MonaVie Income Disclosure 2010 Busted!
Suppose you are a new MonaVie distributor or Prospect and you want to have an answer on the question: What do I realistic earn when I am climbing the ranks? In June 2011 approx. 38,500 new distributors and customers sign up worldwide which is a great result. So you take Monavie's recent Income Disclosure.
MonaVie has publised the Global Income Disclosure Statement for 2010. According to Monavie: The Income Disclosure Statement is a reflection of MonaVie’s rewarding opportunity. The following chart represents the average global earnings of the ranks of MonaVie Distributors worldwide and provides high, low, and average weekly income information, as well as annualised averages.
During 2010, approximately 86% of individuals who executed a MonaVie Distributor Application and Agreement, and made at least one purchase in the last twelve months, are considered wholesale customers.
On the Monavie website you find the next numbers of distributor ranks:
- 700 Ruby Executive's
- 316 Emerald Executive's
- 191 Diamond Executive's
- 232 Blue Diamond Executive's
- 38 Hawaiian Blue Diamond Executive's
- 35 Black Diamond Executive's
- 13 Royal Black Diamond Executive's or above
A “Distributor” is defined by MonaVie as any person who:
- Executed a MonaVie Distributor Application and Agreement
- Has sponsored at least one person
- Has received at least one non-retail bonus
- Has been active in any of the eight weeks preceding the bonus period
If you analyze the Average Pay-out with very conservative estimated numbers for the Distributor to Gold executive ranks you get the next figures:
* = Estimated number of ranks.
Monavie's official response: The MonaVie IDS is based on “Paid-As” rank, and not “Achieved” rank. In this way, the IDS represents to distributors what they would earn if they were paid at those ranks for any given week. This is different from conveying to distributors what the average earnings of our individual distributors are at their achieved ranks
Finally, thank you for making us aware that this could be confusing to our distributors. We will review the issue and consider for the next revision.
Rank Position Total Average Year 2010 Total Pay Out Distributor* Star* Star 500* Star 1000* Bronze Executive* Silver Executive* Gold Executive* Ruby Executive Emerald Executive Diamond Executive Blue Diamond Executive Hawaiian Blue Diamond Executive Black Diamond Executive Royal Black Diamond Executive or above Total
Monavie's Global Annual Revenue in 2010 is somewhere between $550 – $600 million.
Paying out $515 million+ is not very likely….
If Business For Home does not understand MonaVie's Income Disclosure how can the average distributor or prospect gets a good picture? It seems the income disclosure is misleading….
We also compared the earnings 2009 and 2010:
Rank Rank Average Year 2009 Average Year 2010 Change Change in % Distributor* Star* Star 500* Star 1000* Bronze Executive* Silver Executive* Gold Executive* Ruby Executive Emerald Executive Diamond Executive Blue Diamond Executive Hawaiian Blue Diamond Executive Black Diamond Executive Royal Black Diamond Executive
In the last sentence on the Income Disclosure Statement we find a possible answer to the question: What would be an average for a MonaVie Distributor?
The average annualised income for ALL (paid) Distributors during this period was $1,953
[scribd id=59170606 key=key-24l7hu7sb11sei5wnbv9 mode=list]
Login with Google
The Income Disclosure is Busted
Why do people try to post negative things about any network marketing company? Don’t they realize they are giving the industry a bad name?? Give it a rest people! I have nothing to do with Monavie but I have watched them grow from day 1 and they have set the standards! Maybe you should spend the time to figure out how they were the fastest company to a BILLION DOLLARS in sales! Or was that not true??
Just go out and build your company and STOP trying to destroy another!
@Greg, you do not get my point. This website is devoted to Direct Selling. 99% of all content is in favor of this great industry. Companies have to publish reliable information. Above statement is busted, Monavie’s statement is misleading for people who look to it “at a glance”.
I know enough Monavie distributors who make a great income and agree with me…..
Should we multiply that $1,953.00 by 12,537 “paid distributors” to get the actual payout? Something has to be missing here?
What does someone who is not a “paid distributor” earn?
Your post presumed between $500 and $600 million in revenue in 2010. The figure is closer to $1 Billion. I agree with the above post by Greg, the “bashing does the industry no good. It does however give distributors of that company a voice as they refute the incorrect stuff. I am very wary of post like this and it casts doubt on all of your other “reviews.”
Lilian, nop, Monavie’s revenue is in $500 – 600 million range. Look f.i. in the Direct Selling News insert for the Wall Street Journal.
Look everyone- the figures on here and the money being paid is a lot of money!!!!! This post is rediculous and obviously is just to have more content on the site. There are many people in this industry that work for companies that dont even pay close to this and that dont even publish their figures. I think this a great for Monavie to get their name out. Monavie is obviously a big name and congrats to any company bringing in hundreds of millions of dollars. Im also happy to see people can make the kind of money they are in Monavie.
“admin July 2, 2011 at 1:52 pm
Lilian, nop, Monavie?s revenue is in $500 ? 600 million range. Look f.i. in the Direct Selling News insert for the Wall Street Journal.”
Haha! He’s acting like this is a bad thing. LOL. A company shoots out the gates like a rocket and he makes people think its bad that the business has settled down. Hey a half a billion is great!
Hey Ted, we still appreciate you.
@Ron. Yes $500 or $600 million is a great achievement. However it does not change anything about the Income Statement. No way Monavie pays out $500 million. The statement is confusion. I do not believe above Monavie figures, but I am not negative. Monavie should report better that is my whole point. Distributors should have correct information, not inflated numbers….
@Greg and @Ron. your comments prove that you just don’t understand. Mona Vie has done more damage to this industry than you guys even know. I love this article, articles like this point out the stuff that gives the industry I love a bad name. Where is accountability if not for articles like this? I have worked this business for 10 years (mostly outside of the US). Mona Vie style fake it till you make it, rape and pillage, destroys credibility, and sours people on the industry as a whole. Real MLM works, and groups last long term when build on honest, realistic expectations. “money being paid is a lot of money!!!!!” ? The numbers are bogus, clearly.
I agreed to what @Greg (not Smith) said, MonaVie has done a lot of damage in Malaysia, many distributors are suffering now, and many of them have sold their cars and properties just to maintain their ranking, I have seen so many leaders with stocks of over 1,000 boxes at their house. And the latest news I heard is that the most recent Royal Black Diamond Shah Khan did not get his Merz 550, it was only for showing on the stage, and he also did not receive the US$100k Cash Reward, I felt so sorry for Shah.
Monavie has been doing wrong things sinds the begining, too many influences from Amway and too many promises, all the companies using the fake it till you make it still are comdemned to desappear, the juice Monavie sell it`s not the magic and wonder stuff they promise anymore, and the money they pay it`s far from being what they hve anounce, sorry for the distributors.
@Mohd: shut up @ Greg: shut up @ John: shut up. LOL I make so much money in MLM I dont have to be negative. hahahahahahaha
Ron, we all feel sorry for you as you do not realise how sorry we feel for you. Money with honour is the saddest form of loser.
I noticed lots of passion in all the statements. Ted provides a great service to the direct sellers of the world. I walked away from Monavie as I sensed the double standards that they have. All distributors are not treated equally there. Monavie is a savvy company that has done well and I hope that they do well for the sake of their distributors. I’m with Drink ACT and enjoying it very much. If anyone wants to connect you can find me on Facebook as Kal Sandhu.
Best of success to all.
Business for home is here to educate all of us about the good and the bad about companies in this industry. If you don’t like it when companies do bad things and get reported on, get over it. If every company were doing things correctly, then there wouldn’t be any negative reporting.
The bottom line is this…We have all seen companies do good and bad things, we as consultants, distributors or whatever you’re called must work with integrity and hold our primary companies at a high integrity level. If a company slips, then it must be reported because its not about whether it puts a “black eye” on the industry, its about people’s dreams, their hopes and their lives. They have the right to know both the good and bad about each company and it should be from a reputable source like Business for home or Direct Selling News.
I see a way that this makes perfect sense. If MonaVie’s global annual revenue in 2010 was 500 million, and if Brig Hart has stated that the company pays out close to 50% of what they take in, it makes sense that the distributor earnings (an expense in monavie’s balance sheet, not part of their revenue report … they have their own revenue report 😛 ) should be a few million short of the company’s global annual revenue.
Greg Smith,
You say you have nothing to do with Monavie.
And people must let it rest to prevent the industry giving it a bad name ?
With other words as you say, leave it rest.
My answer is on that is, so let them do what they like ?
Be real. That is damaging the industry !
These are hard figures and we are even wait for a respond from Monavie.
Why don’t they respond then ?
It’s all a number game, but it proofs that they published the wrong numbers.
How clever they are, how stupid they are also.
But… we will wait for the answer. 🙂
This is not good at all, distributors in Malaysia basically disclosing the Income Disclosure Statement to attract prospects to sign up, I do not think they are able to use this anymore.
Ted, I do not believe MonaVie will give you any answer, knowing them and knowing the management for this while specially after so many negotiations with them, they are not the type of men will honor their words.
Hey Ted- I am Monavie and I love what you post, good or bad. I know you have a website to update and I also know that it doesn’t ever hurt the businesses of the real Monavie leaders. Monavie is paying out and is getting more distributors than any company. This proves that the product is excellent, when the majority of enrolled distributors don’t even try and work the business. DUH! And there are quite a bit of high income earners here. I love and respect all companies and all competitors. GO FOR IT!
I’m a MonaVie distributor, and I have responded (about 3 posts above this one). Just check out my response, and it might be kind of a “oh, duh” moment … or you might have a reason that I’m not right.
You guys really dont know the true history of Mona Vie do you…
Dallin Larsen built USANA as head of sales in 1990s using the old MLM ‘promotional’ momentum strategies. Hit problems when these strategies didnt work outside of N America and Down Under. Also major integrity issues and Owner Myron steps in. A few dodgey leaders [including the No2 leader] gets sacked. Dallin says ‘you need me, pay me more’. Myron says goodbye.
Dallin creates mona vie riding on back of juice boom lead by Noni, Xango.
Growth was poor because old style MLM promotional stuff does not work in USA any more until he gets lucky…
Meanwhile top US Amway leaders ‘Brig Hart’, Orrin Woodward, etc in huge fight with Amway corporate as Amway knows the days of the Diamonds making 90% of their income out of selling seminars, books, tapes, etc are over. Law suits flying…
These guys decide to move and pick Mona Vie.
They apply the Amway ‘system’ to a simple pitch and boom like Mona Vie and probably could not believe how easy it was [after trying to push the Amway brand and endless products]. They get taught the ‘MLM Promotional’ stuff and the rest is history.
The hype is massive, the growth is massive and they nearly hit $1bil in North America.
YET the buzz of an Amway style juice company does not work overseas. Larsen doesn’t know how to do it as he flopped internationally with USANA [except for Australia which was built by the Horkings anyway]. The US Amway boys haven’t the international experience or they would never try and export that creepy american message.
The reality is that few are making any money in MonaVie except for top people which the statistics reveal. Thus a $400mil implosion.
Thus Larsen is doing a huge restructure with a big push on international right at the moment. It is smart yet if they use the same strategies, the world will not be impressed. Us, in SE Asia have seen so many companies like this.
This company is built on hype and the Amway guys would not be used to the world questioning their claims as Amway people live in a bullshit bubble. They just dont want to answer Ted because it would be admitting a massive business collapse. And they guys are Merchants of Hype.
They have size, resources and people. They will sing their story in 50 countries now over the next 5 years hoping to strike it big somewhere big like a Russia, Japan, etc.
It could happen yet they wont do it in Asia. We just dont think the juice is worth the price and we have heard it all before.
Japan are unlikely to want this, they have already flopped in Western Europe and had compensation plan banned in Germany.
Maybe Russia?
Mostly they will head south and try and make it big in Brazil, etc. Their problem is that their product is based on a fruit that is common and cheap in Brazil so they will struggle keeping volume.
Basically Mona Vie will struggle getting international momentum and, based on their product range and growth strategies, are highly unlikely to ever get up with multi-billions of herbalife.
Larsen, Hart, Woodward and crowd are world class at the old school MLM promotional networking. Problem is that this does not seem to work or at least last any more. They made their millions, their challenge is that they have proven that they are not the men to that this company forward internationally.
Hey that’s why we have the new style MLM leaders taking charge like Mike Hernandez, Calvin Becerra and some great Canadian Leaders. These guys are true mlm leaders who always keep it real, never sugarcoat and use online methods and personal relationshipping to build. That’s why they are still here and will always be here. These guys were not at the top of the tree and did not sign up until three years after Monavie came into existence. They are real, true networkers. I have seen these guys build and REBUILD their businesses, never jumping and always staying faithful.
Hi people !
Im from Japan, Mona is rocking here, but, like many brazilian distributors, we know that is one more juice on the market. I have friends and parents in Brazil and really, is not a GREAT MEDICINAL JUICE, we have natural and better mix juices for 1/20 of Mona price sold in any bar or restaurants !!! To us, looks like a expensive Juice, like a “good wine”.
But, the sensationalism that mr Larsen (he is a mart guy), he created around the products not from distributors, but television mass media and money power to manipulate the peoples minds is the main factor of your company success.
I want to see more companies with real and good products like Usana or 4Life, (all in phisicians desktop reference) couse really works, and not, good TV shows and TV soppings propaganda (too much marketing for one single fruit juice).
Isnot about how much money we or anybody can do, but, what our customers really needs. Good products.
Ted, Congratulations for your blog. Is very good for all to know facts, micts and fakes. And off course, the opportunity to us discuss about any posts to exchange info with and to all people giving to us, the possibility to choice the best, ever.
Is not about million dollars hit makers, is about you, and me, the average Joes, doing 2, 3 ~ 5.000 / month or more distributting good and really needed products from our customers base.
The Monas financial success come from the right business strategies combined with right propaganda + right market timming for many old styles (amway/herba/etc) professional networkers that migrate to Monas in same time. Good for them.
Other Juices companies are here and running fast with systems more easy to understand, without obligations like Monas systems have. Jus21, Zenza, Nonis, etc….
The point is… how much time they can maintain your groups, when the magic is gone and average Joe feel in your pocket and your bodies that is not to him and to your customers..
Thanks again for Ted, Good luck to Monas distributors, and prosperity to all.
Ted,excellent article. I am a bit insensed by the other marketers bashing MV. I make decent $ with MV. And love what the product has done for my body.To often people will criticize to cover for their own shortcomings. Your points are well noted,but I’m also hearinh alot of rumor and hearsay from some others. You yourself are estimating revenue from 2010 between 5 & 600,000,000.00. 100,000,000.00. Is a large discrepancy on your part.It does sound like you yourself do not have the definite numbers and are making assumptions. I do appreciate that you are a person who Ctually thinks about information presented. Interesting article,even more interesting responses.
@Ted: I thought I would put my 2 cents in to help everyone understand the latest IDS put out my Monavie. In order to get a grasp on this document I believe it would be helpful if we first understand the previous IDS that was released in June of 2009. I have included an excerpt from an analysis is did on this document earlier this year. It reads as follows:
According to Monavie’s last Income Disclosure Statement (June 2009) there were approx. 2,268,721 distributors signed up in MV. Out of these there were ONLY 92,708 distributors that actually got a check for MV. That means that only .04 % of distributors got paid. Half of these 92,000 got paid an average of $23 a week! So more than half of the distributors didn?t even make enough to cover their autoship!
? Out of 2,268,721 distributors only 13,770 made enough money to cover their autoship assuming they bought 1 case a month. What does this number mean? It means that 99.994% of people in MV lost money (OR DIDN?T MAKE ENOUGH TO COVER THEIR 1 CASE AUTOSHIO). (this number is based on the assumption that all 2+ mill were on a 1 case autoship, which they weren?t but if we assume that MV was retaining 50% autoship it still only doubles the number to .012% making enough to cover autoship. That?s 99.988% losing money. Let?s convert that number to a reasonable expectation of MV retaining only 30% autoship numbers. You would have .02% making enough to cover a 1 case autoship meaning 98% of people in MV lose money!
But you say ?how is that possible Mike?? This is how: MV paid out approx. $370 million in commissions that year with 53.5 % of those commissions going to the top 2.75% of distributors! Here?s another eye opener for you: $141,675,133 or 37.4% of those commissions went to the top .4%! That?s right, not even 1 half of 1 percent gets a huge chunk of the money!!!!
MV?s IDS is probably the best thing that ever happened to this industry. It?s all there in black and white. This gives one the ability to see what is truly going on. You just have to know how to read it and what the numbers really mean. I believe these numbers also reflect what the wealth distribution is in 99.5% of all the Network Marketing companies in business today.?
NOW: before you start to lecture me on how most people get in to MLM NOT to make money BUT to get their product at a DISCOUNT (like my buddy Troy Dooly says) I will point out to you that on MV?s own document in the fine print is says ?The average annualized income for all distributors during this period was $2,918.22. From JULY 2008 to JUNE 2009, approximately 87% of individuals who executed a Monavie distributor application and agreement, and made at least on purchase in the last 12 months, are considered wholesale customers?
A couple of points: 1st this ?statement? is complete hogwash. This is exactly what the majority of MLM companies do to keep the FTC off their backs. They REDEFINE what IS and IS NOT a distributor to be able to argue to the FTC should they come under scrutiny, that ?we?re not an internal consumption model i.e.: (product based pyramid) those people are ?wholesale customers.?
2nd. let?s assume though that their statement is true. What they are saying is that 13%of the people who executed an agreement were in fact business builders. From July 2008 to June of 2009 approx. 915,590 people executed said agreement. Multiply that by 13% and you have 119,000 business builders. Of these ONLY 13,770 actually made enough to cover at least 1 case. Do the math. That?s 88.5% of actual business builders FAILING to make any money. The real numbers, I suspect, are far worse than this.
And why is that? It?s a mathematical equation. In MV?s comp plan 1 in 31 can break even. That?s 3.2% In other words, that?s a FORCED 96.8% FAILURE rate. Statistics may lie Ken Stewart, MATH DOES NOT.
Enter the 2010 IDS. The first thing that should be pointed out is that every prior IDS had as it first column the ?Average Number of Distributors Paid at This Rank? Let me explain. An ?achieved rank? and a ?paid AS rank? are two entirely different things. When I hit Ruby in Feb. 08 I believe there were about 350 Rubies if my memory serves me correctly. The average ?paid at this rank? 07 was 71. In 08 it was 146. In mid 09 it was 145. Now I have no idea how many Rubies there were in June of 09 BUT as of today there are 1097 Rubies listed on http://www.monavieonthemove.com under field leaders.
How many Rubies do YOU think are getting paid as Rubies on that list? How about Emeralds? Blue Diamonds? Starting to get the picture?
When you look at the 2010 IDS the first thing you notice is that the first column has been deleted and a new category added to the end. And what did they replace it with? Irrelevant information (my opinion) So what can we conclude about the 2010 IDS? How do we understand it? The truth is, we can?t. Not without that first column. The data is almost impossible to interpret without that column.
Question: Do any of you think this was done by accident?
There is a lot more going on then just a normal ?leveling out?. There are other factors than just ?the economy.?
Here is some more MATH for you. In 08 MV added approx. 913,000to it?s rolls. In 09 is was 969,000. In ?10 it was 562,444 and for this year 221,000 so far. The first 5 years of growth was predominately in the U.S. These numbers reflect a 45.6% decline in enrollments. And this doesn?t begin to cover the attrition rate. All one has to do is follow the weekly rank advancements on monavieonthemove.com and they will see that 85-90% of the rank advancements are out of the U.S. market. Like I said, that?s not flat lining, that?s a nose dive off a cliff.
All these numbers do is prove that this type of compensation plan (a few at the top making money at the expense of the masses) is UNSUSTAINABLE. Monavie grew so fast that we now have an entire generation in the U.S. that will probably never get involved with this company.
Sam Singapore has probably posted the most intelligent discourse on this topic so far. Thanks Sam!
Ted
Once again you are right. I am a Monavie Distributor. I have talked to several Black Diamonds and these numbers are what they are. The compensation plan is designed to payout 50 percent. That does NOT mean that is what is happening. Here is one of the reasons why. The average distributor gets paid maybe once a month not weekly. One of Dalin’s brothers has personally showed my that you need 36 weak leg distributors just to break even. He also let me know that his autoships are down around 75 percent for this year. Enrollments are down and corporate has refused to listen to good ideas from top earners to fix the problem. It is sad for a product that does so many myself included so much good.
Man, this is just speculation and personal opinion with regards to Monavie revenue. It gets people to read this stuff so they click through on the ads.
My question to the admin that posted this, where did you get your 2010 sales figures. MonaVie is a privately held company, their detailed sales figures as in every other privately held company are confidential and not public.. You are merely observing from your personal vantage point. It’s like standing on a flat plain, looking all around in a 360 circle and then declaring the earth is flat because ii looks flat from your vantage point, so infact the scientists must all be wrong because it looks flat to you.
JV
@ JV: Monavie’s 2010 sales figures is not the topic of this thread. The topic is the 2010 IDS and what it means. Your comment and analogy are completely irrelevant.
BTW Ted’s numbers as far as gross income are no doubt right on the money
I’m finding a lot of this hard to believe. You can interpret numbers MANY different ways.
And, Dallin Larsen won the Ernst & Young Entrepreneur of the Year Award….I doubt that such a respected organization would not due their research and link themsleves with an unworthy company.
All this networking companies are cheaters, better to pay little more or less and buy what we need and enjoy. Instead of taking joining this network and forced to drink this without any other alternative. Finally the owner is making money.
Lucky charm is very right:
I was taught at the age of 12, there are lies, damned lies and statistics! Numbers alone should not be given full weight without context, nor should speculation and heresay be credited as facts when they are subjective comments. Also, as MonaVie is a company offering the same opportunity to everyone, they shouldn’t be criticised for people signing up disingenuously as ‘distributors’when in reality, they were only ever going to be ‘drinkers’. Those who wish to can build a business, those who choose not to are free to drink on the cheap. I think people criticising the company should look somewhat closer to their own front door and assess their motives for becoming a ‘distributor’ rather than a ‘drinker’.
Ernst and Young is a hugely respected top 3 Accountancy firm in the UK. I think they will have done appropriate amounts of due-diligence prior to awarding the prize to Larsen. All business have peaks and troughs… take a look at Apple’s history. It wasn’t so long ago that people wrote it off and it was technically bankrupt.
It took me 6 months of drinking the juice before I signed up. The only reason I did is because the glucosamine content in the MonaVie active saved me $100,000 on a back operation, as my cartilage reformed. Rather handy as post breaking my back, L1-4, I was on Voltorol and Tramadol (legalised cocaine pain killers), and now, yes I accept if I stop drinking MonaVie and the plant derived glucosamine contained therin, I’ll have hideous pain issues once again, but frankly, if my choices are general anaesthetic and serious back op, or drink a delightfully healthy drink that reduces my cocaine consumption and increases my quality of life, I’m gonna choose the juice. End of.
I’d urge all contributors to consider the above and then try to evaluate and critique objectively.
Respectfully, Anna. (UK based contributor, former Fund Manager, successful (well £3m sale of business) self starter and full time mummy of 2 children and evening networking professional who drinks, distributes, trains and encourages others to become who they choose to be).