Is Vemma a Pyramid Scheme? Has It Changed It’s Ways?

Welcome to our Vemma Review!

You’re probably here as someone has approached you about an opportunity to work from home, earn some money and you’re wondering if Vemma is really legit?  Your research may have shown you posts about Vemma being a pyramid scheme, and now you’re worried.

It is true that previously they were outed by the FTC as a pyramid scheme, however they have now changed the way they operate as well as their compensation plan.  But has it been enough or is Vemma a Pyramid Scheme still?

First off, it’s great to see that you’re doing your research before buying into any “seemingly good” product.

That is how you avoid scams and find only legitimate ways to make money online!

To be completely transparent with you, we’re not associated with Vemma in any form.  We’re not here to pitch or sell you anything.

Instead, we want to reveal to you what has gone on with Vemma in the past, what’s changed, the pros and cons, and ultimately all the details you need, to make an informed decision about whether this business opportunity is right for you…

Vemma Review Summary

Product Name: Vemma

Founder: Benson K. Borevko

Product Type: Health and Wellness MLM company

Price: $500 to $1,000 + $68/monthly

Best For: No One

is vemma a pyramid scheme - company image

Pros

  • Proven History
  • Positive Product Reviews

Cons

  • Expensive Subscription
  • Expensive Products
  • Hidden Monthly Expenses
  • Pyramid Scheme in Disguise
  • Lawsuits
  • Low Success Rate

Summary: Vemma is an MLM health and wellness company that sells a variety of energy drinks, nutritional drinks, and dietary supplements.  But they also have a chequered past, after being sued by the FTC in 2016.  They have changed their compensation plan and many business practices.

Our review will review to you what Vemma is like after the lawsuit by the FTC, and whether they could still be operating like a pyramid scheme, or a pyramid scheme in disguise…

Rating: 30/100

Recommended? No!

Table of Contents

What is Vemma?

Vemma is an health and wellness MLM or Multi-Level Marketing company.  It was founded by Benson K. Boreyko in 2004.

Vemma actually stands for Vitamins, Essentials, Minerals, Mangosteen, and Aloe.  These are the main ingredients that go into their products.

The company has had a lot of ups and downs, but they are still operating in over 50 countries around the world.

The company specialises in nutritional drinks, energy drinks, and dietary supplements that are sold through their sales representatives and consultants.

They also have have an elaborate marketing campaign, with celebrities such as Darren Hardy, and Dr. Oz endorsing their products.

Their aim is to help improve the wellbeing of people by improving their health, as well as offering a way of earning money.

You can understand a little more about Vemma, with this 6-minute video…

Vemma Lawsuits

I said earlier that Vemma, got into some trouble with the FTC…  There was a lawsuit taken out by the Federal Trade Commission (FTC) in 2016 on Vemma. 

Basically, Vemma was suspected of running a pyramid scheme as most of the revenue was not coming from the sales of their products to customers, but it was from brand partners who had pressure to buy Vemma products in order to maintain their ranking within their system.

Here’s what the FTC found wrong with Vemma’s business model…

  • The FTC said that at least 51% of sales should come from sell a product to the customer
  • Cannot sell “Start-up Packs” anymore because they only were sold to distributors
  • High income claim violations
  • Product claim violations
  • Protected class violations

Another issue the FTC had was that the brand partners were given the option of either selling 200 points worth of products or buy 80 points worth of products themselves.  With this, new members ended up buying 80 points worth of product since it was easier to accomplish in order to remain active and eligible for commissions.

Tom Alkazin and his family, who are top members at Vemma were also accused of recruiting college students.  They were telling them that the Vemma opportunity was a better option than regular employment.  They also showcased luxury yachts, houses, cars to attract the younger generation.

But the reality was that Vemma recruits didn’t even make $100 a month.  They were buying products themselves, just to remain active until they felt exhausted and quit the program.

The following video shows all of the Vemma violations, and how the FTC pursued Vemma.  The first 13-minutes where it talks about Vemma specifically…

Vemma paid a $238 million settlement to the FTC.  They MLM business model was also limited in scales and it is still under the supervision of the FTC.

Somehow, they came out the other side and is still operating under a more low-key MLM business model.

That being said, the question you may be asking yourself is could they still be operating as a pyramid scheme…

Is Vemma a Pyramid Scheme

Vemma was outed as a pyramid scheme, but as it stands they are not a pyramid scheme.

Their members can make money by selling their products.  They also don’t have to recruit people to earn.

But is that really the case?  Well, we’ll get into that later…

For now, we will take a look at whether Vemma is a pyramid scheme in disguise…

What’s a Pyramid Scheme?

A pyramid scheme is a company that promises members payment in return for recruiting people.  They prioritise recruitment over selling products and services.

They are illegal in most countries in the world, as it is totally impossible for all members to earn money in a company that only pays for recruitment.

This Wikipedia diagram describes why…

pyramid scheme

The members who are making a lot of money are those that are able to recruit a lot of people.  They tend to be the ones that are great at selling the “dream business opportunity” rather than those that are honest.

But if you take another look at that diagram again, you will see that not everyone is able to make money from a system like that.

Here’s a 5-minute video that will help you spot these “pyramid schemes in disguise”

Success is Rare at Vemma

It’s not just at Vemma, but success is rare at any MLM company.  You should also know that 86.81% of Vemma members lose money?

Did you know that between 73% and 99% of MLM members are losing money?

The main reasons for this are, MLM companies have overpriced products along with a monthly sales quota.  You basically have to achieve a minimum level of sales a month, otherwise you’re not eligible for commissions.

If you’re not able to achieve that monthly sales quota, then you’ll need to buy the products yourself.  This results in you spending hundreds and thousands of dollars before you’re even able to recruit a single member.

We’ll get into detail about their income disclosure shortly…

How Does Vemma Work?

Vemma sells a range of health and wellness products, most of which are energy and dietary drinks and supplements.

They also offer a business opportunity where members can join and become a sales representative.  Then you’ll be able to sell the products and receive bonuses and commissions.

It sounds like a good deal for both parties…  But the reality is that the bigger benefit is felt by the company, as they save millions of dollars in marketing campaigns.

The hardest part of the process is left down to the members, and that is convincing people to buy overpriced products…

Now, let’s give you a better understanding of their products…

Vemma Product Line

If you really want to check out an MLM opportunity, then you need to get your head around the products they offer.  You will be selling these after all…

The company has a range of energy drinks, and dietary supplements.  these are blended with a mixture of vitamins, plant-based minerals, and organic fruits.

is vemma a pyramid scheme - product line

Their main products are:

  • Bode Pro Burn ($78.95) – this is an energy and dietary drink, which boosts metabolism, energy levels, and provides nutritional support to your body.  A pack of 24 (8.3 oz cans)
  • Verve Zero Sugar ($62.95) – this is an energy drink that provdes an energy boost without the extra calories or sugar.  It contains mangosteen, and a mixture of various aloe phytonutrients to provide a health energy boost.  A pack of 24 (8.3 oz cans)
  • Powell Perfect Bod*e Shake Chocolate ($47.96) – this is a dietary supplement, which helps maintain a slim and fit body.  It also helps improve brain function and overall wellness.  16 satchets

Whilst the products do look good, you should know that the health and wellness market is heavily saturated.  There are many different MLM companies all offering a very similar product line.

Examples of these MLM companies include:

You will find that they all claim to be unique, or special and yet they all feature the same products, even if they’re selling the same stuff with a different brand label.

So, is there a product that makes Vemma unique?

Vemma Flagship Product – Verve Energy Drink – $62.95

This is an energy drink and nutritional supplement hybrid.  It gives you a healthy dose of an energy boost, due to its rich blend of vitamins, aloe phytonutrients, and mangosteen.

is vemma a pyramid scheme - verve energy drink

The following 1-minute video will give you a good insight into their products…

If that sounds interesting, then let’s explore whether you can make any money or not…

Haven't Made Your First $1 Yet?

Studies have shown that more than 70% of the people who want to make money online have not made their first dollar yet. So, you’re not alone!

Can You Make Money with Vemma?

It is possible for you to make money with Vemma, but it’s going to be really hard.

There are a few people who do earn some money, but it is just slightly more than the minimum wage.

They are also extroverted people who are capable sales managers who invite as many people as they can into their downline.

Their income disclosure doesn’t make for good reading, as it shows that only a few are earning commissions with Vemma.

How To Make Money with Vemma?

There are two ways, you’re able to earn money from Vemma’s compensation plan…

  1. Sell their products
  2. Recruit members

As Vemma, has gone through some serious lawsuits, they are trying to lie low with their MLM program.

It is still continuing as an MLM, but in a very limited way.  Before we get into their compensation plan, let’s first talk about how much it’s going to cost to get started with Vemma.

Getting Started with Vemma

There are two starting points to join Vemma. 

  • Silver Membership – $499.95
  • Gold Membership – $999.95

The second option provides you with more initial products, which according to the company, gives you a higher chance of success (apparently).

But the costs don’t stop there, you’ll need to factor in the monthly expenses…

Vemma Monthly Expenses

Vemma, like most MLM’s give you a monthly sales quota to achieve.  With Vemma, members need to pay $68 per month to remain active.

So, if you consider your costs or expenses for the first year, will be:

  • $499.95 – $999.95
  • $68 x 12 months ($816)

So, the minimum expenses for Year 1 = $1,315.95 – $1,815.95

That is before you even consider the other expenses that will go into your business opportunity, including additional training, marketing, food and travel expenses.

Vemma Compensation Plan

MLM compensation plans are not easy reading, they are all complicated.  It is often done that way to get you thinking there are tons of ways to make money, when really it is only two ways…

Either way, we’re going to try our best to keep the ways you can make money with Vemma as simple as we can.

There are three ways you can earn from Vemma’s compensation plan:

  1. Fast Start – Earn a bonus of $50, $100, or $200 on your first sales, depending on your package
  2. Builder – Earn $10 to $50 bonus for every product sold within your downline
  3. Cycle Bonus – Earn 25% to 30% bonus on your total sales when you reach your first sales “cycle”

Bottom line, I don’t think they particularly want you to understand it fully, but all you need to know is that there are two ways for you to make money and they are:

  1. Sell their products
  2. Recruit members into your downline

This 3-minute video will help you understand their compensation plan a little better…

You can also see their full compensation plan (pdf) here.

Is Vemma a Scam?

Vemma isn’t a scam.  The company sells a range of legit products.  They also pay their members like they say they do.

But the biggest issue Vemma has had to deal with is getting that lawsuit by the FTC.  Then there is the fact that such a high number of their members are losing money.  People can only take so much before leaving, and then calling the company out as a scam.

The rest of our review will help you get all the other information, including hidden truths, that you need to know about Vemma to help you make an informed decision about this business opportunity.

Just to be completely transparent with you, I’m not a distributor of Product, nor do I endorse Product in any way.  I have researched the website, testimonials, and information available on the internet to get the details about what this program genuinely does.    I do this, as I have been caught out by a scam in the past, and am trying to help others avoid a similar fate…

Tired of MLMs? Check How We Make Money Online Here!

What We Liked About Vemma

Here’s what we liked about Vemma:

#1 Proven History

Despite their brush with the law, their company has made it past the point where most MLM’s do not.  Many MLM’s do not make it past the 5-year mark, let alone the 10-year mark.

Vemma has been in operation since 2004, so that is coming up to 17 years in operation.

I think it is safe to say they are not a scam, and won’t be closed by the FTC anytime soon.

#2 Positive Product Reviews

The general feeling about their products is good.  They are averaging a 71% 5 star rating on Amazon for their Verve energy drink.

is vemma a pyramid scheme - verve amazon reviews

There were some negative reviews, of course, mainly around the price, but the general feeling is that they are a good product.

What We Didn't Like About Vemma

Here’s what we didn’t like about Vemma:

#1 Expensive Subscription

Their startup costs are pretty high, having to pay $500 or $1,000 to get started is not a good starting point.

Such a high price, does start ringing some alarm bells, especially when you couple it with the next couple of concerns…

#2 Expensive Products

It’s not just the subscription that is high, but the price of the products is really high too.  Why would people pay these prices, when they can get cheaper alternatives online that have the same benefits?  Some of them even have a higher review rating too…

Is Vemma a Pyramid Scheme in Disguise?

Expensive products, alongside a requirement for members to spend $68 a month (to remain active) means there is only one way for you to avoid doing that.  And that is to recruit people into your downline.

This will mean that the image below will represent what that will look like…

pyramid-scheme

But by recruiting people in, you are making them have to spend that $68 a month, and that is just not ethical.

#4 Hidden Monthly Expenses

That requirement to sell $68 worth of product a month to remain active, is hidden in the small print.  But if you cant sell that much, you will need to pick up the slack.  That will typically mean you will be buying $68 worth of product every month, filling your garage, until you’re able to make a sale.

Bottom line, you will be spending a lot more than you may actually make…

#5 Lawsuits

I know their lawsuit has been techinically settled, at a cost of $238 million.  But the way they are still operating, doesn’t make them entirely different.   There is still a pyramid like structure within their company.

The company is tainted, and this will make it even harder for you to make a sale or recruit someone, if they do the same research you are doing…

#6 Low Success Rate

If you take a look at their income disclosure statement, you will see that 74.43% of their members earned just $938 annually.

And 91.2% of them are earning $1,597 annually.  But their annual expenses come in at $1,179 per year.

The summary is, this shows that only 1 in 313 members are earning more than $31,000 per year.

Haven't Made Your First $1 Yet?

Studies have shown that more than 70% of the people who want to make money online have not made their first dollar yet. So, you’re not alone!

My Vemma Review - Final Conclusion

Vemma does sell a range of legitimate, and well received products.  Albeit, they are on the expensive side, like most MLM products are.

As for their business opportunity, the numbers show that this is going to be  a really hard job and it clearly points towards the need to recruit to avoid that expensive monthly sales quota, which could show that Vemma is doing enough to avoid the glare of the FTC, to avoid being labelled an outright pyramid scheme.

But, it does seem like they could be operating as a pyramid scheme in disguise.

Not many people are earning money here, their members seem to be the biggest customer of the company, and this will not work for most people.

There are much better options out there, keep reading for our preferred option…

How We Make Money Online

I’m not a fan of MLM, not because it’s illegal or not profitable, but because of all the restrictions and expensive costs involved.

Instead, Affiliate Marketing is our top recommended business model for anyone looking to make money online

The reasons are simple…

  • You can promote anything you want and aren’t restricted to only promote products from one MLM company
  • You don’t have to recruit anyone to make money
  • You never need to sell to your friends and family
  • It’s free to get started

In fact, with affiliate marketing we’ve been able to Create a 4-Figure Monthly Passive Income Stream.  If you want to learn more, click here.

Thanks for checking out our Vemma review!  If you have any questions or comments to add, then please write them in the comments section below. 😉

Sharing is Caring…

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on whatsapp
Share on email

Vemma

$500-$1,000 Startup + $68/monthly
3

Overall Rating

3.0/10

Pros

  • Proven History
  • Positive Product Reviews

Cons

  • Expensive Subscription, Expensive Products
  • Hidden Monthly Expenses
  • Pyramid Scheme in Disguise
  • Lawsuits
  • Low Success Rate

4 thoughts on “Is Vemma a Pyramid Scheme? Has It Changed It’s Ways?”

  1. Hi. I think our article paints a very clear picture of why Vemma is a scheme to avoid. I think there is no accident in the fact that the area of health supplements is flooded by dubious MLM schemes like this one that makes money for a few but results in failure for most. The products tend to be low quality, way overpriced, and overhyped. I am quite sure that the majority of the customer reviews you mentioned were from members of the scheme themselves trying to boost the ratings. I will not be signing up for this. Thanks for sharing the review.

    Reply
    • Hi Andy,

      thanks for checking out our review!  There is an element where members do put reviews on these sites to make it look better than it is, and it makes it even harder to spot a legit and decent opportunity to go with .

      Overpriced products is such a red flag, but the sponsors who try to recruit you hoodwink you with fabricated figures and make you believe you’re onto a good deal…

      MLM is tough, and getting harder as more people get online, and they are just not able to keep up with people’s shopping habits now…

      All the best

      John

      Reply
  2. What i liked about this blog post is detailed review about Vemma MLM Program , it was extremely helpful in making the decision to join the program or not . Pros are few and Cons are much higher , also as mentioned in the post making money in this mlm program is difficult , as it is any MLM program requires lot of efforts to make money . thanks for such informative post . 

    Reply
    • Hey Navnit,

      thanks for checking out our review!  It’s a hard slog selling overpriced products to people, and the fact so many people are losing money is sometimes down to people not doing enough research before joining.

      Always, always do research and you avoid these…

      All the best

      John

      Reply

Leave a comment


Want to Make Money Online?

Get our Affiliate Marketing BluePrint to Success Guide to Making Money Online

If You’re Serious About Wanting To Make Money, You Need This Guide…