Yesterday I came across an interesting report and analysis of Monavie from Robert Fitzpatrick who writes for the Pyramid Scheme Alert website.
Using data freely available from Monavie’s own mid-year income disclosure statement, he came up with some interesting observations -
- The top 1% or so of distributors received 65% of all the commissions paid out by Monavie.
- The bottom 91% of the entire Monavie sales force, received absolutely no company payments at all!
- Of the 9% of distributors who did receive a commission check, the bottom 99% of them earned on average only $59 a week. That, of course, was before product costs and all business expenses.
- The average income of the bottom 99% of all Monavie distributors was $3.75 a week before all product costs and business expenses.
Considering the level of debate on this here site about Monavie, I’d be rather interested to know what Monavie distributors make of these figures???
Is it just chance, perhaps, that only successful distributors seem to leave comments on websites?
Comment away….
A lot of visitors to this site are searching for information about specific multi level marketing opportunities to help them determine whether they are legitimate or not.
Are you one of those people?
If so, then this poll is for you…
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After voting, I would love to hear why you feel the way you do so please let me know via the comments…
“The Merchants Of Deception” is an ebook I first read some time ago but recently rediscovered.
For someone like me, who is no fan of mlm, it contains a lot of interesting information, not only about the alleged Amway pyramid scheme, but also about multi level marketing in general.
For those of you who weren’t already aware, this ebook highlights just how seriously mlm takes the book and tape selling business!
It would appear that virtually every mlm has their own training seminars which fondly remind me of my ‘day in the life of a mlm’er‘ post.
Pretty well every seminar goes something like this -
You pay $300+ for a weekend or evening trip somewhere.
During your imprisonment time there you are placed in a large auditorium with well-dressed brainwashed people who are far too keen about their products and their ‘business.’
The seminar then ultimately turns into something that resembles either a religious rally or a rock festival.
Over the course of the seminar you get to meet some of those who are at the higher levels of the business, you know, the sort who retired at the age of 25.
They will encourage you to buy their books and tapes so that you too can join the financial freedom club.
Of course they won’t show you how exactly they made all their money because then you too would just sell the same books, tapes and seminars and take their business away from them!
Want to read more?
Then go grab your own free copy of Merchants of Deception here.
Ok, so now that I have your attention, I’m going to pre-empt my entire article, by stating right now that it is probably far too early within the lifecycle of Zrii to draw any lasting conclusions as to whether it is another multi level marketing scam or an opportunity not to be missed.
In the absence of any real kind of history (Zrii is still very new to the market), I will instead concentrate on what is known, along with my opinions based upon my reading across the net which may may later prove to be either factual reports or mere speculation.
A NECESSARILY SHORT HISTORY
Zrii is a new nutritional supplement, distributed via MLM, or network marketing, as those involved will probably prefer to phrase it.
Zrii is so new in fact that, at the time of writing, I cannot be certain whether the first bottles have actually begun to be shipped to distributors/consumers.
The company is essentially run by the President, Bill Farley, and has an association with Deepak Chopra of the Copra Centre, both of which I shall come back to shortly.
Like other health related products sold via mlm, such as Vemma, the price is relatively steep - $30 per bottle.
Those who are pro-Zrii will likely comment that it is a small price to pay for the benefits it yields whilst opponents will suggest that such a price level is a good indication that it is a scam.
As for which side is right.. that\’s probably going to be a very opinionated and subjective answer.
BILL FARLEY, PRESIDENT
William F Farley has been involved in many business ventures but the one that probably sticks in most peoples’ minds is Fruit of the Loom.
Farley, who was the chairman, CEO and chief operating officer, began his tenure with Fruit of the Loom in 1985.
During his time with the company he led the company into unproductive areas and incurred heavy financial losses.
In 1999 he was forced out after net losses of $576 million forced the company into Chapter 11 bankruptcy protection.
Whilst Farley has undoubtedly been successful in other business ventures, popular opinion would seem to put a lot of blame on his shoulders for what happened at Fruit of the Loom.
I also found that he has had an association with multi level marketing before, having bought Body Wise.
It would seem that he devalued their compensation plan on two separate occasions and lost a lot of strong leaders in the process.
DEEPAK CHOPRA
Deepak Chopra is an Indian medical doctor and writer who also has a strong interest in spirituality and quantum physics.
In his professional life Chopra has enjoy both recognition and criticism of his work which mainly evolves around the premise that the mind and spirit can be utilised in healing.
There have been doubts for some time over his understanding of genetics, though that did not prevent him wining the Ig Nobel Prize for physics in 1998, for ‘his unique interpretation of quantum physics as it applies to life, liberty, and the pursuit of economic happiness’.
In some respects, it may be fair to say that some see Chopra as a type of guru.
THE CHOPRA CENTRE
The Chopra Centre, set up and run by Deepak Chopra, is involved in the promotion of Zrii, even going so far as to say
‘Zrii gives people the possibility to supplement their income or have financial freedom. I guarantee you only the top 1-2% of insiders will ever realize anything close to “financial freedom”‘.
Despite such an obvious statement, Deepak has distanced himself from Zrii.
Whilst he has confirmed that the Chopra Centre was involved in introducing Bill Farley to Amalaki, and developing the nutritional drink Zrii from it with them, he has made it clear that his personal relationship with Farley is simply based around a long-term friendship.
Personally, I find it strange that Deepak is keeping his distance whilst the centre that carries his name is so obviously involved.
Do you think Deepak is looking to make money through his organisation whilst giving himself a way out if it goes belly up?
PROS AND CONS OF ZRII
The negatives -
- In essence, Amalaki which is marketed as Zrii, is a gooseberry juice with a few additional herbs added to the mix.The active ingredients in the product are so insignificant that it would be hard to imagine that anyone could see any positive benefit from consuming this health supplement.
- An endorsement from the Chopra Centre has little meaning, other than their desire to make money from their affiliation.
- Zrii is not an adaptogen, despite claims to the contrary from their marketing department.
- Throughout history the Amalaki fruit has been eaten whole, not juiced and dried.
- President Bill Farley ran Fruit of the Loom into bankruptcy.
- Most new ventures fail in the first 2 years.
The positives -
- Indians believe that Amalaki is an important fruit and it heads lists of ancient healing fruits and herbs (Aruna may be able to confirm or deny this claim).
- Endorsement by the Chopra Centre may encourage sales.
- Bill Farley has been successful in the past with other business ventures.
- Health supplement juices seem to be all the rage these days and so there is definitely a market for the product.
- Zrii is new - that means opportunities for the right people.
MY OPINION
As I stated at the beginning of the article, it is far too early to be casting aspersions on the merits of Zrii at this time.
The verdict on whether or not this is a money-maker will, I’m sure, become apparent in the future.
For now, I personally would say I would steer well clear of Zrii, simply because I am no fan of MLM.
However, as always, the right people may well have the tools, contacts and personalities required to succeed.
Getting in early would be a tremendous advantage to those who know how to successfully operate within the network marketing arena.
According to a recent report from MSNBC, an independent lab test performed for The Associated Press shows that XanGo’s antioxidant strength is actually no better than other readily available fruit juices, despite the fact that it retails for around $40 per bottle.
XanGo, however, insists that mangosteen contains other beneficial chemicals.
“My big concern with XanGo is that the business has gone a long way without showing any benefit in human trials,” said Wayne Askew, director of the Division of Nutrition of the University of Utah’s College of Health.
Wayne Askew isn’t the only skeptic -
“It’s a ‘Wizard of Oz’ story,” said Anthony Almada, president and chief executive of GENr8 Inc., a marketer of sports nutrition dietary supplements.
“The industry is built on storytelling, and because they do it one-on-one, without advertising, they don’t incur the wrath of the FDA.”
Dietary supplements are reputedly a $22 billion business in the U.S. with many of the major players in the market operatibg multi level marketing organisations out of Utah.
For the most part, the dietary supplements business is largely unregulated.
For the lab test, The Associated Press shipped a 750ml bottle of XanGo to Oregon State University’s Linus Pauling Institute at Corvallis.
The institute measured its antioxidant strength against store-bought juices that sell for just a few dollars per bottle.
On a scale of molecular weight, XanGo’s antioxidants measured 14,884 “micromoles” per litre — slightly higher than cranberry juice, but lower than black cherry and less than half the power of blueberry juice.
Apple juice finished last in this particular test.
Friday, December 5, 2008
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