MonaVie Review Update – Up the Superjuice Creek Without a Paddle?

Oh MonaVie, MonaVie, MonaVie, by the gods of Network Marketing what has happened to you?

MonaVieFor those of us lucky enough to have attached their wagon to a mega hyper-growth MLM money machine like MonaVie this is supposed to be the time where you sail off into the sunset and send postcards back to old prospects who never joined you telling them you are sorry they missed the boat.

I actually knew one guy who would drip on his old prospects by sending them envelopes with small quantities of beach sand and a note telling them it was too bad they couldn’t be with him on the beaches of the world.

Well as the wreckage and empty lifeboats started to float back to shore it is became pretty obvious that that ship sank.

So what happened to the MLM success story of the decade?

In a recent company review I did on MonaVie I cited them as an almost textbook case of the type of Viral Hyper-growth that is legendary in the network marketing industry. I mean let’s face it, MonaVie was a rocket ship that blasted from zero to over a billion dollars in sales in about 5 years.

That explosive growth curve AKA “Momentum Growth Curve” ,is what is always spoken about in hushed revered tones by the MLM leaders after the big opportunity meetings as they ponder the future of their company.

Yes it’s that rapid growth that creates fortunes in our industry for the lucky ones who got in early, and it keeps the rest of us pounding the phones ignoring the painful rejection form our friends and family because we know our turn is next.

But is it?

It seems that even if you have a reserved seat on that rocket it can explode and crash back to earth on you just like any other business.

That brings us to the painful discussion about the Myth of “Walk Away Residual Income”.

I know that this is heresy to speak of this, and it’s even stranger that it comes from a 7 figure earner who loves the MLM industry and who has in fact ridden those rockets.

Look if you are going to bet the proverbial ranch on your success in this industry, I feel  that you deserves to know the facts not the myths.

Network marketing is a business just like any other business and as such is not immune to the laws of business gravity. You can’t go straight up forever, once you have tapped all your easy market and reached a certain point of saturation (I hate that word) generally at about $1 Billion in sales in the US market or approximately 1 million distributors, most companies will plateau and then fall back by 15% to 25% and then stabilize.

However in some cases that fallback can be much worse.

Now that does not mean it’s over, there is still growth especially on the international front but the go-go days of 35% monthly check increases are pretty much gone.

Then there is that ugly word “Attrition”.

That’s where your traitorous downline abandons ship and promptly jumps to other deals, taking your income with them. This is what is referred to as the “Leaking Bucket” effect that I wrote about in my review of the infamous Coffeehouse Letter, called “Is network Marketing Dead?” and why the Top Tier MLM business model has become so popular in the MLM industry.

Even if a company is years away from stability there is always attrition, it happens as people lose faith in the business or just burn out, and it happens at regular intervals: 30 days, 60 days, 6 months, 1 year, 10 years, etc, etc.

Because of this effect your residual income is not stable no matter how successful you are. The truth is that if you walk away after building a successful network marketing business at some point your income will start to fall. To maintain the level of income you want you will need to keep building year after year.

But wait you say! I was told this was get rich quick and then retire!

Sorry, it’s actually a business and you have to pay attention to it and continue to run it.

But back to the main issue….

What did happen with MonaVie?

 

Well of course they hit the magic ceiling at about $1 Billion dollars and then began to stabilize and after a fallback that should have been it. However there were a couple of factors that made their business model unique that came back to haunt them and make the fallback very severe.

First, the MonaVie growth or duplication model was heavily product based and recruiting distributors through tasting parties was the mainstay.

Because of this and the way they positioned customers into becoming distributors they ended up with a huge base of distributors who were really not in the business. I believe that when the economy hit the skids recently and consumers lost jobs and had to cut back, the MonaVie superjuice got dumped.

The other factor was the aggressive product give away strategy that pretty much every business builder promoted, of buying huge volumes of the juice every month and telling everyone to give away one bottle a day.

Some MonaVie leaders it’s rumored pushed their teams to sign up for autoships of $1000 per month to feed this sampling model.

This promotional effect swelled their volumes and once again, I believe that when things started to stabilize and fall back there was no reason for the business builders to maintain that huge monthly ordering volume since recruiting volumes slowed so much and they cut back also.

The result was the ultimate double whammy!

Alas, the market giveth and the market taketh away.

From all evidence, it appears that within about 18 months of hitting their peak MonaVie had a huge unraveling of volume.

MonaVie’s Future Prospects?

Now I don’t want to give you the wrong impression here, MonaVie is still alive and kicking and by all accounts doing very well in a number of international markets, and there are a boatload of top MonaVie distributors that followed the money tree overseas and are now learning Korean, and other interesting languages.

So what did we learn class?

Well there are several conclusions you can draw from this:

  1. Network marketing is a business (a very high paying one) and just like any other business and you have to run it and pay attention to it.
  2. You should probably take a close look at the product, the market, and the duplication model rather than just base your decision on photo copies of your upline’s checks. Different types of products have different growth cycles and some work a lot better than others in the MLM universe.
  3. No matter what you do, when you are raking in the bucks, don’t spend it all. Keep your lifestyle the same and build your bank account for that rainy day. (OK so buy a sexy car or huge flat screen TV but keep it under control OK?) Too many top earners in MLM spend like drunken sailors and if the money flow stops, they’re broke.
  4. There are different business models in network marketing and each has a particular building style and set of benefits. (i.e. Standard MLM, Top Tier MLM, etc.).  Understand your options before you make your choice.

MonaVie

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When I first started using online marketing systems I generated over 3000 leads, sponsored over 50 new reps and generated over $30,000 in affiliate commissions in just a few months. For a inside look at some of these powerful marketing strategies check out my free Video Training Bootcamp

 


MonaVie

About Marc Barrett

17 Responses to “MonaVie Review Update – Up the Superjuice Creek Without a Paddle?”

Read below or add a comment...

  1. Norm McCurry says:

    Hi Mark, I really appreciate you “telling it like it is”. Of all the people that I have met in the MLM industry I respect you the most.

  2. Carl Willis says:

    Mark,

    Great no nonsense thoughts from a great veteran of the industry. Thank you for encouraging people to put on their reality glasses for a few moments.

    Carl

  3. Aaron Ayotte says:

    As always, great writing Marc!

  4. Angie says:

    Hi Mark, Thank you for this article, As a MLM person myself I really learn a lot from it.
    A

  5. Wonderful writeup Mark! Good to know that you are still involved in the industry. You are a true professional and I look forward to reading more of your writeup in the future.

  6. Randy says:

    Mark great points. The best is when things are going well, Save some money.

  7. James says:

    Very well said Mark. My sister is in Monavie. When she asked me to join and gave me a bottle, and I found out what it cost… I couldn’t understand how anybody was making any money. Especially in this economy. Well, they generated 1 Billion in sales, so SOMEBODY is getting paid. Not her though.

  8. RAEWYN says:

    great write up, fantastic straight shooter. I have reccommended that my downline and upline visit your site .

  9. Mark -great stuff here…thanks for posting. There is SO much to learn from the giant companies in the industry and MonaVie definitely set the standard to watch in terms of volume and growth. Your evaluation is right on. Every company wants growth…but how you grow is just as important.

  10. Hey Marc,

    Great post! And thanks for sharing the truth. That’s something you don’t always get from the “Leaders” in the MLM Industry.

    Isn’t it true that different MLM companies have varying degrees of fallout and therefore have varying degrees of “walkaway income”.

    I know of one company in particular (not mine so no…this is not a pitch :) ) that has a 95% monthly re-order rate. Over the course of a year this means an organization will retain about %50 of it’s new customers.

    Compare that with what I heard an industry consultant say one time about a 14% annual retention rate.

    Although there may never be 100% walkaway income…. there are varying degrees of maintenance depending on the company/product you choose to build your residual with.

    Would you agree?

  11. admin says:

    Paul, I agree. The retention rate in standard MLM depends entirely on product type.

  12. coffeequeenpeg says:

    Thanks for putting the reality of business into perspective! It is a business and must also be treated as such! Yes there is great money to be made in networking and timing and opportunity are bonuses if available.
    My link above is, i believe, one of those opportunities but as you say it is important to understand your options. Once you have that figured out and make your choice it is about offering a great product and working your business!
    The rainy day! Absolutely! A Must!!

  13. Miguel Ducasse says:

    Listen before your start making statements get your fax straight buddy there isn’t a such thing as $2000 bulk autoship my friend cause the company gives you a limit….

  14. admin says:

    Hey Miguel, thanks for the comment. Sounds like you are or were in MonaVie. I feel your pain my friend, I am not gloating here, its hurts us all when an MLM giant stumbles. My comment in the article said …”it is rumored…” so it was not a fact I could confirm. I will check out the R&R if I can download from the company site and if you are correct then I will change it. But Hey I appreciate you input, I always want to be accurate.

  15. Great commentary, Mark. The good news and the bad news about the network marketing industry is that it is a relationship business. Because of that, people tend to join a company based on the relationship they have with the person who invited them rather than on the viability of the business model of a particular company. Most people put more effort into selecting an “employer” than they do in deciding which company to join. Aloha. Janet

  16. Greetings Marc, Just discovered your site.

    A reputable business of any type will always limit their purchases to what can be reasonably sold in the near future: That includes MLMs. So, if there isn’t some sort of “70%” rule, then MLMs are bound to run into difficulties. Business 101, I would’ve thought.

    As Janet Callaway said, MLMs are relationship businesses. Once immediate family and friends have been “mined” (probably not the best lead sources, but what else can we do?) what then?

    That’s where good MLMs will have APPROPRIATE training which is current for the time, and that the management of the MLM will continually review and change as necessary.

    But then, some techniques are timeless.

    Thank you for your post.

  17. Marc Barrett says:

    Andreas thanks for your comments

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