The reader wrote this after attending a MonaVie meeting and researching the company online:
[xxx] invited me to a meeting he had at his house last night. Most of the people there were members of the church. All of the attendees were distributors except for me. I told [xxx] you gave me a bottle and it actually tasted good and when I was drinking it consistently, it made me feel good. The cost is too expensive. I’ve never been a big fan of MLM business models. I was once an Amway distributor way back until they weren’t consistent with paying me hard earned commissions or numbers were wrong.
My take on the MLM model is that networking marketing is a legitimate business model, but only favors the small percentage who attain the upper echelon. According to MonaVie’s compensation document, 5% attain that model – which means 95% are not going to make that level and while getting there the investment of time and money lost is substantial.
My gut feeling is a definite no for me in my situation, and even if I had lots of money to invest there will be many losers adding to the commission structure. Having a lot of losers doesn’t always favor in my eyes either. These ‘losers’ could be church friends, business associates, and if taken in the wrong contexts, you have the chance of losing them or tainting your relationship…believe me I have first hand experience with this situation. The recruiting time to get into the model is extremely time consuming during valuable family time – which is usually in the evenings.
My sense is that business models as such are counting on the fact that the attrition percentage is required to have those at certain levels make it through their bonuses and commission plans. It would be interesting to know the funds invested by the attrition percentage. If 95% of the distributors will not make that level, and say 50% jumped out or decided it wasn’t for them and they gave an earnest effort of 3 months of hard work recruiting and buying their individual cases, it comes to approximately $152,889,323. This is based on the fine print of quantity of distributors who reported to a survey of respondents in the compensation plan. They are reporting 13& of each ranking. In each ranking they report a number, of which I did the reverse to 100% approximately, then multiplied the average person giving it a solid 3 months of work, buying $130 a month of a case plus an additional case each month to help in marketing their down line = $750 (give or take a reduction for buying a second case at bulk rate).
Total number of approximate distributors is 429,163. 95% of this number is = 407,705 approximately, of which you take approximately 50% who decided to drop out, which I believe is a higher rate, which is = 203,852. Then you multiply this by $750 which comes to = $152,889,323. This represents just 50% of the probable attrition rate of people buying 3 months worth and then jump out after viewing the potential fancy cars, video on what the potential could be, etc. The number actually spent by the remaining 50%, continued people buying even at the higher 5% would be even higher. The number of people continued in the program for longer than 3 months, the remaining 50%, or even the 5% of elite lines, total could represent a $500M company.
Of that roughly $500M and the highest paid 5% gaining approx. $6.8M (which is approx. 8 people), this represents maybe 1% or less of the gains of the company, while the remaining 98 to 99% of the revenue go to the company and paid out commissions (8 in each Royal, Presidential, and Imperial). The top 5% represents approximately 21.5 thousand distributors of which starts from a portion of Bronze & Silver at it’s lowest amount of commission checks all the way to Crowne Black executive, which gains the $6.8M. Wow, what a great business model for the principals to have salary percentage at its lowest levels. Again, these are approximate numbers based on their own compensation plan.
Given these ratios, your chance of winning in Las Vegas are greater. Even the chance & percentage of time and opportunity to gain levels of revenue running your own business as a principal are greater than the percentage of gaining to the top 5% (21,500 out of 429,000 people).
Hope this helps. MLM and network marketing is a legitimate business model, but the percentage & opportunities for success aren’t quite there.