Here we go again!
Is it the same circus, but different clowns? Or is it the same success story, but different vehicle? Well. By the looks of things, you should already know the answer to that question.
Funny how things will change in this review. It is not a matter of being a scam or it being legit.
It is already a confirmed ILLEGAL PYRAMID SCHEME.
So… why still conduct this review?
One of my most favorite words of Robert Kiyosaki in learning from failures and mistakes is this. “Don’t waste a good mistake. Learn from it.”
And that is exactly what we are going to do in this Vemma review. Some people claim for certain companies to be a scam and a pyramid scheme but it remains operational. Then, here we have a confirmed Vemma scam declared by the Federal Trade Commission. It is 100% pyramid scheme.
We are going to learn what lead Vemma, a once-declared strong company, into its downfall. From here, you can identify if the company that you are in is taking the same route. Because if they are, then you might want to reconsider and get out while you still can.
Get ready to learn valuable lessons from this Vemma review.
A Scam? A Pyramid Scheme? An Illegal Pyramid Scheme
If the terms are confusing you and is making you wonder if they are all the same or if they are different, then you are in a for a treat. Before we dive into talking bit by bit about the Vemma scam, let’s lay our foundations well first.
As defined, a scam is a fraudulent scheme by a certain individual, a particular group, or a company which has an attempt to obtain something which is of value- money. They would use tricks, misrepresentation by the use of their skills, and dishonest tactics.
It was a Vemma scam. It was a company that swindled money from its members, so they can advance their own personal gain.
A pyramid scheme is a set of words that you will hear most of the time when a company comes out and introduces itself as a multi-level marketing. Before you lash out on me with your well rehearsed not-all-MLMs-are-pyramid-scheme arguments, allow me to tell you that I agree with you. Vemma has been labeled by FTC as a pyramid scheme. What is a pyramid scheme? Here is how a pyramid scheme looks like.
It starts with one person. This one person recruits 10 people and have them pay a “membership fee” as their investment. This membership fee will pay off for person no. 1’s “investment growth”. How do the people experience the “investment growth”? You got that right. Have these 10 people recruit 10 more people. So on and so forth. How does this become illegal? It sounds like it makes sense. Of course, it makes sense. But what assurance can we get that the people who joined at the later part will still get the growth of the money that they were expecting? If people recruit people, wouldn’t there be an over saturation making it more challenging to recruit more? And with people recruiting more, wouldn’t that make person number 1 the richest of all while doing nothing?
Was that Vemma’s business model? No.
Vemma was a disguised fraud. It used the business model of multi-level marking.
A multi-level marketing company offers two ways for its’ members to earn income. It is by selling and recruiting. An air-tight legit MLM company has a strong product line that even if its’ members chooses not to recruit, they are still able to use its’ business.
This is what Vemma used. They had a product to sell but much emphasis is given to recruiting people.
Alright. I hope this had shed some light. Now. Let’s laser focus on Vemma.
What is Vemma?
Vemma is, I mean was a nutrition company that markets energy products, health shakes, and health supplements. It was launched in 2004 and was primarily founded by Benson K Boreyko. The other founders were Lauren Boreyko and Karen Boreyko. The company was established in Tempe, Arizona, USA.
The company still has their website up, but is clearly no longer up to date.
Who is Benson K Boreyko?
Aside from being the founder of Vemma. Benson K Boreyko’s previous MLM company was New Vision. He was the founder of the said company. New Vision was also closed down by FTC.
In FTC’s decision and order regarding New Vision International Inc. this clause was included.
IT IS FURTHER ORDERED that respondents Jason P. Boreyko and Benson K. Boreyko, for a period of five (5) years after the date of issuance of this order, shall each notify the Commission of the discontinuance of his current business or employment, or of his affiliation with any new business or employment.
It was closed down because of New Vision’s claim that it can cure attention deficit disorder. To see the full decision and order of FTC on New Vision, click here.
Jason Boreyko, whose name appears above, Lauren and Karen Boreyko who are his co-founders in Vemma, are BK Boreyko’s siblings.
This is what Bloomberg has to say about BK.
This guy reportedly earned $12 million in 2013. This was the year that Vemma was at its’ peak. He earned 7,500 times more than 1/3 of the affiliates in the company. Remember the pyramid scheme structure we discussed earlier? Yip. This is what we’re saying.
A guy whose previous company was closed down by FTC only to build another MLM company that was then eventually closed down, you be the judge.
Despite everything that had have happened, BK Boreyko’s social media accounts are still active and he is still actively posting. This is actually good thing that he has decided not to disappear from the world.
Vemma And Its’ Products
These were the products of the Vemma. Their top three products were Vemma, Verve, and Bod-e. All of these products claim to have significant positive effect to its users.
They used to claim to be the “World’s Most Powerful Liquid Antioxidant.” That’s a bit overrated, if you ask me. Then again for marketing’s sake, superlatives do make an impact.
The main ingredients of their product are Mangosteen, Aloe Vera, and Green Tea. Each of this has a certain effect in our body. If, at some point, you are still using Vemma’s product until now, you might want to check this review on their supplements.
Vemma’s Compensation Plan
Just like any MLM company, aside from selling, recruitment is the strongest way for a member to earn money and build their business.
Their compensation plan was composed of overrides, bonuses, and recruitment bonus every time they were able to invite someone to Vemma.
To see the company’s full compensation plan, see this.
For those who have joined Vemma, they will be able to attest that it did not come cheap. It was actually expensive.
The basic package of $499.95 included the following items.
- 4 bottles of Vemma® (32-oz bottles, 30-day supply for 2 people)
- 1 V2 Fridge Brick (30 – 2-oz bottles)
- 2 bottles of Vemma NEXT® (32-oz bottles)
- 24 cans of Verve® Energy Drink (8.3-oz cans)
- 12 cans of Verve Zero Sugar Energy Drink (8.3-oz cans)
- 12 cans of Verve Bold Energy Drink (8.3-oz cans)
- 1 bag of Bod•ē Shake Vanilla Ice Cream flavor (16 meals/bag)
- 1 bag of Bod•ē Shake Chocolate Ice Cream flavor (16 meals/bag)
- 1 Vemma Success Kit
If an individual wanted a bigger pack, then he would go for the $99.95 package.
For the price of $500, you will get 48 drinks, 32 ice cream, and a business kit. I don’t know about you, but that to me is really a lot of money.
Here’s another thing. Once an individual paid for the purchase, he would then be automatically be enrolled to an automatic payment of $126 per month as payment for 2 bottles of 32 oz.
The Marketing Style
It was an MLM company operating with products being distributed. One of things that made it standout is the people that they have invited as “affiliates.” The company has targeted the young and young professionals. By young, we mean those who are below 18 years old. They called it the Young People Revolution.
Vemma’s Downfall- FTC Closed
“Deceptive and Unlawful Act of Practices”
Vemma operated in the marketing strategy of luring future affiliates with the lifestyle that they always wanted- a BMW car, a sleek and rich profile, and time freedom. I am not saying that those are not good. I am just saying that if you overemphasize these things without making clear the kind of hard work that one is required to give is misleading. It is very misleading.
Vemma also targeted young people. One of the things that drew FTC’s attention was when one parent complained of her child being recruited into doing this business. The company would then ask its’ affiliated to just call their friends and invite them to attend a seminar with no mention of the company’s name. That is just too shady. Alkazin, who was claimed to be the one of the top earners, would then motivate and give a talk. These talks revolve around the perks- always the perks.
“Interrelated companies that commingle funds and have common ownership, officers, directors, and office locations.”
Take note that Vemma and New Vision were run by people with common last names. There has been pieces of evidence that they interlock their different companies. New Vision and Vemma had the same line of product- health and wellness. This means that it was possible that Vemma was New Vision renamed.
All these schemes garnered tons of complaints against Vemma.
On December 15, 2016, Federal Trade Commission ordered Vemma Nutrition International Inc. to be closed. The company promised unlimited income, but most people lost money.
Major Take-Aways on Vemma
- Not because it has been in the business for some time, doesn’t mean it’s not a pyramid scheme.
Take note that Vemma started operating in 2oo4. They were closed down in 2016. This means that they have been in the industry for 12 years. It was only after 12 years of scrutinizing that this company was pinned down.
When a company claims that they are legit because they have been in the business for 10 years or so, be reminded of Vemma.
- Always be mindful of the company’s focus.
When a company’s focus is geared into getting more people in the company rather than marketing and improving its’ products, then this should be a red flag. I have reviewed different MLMs and the most important thing to consider is HOW MUCH EMPHASIS IS PLACED ON THE PRODUCT. If more attention is given to recruitment, then it can be that the product was just a covered up- a disguised fraud. There should be a solid program in helping others, as well. Otherwise, it will all be about advancing one self.
- Consider the people behind it.
If a person has been jumping from one MLM to the other and the previous MLMs that the person was associated with are “scammy”, then be alarmed. We are not trying to be judgmental here. I always believe in second chances. What we are saying here, though, is the existence of pattern. With that kind of pattern, we will be able to infer that the person did it not for the business but for the perks that he can get out of the business.
As I have said, not all MLMs are pyramid schemes. However, all reported pyramid schemes are MLMs.
What does this mean? This means that you have to be careful and make sure that you know what you are getting into if you want to be in this industry. I have witnessed several people who have been successful in this business. And these people belonged to a good company, with strong products, and have set the right expectations.
Vemma is a concrete example of a pyramid scheme. They started strong and then eventually experienced saturation. Because of this saturation, it led them to different marketing strategies that were no longer ethical.
Let this Vemma review remind you of what will happen if you get into an MLM without the right mindset and expectation.