Good Anti-Vemma Video

One of my regular email correspondents has finally found time to make an anti-Vemma video that he has had been putting of for a few months.

It’s nice, straight to the point.

Plus it neatly counters much of the garbage that Vemma affiliates spout to this day.

Eventually the information will become obsolete and will have to be updated, but for now just enjoy!

Vemma BK Boreyko: Buying and Selling Spots

BK Boreyko and Vemma don’t value hard work as much as they claim to, and this is finally the proof.

I referred to this business of buying and selling spots in passing (like the fact that Pete Sanchez did and does it), but I’ve never really had a reason to address the practice of buying spots in the pyramid directly.

BK took care of that!

Screen Shot 2014-03-30 at 4.05.26 PM

 

First off, those rules he just stated are BS. Spots much lower than executive still got sold and traded (like Pete) even before these new ass changes. As long as it had the blessing of a high ranking leader (or a leader in an exploding market) buying and selling spots happened more commonly that you might think.

Second, the wording is ballsy as hell when you take a close look at it.

It now sanctions trading of spots in the pyramid ranked Diamond or below, though I fully expect higher ranked spots to continue getting purchased under the table. I want you to take a look at that first bullet really closely.

Screen Shot 2014-03-30 at 4.05.26 PM

 

So when you become a qualified Elite, you are able to purchase Diamond spots or above on your downline even if they are not paid-as. What I mean is that Vemma has sanctioned the rank scam when it comes to trading spots.

But here’s the big problem: They can sell a spot once it gets to Platinum or higher. That’s so messed up.

Basically, whenever someone in Vemma below Diamond quits a Presidential or higher can purchase their account. When that account is paid-as-Platinum (though similar to the Diamond spot mentioned previously, it probably doesn’t have to be maintained) . . . they can sell it off to the highest bidder.

According to this Vemma’s 2013 Income Diclosure (the same one where I proved BK’s alleged customer base is made up), Platinum ranking is almost in the top 3% of the company, where profit is guaranteed and where paying for the company car becomes somewhat feasible.

And you can buy your way in.

This is a company where the affiliates are absolutely brainwashed into thinking that the only way to succeed in this company is to “work hard”. Where it’s not possible to be screwed over by an inherently flawed system or a poor market, it’s all on YOU. The alleged 70% loss rate is only because of lazy s**ts, not a flawed system.

Yeah, I wonder why you’re failing . . .

 

And then now BK is saying to the Elites “oh yeah you can sell your Platinum spots now”.

It’s under the guise of creating better “leaders” but that’s not the case at all. Everyone knows the best leaders are home grown, enduring the trials and tribulations themselves. While this is all relative, the best “leaders” in the company are people such as Alex Morton or Diego Avila or Zach Babiarz i.e. people who actually built their business from scratch.

Yet now a leader is simply the highest bidder. How pathetic.

Oh I’m sorry, the spot will be given to “qualified leaders”. Because after making fun of people who submit resumes and “have to beg for a job” like Alex said the only natural thing to do is have people submit money and beg for a spot they didn’t earn in order to continue swindling young people.

By the way, do you think that Vemma will force people who purchased their rank to disclose it during presentations? Or will they simply be able to say BS like, “OMG I hit platinum in like 6 days with ‘hard work’ guys”?

It is a lie of omission.

My guess is Vemma will do everything in their power to prevent having to disclose that information.

So to all my people out there in the Vemma world stuck at member or bronze or silver and told by their upline that they “aren’t working hard enough” it’s just not true . . . maybe you just didn’t pay them enough.

 

Vemma YPR: Getting Close to BK Boreyko

Ahem . . . Vemma ex-employees have started contacting me. I’m not joking.

Ex-employees (as well as some whom I suspect are STILL employees but chose not to disclose their status for legal reasons) have given me several interesting tidbits from inside the offices of Vemma. When I say “inside the offices” I’m not talking about brand partners; I’m talking about salaried corporate workers.

Turns out no one likes being called a “slave” by a bunch of broke little s**ts making under minimum wage in a pyramid scheme. Who knew?

The information I present to you is the words of my sources, not me.

 

1) BK Boreyko is reacting to my blog

So you got facts eh? I don’t like facts . . .

I have been told by two separate employees that my blog is now the #1 site that corporate office monitors.

Because I do not offer general criticisms of MLM and instead focus on Vemma in particular AND systemically debunk stuff they have said (and back it up with links and screenshots), their general method of giving the run around with BS answers doesn’t work.

I’ve been so effective that four of my posts are actually at the top of the Google search list for Vemma related searches.

It’s why you’ve seen a rise in people following Darik’s lead about “blowing Google searches” with positive Vemma-related material; anyone who Google searches Vemma’s legality is being directed to my blog. Turns out their methods aren’t working because my blog still pretty much sits on top. Sucks right?

In fact, BK’s urgent policy update, switching his company’s system to “affiliate marketing” (even though it’s still MLM), and calling all affiliates at the bottom “customers” was in direct reaction to pressure brought up by my blog.

 

2) The Products Are Definitely Overpriced

Hey kid, want 48 of these for like $160?

MLM products are (and always will be) overpriced. MLM drones will try to convince you it’s because of the product’s “quality”, but I have matter-of-factually stated that even if the products were premium the extraordinary pricing is because of the need to pay commission through multiple levels of a pyramid for a single “sale”.

I always knew I was right, but now one of the corporate employees confirmed that theory.

They informed me that there is absolutely no way Vemma’s pricing reflects its quality. When pressed for the specific profit margin, they declined because revealing that corporate data would be illegal but they stressed that the margin is so significant that the product quality doesn’t come close to explaining it.

 

3) What Product Quality? 

THIS is probably healthier than Vemma.

One particular employee informed me that the product quality of Vemma is ALSO smoke and mirrors for the most part.

The only naturally sourced ingredients in Vemma are cane sugar, mangosteen, aloe, and caffeine. The mangosteen itself is just reconstituted powder! Plus that given the right climate, you can pretty much pick aloe like weeds it’s not all that rare.

Almost all of the other vitamins are synthetically produced (no better in quality than the mass purchases from Costco)! Now none of this is confidential information, properly reading the can and website and doing a little research will reveal that.

 

4) Customer Service is a Joke

Excuse me while I put you on hold a long time to dissuade you from returning the overpriced product we tricked you into buying.

Around 65 – 70% of Vemma’s employees work in call centers.

They are woefully understaffed to handle Vemma’s continual growth and they aren’t happy about that.

However, multiple people who contacted me expressed deep suspicions that they were purposefully understaffed to make returning products and/or builder packs as much of a hassle as possible (so as not to decimate the company’s bottom line). It indirectly lead to customers getting billed for additional orders of product the next month that they never wanted even the first time around! In fact, the state of California is leading a class action lawsuit against Vemma as a direct result of this and it is one of the chief reasons Vemma has dropped in BBB rating.

 

So needless to say . . . this is getting good :).

Vemma Doesn’t Care About Customers

Read around my blog if you want specifics, because this is going to be a concise introduction.

The legality of an MLM depends on how much of its revenue is derived from customers (around 70% is the agreed number) versus the forced reorders of its affiliates/brand partners. That establishes its sustainability and proves it isn’t just an extended pyramid scheme. Before Vemma affiliates start parroting that isn’t true, realize this is why BK started pumping through his downline that the customer base is 82% (though he has no proof).

Proof? We have mangosteen! DURR!!

In a recent post, I proved that Vemma couldn’t possibly have even close to 70% customers thanks to some numbers BK Boreyko published.

BK is desperately trying to boost his customer base not because he cares about customers, but because he cares about money. And if his dear Vemma get shut down as a pyramid scheme, he will no longer be able to scam people out of their money.

How do I know he doesn’t care about his customers? Easy.

Nope, different kind of easy

When a business cares about its customers, it goes out of its way to make things better for its customers. This is why the most successful businesses in a specific field usually have the best customer support and pricing.

Say what you want about Walmart, they have a brilliant business model. They specifically built themselves to that the customer would have the lowest prices possible AND they have an exceptionally generous return policy which is why despite all the sh**ty things Walmart does, many of us still shop there.

It’s why stores like Costco and Sam’s Club were runaway successes; they allowed customers to buy things that they needed in bulk to drop the prices for them.

It’s why Chipotle is so successful; they are very transparent about where they get their food, they cook it in front of you and charge you a reasonable price for the quantity.

Vemma . . . does none of that.

Vemma’s products may be high quality (a friend of mine is researching the counterpoint to that) but the fact is they are overpriced. Every MLM product is vastly overpriced not due to quality, but because the pyramid pay structure necessitates that one purchase of product must pay commission over a large number of levels.

48 cans of $160 energy drinks with questionable benefits potentially has to pay commission to all these guys . . .

Plus Vemma’s BBB rating drop from an “A” to a “C” wasn’t because their affiliates were lying and scamming (which they totally were). It was because their customer service is atrocious, rapidly bordering on credit card fraud. There is now a lawsuit in motion because multiple people continued to be charged for multiple deliveries of product even after they cancelled, and customer service allegedly kept them on hold much longer than needed in order to prevent resolving the problems.

Does that kind of a business structure where the products are inflated combined with awful customer service and many facts about the company related to its legality are hidden sound like a customer oriented business to you?

No, I didn’t think so.

And if you do think so, chances are you’re a Vemma affiliate who was so blinded by impotent rage they couldn’t absorb what I was writing.

Michigan State University Speaks Out Against Vemma!

Man, first they beat Ohio State to shut their fans up about how they should be playing in the National Championship.

THEN they take out the Wolverines in the tourney a few days ago.

And NOW they’re speaking out against Vemma (the first big college not in the South or East Coast to do so).

http://statenews.com/article/2014/02/dont-fall-for-vemma-scam

Jesus, I’m reconsidering my choice of undergrad university . . .

Vemma Leaders Abuse Power

There are 3 qualities about Vemma leaders that are universal.

- They are arrogant

- They know what they’re doing is a scam

- They will avoid hard questions in order to maintain the illusion of superiority

Since the drooling knuckle-dragging apes that constitute their downlines emulate them, the cycle continues.

Once in a while however, even the dimmest of downline bulbs get a harsh dose of Vemma reality. Granted, they immediately beat down what rational thinking they have left with a spiked club, but they still acknowledge that this happens.

So put on your ratty old thinking caps Vemma affiliates, because even you know this stuff is true!

1) Profit Leg Bias

You know that tired old phrase,

“All you need is one person that takes this business seriously and you’re set!”

Turns out finding a person gullible and dedicated enough that also fits the right demographics is a lot harder than it seems. The “self sustaining” leg in the binary business where minimal effort is needed to maintain the pattern of growth is almost impossible (for various reasons) to obtain!

More often then not, here’s what ACTUALLY happens.

A leader will have one leg that is disproportionately large leg where all his/her high ranking and hardworking team members are. The other one (the profit leg, which is responsible for cycling) is a mess of desperately attempting to replace the people quitting in order to even maintain their income. It’s the reason you see platinum leaders and higher get stuck at a rank; it’s not because they are incompetent, it’s because their profit leg is crumbling and rebuilding itself with varying degrees of success.

It’s why you see affiliates who are utterly unspectacular being promoted as the “next big thing”; they’re on the leader’s profit leg and wish to boost their popularity and success (remember, edification is important).

Featured here: a profit leg

Whenever “big guns” (Alex Morton, Darik Alexander, Luke Hessler, etc.) come to town, it’s not uncommon to see leaders purposefully schedule them to give their profit legs the most “desirable” dates (such as weekends or holidays) in order to maximize the turnout. Leaders will say that “hard work” and “dedication” is rewarded with appearances from the YPR big guns, but in reality its all about the money (as if we didn’t already know that).

 

2) My Way or the Highway

Word came from our upline that we should start using a video that he made (for the purpose of clarity, we’ll call him “Hank”). Hank posted it in the main Facebook group and of course every Vemma affiliate started sucking up to him telling him how awesome it was.

It wasn’t. It was preachy, immature, and did the same thing every Vemma video does by bashing higher education and salaried employment.

Huh, where did they learn that?

Since I was close friends with Hank’s upline and the highest ranking member of his downline, I privately asked them whether or not the they thought the video was very good. They honestly told me that it was so-so, and would polarize listeners. They personally didn’t use the video since they were highly ranked and could do Skype calls for their prospects, but promoted it because Hank was reasonably popular and (you guessed it) on one of their profit legs.

I did the responsible thing and instead posted a more mature video on my individual team’s Facebook page, and when questioned by Hank I said that I felt this video was better for my team’s specific demographics as they could have found the other one offensive.

Within 24 hours, I got a text that Hank would be unable to make it to my event because he had to attend a family emergency. I was disappointed but understood, wishing him the best.

However, 2 days later pictures on Facebook surfaced of him being at a party approximately at the time he was supposed to do my event. That and his friend told he how he was bragging that he hooked up with a rather attractive girl there. I privately texted him asking him why, when he disparaged partying and lying while promoted loyalty, he would deceive me and go get wasted instead of fulfilling his pre-scheduled promise to speak at my event.

I admit, this looks fun

I got no answer.

After a couple more tries, Hank’s upline texted me and informed him that I was “damaging the family” by not promoting Hank’s video and that’s why he chose to skip my event. I told him that was sh***y of him, and he informed me that he would speak to Hank and resolve this.

And that was the last I heard on the issue.

I of course pumped the information through my downline, crossline, and all those who were friends with me and all had similar experiences with various leaders. Hell, doing some research I realized that it’s actually very common in MLM (particularly Amway). Because you need a leader’s credibility to lure prospects into signing onto the scam, many eventually leverage that power into making you suck up to them.

3) The Almighty Snatch

Nope, not putting a picture of that

Here’s the awesome thing about Vemma leaders; the vast majority of them can get any Vemma girl, but almost all girls outside the business are utterly repulsed by their personality.

I know this is a bold claim to make, but the type of emotional dependence these male Vemma leaders develop is borderline infantile.

Remember, they have to mentally seal themselves off from all criticisms of the company even if they’re true. If a person fails at the business, they have to make it look like it was their fault even if they know it wasn’t. Sure, most of the brain damaged hacks in the company put on a smiling face, but the fact is that most of them feel (if only momentarily) the pain and isolation that their downline may feel every day.

Empathy, what’s that?

It’s why you see such immature relationships develop in Vemma. A half-wit younger woman falls for a guy with the emotional maturity of a watermelon.

Now that’s okay; I think dumb people hurting themselves is fantastic entertainment (Jackass has made 3 feature length films after all).

But when it becomes un-funny is when it affects the rest of the downline. And it really, really does.

I’ve seen leaders either cancel events, move events, or flat out no-show because their girlfriend/f**kbuddy wanted them to speak at their own event.

I’ve seen leaders bring their girlfriends to out of state events without telling anyone and expect the hosts to feed and house them . . . because they didn’t want them to cheat on them while they were gone OR the girlfriend didn’t want the leader to cheat on HER.

I’ve seen leaders abuse their power (see #2) to protect their women when they were accused of badmouthing, stealing prospects, cross-line recruiting or all of the above.

 

So when Vemma leaders tell you to “rise to the occasion” and “act like a leader” . . . consider if it’s actually a good thing.

Vemma 2013 Income Disclosure Misleading

I’ve covered the various ways in which Vemma’s income disclosure is misleading before, and now its time for an update!

http://news.vemma.com/wp-content/uploads/2014/03/Income-Disclosure-2013.pdf

Oh boy oh boy oh boy! After studying for so many exams that I thought about renting out one of the study rooms in the engineering library as a spare apartment . . . I have something nice and juicy served up for me! Thank you lord!

“No problem kiddo!”

Now let’s get down to business . . . to defeat . . . THE HUNS!

(If you don’t get that reference, screw you and your lack of a childhood).

What is included in Vemma’s 2013 Income Disclosure is a healthy dose of ambiguous wording purposefully designed to mislead readers. Basically what I’m saying is . . . more of the usual!

Screenshot_2014-03-12-21-57-18

So if you’re new to the MLM scam game, here’s the short hand version (longhand found here).

In multi-level marketing a distributor can not only sell the products of the sponsoring company, but can also recruit other distributors to sell the product (or recruit) underneath them at which point they will reap a small commission for all the product moved underneath them. In many cases, these distributors are required to order a minimum amount of product every month which gets counted as “sales”. If the income isn’t around 70% customers vs 30% distributors . . . it suffers the same sustainability problem as a pyramid scheme and will be shut down AS A PYRAMID SCHEME!

Still confusing ya?

Easy example for this.

Lets say McDonald’s let its franchisees recruit other franchisees and take a cut of their profit (so on and so forth). Each franchise had to order a set amount of product every month (even if they couldn’t sell all of it) BUT the product was vastly more expensive because one purchase had to pay out over multiple levels of the pyramid (universal among MLMs).

Because few customers wanted to buy the product, the vast majority of McDonald’s “sales” were just the franchisees purchasing money and as a result 75% of franchises lost money every year.

That’s Vemma now. Moving back to that screen capture . . .

Screenshot_2014-03-12-21-57-18

Remember that percentage of customers vs. distributors? If you do some quick math with the information on that screen capture you’ll see that Vemma’s customer to distributor ratio isn’t around 70% . . . it is 70%.

That in itself is suspicious . . . getting EXACTLY that ratio (right when pressure was mounting on Vemma) is too convenient. And let’s not forget that even just 6 months ago Vemma affiliates were bragging how they had an 82% customer base while BK Boreyko avoided all efforts to say it directly or provide any attempts at documentation proving so. When you’re talking about 300k + involved in a company, changing a ratio by a 12% swing is a staggering accomplishment.

But that’s not too shady, right? Could be coincidence, right? Let’s get to the weirder bits.

As the year began, BK Boreyko slipped a sneaky little change to Vemma’s policy: anyone who doesn’t have a personally enrolled qualifier in the business will be considered a customer.

Think about that. Think about how idiotic that is.

That’s like if the McDonald’s chain described above considered every franchise that was losing money as “a customer”. This is like if Amway was allowed to consider the 99% of IBOs who lose money in their business “customers” (I’m not making that up, its in their literature).

Vemma affiliates will say that since they are purchasing and consuming products every month, they technically are customers.

Yes, but first off they are forced to purchase product every month for no good reason because this is how Vemma generates most of its “sales”. Second, it means that some of the 246k “active customers” that Vemma brags about are just affiliates who haven’t got a single PEQ (or whose PEQ quit). Considering how many people lose money in Vemma due to the nature of the system . . . that immediately plunges Vemma’s customer base under 70%.

Legally speaking, a “customer” in an MLM is one who buys the products with no intentions of reselling or turning a profit off them (a Vemma affiliate does the exact opposite).

That’s not the only problem however.

Screenshot_2014-03-12-21-57-26

First, no they are not like Amazon. I promise you Amazon does not want to be brought into the conversation about such a sh***y company.

Second, notice that double asterisk next to their “Active Affiliates” number? At the bottom of the page, it describes an active affiliate as one who purchases at least 60 QV a month (around $75 with s/h) while those who actually wish to qualify for the cycle bonus must purchase 120 QV a month (around $150 with s/h) which is what most affiliates purchase.

There’s no definition for an “active customer”.

Customers do not have a minimum amount of product they must purchase in order to qualify as “active” and as a result many do not buy 60 QV or higher. Also, many customers don’t reorder their product (try it, like it, but too expensive), which begs the question what an “active” customer really is.

Is it ANY customer who orders product once throughout the year? Or just whoever bought product in the last month before 2013 ended?

Remember the legality of an MLM is not whether or not most of its members are customers . . . it’s whether most of its revenue is from customers. Customers have no minimum purchase value to meet and there’s no definition what defines an “active” member while active affiliates order a large amount of product monthly usually over the course of a year!

I.e. not only are a good chunk of Vemma’s “customers” not actually customers . . . but the remainder who are actually customers aren’t producing the majority of Vemma’s revenue.

Pretty much this.

So whenever Vemma affiliates laugh at me telling me that the 2013 Income disclosure has “debunked” my theories, I always chuckle to myself.

Then I feel bad, because mocking the mentally handicapped is known as the “express ticket to hell” in most circles.