MonaVie Scam? Was My Wife Recruited Sell Snake Oil?

27
Comments

monavie.jpgMy wife has been an active member in a nation-wide, young adults group. I am a member as well, but I’m not nearly as active (lack of time, plus my Laziness kicks in). The groups goals are very noble. They aim to help members with public speaking and event planning skills while raising money for charity through local businesses. Recently my wife went to a meeting and was gone longer than usual. I got a little concerned, so I called her to find out how the meeting was going. It turned out that it wasn’t a typical meeting any more - one of the members had invited some business acquaintances of his.

When she got back, she told me about the meeting. It turned into a presentation of an energy/antioxidant drink called MonaVie. This drink is a blend of 19 juices with the most referenced beint the açaí (a-sigh-eee) berry. The açaí berry supposedly has many, many antioxidant properties. I like to be as healthy as I can, so why wouldn’t I incorporate MonaVie into my diet?

The business behind the drink detracts from it’s value. The drink itself is not cheap. It’s $40 a bottle with a bottle lasting only around one week. That means you can expect to pay around $175 a month for this drink. For many people, that’s a significant car payment. For this kind of money, one would expect some sort of guarantee, perhaps a popular, publicly-traded, pharmaceutical company standing behind it. The company also doesn’t publish how much of the berry is each bottle.

Beyond the drinks being expensive, MonaVie is sold by distributors who are compensated in based on a multi-level marketing structure. Some of you familiar with Amway or Quixtar might understand how this works. For those who are new to multi-level marketing, the goal of the organization is to recruit more sellers and incentivize them for recruiting them. I’m not a big fan of such systems, it seems like the founders of the company always make a fair amount, and the people that join later end up with few sales and no one else to recruit. I would recommending reading this Wikipedia article on multi-level marketing.

The people the other night were trying to coerce my wife to buy two bottles, at nearly $100, and potentially become a distributor. My wife balked at such a thing, largely because she knew that I would want to do some research before spending that kind of money. They ended up giving her the bottles to try for free. I fear that my wife may notice a placebo effect and grow a taste for the expensive drink.

Is it possible that it could work? Well Wikipedia references that Red Sox Pitcher Jonathan Papelbon is a fan. As Red Sox fans ourselves this is high praise. Even higher praise comes from Sumner Redstone in this Fortune article. That’s a very influential person and a very influential magazine. I did find one scientific piece of research, this PDF by AIBMR Life Sciences. The clinical research shows that it does indeed deliver more antioxidants than a placebo. However, it doesn’t compare to less costly solutions, like a multivitamin, V8 drink, or just a handful of berries. I’m putting the burden of proof on MonaVie to show that their drink deserves the premium over the berries.

Further Reading:

Is MonaVie a Scam or the Real Deal? at It’s Just Money

Photo credit: Daquella Manera

Posted by Lazy Man on April 16, 2008 in Dumb Purchases. You can skip to the end and leave a response. Pinging is currently not allowed.

27 Responses to “MonaVie Scam? Was My Wife Recruited Sell Snake Oil?”
  1. Miguel Marcos Says:

    Regardless of whether it is what it professes to be, the best policy for all your nutrients and anti-oxidants is fresh food, prepared at home. No expensive drink needed. Like Michael Pollan says: “Eat food. Not too much. Mostly plants.”

    I would stay away from that and any other miraculous drink or nutrient.

  2. John Says:

    It’s a scam:

    http://skeptoid.com/episodes/4086

  3. Omnia Vincit Says:

    Hi,
    As a Brazilian and living in the Amazonas, wich is one of the biggest producers of Açaí in Brazil. I can tell you Açaí is good to ingest daily but as a food with inumerous Nutrients or more like a Snack, a very heavy Snack, it is eaten with Tapioca and very cold like Ice cream, it’s delicious and Healthy. But as for the Price, it’s ridiculous do Pay U$40,00, the cost of the Açãí in the Region is like R$10,00 for about 2 litters.
    Just in case your wandering, it’s about U$6,00.
    Love your Blog, have been reading for months now. Congrats.

  4. pbj Says:

    That be a scam mon ami.

  5. Mrs. Micah Says:

    ‘member Xander and the Boost bars in “The I in Team”? Yeah.

  6. escapee Says:

    Run! This is a scam- I remember being approached by some Amway people when I was a poor college student. It became apparent about 10 minutes into their giving me the hard sell that it was basically a scheme for them to recruit me and make more money for themselves. This is the same sort of thing.

    Besides- like someone else pointed out earlier, if you eat good food you don’t need this stuff. Have you read the recent research that suggests that *vitamins* might be bad for you? I just don’t like to ingest anything that isn’t food:

    http://news.bbc.co.uk/1/hi/health/7349980.stm

  7. No Debt Plan Says:

    Scam, scam, scam.

    Sad that people buy into this stuff.

  8. Laura Zurowski Says:

    Like your wife, I too had been approached by some colleagues to become involved with Mona Vie. While I enjoyed the drink I found that if I drank the 2oz twice daily that I had a hard time sleeping. The main thing that put me off to selling it was that the company does not all selling over the internet! So I couldn’t “legitimately” sell through eBay, Amazon, a personal blog… (although a Google search reveals lots of folks are doing this regardless). My suggestion is that if you like Mona Vie - go buy it online - you’ll find prices cheaper than what it retails for.

  9. Traciatim Says:

    I post this on almost ever Mona Vie post that I can find. I personally like a company here in Canada that makes fruit smoothie type drinks called Arthurs. (http://www.arthursjuice.com for those that care)

    They have 2 drinks that contain açaí juice, their strawberry rainforest and the açaí smoothie.

    One of the best things you can possibly do for your body is eat a variety of nutritious foods. One of the ways is to follow the ‘Eat from the Rainbow’ kind of food choice. I find whenever I’m feeling just ‘off’ if I get a couple of the Arthurs drinks and drink a different kind a day for a few days I just seem to be able to be less sore when you do work, less tired when you concentrate, you sleep better, and wake up more rested.

    As for Mona Vie, I’m sure it does all those things too . . . but why pay 40 bucks a bottle when you can just pick up a drink at your grocery store and get the same results. Plus you get to mix and match flavours.

    We picked up a juicer for 10 bucks at a garage sale kind of store once too. If you mix apple juice with many random fruit juices you can make some great drinks too. Throw some vanilla frozen yogurt in there and you have one darn fine drink for the summer.

  10. Writer's Coin Says:

    Not sure if it’s a scam or not, but it sounds similar to how pomegranate juice was viewed back before it became a big hit. Check out this recent New Yorker piece on Pom.

  11. WealthBoy Says:

    For a multi-level marketing program to work, it needs to be a product that the distributors are willing to buy. Such companies really make their money on sales from within the distribution chain, not from end-users (i.e. the distributors are the end-users). This company is going to have a very hard time finding success because the product is simply way too expensive. In order to justify the price, it would have to provide dramatic results with little or no side-effects. As you said, they’d practically have to provide some kind of guarantee.

  12. Jim Says:

    $50 a bottle sounds way to high. I found MonaVie here for $35.
    http://acaistore.blogspot.com/2008/03/acai-drinks.html

    If they were trying to get her to join they should have given a bottle away for FREE!

  13. Jim Says:

    I’d stay far away from any Multi-Level Marketing system.

    Also, Monavie’s founder Dallin Larsen was a VP at another company Dynamic Essentials Inc. which was shutdown by the FDA & FTC for false claims about their product, fined $2 million and forced to destroy their inventory:

    http://www.mlm-thewholetruth.com/monavie.shtml
    http://www.fda.gov/bbs/topics/NEWS/2003/NEW00976.html
    http://www.ftc.gov/os/caselist/nbty/nbty.shtm

  14. Ernesto@InsuranceYak.com Says:

    I went to one of my daughters cheerleading competitions and someone was giving away free samples of this stuff.

    When I first saw it, it looked like they were pouring wine out of a wine bottle and I was like SWEEEET! I could use a snoot before having to watch 10 year olds cheerlead for 2 hours, let me have the whole bottle. Imagine the disapointment when it I found out it was an antioxident AND non-alcoholic. Poor sales pitch.

  15. East Side Food Geek Says:

    If it wasn’t a scam, it wouldn’t need multilevel marketing.

  16. Lee Gaba Says:

    Overpriced for sure. Also, there are various opinions on its effectiveness. See the reviews at http://www.nutritionaltree.com for example. You have to wade through the ones obviously made by distributors.

  17. Anon Says:

    You guys need to read Robert Kiykosaki’s Book called the Cashflow Quadrant. Stop thinking like a 95%er. All of you complaining that the price is too expensive are broke and always will be broke because you choose to think like a comsumer (left side of quadrant) and not a business owner.
    And you want to talk about a scam?
    Its called EMPLOYMENT!
    Thats the biggest pyramid I know we’ve all been apart of. MonaVie only cost $39 to get started. And you all spend way more money on usless things anyway. I say, if it can get me out of my job, who cares what i have to do! \
    I WANT TO BE FREE!!!!

  18. jblee Says:

    Most people have read Kiyosaki’s book in the PF blogosphere, and most of us do not believe all of Kiyosaki’s “teachings”.

    Anyway, going back to MonaVie. One thing I don’t understand is why do we need to pay the company if we’re going to sell it? Shouldn’t it be the other way around like they should HIRE us so we will push their products? Is it because of the business model? Come on, anybody can learn how to this model work. It’s listed in the web, and there are a lot of books explaining the ins and outs of an MLM type of business.

  19. MoneyBlogga Says:

    Personally, I’m not in a position to be able to spend $250 on 2 cases of Xango. But, that’s what I did recently. A fool and his money indeed.

    A family member tries every MLM scheme going, including Amway and Quixtar, and Xango is the latest wagon this family member has jumped on. One of my immediate family has a serious health issue and my Xango Family Member implored me to try the mangosteen juice drink. $250 later, I have 2 cases delivered even though inside I am quietly seething.

    Less than 10 days later, Xango billed (soaked) me again for another $250. I’ve heard this is a common way for this company to get some big money in the first month - they bill you automatically THREE times: First, when you order. Second, about two weeks later because of the “billing cycle”, and third on the anniversary of the first billing. You get your product but, in my case, I would’ve been out $750. So, I cancelled when I saw that second charge because I realized I was being soaked by a money grubbing “company” for whom the product was not even primary. Xango’s primary concern is to keep the MLM going.

    Called my bank to cancel, and was told by the Fraud Dept that the bank receives far too many complaints about Xango MLM. The bank followed procedure regarding Xango and cancelled my card so that Xango cannot charge it again - apparently, Xango has found a way to charge even NEW cards when the old card hasn’t been cancelled properly by the bank’s Fraud Dept.

    All I was looking for was a health fix for a family member. I was sold on the juice drink by my family member who shamelessly made some grand claims regarding what the drink had done for her. Thinking about it, though, she lives a very clean and disciplined lifestyle ANYWAY.

    Yes,a fool and his money. I am out $250 on the first case and 90% on the second case after returning it plus shipping. I’m still waiting for my refund on the second case from Xango. When all’s said and done, I’ll be out over $300 just for trying to be diplomatic to a family member who will probably stop talking to me now anyway. Can’t win.

  20. Jake Starling Says:

    Why do the cult-like members of the “MonaView Family” prey/pray on people at Health Fairs? Goddamn it already! We plopped down a credit card, joined up and bought a bottle of the stuff for $40. Seemed ok until I checked with Trader Joe’s and Whole Foods on the competitor products. All were cheaper than MonaVie. Stay clear of the latter until they drop their prices (in half at least)!!!!

  21. ann taylor Says:

    Hi
    you guys are so sad. Monavie’s acai is unlike any other acai out there. All you have to do it drink it to tell the difference. People are feeling great on this stuff — it is their processing that is different as it retains more nutrients — all verified. Lot’s of great products are sold through MLM — only Americans are so offput by MLMs — they are huge elsewhere in the world. Think Avon, Tupperware, Creative Memories, Discovery Toys, Arbonne… all MLMs. This product needs to be sold person to person with a personal story. Anyone paying 40 dollars a bottle is stupid. The wholesale non bulk price is just $32.50 a bottle and worth every dime. Try eating 6-8 organic or wild fruits a day for that price. Anyways, not sure why I am wasting my time trying to explain this to you guys, but you are missing out. Also, the company just hit a billion dollars in sales in just over 3 years — hard to believe a company could grow that quickly word of mouth if the product wasn’t changing lives. Just drink it for a month and you’ll understand. I drank the other Acai products and never felt a thing. This is the real deal.

  22. Lazy Man Says:

    Ann, the difference is that all the other MLM products mentioned have easily measurable benefits. I put my food in Tupperware and it stays fresh longer. The difference with MonaVie is that some percentage of that could be placebo effect. Where are the studies between taking nothing, taking a multi-vitamin, taking a placebo and taking MonaVie? Surely with millions in sales something could be commissioned.

    Enron changed a lot of people’s lives as well with more than billions in sales.

  23. Jeff Mason Says:

    Great discussion.

    I can understand the negative responses to MLM companies and their products. However, Monavie will be the fastest company on record to achieve one billion dollars in annual sales revenue this year or next year. This beats Google and Microsoft in achieving this revenue milestone. No too bad for an MLM.

    As for the products, don’t buy them if you don’t know what’s in them. Do your research. For me, Xango remedied terrible headaches endured for over 12 years… in a couple of days. I will never stop consuming their product.

    I am a founding partner in a new MLM company that will launch in 30-60 days. We will have several products based on pure fruit purees harvested from the area near the mouth of the Amazon. These heavenly fruits are the most anti-oxidant rich available. The reason I became involved was not just a better whole-fruit product, but the mission of the company: to improve and extend the quality of life by (omitted) nutrient-rich “super-foods” from the Amazon in our (omitted) of products. We are committed to (environmental leadership), use of eco-friendly products (and contributing) to our communities and environment, and to
    understand environmental (problems) by sharing (things) with our partners. In addition, we have partnered with a pioneer in compensation plan development. This pioneer sought for years to revolution distributor compensation with several of the billion-dollar companies that consulted with him, but was rebuked by all. This compensation plan is going revolutionize MLM and support both the distributor who wants to earn an extra few hundreds dollars a month and the heavy hitters who produce and desire better results. I can only mention small tidbits of this pay plan, and in general there is way too much information to divulge here. I am also bound by an NDA to limit more revealing discussion.

    I’ve included my Xango link because my team is committed to building streamlined distributorship. Top Xango leaders have finally realized that their uni-level plan just didn’t work for the everyday distributor or consumer of Xango. Xango would definitely retain more members with this kind of plan. I also want to add that when I joined Monavie in November of 2004 (pre-launch), even though I had already committed to my Xango business. Over the years I brought in a few friends and family to my Monavie business, but did not retain anyone. As of yesterday I have almost $18,000,000 in sales revenue in my right sales team (my powerleg). How much of that made it into my bank account? About $250. With our new comp plan, that will never happen to anyone in our company… guaranteed. We cannot patent the algorhythm, but we will be the first to bring it to the industry. Existing companies cannot adopt this new pay plan for obvious reasons. New companies will adopt this plan, but we will be the first to bring it to the world. A category creator of comp plans, if you will.

  24. Lazy Man Says:

    J.C. I guess no one should buy MonaVie then since they don’t disclose what’s in it.

    You can’t compare to Google and Microsoft - this sounds like some kind of marketing brought from the top level of the MLM chain. Obviously, there were limited computers when Microsoft was coming out - no one could afford PCs back then. Google didn’t try to earn money for the first couple of years - they didn’t even sell a product that I can think of…

    I could have a billlion in revenue in 30 days if I offered every two dollars for each one paid to me… revenue really means nothing. If anything the revenue is an argument of why consumers should avoid MonaVie.

  25. Michael Says:

    I have some family members all wrapped up in this, and I’m really intrigued by the brilliance of the plan here, in many ways. Of course, I’m also pretty sure this juice is worthless junk, loaded down, in some cases with glucosamine and chondroitin (the ‘active’ formula) that can provide measurable benefits. But you can get that stuff without the juices for a fraction of the price.

    But think about the completeness of the idea:

    -you can live longer

    -you can live healthier

    -you can help your friends be healthy

    -you can be rich

    -you can make your friends rich

    -you can stop working once you’ve built your ‘organization’ and relax with your income stream

    If that isn’t a pretty good sell, I don’t know what is. Above and beyond other MLM products, this one promises health.

    Any read into the details shows that no health benefits at all are proven, that one “doctor” quoted is actually an “ND” instead of an MD (nutraceuticals doctor, or something). No study shows anything about this, and there may not even be a consistent amount of whatever purported active ingredient has all of the supposed benefits.

    But Americans are most worried about money and health, and this brilliantly appeals to both issues.

  26. Gail Says:

    I am a MonaVie Distributor and it is one of the best things that has ever happened to me. I wasn’t looking for another income stream when I got into MonaVie. I have (or I should say had) very bad digestive problems. I had tried everything on the market. Eating good foods, etc. Also taking several medications, prescription and over the counter. A friend of mine gave me a bottle of MonaVie and did not tell me anything about it except to try it and let him know what I thought. By the end of the week, I had noticed that I had not had a digestive system attack in several days. At that time, I did not contribute it to the juice. I liked the taste and ordered another bottle. By the time I finished the second bottle, there was a large change in my digestive track and my life. I called and paid my $39.00 (which I had paid $500.00 to get into some other MLM several years ago and never made a dime). I figured that I blow $39.00 on any given day. So what the heck!!!! I would pay $100 a bottle for MonaVie for the way that I feel today. Working 12 - 14 hours a day in a business that I have owned and operated for 15 years, it is hard to eat the foods you need everyday. This juice helps supplement missed foods for me.
    I have personally seen it make a difference in the health of several of my family members also. So I am a believer and very passionate about MonaVie.

  27. Jeff Says:

    I’ll bet not a one of you naysayers doesn’t have a piece of Tuppaware in your home right now or some Mary Kay in your wife’s makeup closet.

    Some idiot out there turned you off to the MLM idea and you’re too prideful to actually believe in something to sell it to your friend.

    Honestly the only people who call this a scam are people who didn’t put in the research or the time to investigate how it works or signed up for something else years ago and never did anything with it. Where I live we call those people “lazy”.

    Don’t forget that money talks - BS walks.

    It’s only when you start thinking outside the box that new things happen.

    I’m making money and helping others do the same. You don’t have to believe me, and you don’t have to take 15 minutes to see what real people are saying about Mona Vie either - just keep believing what you want.

 
Leave a Reply

Previous: Mortgage and Divorce: I’m Unhappy To Be Stuck With You
Next: Money Does Buy Happiness… Imagine that!
 
Friends of Lazy Man and Money
Buxr | Parenting Tips | No. Calories Needed | Blogging Away Fat | Grill Maestro | Weight Ladder | Best digital camera recommendations | Zecco promotion code | What is Lending Club? | Fit Bloggers.

Lazy Man Financial Directory [About This Directory]
Financial Tools Quick Loans Credit/Debt Insurance/Mortgage Legal Services Miscellaneous
Retirement Planner
Mutual Fund Analysis
Think Cash Loans
Loans
Secured Loans
Cash Advance
Credit Card Debt
Bankruptcy
Fleet Van Insurance
Bridging Loans
Accident Compensation Google Finance - FHA Mortgage Refinance - 100% Mortgages - Wikipedia Finance - Payday Loans - Currency Trading Software - Payday Loans -
Featured Information