Friday, August 24, 2007

Monavie fans: Bill Clinton, Wolfgang Puck and more

The only "comment" to my request for which companies to review as "scams" or "legit" was for "Monavie", a fruit juice MLM.

Today CNN Money.com featured a story about the controller and former CEO of Viacom, Sumner Redstone, drinking Monavie and calling it a "miracle drug". Unlike wild claims from MLM distributors, when a guy worth $8 Billion dollars and who isn't an investor in the company makes a statement like that, it makes you stand up and take notice.

Mr. Redstone apparently has turned Bill Clinton, Michael Milken and Wolfgang Puck (and interesting trio) into fans of the fruit juice according to the CNN Money article.

Monavie is similar to Noni, Xango and Goji in that it is a fruit juice sold via MLM, however, Monavie is the newest of these names, and is the only one of the three that bases it's drink on newest health craze, the Acai Berry. While Monavie is a private company, they apparently have over 500,000 distributors after just 2.5 years. That's a shockingly large number in such a short period of time.

One reason is probably the "no" answers you get when I ask the 6 basic "legit" or "scam" questions of any MLM which are:

1. does it require you to buy "business centers"? ($39 distributor fee - and you can't buy extra "spots" or business centers)
2. does it pay you if you sign up a distributor? (no commissions paid on the $39)
3. does it require you to buy marketing web sites? (no)
4. does it require you to pay for training or motivational material? (no)
5. does it require large up front inventory purchases? (no)
6. do they force you to cancel in writing or over the phone? (no)

With 84 year old Billionaires calling it a "miracle", and a very easy business to enter or exit... the only problem Monavie could run into is if it's distributors make claims like Mr. Redstones. Calling it a "drug" or making product claims will definitely get them in trouble with the FTC and FDA... just ask Mannatech whose distributors got caught on tape in a June 1st 20/20 investigation, has a class action suit against them from 2005, and in July of this year the Texas Attorney General began a suit against Mannatech for "operating an illegal pyramid scheme" and "making false product claims".

MonaVie's founder Dallin Larsen is also quoted in the article and definitely distances himself from Mr. Redstone's "miracle drug" statement... but that's still where nutritional MLM's get into the most trouble.

Digg!