The MLM Attorney speaks out on Rick Gutman's move to ViSalus

Kevin Thompson, the MLM Attorney recently posted about Rick's Gutman move from Monavie to ViSalus:

Kevin Thompson:

In a video post, MonaVie Black Diamond, Rick Gutman, announces his new alliance with ViSalus Sciences.  ViSalus has been making a lot of noise lately given their recent surge in growth.  ViSalus is trying to mold itself as MLM 2.0 for the younger generations…and it seems to be working.  Their recent score of Rick Gutman will certainly put them in the cross-hairs of one of the industry’s largest companies.  After watching Rick’s announcement, the lawyer in me wondered if there was going to be an issue with MonaVie’s noncompete clause.  As I was referencing their policies, I learned that their noncompete does NOT extend beyond termination of the agreement. The language can be found below.

2.3.4 Sale of Competing Goods or Services.  While a Distributor, you shall not sell, or attempt to sell, any programs, products, or services to MonaVie Customers or Distributors that compete with our Products.  Any program, product, service, or Network Marketing opportunity in the same generic categories as our Product is deemed to be competing, regardless of differences in cost, quality or other distinguishing factors.. . .

Rick Gutman, unless he’s wildly soliciting everyone in his database, appears to be in the clear.

One thing about MonaVie, love ‘em or hate ‘em, is that when the distributors leave, there’s not much litigation.  This is surprising given their itchy trigger finger when they made a legal threat at Ted Nuyten.  In August of 2010, they threatened Ted with litigation after reporting on their decline in revenue in 2010.  

Specifically, they accused him of knowingly publishing false information with an intent to defame and disparage.  In August of 2010, Ted projected a 25% decline in 2010 revenue from 2009 numbers.  They demanded that he retract his statements and write “that such statements and figures were and are false and unsupported by fact.”  Ted put the legal threat on his site here.  In the original article that got him trouble, he literally provided two numbers: $785 million in 2009 and he projected $600 million in 2010.

MonaVie alleged that a $600 million projection was “defamatory” and harmful to their reputation.  In this month’s Direct Selling News magazine, they publish MonaVie’s revenue for 2009 and 2010: $785 million for 2009 and $600 million for 2010.  The man was spot on the money…to the digit.  ”False and unsupported by fact…”  Really?

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Comments (8)

  1. Who IS RICK GUTMAN? !!!!! He is a nobody in Monavie. He rarely ever came to any functions and when he did a meeting he spoke the same speech every time and talked about owning land and being a student of Robert Kiyosaki. The guy was a one hit wonder and then eventually tried to charge people from his cross lines to be their personal life coach when he was broke himself. He hit his rank because he had his team order so much product and buy their ranks. His last big rank bought their rank too and then tried to turn the product back to monavie and get refunded. This guy is trying his hardest to find his second chance…..or third or fourth or fifth. He’s been trying for too long now. All he is doing at Visalus and on his videos is giving the same speech about that company as he did for Monavie, just switching the company name now. he should copyright his speech since he is the only one that uses it. What a joke.

  2. Rick Gutman is in my group and he is making his decision with his mind and not his heart. I have talked to persons in Monavie that are making nothing and they are still as hateful as can be. It is almost at a point that they are only thinking with their emotions. You never bring emotions into business, if you do you are bound to be blinded. When it comes to Monavie and the Binary, if you were to pay a Million Dollars for a business franchise and the person that you bought it from made the rules. Here are the rules, you will receive 25 people in quadron A and 25 people in Quadron B. Now at the end of each week we will pay you 10% percent on what your worse team did for the week. Now would you still pay a million dollars for that business? If the answer is no, then why are you in a binary because that is what you are getting. Also when i was in Monavie I had to spend $254.00 per month on two cases of juice and only 200 in volume would go in my group volume. So where did the other $54.00 go. So just think about it.

  3. ron- you an an idiot? 10% is just one of the 10 ways they pay us. Why does everyone only focus on that. For instance, this week i was paid $3,300 for the 10% comissions on my weak leg. and then i made another $4800 on the other 9 ways of earning. Get familiar with the comp plan before you bash it. I can tell you never made any real money in mlm or monavie and thats why you are so un-intelligent when it comes to the plan. The ones that know nothing only talk about the 10% team comissions, not any of the other ways monavie pays out.

  4. Hey guy’s chilax a bit I don’t know the story but little subtle attacks like some of the above can seriously damage a really great industry, times can be hard enough without us all poking sticks at one anothers credability. Peace Out as some would say and may your talents be used to improve someone in needs future.

  5. Jason: the reason people focus on the 10% is because, for most distributors in a 10% weak side binary, it’s what constitutes the majority of their check. Here’s your “10” ways of getting paid.

    1A. retail customer bonus: Really? Who’s buying this stuff retail? How many “retail” customers do you have jason? How much of your $4,800 was from this bonus?

    1B. preferred customer bonus: Again, really? How many preferred customers do you have and how much of your $4800 was from this bonus?

    2.Top Retailers Bonus: See #1.

    3.Bulk order bonus: most people ordering bulk are ordering it from one of their front line distributor positions so they can get the bonus but OK. There’s a little money there. How much of your $4800 came from this?

    4.First order bonus: a one time bonus. There’s a little money there. How much of your $4800 came from this?

    5.Star maker bonus: one time bonus. There’s a little money there. Make any stars lately Jason?

    6.Team Bonus: Here we go! 5% matching volume OR 10% on your weak side. This is where the average distributor makes the BULK of his money. We already know what you made.

    7.Can’t quite figure this one out. The desciption appears a little vague. Do they pay you for actual “growth” or for maintaining your paid as rank/sitting still/not going backwards? How much of your $4800 was from this pool?

    8. Executive Check Match: MOST distributors will never see this money. It becomes something to talk about only after the diamond level. At Ruby it’s negligible. The bulk of your $4800 probably came from this bonus.

    9. Leadership Bonus: Paid at Blue diamond and above. Break any blue diamonds in the U.S. lately?

    10. Multiple Business Centers: NOBODY’S doing this anymore. You should have “9” ways of getting paid.

    So you see Jason, Ron is not an idiot. Since you?re calling names here perhaps you should Go look in the mirror.

  6. I just joined Visalus! I love it! I have only been a distributor for 11 days and I already have close to $200 in FREE product for next month, disappearing autoship! That’s right, I don’t pay anything next month for my product and it’s FREE! I couldn’t get that in MonaVie. It’s incredible. I even have paychecks coming to me so far for about $70.00. I only paid $49 for my distributorship and $49 for my first months product. So far I have already profited! What I liked was that the product really works. I actually lost weight and lost it so quick it’s amazing. My daughter loves it and she wont take vitamins but she loves her shake mix that taste like cake mix. This company rocks! The product is incredible and I’m actually making money in my PJ’s! Yes I haven’t left my house, so far all my sales have come from facebook!

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