Welcome to my Monavie review!
As you’re looking for legitimate investments online, a foreclosed MLM company called Monavie might have caught your attention.
You might be wondering why the company went down.
It might also lead you to think of the legitimacy of MLMs as a whole. This is because it’s not an isolated case, and many MLMs today face allegations of a pyramid scheme or just an outright scam. One example of such MLM is AdvoCare.
So if you are looking for answers, then this content is what you’re looking for.
So is Monavie a scam? Or are they wrongly accused of malpractices?
What is Monavie?
Monavie is an MLM (Multi-level Marketing) that specializes in the niche of health and wellness. They are particularly known for their nutritional juices.
The company was incepted in January 2005, and they were eventually foreclosed in 2015.
Dallin Larsen and Henry Marsh co-founded Monavie. The company was based in Salt Lake City, Utah, the United States.
Monavie’s flagship products then were the Monavie Active, Monavie Essential, and Monavie Pulse.
The company was foreclosed because of an alleged defaulted note that’s amounted to $182 million. (1)
As of today, the company appears to be selling its products again. Also, they are managed by a website called Jeunesseglobal.com.
I’m not sure if they’re planning to pursue their business opportunity once again. But as of now, they are still foreclosed as far as I am concerned.
I will update this review as soon as new developments occur.
You can read more of our reviews by clicking here.
The Monavie business opportunity
The distinguishing factor of Multi-Level Marketing is its complex and almost incomprehensible compensation plans.
They are so convoluted that it seems like you need an expert finance person to decipher the whole thing.
In reality, you only have to bear two things in mind—
- Retail Sales – you earn retail commissions anytime you sold company merchandise.
- Recruitment – it is the bread and butter of MLMs. You and your lower network have to recruit so that you stay in business continually.
Businesses engaged in MLMs make their compensation plan as complicated as possible to prevent potential recruits from asking many questions that may expose the flaws of the business model.
And to completely save their selves and successfully persuade you to join, they would just show you how high the potential income is.
This is a bit sketchy, but effective nonetheless.
In the following section, I have simplified their compensation plan so that you may easily understand them.
What are its income streams?
Before the company was foreclosed, they offer several ways to earn income—
The retail commission is what distinguishes MLMs from pyramid schemes.
Aside from the potential income that is derived from recruitment, you also get commissions from selling retail merchandise, which gives them an impression of a direct selling company as well.
The percentage of the retail commission is equaled to 50% of the Preferred Customer Personal Volume.
For example, let’s say that the cost of one Monavie juice is about 40 PCPV. Therefore, you should earn a commission of $20 (40 x 0.50).
Also, this bonus doesn’t require the consultant to be active or qualified. You’ll earn the commission as long as you’ve made a sale.
Top Retailers Bonus
It’s a bonus given to the top four representatives of the network within one month.
The top MLM representative shall receive a $4,000 bonus.
And then, they also state that the following top three receive a $2,000 bonus each once they reached such PV requirement.
Representatives who are able to personally recruit a minimum of five preferred customers or new people under the network or at least managed to make a personal volume of 300 within one month shall participate in the sharing of a 1% global pool.
Also, they have to meet a certain requirement to qualify for this bonus. The retail sales must come from newly recruited preferred customer or representative.
Take note that sales from autoships do not count.
Bulk Order Bonus
It’s a unique bonus among MLMs as far as I know. It’s a bonus that is based on bulk orders made by the preferred customer or those under your network.
The representative earns $20 if they are 100-active. And then, a $50 bonus is earned if they are 200-active.
First Order Bonus
In addition to the abovementioned bonus, the representative is also supposed to earn a bonus upon the first order of the newly recruited representatives.
If they are 100-active, the representative earns a 10% commission based on the sales volume generated from the transaction. However, it has a maximum of $20.
If they are 200-active, the representative earns a 20% commission based on the sales volume generated from the transaction. However, it has a maximum of $40.
The only qualification for this bonus is that the representative must be active.
Star Maker Bonus
The purpose of this bonus is to encourage representatives in the upper line to encourage their lower lines to perform better. It’s sort of a mentorship program with incentives if your lower line succeeds.
You earn a Star Maker Bonus each time you personally recruited lower line advance in rankings. The summary of how much you earn is as follows—
- You earn $20 if you are 100-active.
- And then, you earn $40 if you are 200-active.
The only requirement for you is that you have to be qualified. It is unclear what they meant, but I’m assuming you have to reach a certain personal volume.
Recruitment is the bread and butter of MLMs—its entire structure would collapse without it.
Monavie adapts a binary networking structure. This means that you will earn based on the sales volume generated by your weaker leg.
The MLM representative shall earn 10% when both legs accumulate a total group volume of 500. But as mentioned, the commission rate shall be applied to your legs.
So let’s say, for example, that you have a total group volume of 1,000. On the left leg, you have 700 groups, while on the right leg, you have 300.
Since it’s a binary model, your commission is $30, which is 30% of 300 group volume.
The requirement to become eligible for this bonus is as follows—
- The MLM representative must be qualified and active.
- Your left and right leg must be generating at least a 500 group volume.
And then, it has a limit of $10,000 per week.
Regardless of your ranking in the company, they state that the MLM representative earns a share in the bonus pool.
The details of this bonus are extensive and complicated at its best, but to give you a simplified version—it is simply you earn a higher bonus as you advance in rankings.
To become eligible, you have to be at least in the ranks of Bronze Executive or higher. And then, the representative also has to be at least 200-active.
Executive Check Match Bonus
This bonus is a little bit confusing. But the gist is that the MLM representative earns an additional bonus for the first $2,500 earned by their lower line through Team Bonus up to seven levels deep.
To become eligible for this bonus, the representative has to be at least in the rankings of Bronze Executive or higher.
Monavie set aside 2.5% of its global income and shares it with its top representative.
To become eligible for this bonus, the representative has to be at least in the ranks of Blue Diamond or higher. And then, they have to be qualified and 200-active.
Multiple Business Center Bonuses
Monavie gives its representatives an option to open multiple business centers once they reach the ranks of Black Diamond or higher.
Each of the business centers is said to provide a potential bonus worth of $10,000 weekly based on Team Bonuses.
How much will it cost me to join?
As far as I know, becoming a representative for Monavie requires a $40 monthly fee. In addition, they also have to maintain a personal volume of100 to keep your status and qualify for bonuses and commissions.
So in a year, it would cost you roughly $1,240 to remain active.
If you’re looking for a better source of income, one that’s yields more significant and stable income, then you have to check out the following description—
Can you make a reliable income from Monavie if it’s still active today?
The success rate in Multi-Level Marketing is extremely rare.
According to research conducted by the Federal Trade Commission, 99% of people who join MLMs are more likely to incur losses than gain any profits.
This was elaborately discussed in Jon Taylor’s book, “Multi-Level Marketing Unmasked.”
It was further added that MLMs fail to meet expectation because of two factors—
Have you heard of the term Garage Qualified?
It is a definition specially used for MLM representatives that’s inclined to purchase company products excessively.
They do such tendencies to achieve or keep their status in the network.
Now, it becomes a dilemma if the representative is not earning but is still obliged to settle monthly membership fees.
As a result, it leads to losses, which will eventually lead them to become inactive and quit the business altogether.
As mentioned earlier, recruitment is the bread and butter of MLMs.
But to put a more accurate term—it is their lifeblood. I say so because, without recruitment, the entire MLM network will collapse.
Take this into consideration—imagine if the bottom network was unable to recruit new members. Now, this instance spells no income for them for a particular period.
If this continues for the following, it will lead to losses because no income is coming in, but they still have to maintain their status in the company by settling membership fees.
As a result, it often causes them to become inactive and quits the business opportunity altogether.
This cycle will continue to the next level and so forth and so on. It will continue up until the network is finally extinguished.
If you want a legitimate source of income, then you have to check out the following description—
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Is Monavie a scam?
And they had faced a lot of issues before they closed. Some examples include misleading advertisements, overpriced products, inconclusive health claims, and pyramid scheme allegations.
It was also said that the company defaulted about $182 million note before they were foreclosed.
With these issues in mind and the fact they are now defunct, one might lead to believing that the company exercised malpractices.
But we no longer have to worry about it, right? They are now closed, and I’ll leave this thought to you—is Monavie a scam? Or maybe they are wrongly accused?
But nevertheless, I don’t recommend Monavie or any MLMs for that matter.
What I Don't Like About Monavie
Well, there’s no way for you to invest in the company even if you like to avail of their business opportunity. This is because the company was closed in 2015.
But let’s briefly discuss some of the issues and allegations the company faced and why you shouldn’t invest in them even if they are still active today—
I can’t comment for sure about their products, but MLM representatives are finding it hard to sell even the $100 requirement to stay in business.
Success is recruitment-based
The only way for you to succeed is through recruiting and creating a large network.
What I Like About Monavie
No positives about this MLM. They are now defunct after all.
I hope my content has helped you in answering the all-important question—is Monavie a scam? Or are they wrongly accused and that their networking company is still up and running today.
But either way, I do not recommend Monavie or any MLMs for that matter.
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Thank you for taking the time off and reading my Monavie review!
I hope to see you next time!