Vemma Scams: Is It Legit?
What Is Vemma?
It’s yet another network marketing program that simply wants people to sign up, buy a product kit, and then recruit their family and friends to do the same.
The truth is that most multilevel marketing companies (MLMs) do not teach people how to succeed as network marketers, and most members earn very little money promoting their products.
Honestly, a 30% commission on absurdly high health supplements that you can get cheaper on Amazon will not get you rich, especially when the majority of your cut goes to your upline first.
If you want to actually earn REAL money online, check out our #1 recommendation here.
And, since this review needs to be honest and fair…
The company does give helpful ways and techniques for people to make money online and earn commissions. But some people think this is not enough.
Lastly, you’ll get answers to some frequently asked questions about Vemma and network marketing in general.
Most importantly, you’ll see the exact system many people have used to grow their own internet marketing business to over $40,000 in mostly passive income per month.
This system made them 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 take a look at Vemma!
Table of Contents
Vemma Review: Overview
Product Name: Vemma (Vemma Nutrition Company)
Founders: 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 sells nutritional drinks, energy drinks, and dietary supplements. Benson K Boreyko, Lauren Boreyko, and Karen Boreyko founded the company in 2004 and is based in Arizona.
The company wished to be known as the “Young People Revolution,” with the goal of helping college students in earning money. However, the Federal Trade Commission (FTC) shut it down and labeled it an illegal pyramid scheme in 2015.
Years later, a settlement was reached that included changing business practices, paying a fine, and handing over business assets.
Who Is BK Boreyko?
Benson K Boreyko founded Vemma Nutrition Company. He is also the company’s current CEO. He also founded New Vision International, the forerunner to Vemma. In addition, he has recently launched a new company, Bode Pro.
Why Is Pyramid Scheme Illegal?
Pyramid schemes are illegal because they do not have a tangible or intangible product or service to sell. Instead of selling products, they make money by exploiting people who pay to join the scheme.
Affiliates at the top of the pyramid entice people to get more under them by sharing a portion of new payments while keeping the majority of the profit for themselves.
It is enticing to join because the rewards are high and immediate. However, the pyramid will collapse in the long run because recruiters will run out of people to recruit.
MLM Review: What Happened To Verve Drink?
The Verve energy drink company began by recruiting Arizona State University students to sell the Verve product.
The hype quickly spread to many universities in the United States. They targeted the youth because of their low-cost talent in selling. Eventually, the Federal Trade Commission (FTC) accused the company of being a pyramid scheme and ordered it to be shut down.
Federal Trade Commission (FTC)
The Federal Trade Commission (FTC) is an independent US government agency that enforces civil (non-criminal) antitrust law in the United States and promotes consumer protection.
The FTC filed a federal lawsuit against Vemma Nutrition Company, Vemma International Holdings, Inc., CEO Benson K Boreyko, and top affiliate Tom Alkazin in August 2015 after discovering its $200 million-a-year pyramid scheme.
According to Jessica Rich, Director of the FTC’s Bureau of Consumer Protection, “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
According to Forbes staff writer Antoine Gara, the Federal Trade Commission (FTC) ordered the shutdown of Vemma after it was discovered to deceive members, mainly young adults.
Boreyko founded the firm in 2004, and it quickly spread to college campuses across the country. It earned more than $200 million in 2013 and 2014. Expectant entrepreneurs from these college campuses were lured by extravagant claims about cars and yachts.
According to the FTC, the company’s main business was recruiting distributors (mostly college students). The starter pack can cost up to $600, plus additional costs for monthly products. Unfortunately, the majority of those who joined were tricked by the high-income claims and lost their money.
Vemma filed an appeal, and in 2015, US District Judge John Tuchi ruled that the company’s multi-level marketing operations had to be stopped.
Vemma Agrees To Ban On Pyramid Scheme Practices To Settle FTC Charges
As per the FTC lawsuit, the company agreed to stop their business practices, which the Federal Trade Commission (FTC) identified as pyramid schemes.
They were restricted under a federal court order from paying an affiliate unless the majority of the affiliate’s income came from actual sales to the customer. The FTC also prohibited the firm from making unrealistic income claims or offering unproven health benefits.
“Unfortunately, extravagant income claims and compensation plans that reward recruiting over sales continue to plague the MLM industry,” Jessica Rich said (FTC Bureau of Consumer Protection)
Tempe's Vemma Settles With FTC; Fined $238 Million, Admits No Wrongdoing
Finally, the FTC and Vemma reached an agreement in 2016. The company agreed to change its compensation structure and pay a $238 million fine. Furthermore, Vemma and BK Boreyko, the CEO, must submit compliance reports for the next 20 years. They also had to surrender some business and real estate assets.
Tom and Bethany Alzakin were also ordered to pay a $6.7 million fine and turn over some real estate and business assets.
Vemma And Herbalife
On a related note, following Vemma’s shut down, Bill Ackman of Perishing Square issued a press release claiming that Vemma and Herbalife shared “significant structural similarities.”
Bill Ackman also confirmed his belief that Herbalife is a large pyramid scheme similar to Vemma and other MLM companies shut down by the FTC.
Is Vemma A Pyramid Scheme?
The company was found to be a fraudulent pyramid scheme. Following compliance with the Federal Trade Commission (FTC), affiliates (mostly college students) can now earn money through sales rather than recruiting people.
However, it is entirely possible to build a profitable and successful online business.
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?
Everyone does value wellness and aims to be health conscious, right?
The following are the main products offered by the company:
- Bode Pro Burn –dietary and energy drink that boosts metabolism and energy levels while also providing nutritional support to your body
- Verve Zero Sugar –energy drink that gives you a boost of energy without adding extra calories or sugar; contains mangosteen and a blend of various aloe phytonutrients.
- Powell Perfect Bod*e Shake Chocolate –dietary supplement that helps in the maintenance of a slim body; improves brain function and overall wellness
The Flagship Product: Verve Energy Drink
Verve is a two-in-one hybrid drink that combines energy and nourishment. It promises to provide a healthy energy boost. Verve contains 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. Including Vemma.
Check out more reviews here:
How Does Vemma Work?
Simply put, the company sells health and wellness products, primarily energy drinks and dietary supplements. In addition, the company provides a business opportunity for affiliates to work as sales representatives.
By recruiting members, it saves money on advertising and marketing, just like other MLM companies. Ideally, both ends win. However, affiliates are left to convince customers to buy expensive products.
Vemma Compensation Plan Review: Can You Make Money Online With Vemma MLM?
Now comes the crucial part.
Assuming you’re reading this article to see if you can actually make a living from the company.
You can profit from them. However, the path is difficult. Some earn just a little more than the minimum wage. But, some extroverted people are able to recruit a large number of affiliates into their downline.
You can make money in two ways, just like any other MLM:
- Product Sales
- Recruitment of people
However, the reality is that 99% who work for MLMs either break even or lose money.
Less than 1% of people profit, and those who do are said to only make $200 per month on average…
To be honest, it’s not enough to live on.
How Much Does It Cost To Join? How To Get Started With Vemma MLM?
Are you still interested? There are two ways to join:
- Silver Membership – $499.95
- Gold Membership – $999.95
The Gold Membership provides more initial items and is said to have a higher success rate. But wait. There are additional costs…
The Monthly Costs
Unfortunately, there is a monthly sales quota. Affiliates can stay active by paying $68 per month. Let’s figure out your first-year expenses:
- $499.95 – $999.95
- $68 x 12 months ($816)
As a result, your minimum expenses are $1,315.95 – $1,815.95. (1st Year). Other expenses such as marketing, food, travel, and training are not included. Are you still up for it?
Vemma Compensation Plan
The effectiveness of networking companies is determined by their compensation plan. To be honest, these MLM business plans are difficult to understand.
To summarize the income strategy, here are the three (3) ways you can earn:
- Fast Start – you can earn a bonus of $50, $100, or $200 on your first sales, depending on your package.
- Builder – Earn a bonus (ranging from $10 to $50) for each product sold within your downline.
- Cycle Bonus – Earn a 25% to 30% bonus on your total sales when you complete your first sales “cycle.”
What are your thoughts? Will this plan fit 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 many online businesses 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 operation. It has also changed its operations to comply with legal requirements. And, yes, their products are still available through distributors.
Vemma Reviews: Ugly Truths Revealed
So, let’s go over some of the company’s disadvantages.
To be honest, why would you buy Vemma products when you can get them for less money and get the same benefits online? And the reviews for the others are better…
It is NOT ideal to have to pay $500 to $1000 up front. This high cost raises a red flag. Do you think college students will be able to keep up with this?
Hidden Monthly Fees
Where can you find the required $68 monthly? In the small print. If you don’t sell, you’ll end up spending $68 per month on products. Simply put, you will spend more than you will earn.
Bottom Line: Is Vemma A Scam? Or A Legit MLM?
So, is it a scam? It is clear to see that Vemma is not a scam. It sells real and legit products and now properly compensates affiliates. But it wasn’t always like this…
It also makes use of a legitimate multi-level marketing system. However, the need for recruitment turns it into a pyramid in disguise.
Most people would not consider recommending it to a friend…
Is Vemma, however, the best business opportunity for YOU?
Other than your family and friends, how many people are willing to spend that much money on energy drinks?
And, with all of the negatives outweighing the positives, it’s important to think twice before joining.
And even if you’re dead set on becoming an MLM marketer, you’ve got way better options than Vemma.
Keep in mind, we don’t get paid to promote any of the programs we review. We believe Vemma is a great business model, but you could end up leaving way too much money on the table.
What Is Our #1 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 program 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, you probably have tons of questions…