MonaVie began doing business in early 2005. It’s founding officer, Dallin Larsen, states that MonaVie is the fastest growing private company in the world. It apparently does business in at least five different countries A company brochure states that ” MonaVie develops and markets scientifically formulated, premium quality nutritional products, specifically for person-to-person distribution.” It also says that “Our products feature an exclusive blend of the powerful acai berry, found only in remote regions of the Amazon, and other nutrient-dense fruits, each selected for its specific nutritional properties.”
My goal in this article is not to express an opinion in favor ofor to detract from this company, its directors, or nutritional drinks. Instead, my intention is to provide information to potential entrepreneurs who may be interested in a reliable home-based business opportunity as a means to earn money at home.
First, let’s enumerate a few of the benefits when someone decides to work at home:
1. Eliminate the hassle of having a boss telling you things to complete
2. Eliminating a long daily commute
3. Work when you want and where you want
4. Not having the hassle of office politics
5. You get to decide what you wear (robe and slippers work just fine)
6. Tax advantages that accompany owning your business
7. How much you make is determined by how hard and how smart you decide to produce
These advantages accompany any home enterprise, including MonaVie.
MonaVie’s website states: “At MonaVie, our mission is to change and improve lives around the world by introducing unique nutritional products, offering a rewarding business opportunity, and by giving back through our charitable initiatives.” It also asks the following question: “Is it time that you want, or more time? Health, or better health? An income, or a bigger income? Freedom, or greater freedom? Whatever your goals are, MonaVie can help you achieve them.”
Regarding the business opportunity, an article by Tony Dokoupil from the August 11, 2008 Newsweek Magazine reports: “… according to MonaVie’s 2007 income disclosure statement, a federally required printout of their distributor earnings. More than 90 percent were considered “wholesale customers,” whose earnings are mostly discounts on sales to themselves. Fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $100 a week. And the dropout rate, while not disclosed by MonaVie, is around 70 percent according to a top recruiter.” Dropout estimates from other reports approach 90% within the first 90 days.
Let’s look at earnings figures reported by MonaVie for its “active distributors.”
The first line of the official company report states: “The Income Disclosure Statement is a reflection of MonaVie’s rewarding opportunity.”
Analyzing this statement, 97% of active MonaVie distributors receive an average income (before taxes) ranging from $23 per week to $172 per week. This report excludes customers or distributors who have not met sales requirements within any of the preceding 8 weeks to be considered “active.”
Next, lets take a look atthe business opportunity from the standpoint of an independent sales rep. The initial cost to join is approximately $40. Costs to be considered “active” approximate $200 per month It appears that a huge number of people who actively work at their work at home business barely break even or make a small profit. Regardless, many distributors remain enthusiastic fans of the products.
Is the MonaVie business model a pyramid scheme, or a legitimate work at home business? The 97% number given above represents many thousands of individuals who bring in the majority of earnings for MonaVie. These distributors earn very small amounts of money in comparison to the top two to three percent. For instance, in the top category-Royal Black Diamond Executive-seven people each receive from $1.5 million to $3million per year. This disparity in earnings is failry typical in this business model.
The MLM business model–also known as network marketing-has been considered effective for many years. One good feature is the minimal cost to launch the business. Critics feel that the U.S. marketplace is overrun with multilevel marketing people. Thousands of companies exist, pushing lotions, potions, magic juices, weight-loss formulas, food supplements, and more. People who have been rectuited in the past frequently decline invitations to attend sales presentations thinly disguised as “opportunity” meetings. This happenswhen the meetings take place in someone’s home or a rented conference room. Lots of people believe that the MLM business model is dead.
Most people do not like selling. However, this is exactly what’s required to succeed in MonaVie or any form of multilevel marketing. Attempting to recruit and enlist your “warm” market–family members or loyal friends–can strain these treasured relationships. Many find it emotionally tiring that they must continually motivate others; however, this requirement is absolutely essential if your business is to succeed. The hope is that new enrolees will repeat the process and sell their friends, family, and others on both the products as well as the business opportunity.
This method is not unique to MonaVie, but can be found in all businesses that use the multilevel system of marketing. Your income in MLM depends not only upon your personal efforts, but to an even greater extent upon how well you motivate those people to work who are in your downline. Thus, it becomes your responsibility to 1) teach your downline about the products and the business, 2) teach them how to sell, and then 3) keep them up and motivated fairly constantly. I often see estimatesthat from 70% to 90% of all distributors drop out within their first year in multilevel marketing.
In the past two or three years, many home business owners have found greater success by marketing their products or services on the Internet. This more current business model allows substantially more control of one’s income and work requirements. Some refer to the money they earn as “Internet marketing magic.” Your individual efforts in Internet marketing influence your earnings to a much larger degree than with MLM.
