How does the “Vemma pyramid scheme” qualify to be a pyramid scheme?
Vemma multilevel marketing is nothing far from being a scam. A pyramid scheme is defined as a system of selling goods where Agency rights are sold to an increasing number of distributors at successively low levels. Pyramid schemes though illegal yet very popular as they provide means to get rich fast. Verve pyramid scheme issues have been flooding the Internet giving rise to serious debate over the issue.
How Vemma Pyramid scheme works?
Verve energy drink pyramid scheme has often been described as illegal and a ripoff scheme targeting and luring several college students and jobless people into joining their vemma pyramid scheme. Vemma is an energy drink which boosts health and energy as it is rich in supplements required for optimum health. To join their business you are required to purchase their business builder pack worth 500 dollars. Well its a straight forward Verve energy drink pyramid scheme. They also promise to offer you advice and tools to adapt the business strategy to give a jump start to your business. All joiners then have to also recruit more people into their “down line” typical of any pyramid scheme. But how much do you earn? If you buy the product you have to sell it to make a profit but what if you can’t the buyers and cant find anyone interested in being recruited in your downline. You end up being lumbered with a fridge full of Verve energy drink, your credit card is charged every month and even if you sell you would have to make a hundred dollars profit every month just to break even.So the conclusion is its a pyramid scheme and who’s making the money.Off course Those sitting right on the top of the pyramid. The rest below just collapses the top survives.
Vemma pyramid Scheme defends its position:
Many of you may be thinking that in the presence of so many negative vemma reviews then How is vemma not a pyramid scheme? Well Vemmas explanation is that network marketing draws a resemblance to pyramid marketing schemes. It is true that upon studying the business model around the world, it is revealed that every business implements the funnel principle to make a profit. Their business would not have been successful otherwise, had they not adopted and implemented the pyramid scheme typical to all successful businesses around the globe. As the Vemma strategy mimics a multilevel marketing strategy it has been labelled as a scam. Despite this, the fact remains that every multi level marketing is not a pyramid scheme. However it has managed to get an endorsement from well known and famed personalities such as vemma Dr oz and Oprah on the O Network. However this is just their advertisment tactic.
Vemma pyramid scheme and Vemma’s defenceless statements:
Vemma claims its multi marketing scheme is perfectly legal, legitimate and not a scam. It generates revenue according to the sales generated and selling involves a great marketing strategy. A poor marketing strategy will flop miserably having no outcome resulting in frustrated agents also giving rise to a lot of skepticism about the verve pyramidal scheme. The positive reviews argue that the reasons of failing of a marketing strategy while selling vemme energy drink is:
1.No leads no networks 2.Minimal knowledge of marketing Strategies
But how to build networks online when the selling process involves a product which has to be sold directly to customers. They also have a Compensation plan offering incentive to refer and introduce people to the business which again comes down to social media marketing. Well the answer to this is that compensation plans are typical feature of illegal pyramid schemes. Vemmas compensation scheme includes a BMW to those who earn thousands but to maintain payments on the BMW their employees have to keep earning thousands of dollars otherwise payments stop. Conclusion_ An outright scam. The Federal commission association has received at least 46 complaints about them and Better business bureau (BBB) at least 2in complaints about their false claims of having an A+ accreditation. The truth Vemma doesn’t even hold a BBB accreditation.
So what can be conclude from all the speculations and arguments gathered concerning Vemma pyramid scheme? The lesson learnt you should always research a product and the companies reputation before committing to anything involving multilevel marketing MLM. Also analyze your potential to achieve a target and if it can be achieved with that particular product. Always do your research and don’t fall a victim to Pyramid scheme. A legal MLM will never result in anyone becoming trapped into a scam and will not have any obligations. A better idea would to learn about setting up your own business and receive the appropriate training. Have the motivation and courage to have confidence in yourself and be in control of your business to attain success.