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Thread: The Vemma Scam

  1. #1
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    The Vemma Scam

    http://ethanvanderbuilt.com/2015/09/...run/#more-7524

    Here is what the Temporary Receiver discovered:



    Vemma worldwide operations incurred net losses of $1.3 million in 2014 and $4.1 million for the six months ended June 30, 2015.

    Approximately 86% in product sales were sold to Affiliates and only 14% were sold to customers between January 2013 and August 2015.

    More than 94% of the active Affiliates received less than $500 per year between 2013 and 2015, which represents less than 8% of the total commissions paid.

    For the affiliates who received commissions, more than 73% did not earn enough to recoup their investment in the Vemma programs.

    In light of the restrictions in the Temporary Restraining Order against paying compensation related to the purchase or sale of goods or services unless the majority of the compensation is derived from sales to or purchases by non-Affiliates, restarting any form of business operations could no longer be considered.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  2. #2
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    Re: The Vemma Scam

    How many of those Affiliates are just customers? Without those numbers your "info" is worthless
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  3. #3
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    Re: The Vemma Scam

    None. They were registered as distributors.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  4. #4
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    Re: The Vemma Scam

    That's not what I asked and you well know it. I'll put it another way: how many of those who registered as Affiliates are just customers?
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  5. #5
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    Re: The Vemma Scam

    Who cares? And it's not my info. This is part of the reason why the FTC shut them down.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  6. #6
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    Re: The Vemma Scam

    Who cares? The FTC and Vemma will care because motivation to buy products is a big pointer to whether or not Vemma is a pyramid.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  7. #7
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    Re: The Vemma Scam

    Then it will be in Vemma's best interest to produce the numbers you are hoping to find.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  8. #8
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    Re: The Vemma Scam

    against paying compensation related to the purchase or sale of goods or services unless the majority of the compensation is derived from sales to or purchases by non-Affiliates


    It will be great if the ruling stands that the majority of sales need to come from people not in the MLM for the MLM not to be ruled a pyramid. That is a clarification the has been needed for a long time by the FTC.

    Seems pretty clear that is what this ruling means, sales have to come from individuals not affiliated with the MLM, not from people who have joined it.

  9. #9
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    Re: The Vemma Scam

    That won't happen because the FTC already know that many people though registered with the company, are really just customers and take no part in building a business. They made this clear in their letter stating that the amount of internal consumption is not a worry to them, only the motivation for buying products is.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  10. #10
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    Re: The Vemma Scam

    Where can someone find a copy of the FTC's letter?
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  11. #11
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    Re: The Vemma Scam

    Geez, how many times do I have to post this letter for you on here? Don't you bother reading it?
    http://www.mlmwatchdog.com/files/FTC_Letter.pdf
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  12. #12
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    Re: The Vemma Scam

    Quote Originally Posted by ChrisDoyle View Post
    Geez, how many times do I have to post this letter for you on here? Don't you bother reading it?
    http://www.mlmwatchdog.com/files/FTC_Letter.pdf
    Thanks, you actually made my point.


    In a pyramid scheme, participants hope to reap financial rewards well in excess of their investment
    based primarily on the fees paid by members of their "downlines." Downline members pay these fees
    to join the scheme and meet certain prerequisites for obtaining the monetary and other rewards offered
    by the program. A participant, therefore, can only reap rewards by obtaining a portion of the fees paid by
    those who join the scheme later. The people who join later, in turn, pay their fees in the hope of
    profiting from payments of those who enter the scheme after they do. In this way, a pyramid scheme
    simply transfers monies from losers to winners. For each person who substantially profits from the
    scheme, there must be many more losing all, or a portion, of their investment to fund those winnings.
    Absent sufficient sales of goods and services, the profits in such a system hinge on nothing more than
    recruitment of new participants (i.e., fee payers) into the system
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  13. #13
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    Re: The Vemma Scam

    They are referring to a pyramid scheme where the only people buying ''products'' are those intending to earn commissions on those they recruit. Recruitment stops and it all falls down. I don't think you really understood what they wrote did you? All these years around the industry and you still can't determine what is or isn't a pyramid scheme. :errr:
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  14. #14
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    Re: The Vemma Scam

    Since the FTC doesn't have a specific definition of a pyramid scheme, you can't determine what is or isn't a pyramid scheme either, despite your years around the industry.

    The FTC says IBOs can be considered end users, but at the same time they will say that there also needs to be a majority of outside sales. This is where the government needs to clarify their definitions and make it clear as to what is legal or not.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  15. #15
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    Re: The Vemma Scam

    [QOUTE]That won't happen because the FTC already know that many people though registered with the company, are really just customers and take no part in building a business. They made this clear in their letter stating that the amount of internal consumption is not a worry to them, only the motivation for buying products is.[/QUOTE]

    That letter is from 11 years ago, not sure how that applies when they are clarifying the rule now. They are fixing that mistake they made.

  16. #16
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    Re: The Vemma Scam

    Since the FTC doesn't have a specific definition of a pyramid scheme, you can't determine what is or isn't a pyramid scheme either, despite your years around the industry.


    They've stated quite clearly in the letter that: ''
    In fact, theamount of internal consumption in any multi-level compensation business does not determine whetheror not the FTC will consider the plan a pyramid scheme.'' and yet you, in your infinite wisdom, are telling us that internal consumption does mean its a pyramids scheme.

    The FTC says IBOs can be considered end users, but at the same time they will say that there also needs to be a majority of outside sales. This is where the government needs to clarify their definitions and make it clear as to what is legal or not.


    Where does it say ''outside sales''?
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

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