Product Name: Vemma
Price: $499 to start, ($579 for Super-Charged Pack)
Maintenance Fee: Yes, If Quota is Not Met
Founders: BK Boreyko and Others
Overall Rank: 10 out of 100
Bottom Line: NOT RECOMMENDED!
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What is the Vemma Scam?
Vemma Nutrition Company has been getting a lot of attention lately as it relates to being a scam. People want to know what is the Vemma scam? This review is meant to help answer that question.
Vemma Nutrition Company sells health-based products using a Multilevel Marketing (MLM) business model. This type of model permits its members (for a fee) to participate in the compensation plan by recruiting others.
Pros vs. Cons
It was a stretch trying to come up with pros for Vemma. But there are a few.
- Membership includes a marketing website and fulfillment center.
- The recruitment payout is higher than most of its kind (MLM).
- The website is attractive, which could help a little in recruiting others (maybe)
- The membership fee is prohibitively expensive.
- You must, on a monthly basis, either sell enough, or recruit others that will sell enough in order to meet the minimum quota requirement.
- You need to be able to recruit people that are capable of recruiting others that won’t drop out.
- The compensation plan is extremely confusing.
As you can see the cons heavily outweigh the pros.
Is Vemma a MLM Product SCAM?
For an MLM program to be considered a scam, it has to be shown that its primary means of making money is via the recruitment of others. Vemma does sell products. That is how it skirts around being classified as a pyramid scheme, i.e., scam. However, the Italian consumer protection agency has fined Vemma Italia in March 2014 for placing a much heavier emphasis on its recruitment practices over the selling of its products.
Therefore, it considered Vemma Italia a pyramid scheme (See http://en.wikipedia.org/wiki/Vemma#Italian_pyramid_scheme_accusations). It’s unclear whether similar fines will occur for the company elsewhere.
Whether Vemma is considered a scam is irrelevant. They engage in unethical practices and that should be enough to sway you away from joining. Between several pages of complaints registered with the Federal Trade Commission and a fair share of complaints registered at the Better Business Bureau, Vemma is no stranger to controversy.
Do a simple web search for “vemma complaints” and you’ll find several other complaints on blogs, forums, etc. You have to ask yourself, do you want to be associated with such a company?
that should be enough to sway you away from joining. Between several pages of complaints registered with the Federal Trade Commission and a fair share of complaints registered at the Better Business Bureau, Vemma is no stranger to controversy.
Do a simple web search for “vemma complaints” and you’ll find several other complaints on blogs, forums, etc. You have to ask yourself, do you want to be associated with such a company? Really?
Prohibitive Fees Makes it Tough to Earn
In order to avoid having to pay a monthly maintenance fee, you will need to sell enough products or memberships that cover your cost. This is just to break even. If you fall short of the fee, you will be required to buy more products. If your recruits fall short, they will need to do the same. This is one of the major reasons why people are not successful with the Vemma program.
It’s interesting that Vemma labels its compensation program as an affiliate program. Anytime you are required to pay to participate in an affiliate program, this should be cause for great concern. This is especially true as there are much better affiliate programs that don’t require any outlay of cash whatsoever in order to get paid. Plus they are much easier to implement as well.
You Need to be an Excellent Salesperson?
Most of us are not salespeople. I know I am not. And even if you were great at selling, in order to be successful with this type of business model, you need to hope and pray that you recruit people who are as good as you. You may get a few superstars. But they too will have to follow the same hope and pray scenario. This is one of the factors that make it very difficult to succeed with MLM. With Vemma’s high entrance and maintenance fees, the situation becomes even worse.
Most statistics concerning MLM programs put the dropout rate at over 85%. If you join Wealthy Affiliate the rate is zero! Though with Vemma, a high dropout rate is going to make maintaining Vemma’s quota very difficult. While recruiting super sellers is the ideal situation, it is far from reality. Most of the people you find will fall in the category of not being good at selling. This increases greatly their chances of dropping out early on.
If you need to buy products because you didn’t meet your quota, know that these products aren’t exactly cheap. You will have to do this month after month until you start making enough on your sales or memberships. This is a good reason why the dropout rate is so high. People simply cannot afford to pay for these products every month.
And just how many of these health products do you need? It’s important to really love these products because you’re going to stock up a lot of them.
Unsubstantiated Product Claims
In 2013, the Federal Trade Commission sanctioned New Vision International, whose founder is BK Boreyko, the same founder of Vemma. The sanction was in regards to New Vision International’s claim that one of its products was capable of curing Attention Deficit Disorder (ADD) in children. To be fair, there are disclosures on vemma.com about product claims and income claims. I mention this to show what the founder is capable of.
When you go to vemma.com and view the slideshow right on the home page, there is a picture of Dr. Oz with a message stating that “Vemma is a proud sponsor of HealthCorps” which was founded by Dr. Oz. All that sponsorship means is that Vemma paid Dr. Oz to have Vemma mentioned under the Sponsors section of HealthCorps’ website. This should not be considered an endorsement no matter how much it looks like it is. Luckily I could not find any use of the word endorse on Vemma’s website. But they still want you to believe that an endorsement exists.
The Bottom Line on Vemma
Vemma may or may not be a scam. I leave that for you to decide. I would however, recommend you avoid this “program”. There is simply too much baggage and bad press to take a chance with your money. The high price to participate in the program is difficult enough to contend with.
The complaints and legal battles just add to the misery. So if you are interested in making money online, read about the number one rated program here: Wealthy Affiliate.
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