VeloVita is the newest MLM to enter the nutritional supplement market..
If you're considering getting involved you're probably wondering if it's a scam or not.
That's what this review will answer.
Below you're going to find everything you need to know about VeloVita like background information, price to join, compensation plan breakdown and more.
You'll know if this company is right for you by the time you're done.
Let's get into it!
Price to join: $49.95 per month + a purchase Bran (VeloVita's flagship product)
Do I recommend? Not really!
Summary: VeloVita is a Multi-Level Marketing that has one product so far known as Bran (Nootropic that supposedly has benefits for your brain and energy levels).
I don't think this is the worst MLM out there and there's some things to like about this company.
For example, you can dropship the products on an eCommerce website without paying the affiliate fees and VeloVita will handle shipping for you (you earn 10% commissions on each sale)
Having said that there's still some issues.
It's going to be hard to sell this product on a retail level because it's pricey and finding people will be a challenge just like any other MLM.
If you're going to do this I would go the eCommerce route and not try to sell to people you know.
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1) What is VeloVita? VeloVita is a MLM that sells a nootropic called Bran. This is a new MLM and it launched in April of 2020.
2) Who owns this company? The owners are Kosta Gara and Jeff Mack. Gara was involved with another MLM that recently collapsed after being sued called iGalen.
Mack also has experience int he MLM world and in the past was CEO of Vidacup which eventually shut down as well.
3) How do you make money here? There's a few different ways to make money here.
The first is to become an Affiliate. This is seperate from the MLM opportunity and allows you to dropship Bran on your own eCommerce website (customer buys product on your website and VeloVita ships it).
There's no fees involved with being an affiliate and you earn 10% for each online sale.
The second way to make money is by being a Member. As a member you buy products in bulk to sell in person.
You also get the ability to recruit people to be in your downline where you'll earn commissions off their activity.
4) Are there any red flags? There really isn't too many red flags here that other MLM's have. There's some small problems in the compensation plan but you really have to see how things play out before you see if those are big problems.
Is VeloVita A Pyramid Scheme?
I don't think it is.
Some people say all MLM's are pyramid schemes but that's not true. Some are and I'm not shy about calling them out.
But pyramid schemes are pretty specific and are basically illegal in all countries.
To understand what I mean look at the picture below:
That is what a typical pyramid scheme looks like.
It can take place a few different ways and the main ways are:
- There's no product and recruitment is the only way to make money
- There's a product but the majority of a company's revenue comes from distributors buying products and not from retail sales.
There's a definitely a product here so VeloVita doesn't fall into the first category.
You are required to buy Bran products when you first sign up and while this could lead to problems but you also need to have 3 retail customers before you can earn recruiting commissions.
This is a good rule to prevent a pyramid scheme from happening.
So again, no, I don't think VeloVita will end up being a pyramid scheme.
Success Will Be Rare Here
Here's something the person trying to recruit you into their downline will never tell you:
Many studies show that 99% of people that join a MLM end up losing money instead of making money.
This is a terrible stat and it really doesn't matter which MLM you join either.
The reason for this is retail sales are going to be difficult and recruiting will be even harder.
Most MLM's offer expensive products and that's going to be the case here. How many people do you know that want a $65 per month brain supplement?
Probably not that many.
Same with recruiting. In order to make anything significant with recruiting you'll need 100+ in your downline.
How many people do you know that are going to want to start a business like this? Do you have the skills to find people outside of your friend group/family that want to be in your downline.
Here's some even more eye opening MLM stats:
This is why I stay away from MLM and do affiliate marketing instead. With affiliate marketing there's no recruiting or buying products or anything like that.
How Much To Join VeloVita?
If you're going to sign up as an affiliate and dropship this product on your eCommerce site there's no cost.
If you want to sell physical products and be able to recruit people into your downline you will have to pay $49.95 per month.
You will have to buy Bran as well when you first sign up.
The more you buy when you sign up the bigger the discount you get and the bigger commissions you get. There's four options when you sign up and they are:
- Advocate - 1 Box of Bran ($64.95)
- Promoter - 6 boxes of Bran ($324.75)
- Influencer - 12 boxes of Bran ($649.50)
- Ambassador - 25 boxes of Bran ($1299)
VeloVita Compensation Plan
VeloVita's compensation plan is pretty typical of a MLM and in total is 23 pages long.
If you're new to the MLM world it is going to be very difficult for you to understand what the plan says.
I'm going to summarize the main parts for you so you can understand more easily.
Retail sales is the difference between the wholesale price you buy at and the retail price sold to customers. The more you buy the bigger the discount you get.
Additionally, you can dropship Bran on your website without any fees and earn 10% commissions. VeloVita will handle the shipping.
At VeloVita there's 6 different affiliate ranks you can achieve and you go from one rank to another by hitting certain ranks.
You also get bonuses for going from one rank to another.
Here's the ranks:
- Rock Star
- Super Star
Qualification Requirements For Recruiting
In order to be able to qualify for MLM commissions you have to recruit two people and have 3 retail customers.
You earn commissions on all orders on personally recruited affiliates. How much you earn depends on how much you spent when signing up.
Advocates and Promoters earn 10% on all order placed by personal recruits.
Influencers get 15% commissioners and Ambassador get 20% commissions.
Residual commissions is the commissions you earn from our downline. It's paid out in a binary structure and looks like the following:
How much you can earn maxes out depending on your rank.
Here's the max you can earn at each rank:
- Stars - $6000 a week
- All Stars - $12,000 a week
- Rock Stars - $27,000 a week
- Super Stars - $54,000 a week
- V-Stars - $120,000 a week
A matching bonus is commissions you earn from bonuses earned from your downline.
This is payed out in a unilevel structure and looks like the following:
How much you earn and from what level you earn from depends on your rank.
Here's what you can earn based on your rank:
- Stars earn 5% on personally recruited affiliates (level 1), 4% on level 2 and 3% on level 3.
- All Stars earn 6% on personally recruited affiliates (level 1), 5% on level 2, 4% on level 3 and 3% on level 4.
- Rock Stars 7% on personally recruited affiliates (level 1), 6% on level 2 and 5% on level 3, 4% on level 4 and 3% on level 5.
- Superstars 8% on personally recruited affiliates (level 1), 7% on level 2 and 6% on level 3, 5% on level, 4% on level 5 and 3% on level 6.
- V-Star 9% on personally recruited affiliates (level 1), 8% on level 2 and 7% on level 3, 6% on level 4, 5% on level 5 and 4% on level 6 and 3% on level 7.
The lifestyle bonus is a weekly bonus paid out and how much you earn depends on your rank.
Here's what you can earn depending on your rank:
- Stars get $125 per week
- All Stars get $250 per week
- Rock Stars get $5000 a week
- Super Stars get $1250 a week
- V Stars get $2500 a week
Quarterly Partnership Bonus
All V Stars get placed into a pool where 1% of company revenue gets split up evenly between everyone.
5 Year Retirement Bonus
If you maintain MLM qualifications for 5 years annual fees get waived.
There's only one product here and that product is called Bran. This is a Nootropic that acts like an energy drink.
For a 28 day supply it will cost $64.95
As far as ingredients go this does seem more healthy than other popular energy drinks.
The different flavors you can get it in are chocolate sea salt, lemon drop and caramel macchiato.
Seems like a pretty strong product but finding retail customers will most likely be tough unless you have good marketing skills/infrastructure to sell already in place.
What I Like About VeloVita
Here's what I like about VeloVita:
A pyramid scheme can happen pretty easily in MLM's.
VeloVita has taken steps to make sure a pyramid scheme doesn't take place. For example, they require at least 3 retail customers before you can build a downline.
This means you can't just exclusively recruit people without trying to make retail sales.
If you don't want to pay to recruit and sell products in person there's another option for you.
You can sign up to be an affiliate and you can sell the product online. Everytime you make a sale VeloVita will ship the product and you'll earn a 10% commission.
You'll need to have an audience or know how to market online but it's a good alternative if you don't want to recruit.
This energy product is probably healthier than anything you can buy in the store.
Also, when comparing the price of energy drinks it's not that much more expensive for a month's supply.
What I Don't Like About VeloVita
Here's what I don't like about VeloVita:
Low success rate
It doesn't matter what MLM you join - more people are going to lose money than make money.
It's not even close either and up to 99% of people don't make money with MLM's.
It's hard to make retail sales and recruiting is almost impossible.
It can get weird recruiting family members and friends too.
Pay to play
When you sign up there's various options to buy products and the more you spend the higher the commissions you make on your recruit's orders.
This is known as pay to play and it's not a good practice.
The commission's you make shouldn't depend on how much you spend and to make the highest commission possible you'd have to pay $1299!
That's a big investment.
Is VeloVita A Scam?
No I don't think so.
In terms of a MLM it's actually one of the better ones you can join.
The product is pretty strong, the compensation plan is solid (besides the pay to play) and there aren't really other red flags other MLM's have.
But being a good MLM still isn't very good and the business model is one of the worst out there.
Recruiting is so awkward and it can strain relationships.
Most people that try out MLM end up failing and it's really not even their fault. That's just how MLM's are.
Here's A Better Opportunity
VeloVita isn't horrible but I wouldn't recommend that you join.
However, there's still plenty of ways to make money from home and online.
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