Vemma

DISCLAIMER:  The below compensation plan comparisons and breakdowns are based upon the opinions of people.  Compensation Plans from companies to companies do change overtime and so these below comparison documents may be outdated.  We highly suggest that you do your own homework, your own due diligence and contact whomever you feel is most professionally inline and has knowledge regarding your company or a company that you are looking into.  We do not and can not guarantee that our opinions are 100% accurate but are simply our own personal opinions of the compensation plans after we have looked at them.

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To further understand the below and all compensation plans, please take a look at this must watch training.

http://ourgwt.com/ourblog/compensation-plan-pitfalls/

The below comparison is based on the compensation plan pdf found on

http://www.vemma.com/pdf/Vemma-Compensation-Plan.pdf

Also, to be truly able to analyze the compensation plan, one must understand how much dollars it takes to generate what’s called ‘reward points’ which then pay you commissions.  The price list that I found that also contained the QV or ‘reward points’ as well as the shipping is found here.

http://www.jbacademy.com/Shipping%20Costs.pdf 

and

http://www.vemmatoronto.ca/vemma-canada-policies-procedures/

if you are living in the Toronto area.

Cycle Bonus

This is what we call the meat and potatoes of a compensation plan because everyone joins MLM for the hope of making large amounts of residual income every single year.  To qualify, one needs to have 120 rewards points and at least 2 people sponsored one on the left and one on the right.  Normal types of qualifications.  For the cycle, for every 540 QV (or reward points) that are generated with at least 1/3 on one side, and 2/3 on the other side, one would earn approximately $22-$25 USD.

Some quick notes here before we delve in deeper.  GWT’s World’s First Variable Compensation Plan is still unbeat.  In GWT, it’s not only just 1/3 and 2/3, or 2/3 and 1/3 but it could be anything in between to pay you faster.  So it could be 50/50 like 270 QV and 270 QV.  In Vemma, if you had 50/50 you still would not cycle.  Also, you buy products in USD and also get paid in USD.  Personally, I’d rather work in CAD currency because it’s a stronger currency noted at the G12 summit and it means you can get paid more!  GWT used to work in USD currency but during the economy decline GWT made a smart move to work in CAD currency.

Now, back to the payout.  For every 540 QV you would make from $22-$25.  The $ to QV (reward point) is essentially 1 to 1 from what I could find online.  However, that’s only for a few products, most of the others don’t have a 1 to 1 value.  What does that mean?  I’ll explain shortly.  So to have 540 QV, you’ll need $540 in product sales, to pay you $22 which is a payout of 4% or if it was $25 a payout of 4.6%.  GAME-OVER clause as we mention in our trainings.  So a cycle payout, at best is 4.6% but with most orders coming in and not being 1 to 1 from QV to $ you’re looking at possibly under 4%.  In GWT, the cycle payout is DOUBLE!  2 times!  Every $6250 of product sales you make $500.  That’s a payout of points to dollar of 8%.  Would you rather take 4% or 8%?

Cycle Earning Levels

In Vemma, once you reach a certain payout based on your rank for 4 executive weeks, you are then given 1 new position above your current one.  In GWT, you INSTANTLY get 3 business centers and just by being the Diamond package, you are accumulating volume on those 2nd and 3rd business centers.  In Vemma, once you get your new position above your maxed one, that’s when you start accumulating the volume.  BIG DIFFERENCE here.

Flushing

It was honestly surprising to see so many flushing scenarios with Vemma.  All of which GWT doesn’t have.  In Vemma, if you are signed up but then for 4 weeks in a row you haven’t sponsored your 2 people (1left and 1right) then the volume in your profit leg (smaller leg) gets flushed.  At GWT, there’s NO FLUSHING.  On top of that, if you remain unqualified than even if there is growth happening on your smaller leg (profit leg) you won’t accumulate the volume (even if you’re paying your monthlies).

Also, there is a maximum accumulation of volume in your power leg of 2,000,000.  At GWT, there’s no limit.  Imagine if Reza Mesgarlou, #1 earner had that rule, he would have been capped at 2,000,000 but instead he had 8,000,000!  That’s a lot of millions!

This gets more interesting because they have another rule that every year, 52 weeks, the power leg’s volume in excess of 15 times of (not just your biggest cheque in the year but), your previous 4 cycles will get FLUSHED!!!   Not ONLY THAT, but they have a maximum of 150,000 reward points they can carry over year after year.  At GWT, there is NONE OF THIS.  Reza Mesgarlou who got positioned, and for the first 3 years was busy accumulated 8,000,000 roughly of volume.  If GWT had this rule, 15 times of 0 dollars after the first year would be 0.  So his ENTIRE volume would have been flushed.  Don’t think likely of this.  One of the amazing benefits of having a binary system is that when your volume grows bigger and bigger, the more excited your team and you get, and the more retention and longevity you have.  If every year your entire volume is flushed, that’s discouraging.  Would you prefer flushing or non-flushing?  Would you prefer more rules on volume or less rules?  SIMPLE ANSWER HERE.  GAME-OVER clause when flushing occurs.

Matching Bonuses

In Vemma, you can earn 10% on your first generations and 10% (with some work) on your second generation.  However, let’s do the math.  If you made 10% on a 4% cycle, versus making 10% on a 8% cycle, which one is greater?  Would you rather make 10% on a 4% cycle, or make 10% on a 8% cycle?  Same goes for second generations.  In addition, they also have a cap on matching bonuses of $5000.  In GWT, there’s no CAP on how much matching bonuses you can make.

Additional Earnings

I looked at the additional earnings and I just didn’t bother writing it down here unless someone really wants me too.  Reason being that it doesn’t apply to 99% of the people.  They have ranks and they have this thing called maintain the “Paid-As” rank which means that if you lose your rank, you lose the pay.  Another “GAME-OVER” clause.

A lot of the bigger money also goes to people who are able to achieve those high level ranks and again, less then 1% of the company are those people.

The industry

Even before I started to write down this comparison, I wanted to mention that there is almost no point in even looking at the compensation plan from Vemma.  Why?  Because they are another health and wellness company.  Even if Vemma had the world’s best compensation plan, it’s still selling health and wellness.  If you’ve been in health and wellness over 30 years ago, that would be the right time to get in. In today’s day and age, it’s way to late.  How many people do you meet who tell you they have the world’s best products?  That tell you they have the latest and greatest juice? Vitamin?  How often does the next company come out and do that?  Frankly, I get approached almost monthly.  What I’m saying here is that yes you can make money in these companies, but looking at long term lifelong residual steady passive income, it’s next to impossible.  When the next best juice company comes out, all your people leave you and go to the next best thing.  The secret in my opinion to finding the right company to build long term steady passive income, is finding the RIGHT company.  In health and wellness, according to the DSA there are 30 million people out there in that industry.  That’s your competition.  Then you have to compete with traditional brick and mortar companies that sell health and wellness including the Shopper’s and Walmart’s of the worlds.

In GWT, the beauty, the comfort, is we have no one else in our arena.  Designer company, Bling products, want products (versus need), celebrities, media, retailing, home show parties, branding events, and direct sales all in one!

 

Shipping Costs

I found this quite interesting to look at the shipping costs for Vemma.  Mostly because some people who look GWT sometimes, and I mean only a few small people, ask about the shipping costs.  For Vemma, if one were to order the 120 reward point every month, based upon the shipping rates, it would be at least $14.00 plus I even read something about an additional 9% of the total order cost.  Another 9% of an order of $120 is $10.80 for a total of $19.80.  If you did that every month (x 12 months) it would then be $237.60 of shipping you’d pay every year.  From GWT, in CAD/USA, it’s $49.99 per order.  Most people on average probably place an order every 3 months so you’d be paying shipping 4 times a year for a limitless order (could be 1 or 100 or 1000 order) and only pay $49.99 x 4 = $199.96.  And that also covers insurance on the shipment in case anything happens as well as whatever you pay in shipping, with the new FREE WORLDWIDE SHIPPING IA putback, you would get back the $199.96 in retail FERI products!!!

 

 

AND HERE IS ANOTHER COMPARISON from another team member

Lets compare income disclosures GWT vs Vemma, NOT EVEN CLOSE. 
Just for fun lets look at some figures based on facts on both income disclusures:
 
Vemma: 73% of distributors: Spent $120/month and they also must sell $120/month = $240/month in revenues for the company and they earn average of $35 – $79/month
 
The next high achievers sold $120/month = $240/month in revenues plus tons of other qualifications that most of them never achieved and the average income is: $255/month to $2633/month which includes the high levels of Star Platinum and Executive.
85% of their “ACTIVE” distributors won’t even break even with their personal monthly sales and production.
You have to go to the top half % (.5%) to even hit 100K in “average” income.
“Average” means that they don’t even have .5% that make that. They probably have .1% that make that income but some make a lot and bring up the “average” so its safe to say that .1% may reach six figures.
 

Typical “active” LC who is on $75, $150 monthly IA (no sales requirement here) has an earning range of $217/month in commissions (not including BDB, Retail commissions or Global Revenue sharing). If we do what they did and eliminate the $75 IA accounts and only count the $150 the average GWT “active” LC spends $150/month and earn average of $533/month. When you add retail Home Branding Party Sales, BDB etc its very safe to say that the average will be more like $750,00/month plus.

For 84% of Vemma: Spend and sell $2800/year plus other qualifications and earn $421 – $3071 /year income.
 
GWT Average spending $1350/year and earnings range starts from $6396/year (not including Retail sales, BDB and Global bonuses) and up from there. That is a whopping 108% increase over Vemma’s best averages. Its abundantly clear which company pays out more to the Average person.
 
– People have a far better chance in GWT because of our highest up to 70% payout then any other plan including Vemma’s 50% pools.
 
– People have a far better chance in GWT because of our FREE FLOWING and Variable vs their traitorous RANKS that no one will consistently qualify for. Even an idiot will understand no restriction is better than restriction when it comes to flow of funds from company to you.
 
– People have a far better chance in GWT because we never FLUSH volume. Vemma flushes all volume even on even active people on autoship at the end of each week and each year. Stories like Reza, Patrice Williams will never happen in Vemma because they FLUSH. If Vemma people don’t understand the first two points above be all over this one because getting flushed yearly means you are starting a whole new business every year from scratch. If we did that Rene would not have juicy cheques in BC 2 and BC 3 every week and all of you won’t have banks of CV ready to be cashed in. 
 
 One way to deal with Vemma people is say…
a- I would love to compare my numbers with yours.
 
b- Lets compare income disclosures of both companies because that tells the whole story about the “typical earnings” of the company.
 
Facts:
– If Vemma intended to pay their people they wouldn’t have 17 different ranks (including semi and active BP) to qualify for and re-qualify for to maximize their 50% plan. Total number of qualifications are over 30 that I counted before I lost count.
– If Vemma intended to pay their people they wouldn’t FLUSH them weekly even though they are on 60 point autoship
– If Vemma intended to pay their people they wouldn’t FLUSH even their ACTIVE distributors to almost ZERO every year 
– If Vemma intended to pay their people they wouldn’t cap CV banking to 2 million even during the 12 month.
– If Vemma intended to pay their people they wouldn’t have paid 3% on the BInary – lowest I have ever seen and create all these so called BONUS POOLS that most will never qualify for. 
 
Vemma’s plan is RANK FILLED death trap because it is multiple different types of qualifications you must attain to stay alive every month:
– Monthly personal consumption qualifications
– Monthly personal sales qualifications
– Monthly personal recruiting qualifications
– Weekly personal Cycle requirement qualifications
– Monthly GEN 1 consumption qualification that you personally need to qualify
– Monthly GEN 1 sales qualifications that you personally need to qualify
– Weekly GEN 1 weekly Cycle qualifications you personally need to qualify
and much more. 
 
To close, it is clear the average person doesn’t have a shot in hell in Vemma and their “official income disclosure” shows it. Even with all the ranks to keep most of the pie for the few guys at the top (Royal Ambassadors) to create large stories, lets see how their Royal Ambassadors would do in income in a  GWT plan. 
 
Royal Ambassador rank: 6000 Cycles/month X $20 = $120,000/month income, Cycle requirement $540, 1/3-2/3 and literally 18 pages of qualifications to qualify and re-qualify for every month.  Lets assume some one in Vemma actually accomplished this every month. 
 
Vemma: 6000 Cycles X $540 in CV = $3,250,000 in CV monthly = $120,000 in income. (3.6%)
 
Same scenario in GWT leaving out all bonuses of both companies

$3,250,000 in CV x 8% = $260,000/month (packages) or
$3,250,000 in CV x 6% = $195,000/month (internet sales) or
$3,250,000 in CV x 4.8% = $156,000/month (IA accounts)
Average the three above

$3,250,000 in CV x 6.3% = $204,000/month or 70% higher payout than Vemma. 

Case closed, even at the top end where all their focus is falls way short to GWT’s plan.