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Posted on January 13, 2018

MonaVie was known as a multi-level marketing (MLM) company, once said to be at the top of the game in the distribution of supplements and super fruit juices. However, MonaVie claimed that its products would provide a variety of health benefits – including increased energy and improved joint health. They did not sell
its juice products trough retailers. They relied on a network of independent distributors who marketed and sold the products and recruited others. This fast-growing private company in from its start in 2005 had recruited 1 million distributors and a $854 million revenue in 2008.

Its products were never scientifically verified. Newsweek also reported their products were an overhyped fruit drink that eluded drug regulation by the Food and Drug Administration allowing its distributors (as opposed to MonaVie itself) make the health promises.

Wikipedia reported the MonaVie’s vitamin C level was 5 times lower that that of Welch’s Grape Juice, and for the same serving size volume as MonaVie at a fraction of the cost. Many different news sources and critics called MonaVie a legalized scam but according to Forbes, MonaVie’s business model resembled a pyramid scheme. So, the negative reviews began which eventually added to the demise of MonaVie. MonaVie fell just as quickly as it rose some of the issues that eventually brought down this MLM was poor distributor earnings, poor online reviews, misleading health claims and advertising, pyramid schemes allegations’, and litigation. In 2014 “a class-action lawsuit was filed against Monavie for deceptively advertising its juices, such as MonaVie Active, MonaVie Essential “also the plaintiffs claimed that the company did not warn consumers that the juices had ingredients such as
arsenic and lead which could lead to a variety of heath problems.

MonaVie defaulted on a $182 million loan and foreclosed in 2015. With the company struggling financially in 2014 the three original founders announced their retirement, they were Dallin and Randy Larsen and Henry Marsh… Did you know that MonaVie sold its Acai Juice: cure-all or marketing scam? For $40 a bottle while pitching this – better health from drinking its juice. Furthermore, fewer then 1 percent of MonaVie’s distributors qualified for commissions and of those, only 10 percent made more than $100 a week.

MonaVie never disclosed the dropout rate, according to a top recruiter is around 70 percent. Unfortunately, the failure of MonaVie, and the feeling that their business models are nothing more than a pyramid schemes – tarnish the broader industry of direct sales. Many direct-selling organizations are not MLMs and have sold reputations, sound business models, and practical products lines. Wikipedia goes into more detail of MonaVies problems and issues.



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