MLM Popularity (Avon, Tupperware, Herbalife, Monavie) and Efusjon - Costs and Benefits
71Does Popularity on the Internet equal Profits?
As many of you know from reading my other hubpage articles, I'm fairly new to network marketing and MLM business. Many of my articles came from wanting to learn and share facts about the company I'm involved with, Efusjon.
I receive lots of emails from readers of my pages, or from people I've met at Efusjon events. One of these correspondents mentioned to me that the cost of doing business with Efusjon is keeping them from joining, and offered me a look at another MLM opportunity. We all know that direct sales is a 100 billion dollar per year business and there are many opportunities. I decided to look into other MLM and/or Direct Marketing company opportunities. I did a Google search of the most popular MLM companies searched for by people online looking for ways to bring in some residual income in this economy.
TheTop 10 companies listed in the search were: Avon, Tupperware, Kirby Vacuums, Longaberger, Mary Kay Cosmetics, Herbalife, Pampered Chef, MonaVie, Partylite Gifts and Amway.
After printing out the list of companies by Internet popularity based on search, I went to the website for each company to check them out. If these companies are what people are focusing on, I wanted to see what the benefits/costs were for each. The results of my research is below. It is not extensive, but based only on 1st page Google searches for each company. I wanted to see how much I could find out about each company quickly, and then compare them to Efusjon.
TOP 10 MOST POPULAR BY SEARCH COMPANIES
1) AVON
Avon charges a $10 start-up cost to become a distributor. You earn 50% of what you sell and can be paid every 2 weeks. However, people can now order directly from Avon online, undercutting the independent salespeople. There are additional costs of catalogs, books, supplies and demos, flyers, time, gas and phone. There may be order delays. A long-term representative noted that money is good when you have 200 people buying from you and sell to 50 people per month.
2) TUPPERWARE
The start-up cost to join Tupperware is between $109.99-$330. Distributors receive a 25% commission on their sales. If they want an Internet website, it's $7.95/mos. charge. If a distributor exceeds $3K/sales per month, the commission increases to 35%. The average income to a distributor is listed at $100 per party held. This does not take into account the costs of flyers, invitations, party food, gas, phone etc.
3) KIRBY
This opportunity is selling vacuums. Kirby's website does not provide distributor details. You have to fill out a form and a distributor will contact you, or you're supposed to ask a current distributor in person. It is noted that the website says "No investment required and free training." The majority of other hits on the first page of Google search for "Kirby distributor costs" detailed numerous scam warnings and lawsuits. I am not commenting on the worth/value of the business. I am merely relating the information I found when trying to do a costs/benefit analysis on the company.
4) LONGABERGER
Lonagberger sells collectible handcrafted maplewood baskets. There is a $49-$399 start-up cost, but you get a free, personalized website. You are paid in rewards of merchandise, trips and products and commissions of 25%, plus discounts on purchasing Longaberger products. Their marketing concept is similiar to Tupperware, with the previous costs of flyers, invites, party costs etc. a factor in doing business.
5) MARY KAY COSMETICS
Mary Kay is a well-known cosmetic company, with a great reputation for compensation and prizes/rewards. There is a $100 start-up cost and a 50% commission on products sold. Additional costs include: samples, catalogs, mileage, advertising etc. Like most direct marketing opportunities, this business takes 6-12 months of hard work before it is profitable.
6) HERBALIFE
Herbalife markets weight loss and health products. Their compensation plan is structured like another older MLM company, Amway. There is an $88 start-up cost, plus a 25-50% discount on products. An annual report by the company shows that 36.4% of its distributors earn $440 per year. 2.7% earn $4K/yr, 2.2 earn $17K/yr, .7% earn $80K/yr and .2% earn $455K/yr.
The Herbalife Compensation plan is structured for a distributor to work their way through a number of levels to achieve the ultimate "50K President" level. These level increases are based on product sales and volume points. As you move through each level, the discount rate increases from 25% and up to 50% in increments.
7) Pampered Chef
The Pampered Chef offers cooking products for sale. There is a $155 start-up cost and an additional website fee. If you do not make $100/mos in sales, you are charged a $2 "insurance" fee charge. Distributors receive a 20% commission and are required to submit $1,250 in orders during their first three months. The commission paid increases after $15K in goods are sold.
If a distributor hosts 2 parties/week, profits can be around $850. Three per week= $1300 and 4 per week is $1800. Costs include time, invites, flyers, advertising and ingredients for all the recipes. These costs average $165 or more per party.
8) MonaVie
MonaVie sells health products. There is a $40 start-up cost with continuing costs of approximately $200/mos. The Acai Berry product is $40/bottle. Per their annual report, the majority of distributors(27%) earned $1-3K/year. Approximately 4,000 people earned $8K/yr., 2,032 earned $30K/year and 1,536 earned $36K/ year. 27 people earned $1.5 million/year and 7 people made $3 million/year.
9) PartyLite Gifts, Inc.
PartyLite Gifts, Inc. has candles, fragrances, home accent products and more for sale through parties hosted by consultants. I could not find information on their website about their compensation plan and no details regarding start-up costs. A potential consultant has to fill out a form to be contacted by a current PartyLite Hostess. A Google search for "PartyLite distributor costs" within the first page, had one website in the UK stating that there are no start-up costs. There was also a website of consumer complaints regarding this company. According to the UK site, there are approximately 36,000 PartyLite distributors worldwide.
10) Amway/ Quixtar
Amway markets a myriad of health and home products. To become an Amway distributor, you must sign through a current Amway distributor. Profits are made through retail markup of products sales to customers, monthly performance bonuses ranging from 3%-25% of business volume based on monthly productivity and monthly/annual leadership bonuses and other cash awards and business incentives based on group performance. It is noted that health and beauty products carry the highest bonuses. Their compensation plan is one of the oldest, and relies on building a downline in addition to marketing products.
How does Efusjon compare?
Efusjon is a company that started less than on year ago and already has approximately 60,000 distributors. It markets healthy energy drink products with antioxidant properties from acai berry, quercetin and mangosteen . It does not contain any unhealthy ingredients or processed sugar. If you are already drinking energy drinks, no one is paying you to drink them-- and they're not good for you! This is a chance to continue drinking energy drinks, improve your health and make money.
Efusjon has a one time $30 membership fee. The product costs approximately $166/mos. The distributor receives a replicating website, 48 cans of product and access to marketing tools, including games on Facebook and a network conference page. Efusjon is also marketed through an iPhone application. Start-up costs are approximately $196.
After you sign up 3 people, you are qualified to be an "executive" and receive compensation from Efusjon. The three people you sign up must continue to place monthly orders for the product. After you "Get Your 3," then you assist them in building their downline. You can also purchase multiple spots yourself within your own downline through use of separate social security or EIN numbers. You receive $5 per person/mos. for each distributor you sign up after you've signed 3, PLUS 1.25% commission from community overlap, which is "bonus" money for people in the company who are working next to you in your matrix.Compensation can be up to approximately $650K/mos.
Conclusion
There are no "get rich quick" ways to make money in any business. If you want to bring in some extra income, be sure and do a thorough search of the company and ask hard questions before joining.
READY TO JOIN EFUSJON? LEARN MORE!
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Comments
Thank you, Vitaman, for the information about SFI marketing group. I plan to continue writing articles about various direct marketing opportunities and will be sure to include your company in the future. Remember, Everyone-- check into all facts, compensation plans, products etc. before signing up with any business!
Vitalygirl:
First, there are 6 Keys to use when making a decision about which opportunity to pursue. Most people, especially newbies and those with little to know experience or knowledge, are not aware of them so its hardly surprising that 97% of people fail. In fact, making a decision without taking these 6 keys into account virtually guarantees you'll fail!
Second, if you were aware of these 6 keys, you certainly wouldn't be doing Efusjon. Let's separate hype from reality, fact from opinion.
1) Efusjon is less than 2 years old. 98% of new companies fail in their first 2 years! Furthermore, of the 30,000-50,000 companies that have launched in the past 6 decades, less than 100 make it to the 10 year mark! You’re talking 1 company, on average, out of every 300-500 companies that launch surviving 5-10 years! One! That’s called luck! A fluke! No smart entrepreneur bets their success on luck!
Of course, the “big lie” that is used to promote groundfloor programs is that it is those that are in at the beginning are the ones who make the big money, and that is the rationale for taking a high risk bet. There’s just one problem: It’s just not true! Most top income earners at the “old school” companies are not those that were in at the beginning. Many didn’t get involved until the 2-3-4-5th year or later!
2) Matrix plans do NOT work which explains the frequent changes at Efusjon! Of the 30,000-50,000 opportunities that have launched over the past 6 decades, only 1 has experienced any significant, long term success with a matrix pay plan-one! Whenever something only works once, we call that a fluke!
Nobody in their right mind would get involved with something that has only worked once! (Owners looking for a short term cash grab like them because they know that their company is not likely to be around 2-3 years from now and matrix plans pay out less money than any other pay plan due to all the breakage that occurs, regardless of whether it's a forced matrix, has compression, etc.)
Furthermore, the one particular company that has had some success launched 25 years ago, when there were far fewer opportunities available. Today that same company probably wouldn't survive 10 years.
No experienced or knowledgeable network marketing professional with an understanding of the history of our industry and compensation plans would ever work a matrix plan, no matter what typical wrinkle you add such as forced matrix, compression, or some new fangled idea!
Claims of massive amounts of potential spillover are further evidence that people have no grasp of how compensation plans works. Each level you go down in a matrix plan the less in potential spillover occurs, not more! It’s a basic mathematical fact! (If you want maximum potential for spillover, work a binary plan!)
Additionally, regulators consider matrix pay plans gimmicky and they're most often associated with "money games."
So far, Efusjon has made several changes in their compensation plan and I’ve got news for you-they’ll be making several more, it’s just a matter of time! Why? Because matrix plans don’t work!
Reasons #1 and #2 would be reason enough not to get involved with Efjusjon IF you were looking to put the odds of success in your favor! You’ve got the biggest strikes against right from the start! The odds of a new company surviving 5 years are 1 in 30-500 (talk about a long shot!) and a pay plan concept that has never worked! Nothing like virtually guaranteeing you’re going to fail than signing up in a new company with a matrix pay plan!
And then people wonder why 97% of people in our industry fail, never succeed, and never make money! It starts with making a smart business decision and putting the odds of success in your favor, not trying to beat the odds!
As if reasons #1 and #2 weren’t bad enough…..
3) The “Facebook application” has been one big hype job! In fact, Facebook itself is not real happy! Furthermore, driving traffic and attracting eyeballs is one thing-whether or not they stick once they sign up for the long term is another matter, and in fact, due to having a matrix plan, that virtually assures they won't stick long term. Many are already leaving and moving to VEMMA!
Here’s 9 additional reasons why VEMMA and it’s Verve energy drink is a much smarter business decision:
4) VEMMA’s Verve Energy Drink is a Superior Product!
Verve has a higher ORAC score and a complete spectrum of 12 vitamins, 65 essential and trace minerals, antioxidants, Aloe Vera, Green Tea, and the amazing superfruit, Mangosteen, is supported by clinical studies, and recommended by leading doctors! In addition, Mangosteen is considered to be a superior superfruit to Acai as shown in Men’s Health magazine. Efusjon is NOT a full spectrum formula and has no clinical studies!
Verve is available in 8 ounce cans and 3 ounce shots with regular or sugar free versions.
Most exciting, we have recently launched an exciting product for children 2-12 years of age!
Finally, VEMMA has its own 70,000 square foot, state of the art manufacturing facility.
5) VEMMA Has Superior Value!
In VEMMA, the distributorship is FREE! Efusjon charges $30!
6) VEMMA Has Superior Recognition and Media Coverage!
Verve has just been named 2009 Product of the Year in competition held by a leading fitness/health publication whose judging panel included fitness pros, doctors, and anti-aging specialist and it’s now the official energy drink of 4 U.S. pro sports teams, a first in network marketing history!
In addition, it’s been featured on the covers of and/or in such magazines as Success, Women’s Fitness, Work at Home, Ms. Fitness, and others!
7) VEMMA Has a Superior Pay Plan!
Top distributors are earning up to $100,000 a month and more within 1-3 years, most having started part time and the best part is you only have to build 2 teams! Top incomes after 3-4 years are up to $2 million a year and growing! And the best part is in VEMMA’s distributorship is FREE (Efusjon charges $30) and in VEMMA you get paid weekly whereas in Efusjon you don’t get paid until the middle of the following month!
8) VEMMA Has a Superior Management Team
VEMMA is a rapidly growing, 5 year old international company recently featured on the covers of Success magazine and Direct Selling News, one of the industry’s leading trade journals! The VEMMA ownership and management team has already built one billion dollar network marketing company (the parent company of VEMMA). Who is more likely to build a billion dollar network marketing company-People who have done it before or those that never have done it? Common sense should give you the answer!
9) VEMMA Has More Countries to Market In!
VEMMA is legally operating in 50 countries, far more than Efusjon, with an emphasis on legally! Most MLM companies “fly under the radar” when it comes to operating in foreign countries.
10) We Have a Superior Team to Join!
My partner and I have 60 years of combined experience in network marketing, having built some of the largest, fastest growing and most successful groups in the history of the industry. In 2 companies prior to VEMMA, we built combined teams of more than 600,000 distributors, generated $2 billion in group sales, and helped numerous people on our teams to earn up to $1 million a year and more!
We’re now #3 top earners with the number one international group! Join a team with support, training, a powerful, online business building system, and leadership! You'll be sponsored by and work directly with us!
11) Timing and Positioning
Here’s the best part! Once you’re positioned on our global expansion team, everyone we sponsor in any of 50 countries goes below you, positioning you with the opportunity to earn an income on their sales and on the 2 teams they develop, enabling you to primarily focus on building just one team! It sure beats having to build 3 “legs” or teams!
12) State of the art, web enabled websites with facebook and twitter application, blogging capabilities, and more plus advanced back office architecture with up to the minute details on your business.
vitaman249 says:
3 months ago
Thanks Vitalitygirl for the great info.
What about SFI marketing group which it has $0 (Yes zero Dollars) start-up cost