Is VeloVita A Scam Or A Great Money Making Opportunity?
You’re reading this blog post because you’re wondering is VeloVita A Scam and can you make good money with this company?
VeloVita is a fresh multi-level marketing business to launch in the nutrition and health market.
This review is going to help you decide whether to get involved and you if the company is legit or not.
You will find out if VeloVita is the one for you as you read the review.
Let’s get started!
Is VeloVita A Scam – Some Facts About The Company
The company is a new MLM business launched in April 2020 that has a single item called Bran.
It is a Nootropic that purportedly has advantages for your energy levels and brain.
What Are Nootropics?
The following is an excerpt from an article published on WebMD:
Basically, reputable doctors are saying that nootropics that aren’t prescribed by a physician are for the most part just a placebo, or a substance that has no therapeutic effect.
You Have To Personally Decide If The Benefits Of Nootropics Are Real Or A Placebo
There are some decisions you let people make on their own.
This is one of them.
If you are a believer in brain nootropics, Bran wholesales for $64.95 a box at the time of this writing.
Also, y
You get 24 single-serving pouches wholesale for $64.95 a box.
One point I really like about this company is the focus on a single product as opposed to many different ones.
This product could be sold through an eCommerce website without going the multi-level marketing route.
Even better, you can drop-ship items through an eCommerce site and the company will take care of the shipping.
When this is done, you’ll earn 10% fees on every sale.
For your information, their product name “Bran” is pronounced “Breyn” or “Brain”
My point is this product, Bran, can be sold via eCommerce without the difficulties associated with network marketing.
Nevertheless, Bran is a costly product and with the popularity of comparison shopping thanks to Amazon, it’s not going to be an easy sell.
Personally, I don’t have a problem paying more for a superior product, but many people won’t view it that way.
However, there are some other issues you may want to consider.
The Company Founders Have Previous Experience With Network Marketing
The founders are Jeff Mack and Kosta Gara.
Gara was active with an MLM called iGalen that recently buckled after it was sued.
Mack has MLM experience as well. He was formerly Vidacup’s CEO, which also shut down.
To be honest with you, the fact that both of these men experienced failure in their previous companies doesn’t mean they don’t deserve to try again.
Actually, their failures could benefit the company if they learned from them.
Similarly, i
Therefore, if this is a
You Can Purchase The Product Via Retail Which Is A Very Smart Move
Personally, the single best thing the owners did was make this product available by retail WITHOUT having to become a distributor.
That one decision will keep the Federal Trade Commission off of its front door and out of the pyramid scheme territory.
VeloVita has a legit retail product and in order to qualify for commissions, affiliates MUST have retail customers that buy the supplement.
This was the problem with Digital Altitude and M.O.B.E. (My Online Business Education)
They had NO retail sales outside of the company which the FTC determined was a pyramid scheme and shut them both down.
Also, it seems both Mack and Gara are determined not to go that route which proved to be a very smart move.
You Can Make Money As An Associate or Through eCommerce
There are a couple of ways for making money.
You can become an associate.
This is different from MLM and you can drop-ship Bran through your eCommerce site.
People buy items from your site and the company ships it.
Also, there are no fees in becoming an associate and you will get 10% fees for every sale you make.
Next, you can make money as an associate. Associates buy items in bulk and sell them personally.
You can also recruit people under you where you earn fees off of their activities.
VeloVita Has Very Few Red Flags And The Company Seems To Be Solid
You don’t have a lot of red flags with VeloVita that many other MLM businesses have.
Other MLM businesses in the health and wellness niche provide items that cost more than the public is willing to pay.
How many individuals have you known who would want one $65/month brain additive?
However, if the product is really good I don’t have a problem with it, but there are many people who do.
Especially those individuals who comparison shop on Amazon.
If you are looking at selling physical merchandise and also enrolling people in your network you will be paying $49.95/month.
When you sign up, you’ll have to purchase Bran for yourself.
The Commission Structure Is Complicated Just Like Other Network Marketing Companies in the Health Niche
I do not go into detail about compensation plans in my reviews because I’ve chosen to let you research that on your own.
However, I will try to give a general idea of what to expect.
When you enroll, the larger you buy the higher the refund you receive and the more commissions you receive. There are 4 choices when you enroll:
- 1 Bran Box of ($64.95) for an Advocate
- 6 Bran boxes of ($324.75) for a Promoter
- 12 Bran boxes of ($649.50) for an Influencer
- 25 Bran boxes of ($1299) for an Ambassador
The company’s compensation plan is regular in MLM businesses and is 23 pages in total.
If you are new to the MLM business world, it could be very hard to decipher what the program says.
I’ll summarize the important points so you will be able to understand them more clearly.
Retail Sales Are Encouraged
It’s the variation between the bulk prices you purchase for and the regular prices sold to people. More purchases mean bigger discounts for you.
Furthermore, you can drop-ship through your site without any expenses and make a 10% fee. The company will do the shipping for you.
VeloVita Has 6 Different Associate Ranks
The company has six different associate ranks that you will be able to achieve. You jump from one position to another after achieving certain sales goals.
Also, you will receive bonuses when you jump from one position to another.
These are the positions:
- Affiliate
- Star
- All-Star
- Rock Star
- Super Star
- V-Star
There are various commissions, bonuses, and fee structures: I will not go into specific detail in this review because it’s long and complicated.
- Referral Commissions
- Affiliate Commission Qualification
- Retail Commissions
- Referral Commissions
- Residual Commissions
- Matching Bonuses
- Lifestyle Bonus
- Quarterly Partnership Bonus
- 5 Year Retirement Bonus
- Referral Fees
- Residuary Fees
VeloVita pays residual commissions through a binary compensation plan structure.
A binary compensation plan has YOU at the top of the binary structure and splits into two sides (left and right):
The first level of the binary has two positions.
The second level of the binary splits the first two positions into another two making it four in total.
This keeps splitting unlimited lengths deep, but an MLM will have some kind of cap on this.
These can be filled up directly or indirectly by team members.
Also, at the end of every week, VeloVita adds up all the investment sales volume on both sides of the binary team.
Residual commissions are paid based on “cycles”.
A cycle is produced when 200 GV in sales volume on the weaker binary team side is matched against 400 GV on the stronger leg.
This will cycle out to $30.
Your Commissions Are Based On Your Rank And Your Sales
Residual commissions are capped based on rank:
- Stars can earn up to $6000 a week (200 cycles)
- All-Stars can earn up to $12,000 a week (400 cycles)
- Rock Stars can earn up to $27,000 a week (900 cycles)
- Super Stars can earn up to $54,000 a week (1800 cycles)
- V-Stars can earn up to $120,000 a week (4000 cycles)
Lifestyle Bonus
This bonus is weekly and is paid out to Star and higher-ranked members.
- Stars receive $125 a week
- All-Stars receive $250 a week
- Rock Stars receive $500 a week
- Super Stars receive $1250 a week
- V Stars receive $2500 a week
If you want a better idea of how the compensation plan works, Click Here to watch a video explaining how it works.
Is There A Better Way To Make Money Other Than Multi-Level Marketing
Even with great products, getting retail customers could prove to be a challenge if you don’t have great promotional skills or a structure in place already.
Regarding an MLM business, VeloVita is really better than the others I’ve reviewed on this blog.
The merchandise is relatively strong, their fee plan is firm, and you don’t really have any red flags that other MLM businesses have.
However, my reviews are focused on the MLM or network marketing business model and its overall success rate.
Multi-Level Marketing Will Not Provide The Best Platform For Success
Many people who try MLM businesses end up falling through and it’s not their fault either. This is how these MLM businesses are.
The reality is you’re not giving yourself the best possibility of financial success with the multi-level marketing business model.
Take a look at these startling statistics:
- According to FTC, 99% of all MLM participants lose money
- The chances of profiting by starting your own small business are 38% more than by joining an MLM
- The profitability rate of running an online business is 10% – 20% higher than the profitability rate of joining an MLM
- According to AARP Foundation, 47% of MLM participants lose money and 27% make no money whatsoever
- Among the 26% who actually earn a profit, 53% of them earn less than $5000 a year
- 39% of MLM participants quit because pitching products and services to friends and family jeopardized their relationships
- At least 50% of MLM reps quit within 1 year after joining an MLM and 95% quit within 10 years
- 75% of those who have joined and left an MLM state that they would never join another MLM in their life
- A 2018 poll of 1049 MLM reps across various companies found that most of them make less than 70 cents an hour,
- 20% of them never made a sale
- 60% of them had earned less than $500 in sales over the past five years
- 32% of them acquired credit card debt to finance their MLM involvement
The Above Statistics Are Sobering
The statistics above highlight the fact that multi-level marketing is not a good business model
Also, it’s a fact that trying to make money as a MLM rep is never as easy as your upline or sponsor makes it out to be.
I’m NOT an affiliate for VeloVita. The problem is not with the company’s products but with the MLM business model itself.
The above statistics are a reminder that it can be quite difficult to make a life-changing income with multi-level marketing if you are an average person just joining the business.
Building Your Own Affiliate Marketing Business Is The Better Way With Wealthy Affiliate
Here are 10 reasons why you should build your own affiliate marketing business with Wealthy Affiliate: (I can think of many more, but these are the ones that come to me immediately!)
99% of people who join MLMs end up losing their funds instead of making profits.
This is something nobody will tell you when they want you to register under them.
There are lots of reasons for this, but the two major ones are:
1) Overpriced offers
2) Difficult recruitment
Getting others to join in this age of COVID-19 will not be an easy task.
Social distancing and plain outright fear will make normal recruiting activities extremely difficult.
To be successful on any MLM, you will have to recruit hundreds of people to register under you.
Are You Good At Recruiting People To Join A MLM?
How many people can you even recruit?
Making money through MLMs is very difficult, especially during this time of the COVID-19 pandemic.
Furthermore, o
Most MLM organizations are accustomed to holding in-person recruiting or “opportunity” meetings in order to bring new people on board.
That’s going to be increasingly difficult for the foreseeable future.
Similarly, you have to consider the economic situation of the people you’re trying to recruit.
However, even if there were no “pandemic”, multi-level marketing is a bad business model.
From my perspective, there are rocky times ahead for the MLM industry!
This is why I enjoy affiliate marketing; you won’t have to deal with any of these frustrating situations because you’re building a digital business.
With affiliate marketing, your entire business is run from the comfort of your home.
It’s a digital business.
You manage your business from your laptop or desktop computer.
Building my affiliate marketing business with Wealthy Affiliate was one of the BEST decisions I’ve ever made.
Create a FREE account at Wealthy Affiliate and see for yourself how simple the process is toward building your own affiliate marketing business.
If you want to read about fantastic success stories of ordinary people creating extraordinary incomes without multi-level marketing, read the following post:
Keep in mind one other unchangeable fact:
The ONLY way your financial situation changes is YOU have to make a decision that you want it to change.
Unless YOU make a decision that your life has to get better financially, it never will.
The choice is up to you, my friend!
Talk Soon,
Howard
