plenty of people out there who buy Mona Vie at the retail price and decide, you know what, I have a job and a personal life and I don't need anything extra. That works for those people. Mona Vie is like Tupperware, Mary Kay, or any other multilevel marketing companies who currently exist. You may distribute if you like, if you don't want to, just buy the product. That's ok too, however, if you REALLY believe in the product and you absolutely believe it will help others, what's the harm in distributing the information and making a bit of money on the side. Last I checked, when I say, "OMG you have to try this stuff at Wholefoods! It's AWESOME!" Wholefoods doesn't send me a check in the mail with a letter that says, "Thanks for promoting our product!" Wholefoods just goes on it's merry way. There's nothing wrong with the marketing strategies of the company. Drink the juice or don't drink the juice. Sell the juice or don't sell the juice. It's up to you. Also, one thing to keep in mind is that Mona Vie does not claim that it cures ANYTHING! It says there have been favorable results from people who have different types of ailments. It does not claim it cures cancer or AIDS. Mona Vie cannot claim that just as actual drug companies can claim that. What Mona Vie can do, however, is say, this MAY help improve your life and has case studies from individuals who's lives it has improved. I have gone to a Mona Vie meeting and it's not a cult like Amway or Tupperware. Everyone there was very down to earth. There was no pressure. They talked about the success of their distributors but it wasn't overly presented as Tupperware and Amway presentations often are. It's a comfortable environment full of healthy people who want to help others experience what they have. No pressure. Try Mona Vie before you critique the company. You never know. You may feel so good after a couple of weeks all your opinions may change.
Posted by: Megan DeHerrera | July 31, 2008 at 10:07 AM
I don't know how I ended up on this site... but I've done some research on network marketing businesses (MLM). Yes, there are plenty of bad ones - but I've found some pretty legitimate ones too. One resource you might be interested in is Robert Kyosaki's book on the subject... Business School for people who like helping others. He presents a very interesting perspective on the subject and it's not where he made his money.
Posted by: Kimberly | September 26, 2008 at 04:30 PM
Not sure how I found your page, but I really enjoyed your post about MLM. I have been a distributor for two MLM's over the past year, and I think you nailed it right on the head! I have found some AMAZING products, and was so excited to share them with people... but then I started discovering that as soon as they asked "where can I get it?" and I said, "I can order it for you"... that was it... they were like, "PYRAMID, PYRAMID! Step away slowly!" I ended up dropping about $6,000 into these two companies, and got back about $5,000 in commission...so, yes...i lost. I'm sure if i would have plugged along and kept with it, I could have made that last $1,000 back, but when it came down to it, i was so over the business model. I found myself thinking of everyone in my life as someone I could have working for me... well, they would run when they saw me coming... it really was a crappy way to do business. So, I agree, great products, but there has to be a third party... otherwise people get scared. Ciao.
Posted by: Lacey | October 01, 2008 at 04:01 PM
so, what some of you are saying is that because some one is making money on the product it's hard for you to think that the product is good because they are getting a commission? But, if that's the case, then the spokesman on TV who gets paid very well to talk about something they may or may not have ever tried is ok? That doesn't even make sense. I love the juice. I give away bottles for my prospects to drink. I know that some will want it and some won't. Just like a movie, or a car or whatever. Do I pressure anyone, hell no. Do I try to give them enough information to make an educated decision? Hell yes. Do I make money, hell yes I do. Do the people below me make money, hell yes. Do some just want to drink it and not sell it? Most of the people just want to drink it. I'm glad for that, because it works!
Posted by: Charlie | October 13, 2008 at 03:17 PM
Charlie,
I am skeptical of TV commercials or other ads that make grand claims. In your example, the TV spokesperson who is paid well to read a script is not an impartial third party. If a friend, whom I know to be impartial and of generally good judgement recommends a product I will believe him/her. Why not? There is no self interest or conflict of interest.
Posted by: LAMoneyGuy | October 21, 2008 at 11:14 AM
OK, I'll buy that. I have nothing to gain from telling you about the juice either. The chances of me sponsoring you are slim to none. You most likely know several people who are drinking it now and would go to them before me. But let me just say, it is remarkable, at least for me. I do know people who say that they have no physical effects. Every bodies body is different. However, by drinking 2 two ounce shots a day you are putting approx.10-13 servings of organic fruit into your body with a total ORAC count of around 5,000. This is a good thing for every bodies body. It's in the science and chemistry of the fruits, mostly the Acai berry. If you would like I can post all the vitamins and nutrients found in just that one fruit. It's pretty amazing.
Posted by: Charlie | October 24, 2008 at 07:16 PM
I found an MLM that does not require hardly any "selling" at all. www.sendoutcards.com
You can peruse the site, it wont let you sign up without an ID.
so check it out, and if you like it...54173
Everyone sends greeting cards, and this is a cheaper way to do it. It makes sense.
Posted by: Rafael | November 14, 2008 at 05:13 PM
sure thing Rafael.
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Posted by: Dawn | December 14, 2008 at 11:12 PM
I wonder if they teach a course at MonaVie in how to sell more juice by leaving comments on blogs refuting the company and its claims. It's genius!
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Posted by: ponnyfiggs | April 08, 2009 at 12:04 AM
Just as you said, who cares about the juice! Network marketing is a horrible industry if your not with the right company. The difference could be 5 years or 15 years to make 100k a year in MLM. It all depends on the compensation plan and priduct. You have to have a product that works and a compensation plan that is made for the average person. You should look at RevvNRG "Revv Energy". It's actually cheaper than similar products in the stores compared to a 35.00 bottle of miracle juice. Most high prices MLM's require people to be sales people in the way creating value in the product so it's worth the expensive cost...And that my friend is a problem. I know www.TahliasBeautySupply.com sells Mona Vie and REvvNRG, but i know he is making more in Revv, in the retail aspect and residual MLM side.
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