Categorized | Monavie

Black Diamonds Leaving MonaVie?

I get the sense that the $250 autoship and the "binary creep" is catching up to the once high flying MonaVie.  Binary creep has to do with the company getting in a position that they are paying out too much money so they must do a couple of things to stop the bleeding.  According to MLM compensation plan expert Rod Cook, companies like MonaVie sometimes have the following issues:

Everybody in the Binary has to be penalized by "Pooling." That means that the total allowable % of payout is put into a pool and the number of distributors generating matching commission pay points are divided into it. That drops the amount of everybody’s checks and usually starts the decline of the company.

The products or services sold in the Binary have to have a CV (commissionable volume) reduction put on them. Other wise if a product sold for $20 in a new Binary that amount would be put into the Binary for payouts. After CV (sometimes called BV or Bonus Volume) the product still sells for $20 put only $15 goes into the Binary for pay purposes.

I think the MonaVie Energy Drink pays out about 50% CV on the dollar….that is approaching Amway numbers.

When these things start to take place, some leaders get restless.  There teams are shrinking and no matter how hard they work, the team can’t be replaced as fast as they are quitting.

Let’s look at some of the evidence suggesting that MonaVie is sliding…

1. Black Diamonds are leaving. I’m not going to go into who is leaving and where they went, (perhaps another post), but they are leaving.

2. The number of new rank advancements in November was tiny when you consider the sheer numbers of MonaVie reps.

3. MonaVie never hit $1 Billion in sales in 2008 like they talked about.  The sales were big, over $800 million but I haven’t heard a whisper about 2009 sales.  I suspect that those will not be announced.

I will be posting an article about the Binary compensation plan soon and one of the biggest points in the article is the fact that you can’t cash 100 people at the bank.  What I mean by that is the binary plan can lead to early growth because Network Marketers get excited about people being placed on "their team".  However, those people very rarely lead to income and over time the luster of having a team will fade when the $8 a month income gets compared with the $250 autoship and another $100 in tools.

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9 Responses to “Black Diamonds Leaving MonaVie?”

  1. Hey Ty

    Thanks for this information.

    As this decline seems imminent is there anything that Monavie can do, should do, will do to stop the binary creep?

    Dwayne

  2. Jami says:

    I left Monavie a long time ago .. for Isagenix. products are better and more desireable and they are constantly opening new markets . Compensation plan is also superior , and I thought why put all my time and energy into a company who doesn’t have
    the best products
    the best compensation
    most innovation ( the social media tools are AWESOME)

  3. Steve says:

    I knew this was coming Ty! Let’s look at who is leaving MonaVie. First, Robert Dean. Big surprise. Robert took a big check to move to MonaVie and then took a big check to join Evolv. He wanted to be the “top dog” and knew it would never happen at MonaVie.

    Next, Jenny Sack. Again, when you have a several million dollar check staring you in the face, I think it would be hard for anyone to turn down, no matter how much they like their company!

    Neither of these distributors were the faces of MonaVie and any Black Diamond of real significance has turned down those big checks.

    As far as MonaVie’s growth, obviously it’s got to slow down at some point, every company does. And let’s not forget that last year was one of the worst years for our economy in history! And for most MLMs, their biggest growth years come after year 10. MonaVie is 5 years old. It’s the old “S” curve. So let’s not lead people to believe that this is some permanent “slide”.

    As for the compensation plan, the only changes MonaVie has EVER made have been to the benefit of the distributor. They just added a 9th way to get paid and some other incentive programs running over the next several months.

  4. "UNI-LEVE says:

    This is all very interesting information. Great products and company, but it sounds like it’s the nature of a binary apparently? I;m new to the networking industry, but will still carry the products in my offices and educate people on the benefits. I started diversifying into the weight loss industry with $100 million a day spent in this industry and 66% of our population being over weight, I should have done it sooner for the health of my patients. If you have ever dreamed of truly sharing in the global growth of a new company, you owe it to yourself to check out our Compensation Plan. No more stressing over strong legs and weak legs, no waiting for someone to reach a certain title so that you can qualify to earn more commissions, or worse, having their advancement cut you off from some of your hard earned commissions, and no more stress at the end of each month trying to ensure no-one drops in title and keeps you from a major portion of your monthly income. With a new and unique global compensation concept that immediately allows new Distributors the ability to grow their organization and become a “partner” in this global business model, enables everyone to share in the global growth of our company. This is not a binary it is one leg and one team working together. I think Monavie should have gone into the weight loss industry at the beginning of 2010.

  5. In my opinion, I would only join a binary comp plan when it is hybrid. Bynary AND Unilevel commissions…

  6. Vision4ever says:

    very interesting information…thank you. so what is your prediction? I have heard there are more black diamonds leaveing soon to join Xowii??? is Xowii any different than Monavie? Will Monavie Be around in 5 years? Who are the rest of the Black Diamonds leaving…? thanks for your insigts and your post! God bless!

  7. Jason says:

    WOW! I didn’t know that a 9th way of getting paid had been added to the Mona Vie comp plan!

    One thing about Mona Vie that I like is the fact that they only change the comp plan in favour of their distributors – it’s written in the company’s constitution.

    As far as any comments about Mona Vie sliding into decline are concerned, these are clearly unfounded. The fact that in the 1st 3 months of this year (2010) they opened in over 3 more countries and are set to open in several more as the year progresses. Sounds to me like the company are in a growth period, rather than a decline.

    I don’t know about Black Diamonds leaving. You’re always going to get people leave an MLM for something else. The grass is always greener on the other side of the fence, for some.

    One thing I am always wary of is when people start criticising a company (usually their former company) and trying to muddy it’s reputation. Usually such disparaging comments cannot be backed up by hard evidence & it’s just an attempt to raise the profile of the person’s new company or biz opp. Personally, I feel that such a practice is not only unprofessional, but also loses the critic a great deal of credibility. I for one would not look at a business opportunity where the person who introduced it to me had put themselves on a path of direct frontal attack or verbal assault against my company.

    But certainly as far as Mona Vie are concerned, I don’t think I’ve come across a company that cares for its distributors so much. Also the team spirit – even cross-line – is something like I’ve never seen before. I would have no hesitation in recommending Mona Vie as an opportunity to become involved with. Sure, it’s hard work in the first few months, but it gets easier with time. No one has ever said it’s easy (not to me, anyway) and only those who are willing to break through the initial pain barrier (like with anything in life) are worth the rewards @ the other end.

  8. Jason says:

    Mona Vie is a hybrid – Binary + Unilevel.

  9. kill Bill says:

    Check out the rank advancements on Mona Vie on the move. That will tell the whole sad story.
    Down she goes…..

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