Vemma Scams: Is It Worth Being A Sellout?
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Table of Contents
What is Vemma?
It’s another one of those network marketing programs that simply wants people to sign up, buy a product kit and sign up their family and friends to follow suit.
The truth is, most MLMs don’t show people how to succeed as a network marketer and in reality, most members barely earn anything promoting their products.
Honestly, you will not get rich with just a 30% commission from exorbitant health supplements that you can get cheaper from Amazon, especially when most of your cut goes to your upline first.
If you want to actually earn REAL money online, check out our #1 recommendation here.
And while we have to be fair and honest for this review….
The company does provide helpful ways for people to make money online and get commissions. Just not enough in our opinion.
In the end, I will answer some FAQs about Vemma and network marketing as a whole.
And most importantly, I’ll show you the exact system I used to build my own internet marketing business to over $40,000 a month in mostly passive income.
This system made me swear off Network Marketing for good because it uses some of the same skills but in a much more powerful and profitable way!
For now, let’s check out Vemma!
Vemma Review: Overview
Product Name: Vemma (Vemma Nutrition Company)
Founder: Benson K Boreyko, Lauren Boreyko, and Karen Boreyko
Owners: Brad Wayment (COO), Yibang Wang, MD. PhD (Chief Scientific Officer)
Product Type: Health and Wellness MLM company
Price: $500 to $1,000 + $68/monthly
Summary: Vemma is an MLM health and wellness company that offers a range of nutritional drinks, energy drinks, and dietary supplements. It was founded in 2004 by Benson K Boreyko, Lauren Boreyko, and Karen Boreyko, and is based in Arizona.
The company wanted to be known as the “Young People Revolution” with the goal of helping college students make money. But, it was shut down and called an illegal pyramid scheme by the Federal Trade Commission (FTC) in 2015.
And a settlement has been reached years later with the changing of business practices, payment of a fine, and turn-over of business assets.
Who is BK Boreyko?
Benson K Boreyko is the founder of Vemma Nutrition Company. He is also currently the CEO of the company. He also founded New Vision International, the predecessor of Vemma. And he has recently launched another company, Bode Pro.
Why is Pyramid Scheme Illegal?
Pyramid schemes are illegal since they don’t have any product (tangible or intangible) or service to sell. They earn by exploiting people who pay to join the scheme instead of selling products.
Affiliates on top of the pyramid lure people to get more under them by giving a share of new payments while enjoying most of the profit for themselves.
It is enticing to go onboard since the returns are high and immediate. But, in the long run, the pyramid is doomed to fall since the recruiters will run out of people to recruit.
MLM Review: What Happened to Verve Drink?
Verve energy drink company started by recruiting college students at Arizona State to sell the product Verve.
The hype quickly spread to many universities in the US. They targetted the youth for their inexpensive talent in selling. Later on, the Federal Trade Commission (FTC) alleged that the company was a pyramid scheme and ordered them to shut down.
Federal Trade Commission (FTC)
The Federal Trade Commission (FTC) is an independent agency of the US government which enforces civil (non-criminal) US antitrust law and promotes consumer protection.
In August 2015, the FTC filed a lawsuit against Vemma Nutrition Company, Vemma International Holdings, Inc., CEO Benson K Boreyko, and top affiliate Tom Alkazin after discovering its pyramid scheming activities that produced yearly sales of $200 million.
Jessica Rich, Director of the FTC’s Bureau of Consumer Protection said, “Rather than focusing on selling products, Vemma uses false promises of high-income potential to convince consumers to pay money to join their organization.”
Federal Trade Commission (FTC) Calls Vemma A Pyramid Scheme That Preys On Young Adults
In an article by Forbes staff writer, Antoine Gara, the Federal Trade Commission (FTC) ordered to shut down Vemma which was found to deceive members, mostly young adults.
After Boreyko founded the firm in 2004, it quickly spread to college campuses nationwide. In 2013 and 2014, it earned more than $200 million. Expectant entrepreneurs from these college campuses were indeed drawn to extravagant claims of cars and yachts.
The FTC alleged that the main business of the company was getting people (mostly college students) to recruit distributors. The starter pack costs up to $600 plus more expenses for monthly products. Sadly, most of those who joined fell for the high-income claims and lost their money.
Vemma appealed and a ruling from US District Judge John Tuchi forced the company to stop its multi-level marketing operations in 2015.
Vemma Agrees to Ban on Pyramid Scheme Practices to Settle FTC Charges
In accordance with the FTC lawsuit, the company agreed to stop their business practices that were pointed out by Federal Trade Commission (FTC) as pyramid schemes.
They were prohibited under a federal court order from paying an affiliate unless a majority of the affiliate’s income comes from actual sales to the customer (and not to other affiliates). The firm was also prohibited by the FTC from unrealistic income claims and unfounded health benefits.
“Unfortunately, extravagant income claims and compensation plans that reward recruiting over sales continue to plague the MLM industry,” said Jessica Rich (FTC Bureau of Consumer Protection)
Tempe's Vemma Settles with FTC; Fined $238 million, Admits No Wrongdoing
Finally, in 2016, the FTC and Vemma reached a settlement. The firm committed to revise its compensation structure and pay the $238 million fine. Moreso, Vemma and CEO, BK Boreyko, must also submit compliance reports for the next 20 years. They also had to surrender some business assets and real estate assets.
Tom Alzakin and his wife Bethany Alzakin were also ordered to pay a fine of over $6.7 million and to turn over some real estate and business assets.
Vemma and Herbalife
On a side note, upon the shut down of Vemma, Bill Ackman of Perishing Square gave a press release that Vemma and Herbalife had “significant structural similarities.”
Bill Ackman also affirmed the belief that Herbalife is a big pyramid scheme with similarities to Vemma and other MLM companies that have been shut down by the FTC.
Is Vemma a Pyramid Scheme?
The company was determined to be a illegal pyramid scheme. After complying with the Federal Trade Commission (FTC), the affiliates (mostly college students) can now earn money through sales without having to rely on recruiting people.
It is entirely possible to build a profitable, successful online business however.
My #1 pick proves this. And unlike Vemma, it provides real proof of real success from real people as recently as a few days ago.
What is the Vemma MLM Product Line?
Are you health conscious? Do you value wellness? I mean who doesn’t?
The company offers the following main products:
- Bode Pro Burn – dietary and energy drink; boosts metabolism, energy levels, and provides nutritional support to your body
- Verve Zero Sugar – energy drink that provides an energy boost without the extra calories or sugar; contains mangosteen and a mixture of various aloe phytonutrients
- Powell Perfect Bod*e Shake Chocolate – dietary supplement that maintains a slim body; helps improve brain function and overall wellness
The Flagship Product: Verve Energy Drink
Verve is a hybrid drink — an energy drink and nutritional supplement in one. It promises to give a healthy energy boost. Verve has a blend of vitamins, mangosteen, and aloe phytonutrients.
Do Vemma Products Really Work? Are They Worth The Price?
Let’s face it, when it comes to health and wellness, any product will always receive both positive and negative feedback. Vemma included.
Check out more reviews here:
How Does Vemma Work?
Simply put, the company sells health and wellness products, mostly energy and dietary drinks and supplements. The company also offers a business opportunity where affiliates can be sales representatives.
And just like other MLM companies, it saves costs for advertising and marketing by getting members. Ideally, both ends win. But affiliates are left convincing people to buy expensive products.
Vemma Compensation Plan Review: Can You Make Money Online with Vemma MLM?
Now comes the important part.
I assume that your main reason for reading this article is to see if you can really make a living out of the company.
You can make money with them. But the path is difficult. Some earn just a bit over the minimum wage. But some extroverted people are able to recruit many affiliates into their downline.
Just like any MLM, you can make money in two ways:
- Sales of the products
- Recruitment of people
But the simple fact of the matter is that 99% of all people who work for MLM’s either break even or lose money.
Less than 1% of people actually profit and those who do are known to only really make $200 or so per month…
Certainly nothing to live off if we’re all being honest.
How Much Does It Cost to Join? How To Get Started With Vemma MLM?
Still interested? You can join in two ways:
- Silver Membership – $499.95
- Gold Membership – $999.95
The Gold Membership gives more initial items — and is said to give a higher success rate. But, wait. There are more costs…
The Monthly Costs
Sadly, there’s a monthly sales quota. And affiliates can stay active only by paying $68 monthly. Let’s calculate your first-year expenses:
- $499.95 – $999.95
- $68 x 12 months ($816)
So, your minimum expenses = $1,315.95 – $1,815.95 (1st Year). This excludes other costs like marketing, food, travel, and training. Still up for it?
Vemma Compensation Plan
We will know the effectiveness of networking companies based on their compensation plan. Truth be told, these plans in the MLM industry are not easy to read.
But to sum up the income plan, here are the three (3) ways you can earn:
- Fast Start – Earn a bonus ($50, $100, or $200) on your first sales, depending on your package
- Builder – Earn a bonus ($10 to $50) for every product sold within your downline
- Cycle Bonus – Earn a bonus (25% to 30%) on your total sales when you reach your first sales “cycle”
What do you think? Will this plan work for you?
You can certainly make money with Vemma but if you’re gonna put in the amount of grueling work to become an MLM marketer (which, trust me, isn’t easy), you might as well bring in some REAL money.
The program that helped skyrocket my online business to $40,000+ per month teaches some of the same MLM skills, but shows you how to monetize them in a much, MUCH more profitable way.
Is Vemma Still In Business? Can You Still Buy Vemma?
Yes, Vemma is still in business. And it has changed its operations to meet legal requirements. And yes, you can still buy their products from distributors.
Vemma Reviews: Ugly Truths Revealed
Here comes the ugly part. Let’s go through some of the disadvantages of the firm.
Honestly, why would you buy Vemma products when you can get them cheaper online and enjoy the same benefits? And the others have better reviews…
Having to shell out $500 up to $1000 upfront is NOT good. This high expense does put up a red flag. Do you think college students can keep up with this?
Hidden Monthly Fees
Where can you find the $68 monthly requirement? In the small print. If you don’t sell, you’ll end up buying $68 worth of products monthly. Simply put, you will spend more than making money.
Bottom Line: Is Vemma a Scam? Or a Legit MLM?
So, is it a scam? We can clearly see that Vemma is basically not a scam now. It sells real and legit products and now pays affiliates properly. But it didn’t always used to…
It also uses a legit multi-level marketing system. But the need for recruitment still makes it basically into a pyramid scheme in disguise.
I wouldn’t recommend it to a friend personally…
But is Vemma the best business opportunity for YOU?
How many people are willing to spend as much on energy drinks — other than your family and friends?
And with all the negative points outweighed with the positives, it’s important to think twice about joining.
And even if you’re dead set on becoming an MLM marketer, you’ve got way better options than Vemma.
Keep in mind, I don’t get paid to promote any of the programs I review. I think Vemma is a great business model, but you could end up leaving way too much money on the table.
What Is Our Top Recommendation For Making Money Online In 2021?
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where Vemma falls short is in scalability.
There’s only so much time in a day and there’s only so many people you can reach to sell by yourself.
MLM companies know this! Which is why they push so hard for you to recruit for your downline…you can’t get rich with it as a one man/woman show.
But what if you could make even more money off of little local websites without having to spend hundreds of dollars on overpriced products and a bunch of time recruiting people to sell under you?
With this digital real estate program, you can make recurring monthly income without constant sales to your friends and constant recruitment!
Sound too good to be true? Of course it does! But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a LOCAL website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $500 a month!
See why they call it digital real estate now? That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to worry about:
- Your upline getting paid before you
- Begging your friends and family to buy from you
- Recruiting people all the time
Remember Vemma? You only get what’s left of the pie if you meet a monthly quota…
The course we recommend actually allows you to collect HUGE FLAT RATE DEALS. Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group much better than the Vemma MLM in our opinion. This group is much more active.
Unlike Vemma, where you’re getting maybe $10 per sale, you could be getting 10-20X THAT.
A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding digital real estate.
Unlike Vemma, more people have been able to walk away from their 9-5 job as well.
Digital real estate allows you to have total passive income with most of your day being spent WITH your friends, NOT selling to them.
Now, I know you probably have tons of questions…