Misleading free Vemma “BMW or Benz”

Don’t get me wrong, this is a great bonus and I was very close to to finally buying it (I had been saving up for my down payment)! As usual with Vemma, however, it’s misrepresented.

Stop me if you’ve heard this pitch before, either as a potential brand partner or a current brand partner:

“. . . and when you hit Diamond, you get up to a 50k BMW or Mercedes paid for by the company. How many kids your age do you see driving a car like this that they paid for themselves?”.

In the VAST majority of presentations, the only mention of the car is the rank you must hit to qualify for it. On occasion, they will tell you that you must have a paid as gold on either side of your business as well in order to receive that qualification.

NOW, I’m sure that many of you immediately began dreaming of the car you would get or even started building your car online to tease yourself . . . but there’s some things you should know.

1) You’re still technically paying for it

Me, along with many first time recruits, probably imagine the company simply taking car of the car payments and stuff while you drive around promoting your business. No financial commitments or transactions on your part

FALSE.

In reality, what they do is cut you a bonus check worth around $450 from which you will pay for your car. Admittedly this isn’t that big of a deal since you’re still technically getting the money from the company for your ride. But doesn’t $450 a month for up to a 50k luxury German engineered car seem a little low? Well you should know . . .

2) $450 is enough to cover LEASING a 50k BMW or Mercedes, not buy it

If you actually want to OWN a 50k BMW or Mercedes with the Vemma logo slapped on the side, it’ll cost you between $750 and $900 a month. So Vemma’s car bonus only pays for between 50 – 60% of it.

Remember that according to Vemma’s income disclosure in 2011 seen here, a diamond ranked brand partner made about $1000 a month on average including any bonus checks they received!

To be diamond, you must complete 20 business cycles a month with each business cycle being worth $20 – 25 (for a further explanation, please refer to my analysis of the compensation plan here). The next rank up is platinum, which is 50 cycles  a month.

Let’s split the difference and say the average diamond brand partner completes 35 cycles a month and that they received $25 per cycle (to be as generous as possible).

$25 * 35 = $875 purely from the cycles.

Now let’s assume that they also qualify for the car bonus (having two paid as golds on each side) and they pick a reasonable car within around 42 – 43k and pay for it over 5 years.

Bonus check = $450, Car Payment = $750 . . . . $750 – $450 = $300 a month out of pocket.

$300/$875 = 34%

The average diamond brand partner must spend over 1/3 of their residual earnings if they wish to OWN the Vemma car rather than lease! This is a little bit of a problem because . . .

3) Vemma only cuts a bonus check for the car payment

Insurance? Repairs? Detailing?

ALL of that is out of pocket, which for an average diamond brand partner is sometimes difficult.

CONCLUSION: While the car bonus is alluring and certainly something to strive for, the Vemma reps themselves usually fail to disclose vital information. They fail to disclose that Vemma’s “payment” of the car is technically the brand partner’s bonus check, that the check is only enough to cover a lease and not a car, and that none of the other expenses associated with automobile ownership are covered. When looking at the average income of a diamond brand partner, it can be concluded that buying a car is irresponsible and misrepresented.

It is unethical to brag about how you “only have to be diamond” to qualify for the car when it is NOT fiscally responsible or feasible for most at that rank. Along with disclosing all the information listed above, Vemma reps should revert to making Platinum rank needed for car qualification.

 

UPDATE: There is actually a little update to that story which you can read by following this link: http://yprpariah.wordpress.com/2013/10/11/misleading-vemma-bmw-or-benz-update/

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17 thoughts on “Misleading free Vemma “BMW or Benz”

  1. Pingback: WakeUpNow Vs Vemma! The Shocking Truth About Vemma [Exposed] | JaylinGrahamHQ.com

  2. You only went up to diamond. Your money for the car will doible as you rank up. You make more then what the cycle bonuses, try $1500 a month.

    • Would you mind providing me the literature on that?

      The car bonus is $450 a month at diamond with two golds . . . and around $800 – $850 when you hit the elite rankings.

      I’ve never heard of the $1500 car bonus?

      • he’s talking about what you make. there’s more than the cycle bonus involved.

      • I know, there’s the cycle bonus, the tier/matching bonus, the momentum bonus, etc.

        I disregarded matching bonus because not everyone gets it. But the momentum bonus IS the car bonus (platinum club $450 a month). I thought he was implying there’s a platinum bonus ON TOP of that.

  3. Fantastic job. You are precisely proving the smoke and mirrors strategy that Vemma functions on.
    Love it.

  4. Frankly this is bull**** any way. Vemma should be PAYING YOU ALL for putting the logo on the vehicle, not only as your sales incentive.

    A full wrapped vehicle is worth about $400 a month to advertisers… just for driving to/from popular routes/locations. Vemma’s logos, being the icon for “brand partners” and great for recruitment, should be worth at least $100.

    Translation: everybody who got a car bonus is being CHEATED $100 a month, while thinking they’re GETTING a great deal.

  5. Hello there,
    I have read a lot of stuff of your website. I have to tell you that you got me rethinking specially that I am an affiliate for Vemma. When I thought about this WordPress, I came close to a conclusion. You have this page for one of these reasons:
    1. You were either burnt so much by Vemma and wanna revenge.
    2. You hate vemma for unknown reason and wanna ruin their intangible assets.
    3. You want those who work with vemma to move to a different business with you.
    4. You are a good man and feel sorry for those people who work with vemma and wanna save them.

    I can NOT get into your heart and know what your intention is but it is one of those points. I am not discussing how valid your point is cause I don’t care simply because weather they are valid or not there is no reason on earth that makes scandalize vemma unless you have a hidden agenda. I am sure this is not out of righteous simply because there are 1000 things with more priority that you can help people through but guess what you spending money time and efforts bashing vemma regardless of the validity of your points “get a life”.
    I dear you to publish this!!

    • *Dare, and done.

      I had no idea my agenda was hidden, I figured I was pretty open about it?

      And regardless of validity?

      If I believe the company is scamming kids, the validity of my argument is very pertinent indeed.

      Take an English class and take your fire and brimstone to your local high school, and start recruiting for your business opportunity!

      • Correcting grammar/spelling (although you missed a couple, Columbo) and blatant insults took away any credibility you attempted to defend in this post.

        Your grammar and usage can also be sure up, but I won’t go there.

        I also won’t mention they MAY label it English Language, but never purely “English”, gramps.

        Fire and Brimstone is hardly what he invokes. Perhaps overzealous disagreement, or the like.

        Since you did use the qualifier kids, my general distaste and rebuttal will be different than the one normally stirred up inside of me.

        Obviously it does seem wrong when one takes advantage of kids. However, if 18 years or older, which is the requirement to sign up, then we are talking about adults as defined by the United States government. So I digress.

        Proper valuation of the value of a good or service is in the eye of the beholder. The market economy that America and generally modern society’s financial structure is founded upon allows for people to choose what they spend their money on.

        When people invest in Vemma at the core they are simply saying that they think this product is worth their money. That is their God-given right, as recognized US citizens (we’ll limit it to our country for now). Now if they choose to tell people about the product, and get some people to buy it…well then there is opportunity for them to invest in themselves. And like anything else it has potential to grow based on skill and effort.

        Actually no, I lied. Most structured wage/salary based job have little to no opportunity for advancement. AND most of this advancement will not be results or quality driven, that is where and when it does exist. In general it will be more based on a who you know or an appeasement system (promote a couple women and minorities to balance out the old white guys running everything). Many promotions come without raises in pay as well.

        The vast majority of jobs that most BS and BA holders will be able to acquire, will not even be in their field. And very few to none of those jobs will value skill as much as they will value cheap labor. One only has to visit a government office or have even the slightest understanding of the public school system to know that.

        Now we wrap this all back to Vemma. It’s possible that it seems a little better than it is. But for that to be the case we have to understand exactly what one thinks it is. This is PURELY SUBJECTIVE. As I might not have been expecting the same thing as you.

        So let’s assess my understanding first. Vemma has multiple products, the most marketed of which at the moment is the Verve line of nutritious energy drinks. Not factoring in a cheaper gas station deal than the norm, these cost about what a Red Bull costs and slightly more than Monster, Rockstar, and Amp. I know, I was spending close to $150 a month on energy drinks, love the little guys! The difference is first and foremost the nutritional content. 500% Vitamin C. 50 % Vitamin A. 100% Niacin. 100% Riboflavin. 200% Selenium. 250% Vitamin D3. 200% Vitamin E. 100% Thiamine. 250% B6. 250% B12…..etc etc etc

        To me this stuff looks like a multivitamin more than an energy drink. Not only that it’s liquid which absorbs at higher rates and more quickly by the human body than pills (most of which use inferior forms and sources of the vitamins as well).

        So the product is awesome. I Want to buy it. The product is also so awesome I think friends should give it a look see. But instead of just showing them.something I like. There is a possibility I can get paid for referring them and others.

        I’m not going to turn into a Vemma at at this juncture, but the setup is simple. Understandin exactly how and how much one gets paid is a little harder. Just like anything in life though, one must do their own research, use their own brains, come to their own conclusion, and make their own decisions based on the information provided.

        You have to work at anything to be successful. Me personally, I did just get involved and I am working my tail of and at my current rate I absolutely know that through this I will never have to work a job for an under-appreciative boss that cares more about the little things and what’s wrong. Micromanagers that don’t see the big picture. And rather be my own boss, set my own hours, and get paid for talking to people, introducing them to a great product, and enjoying the product and the opportunity all the way to the bank.

        Okay, now you do you :-)

        robbyrobdu@gmail.com to ask me more about my journey with Vemma!

      • I’ve addressed almost all of what you’ve said in other posts but you’ve been, for the most part, polite.

        Sure I’ll email you. Would you like me to link you to the posts where I address the points you bring up, or perhaps have an independent conversation?

        Or you can make the first move, anonymousexpose@yahoo.com

      • *sured

        Also must be noted that many of us type with an awful autocorrect system installed in our phones LoL

      • I see a couple more errors now, but oh well it’s a phone :-P

      • Robert, you are making a swath of claims that you’ll need to validate with accredited resources. Much of the power of your argument comes from the assumption that every statement you make is factually correct. For example, your understanding of the markets are skewed, for there are not as many freedoms and liberties within it as you’re making it seem. The U.S. is a mixed economy, meaning they are allowed to operate freely under some regulation. The regulation, ideally, facilitates competitive trade within a capitalist society.

        Vemma, at it’s core is a pyramid scheme which utilizes products as a decoy to take attention away from the fact that the majority of their income comes from within. This type of business is expressly forbidden by regulatory agencies because it in no way encourages the spirit of competitive trade. Rather, it manipulates people with a lack of business acumen and drains them of their money to feed the top of the pyramid.

        Valuations are not arbitrary as you have so confidently claimed. There are a number of metrics involved when determining the value of a product or company. Product valuation is a result of the market forces of supply and demand, which force the price point into a specific equilibrium. The high price point of a can of Verve is telling that the product is not subject to these forces and is rather priced to feed some other agenda. Revanchrist covers this in another one of his articles. . .

        And, finally, for the love of god do some reading on modern Human Resource Management. All of the Academic Texts clearly show that there is a shift towards investment in human capital. Contrary to popular belief, it is not cost effective to treat employees like garbage. Low retention and high turnover invariably results in higher costs not realized on the surface.

        Vemma doesn’t provide even an ounce of the benefits granted by a government or a corporate job that you could land with a BA or BS. Get out of here.

      • You bash my broad remarks while simultaneously falsely name dropping something as contrarian and contradictory as Pyramid Scheme.

        Detractors to “global warming” states that it’s actually getting colder in many parts of the world so it has to be a myth. He is not aware the term was created to scare people and is really what we call “climate change”.

        Now you come with pyramid scheme. And you state that the entire process is a sham because it is set up to make the people higher up earn more.

        Are you seriously espousing your own business acumen and understanding of the market, while simultaneously contradicting HOW THE WORLD WORKS?!?!

        Listen Mr. Marx, I would love a utopian society of sharing and caring as much as the next guy, but when it comes down to it there are workers and they are necessary. One of their major functions will always be to work harder while getting paid less. In some form or fashion, whether through hard work (unlikely), credentials (possibly), or knowing the right person /opportunism (bingo!), there are going to be people benefitting from what the workers/laborers do more so than the laborers. Get out of here and wake up!

        Now back to the “argument”. In all reality I am not contradicting the majority of data presented. Also I do not have to provide data to support my argument as I am not attempting to make a claim as to how great a business model this is for everyone. I am neither trying to convince nor denounce.

        What I am trying to do is inform that blanket statements, and the rantings of someone who didn’t succeed at a specific endeavor, do NOT mean that others can not succeed, nor that they should not do THEIR OWN RESEARCH ON THE MATTER!

        Most startup businesses involve a lot more cost and a LOT more work. There are also usually not a team of people ready and willing to help you FOR FREE with what they have learned, what works for them, and any contacts or info that can help. They provide groups on facebook. Skype and OovoO sessions to help inform and better answer questions. Basically the kind of stuff a business SHOULD do, when none I have ever heard of does…and more to the point theu are not paid by Vemma for this, they do it as a good business tactic for themself.

        My mom collects teak furniture, my friends mom collects Nascar memorial and his dad spends all his money on booze and cigarrettes. There’s some facts for you. Super duper. People are going to do what they want, when they want.

        Don’t screw somebody out of something that might put some positive change in their life because you think it’s unethical for people to make money by selling things.

        Take a look in the mirror and ask yourself why YOU are so unhappy, not only with this product and business, but obviously with the general state of your life. Are you not in the physical condition you want to be in? Drink too much? Not successful with women or maybe you chose the wrong one? Financial issues, debt and the like? Take a deep breath. You have all your limbs, both eyes, LIFE IS GOOD!

        NOW, instead of spending your time trying to be so negative about something let’s focus on the positive! Are you not happy for people when they succeed? Do you not think they can succeed through this endeavor? Is it less likely than everyone who wants to be a professional athlete, recording artist, screen writer, actor/actress, video game designer, astronaut, etc? Should everyone give up positivity, on chasing dreams because somebody else couldn’t succeed at something? Is that REALLY what you are trying to impart on our youth, on our future.

        It’s the interet. Kick proverbial rocks with the hate mongering and negativity. You are not going to get a rise out of me. I am a very confident and secure adult male with children and I’M not here to impress YOU. Neither am I here to start nor continue any imagined Internet beef.

        I am the voice of reason in a sea of studies, data, do this don’t do that, mumbo jumbo saying BE YOUR OWN PERSON, MAKE YOUR OWN DECISIONS, LIVES YOUR LIFE HOW YOU WANT TO.

      • No, Vemma and any other pyramid schemes are scams because they are designed to fail. A pyramid scheme’s liabilities will always outweigh it’s assets and it’s debt obligations to it’s investors are only feasibly paid through the income generated by bringing in new investors. Product loading, which is the forced purchase of products by the Brand Partners in order to receive high returns is illegal and what Vemma utilizes to fudge the numbers. Since these purchases create the illusion that there is active, sustainable distribution of the drink, they are counted as sales.

        Also as a side note, the rule that the people at the top always earn more is false. Not that it’s relevant to this argument, but a good business owner reinvests their profits into start-ups for growth and expansion. At this point the people hired as employees in the company will take home more. Whether or not the assets of the owner eventually outweigh the liabilities determine the success of the business.

        Anyways, the marked difference between a legal company and Vemma is that the employees of the company aren’t -losing- money by working for them. Companies don’t force people to purchase their products in order to get paid. An no, Brand Partners are not “investing” in Vemma by paying into it. They do not become their own business owners because their payment’s do not buy them equity.

        Nobody is trying to get a rise out of you, Robert. I’m a healthy, happy and successful student pursuing a degree in Business Management. This is an issue that directly correlates to the field I’ll one day be pursuing as a career which is why I choose to advocate against it. The intention of this site is not to put down people who are successful. It’s intention is to put down a company that aims to make people successful at the expense of others. Why should I, or anyone support that? That’s like me praising Bernie Madoff because he made billions by scamming people out of their money. That’s like me supporting athletes that take cheat in order to become successful.

        Vemma, like many other unethical practices, chips away at the moral foundations of our society and promotes self-centered, reckless growth.

  6. Thanks for any other wonderful article. Where else mmay anybody get that kiknd of information in such an ideal
    approach of writing? I have a presentation next week, and I am at the search for such information.

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