On another mn thread we were discussing an MLM operating in the USA, Vemma, which targeted college students. It was investigated after a huge number of complaints from parents after their children got sucked in were scammed. As part of the investigation, the receivers went over the Vemma's figures and here's what they found:-
The disclosure statement from the company (Vemma) is bad enough:-
In 2013 93.22% affiliates (98,115) earned less than $6,200
and .40% affiliates (421) earned more than $100,000.
But Stratification Analysis by the Receiver paints an even worse scenario:-
In 2013 99.45% affiliates (179,906) earned less than $6,200
and .03% (58) earned more than $100,000.
The 2014 figures are, percentage wise, more or less exactly the same - dismal.
Looking at the other analysis, it is shockingly clear how many people sucked in to this company actually lost money; the majority did not recoup their initial investment at all, let alone made any income.
A typical MLM then.
The full receivers report can be read below...
www.robbevans.com/assets/case-files/vemmareport01.pdf