Vemma: Difference between revisions
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==Business model== |
==Business model== |
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Vemma is a [[multi-level marketing]] (MLM) company. The company sells its products through independent distributors (referred to as ''Brand Partners'') who can earn a share of the revenue from their own product sales as well as those from the network of distributors they build. Although there are numerous self-proclaimed success stories surrounding the business model, it's also been the subject of severe critique and analysis. |
Vemma is a [[multi-level marketing]] (MLM) company. The company sells its products through independent distributors (referred to as ''Brand Partners'') who can earn a share of the revenue from their own product sales as well as those from the network of distributors they build. Although there are numerous self-proclaimed success stories surrounding the business model, it's also been the subject of severe critique and analysis. On their own website in a link marked “Income Disclosure Policy”, there is a table of earnings set against various grades of Vemma sales people, who are known as "brand partners". As an example, someone working 20 hours a week at minimum wage is making more money than 91.62% of Vemma’s brand partners. 72% of people don’t even get past the $1,000 a year mark. from http://dicit-ei-pilatus.tumblr.com/post/41427227575/vemma-is-a-scam-and-multi-level-marketing-doesnt-work |
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==Criticism== |
==Criticism== |
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Revision as of 20:51, 18 September 2013
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| Company type | Private |
|---|---|
| Industry | Dietary supplements |
| Predecessor |
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| Founded | Tempe, Arizona (2004) |
| Founder | Benson K. Boreyko |
| Headquarters | , United States |
Area served | Worldwide |
Key people | BK Boreyko (CEO) Karen Boreyko (co-founder) Lauren Boreyko (co-founder) Brad Wayment (COO) Yibing Wang (Chief Scientific Officer) |
| Products | Vemma, Verve, Bod·ē, NEXT |
| Website | vemma |
33°38′38″N 111°53′57″W / 33.643787°N 111.899148°W
Vemma (/ˈviːmə/) Nutrition Company is a privately held multi-level marketing (MLM) company that sells energy drinks, nutritional beverages and weight management products. The company, based in Scottsdale, Arizona, was founded in 2004 by Benson K. Boreyko and family.[1]
History
Prior to launching Vemma, the Boreyko family worked for various MLM companies, switching when one failed and their income disappeared.[citation needed] Vemma was preceded by New Vision International, a Tempe, Arizona-based dietary supplement company founded by the Boreykos in March 1995.
Vemma ranked #75 in Direct Selling News for 2011.[2] In 2013, Vemma won one silver and four bronze Stevie Awards.[3]
Products
Vemma has five product lines, all based on their core Vemma nutritional formulation: Vemma, Verve, Thirst, Bod·ē, and NEXT.[4] The name "Vemma" is an acronym representing: vitamins, essential minerals, mangosteen, aloe.[5] Personal trainer Chris Powell is the spokesperson for the company's Bod·ē brand protein shakes.[6][7]
Business model
Vemma is a multi-level marketing (MLM) company. The company sells its products through independent distributors (referred to as Brand Partners) who can earn a share of the revenue from their own product sales as well as those from the network of distributors they build. Although there are numerous self-proclaimed success stories surrounding the business model, it's also been the subject of severe critique and analysis. On their own website in a link marked “Income Disclosure Policy”, there is a table of earnings set against various grades of Vemma sales people, who are known as "brand partners". As an example, someone working 20 hours a week at minimum wage is making more money than 91.62% of Vemma’s brand partners. 72% of people don’t even get past the $1,000 a year mark. from http://dicit-ei-pilatus.tumblr.com/post/41427227575/vemma-is-a-scam-and-multi-level-marketing-doesnt-work
Criticism
The parent company, New Vision International, was enjoined in 1999 by the Federal Trade Commission against engaging in certain advertising practices they were accused of using previously.
New Vision was accused in the FTC complaint[8] of "unfair or deceptive acts or practices, and the making of false advertisements" about the health benefits of some of their products. In the Decision & Order,[9] the FTC ordered New Vision to stop making various claims; specifically they were ordered (1) to stop saying that one of their product recipes was effective in treating ADD or ADHD, or useful as an alternative to Ritalin; (2) that they not indicate or imply that any testimonial or endorsement of any of their products is typical or ordinary; and (3), that they make no claims about safety or effectiveness in reducing the risk of developing any disease or disorder; and that they communicate all this to their team members in mailings.
References
- ^ "Executive Bios". Vemma. May 2013. Retrieved 2013-08-01.
- ^ J.M.Emmert. "2012 DSN Global 100: The Top Direct Selling Companies in the World". Direct Selling News. Retrieved 2013 Aug 01.
{{cite web}}: Check date values in:|accessdate=(help) - ^ "Vemma(R) Honored as a Five-Time Stevie(R) Award Winner in 2013 American Business Awards(SM)". June 18, 2013. Retrieved 2013-08-01.(subscription required)
- ^ "Vemma, Building A Solid Nutritional Foundation Is Vital To Your Overall Health". Vemma. July 2013. Retrieved 2013-08-01.
- ^ "Vemma Science - Vemma Formula". Retrieved 6 September 2013.
- ^ "Learn More About My New Bod-e Shake". Retrieved 2013 Aug 01.
{{cite web}}: Check date values in:|accessdate=(help) - ^ "Vemma Bod-e Program". Retrieved 2013 Aug 01.
{{cite web}}: Check date values in:|accessdate=(help) - ^ US Federal Trade Commission, Donald S. Clark, Secretary (March 1999). "New Vision International Inc. - Complaint No. C-3856". Ftc.gov. Retrieved 2013-06-21.
{{cite web}}: CS1 maint: multiple names: authors list (link) - ^ United States of America, Federal Trade Commission, Robert Pitofsky, Chairman (March 1999). "New Vision International Inc. - Decision and Order No. C-3856". Ftc.gov. Retrieved 2013-06-21.
{{cite web}}: CS1 maint: multiple names: authors list (link)