Today we are going to take a look at the MonaVie compensation plan.
If you would like more information how how network marketing compensation plans work in general, take a look at this post entitled how to evaluate a network marketing compensation plan.
I have heard a lot of people say how MonaVie has one of the most lucrative compensation plans in the network marketing industry. After all, if one of the top leaders in Amway left to join MonaVie, it MUST be good right?
A compensation plan isn't good just because a heavy hitter leaves his or her company. What makes a compensation plan good is it makes it easy for the new people to get started and make $500 to $1000 a month. That's the "sweet spot" in network marketing because if you can get enough people on your team making that type of income, the large majority of them will stick it out.
So let's take a look at the Mona Vie Compensation Plan and see how it matches up.
MonaVie is a network marketing company that markets a suite of health and wellness drinks that are desgined to boost the overall health and performance of the body. As a Monavie distributor, you are compensated based on your ability to make sales personally and in your organization of the MonaVie products.
The first way you get paid is through retail sales. You buy the products wholesale and you can turn around and sell them retail to your customers. An original bottle costs $32 wholesale and you can retail it at a price of $39. Here is a link of all of Mona Vie's products and their wholesale and retail prices. You can get the price down to as low as $27.50 if you order 8 bottles at a wholesale price of $220. You can get the price down even lower if you place a bulk order. For example, the largest bulk order for a case of Monavie original is $955 for 48 bottles, which gets your price down to a little under $20 a bottle.
In order to take advantage of most of the compensation plan, you will need to sign up for an autoship of MonaVie products. You need to buy a minimum of 4 bottles every 28 days ($120) but if you want to maximize the compensation plan you need to buy a minimum of 8 bottles every 28 days ($220). So that's an annual commitment of $1560 to $2860 in product. That's on top of whatever you spend on the marketing tools, your web site, etc.
Just so you know, Monavie recommends that you drink 2 ounces a day and the average bottle is 25 ounces. Therefore, you will consume about 3 bottles a month yourself if you drink the minimum recommend by the company.
Mona Vie uses a binary compensation plan. Binary plans are great for top distributors from other companies who move their teams over to the new company. The reason why is because as a top leader you can structure your organization so that you max out the compensation plan and make a lot of money quickly.
However, for the average distributor who is just getting started building their business from scratch, a binary plan is not a good plan for you. The reason why is because of the way the compensation plan is structured.
With a binary compensation plan, your organization has two lines of sponsorship. You have a left line and a right line. You get paid whenever BOTH lines of sponsorship meets a minimum amount of sales volume. In Mona Vie, you earn commissions whenever BOTH lines of sponsorship accumulates at least 500 GV. GV stands for group volume and it is based on the total amount of PV (personal volume) accumulated by distributors in your group.
What's a PV? It's a point value that Monavie assigns to products that you order. For example 1 case (consisting of 4 bottles of juice) equals 100 PV.
So in order to get paid on your team, your team would have to buy a minimum of 10 cases of Monavie juice in a single week evenly distributed in both lines of sponsorship within your organization. When this happens you will earn a commission of $50. For every 100 PV above 500, you will earn an additional $10 and this maxes out at $10,000 for the week.
Keep in mind BOTH lines of sponsorhip need to have 500 GV in order to get paid. If one line of sponsorhip has 10,000 GV and the other has 200 GV, guess how much money you make? Absolutely nothing. They do allow you to carry over volume to the next week and continue to carry it over until you reach 500 GV.
Now one good thing is that because everybody has only 2 lines of sponsorship, that means that if you have someone in your up line that recruits a lot, there is a good chance that you are going to have distributors placed underneath you. Of course, that will only happen if you also happen to be in that leader's "weaker" organization.
There's also an Executive Check Match that allows you to earn commissions based on the people that you sponsor up to 7 levels deep. To become an Executive you will need to have a minimum of 2000 GV in BOTH lines of sponsorship.
Basically the way this works is Mona Vie has to pay out at least 50% of its commissions to the sales force. With a binary compensation plan because a lot of people miss out of getting paid in a given week because they don't have the necessary volume in their weaker leg, a lot of the money ends up not getting paid out.
To compensate for this, what MonaVie does is the remaining money that didn't get paid gets assigned to the Executive Check match and gets paid to the Executives in the company. The check match is a floating percentage and the percentage will be different every week because its based on what got paid out and what didn't get paid out for the week.
Therefore if you are an Executive and you don't have any executives on your team, you earn a check match on EVERY distributor in your organization that received a pay check from MonaVie that particular week! However, the downside is that the check match can never exceed the volume from your lesser leg.
So now that you know how the Mona Vie pay plan works, lets see how it matches up to the areas I evaluate in this blog for compensation plans.
1. How easy is it to make $500 to $1000 a month?
Since you make about $11.50 for each bottle of juice you sell (if you buy the 200PV autoship), to make $500 in a month, you will need to sell 43 bottles of juice in a month personally. Of course the average person isn't going to sell 43 bottles to 43 different people a month. You just don't have enough time in the day to do that if you are part time.
Therefore, in order to make $500, you will need to sell cases of Monavie, not just a single bottle. If you sell 1 case (consisting of 4 bottles) to each of your customers, your profit would be $29 a case. To earn $500, you will need to sign up 17 customers a month.
Let's look at the numbers and see what your sign-up ratios will need to be to move 17 cases a month to 17 different customers...
50% - 36 people a month (9 per week)
25% - 68 people a month (17 per week)
10% - 170 people a month (43 per week)
5% - 340 people a month (85 per week)
1% - 1700 people a month (425 per week)
These numbers are pretty high for a part timer. You won't stand a chance if you aren't signing up at least 10% of your customers.
Therefore, the only real way you are going to make $500 a month in MonaVie in most cases is by recruiting. When you recruit, you can get your distributors on that 200PV autoship because they know they have to do that in order to maximize the compensation plan. Any compensation plan where its difficult to earn $500 a month without recruiting is a red flag to me.
2. How much does the product cost and how much does it cost to get started as a distributor?
A bottle retails for $39, which I think is pretty expensive in my opinion. Since a bottle is only going to last you a little more than a week, that works out to $3-$4 a day. That's almost what you would pay for Starbucks coffee daily (which I also think is pretty expensive as well). By the way, there are Acai based juices that you can get for significantly less than that. Here's an Acai Juice product that you can buy for $13.99 and it will last you an entire month.
The fee to get started as a distributor is only $39, which is pretty reasonable. However, as I mentioned previously, in order to max out the compensation plan, you are going to have to buy over $2000 a year worth of juice.
3. Is there competition for your products and services?
There's a tremendous amount of competition for MonaVie's products. I just showed you a similar product that costs less and lasts longer. There are other network marketing companies that have juice based products as well that all claim the same or similar health benefits that MonaVie claims. The health and wellness juice market is a highly competitive market.
That being said, it is highly competitive for a reason. The reason is there is a tremendous amount of demand for health juices. There are literally millions of searches done on Google a month for keywords that are associated with health juices. So there's certainly a lot of interest. The key is to get those people to try the MonaVie product and hope that they have a good experience with it. If they do, they will tend to stay on it and you will make money as a result.
In short, I personally would only recommend MonaVie if you really have a passion for the product. Maybe you might have tried it and noticed a significant improvement in your health. Maybe you just really enjoy the taste. If you really love the product and you would buy it even if there wasn't an income opportunity attach to it, MonaVie can work for you.
However if you are just joining because you heard that you can make some money I would recommend that you pass on it. The compensation plan in my opinion isn't all that impressive. I think Tahitian Noni and Xango (two network marketing companies with juice products) have a MUCH better compensation plan than MonaVie if you are interested in a juice company.
I personally would never do a juice company because I just have no interest in paying that type of money every month to drink a juice that is suppose to give me health benefits. I'm of the opinion that if you eat a good balanced diet, you don't need any of that stuff. That goes for all of these health and wellness companies, which is why I have never joined any of those companies.
The real value, in my opinion is offering a service. People flake out on product orders all the time. However, if you offer a service that people need, they are going to keep it and pay for it every single month.
The compensation is much better as well. For instance, in my company I make $207 on a $36 a month product, plus residuals. In MonaVie, you sell a $39 bottle of juice, you only make $7. Your juice customer would have eventually buy almost 30 bottles of juice just for you to make what I make on ONE sale of my service.
Also note that I said plus residuals, which means if they keep the service, I continue to get paid a percentage of that $36 every month. This is on TOP of the $207 I make on the initial sale!
Unlike MonaVie, I don't have to balance the volume of my team in two seperate legs to get paid. In fact, if I recruit a brand new distributor, place them directly under me and they go out and sign up ONE customer (even if that customer doesn't join the business) I make up to $170 on that one customer!
I also get paid Tuesday, Wednesday, Thursday, Friday and Saturday as long as my team or I made sales that were processed the day before.
In Monavie, you would need to have over 3000PV from BOTH lines of sponsorship just to earn that kind of money.
If you haven't decided on a company yet, I encourage you to take a look at what I consider to be one of the best network marketing compensation plans that I have ever seen. Keep in mind, I have reviewed HUNDREDS of companies personally so I've seen almost all of them. I'm not saying its the best because it sounds good. I'm saying its the best because I've actually looked at a lot of other compensation plans and compared them.
If you are currently involved in Monavie and you aren't happy with it, feel free to look as well. However, please keep in mind, I have a personal policy in that I don't sponsor people in other network marketing companies who haven't been with their current company for at least a year unless you have a VERY GOOD reason for leaving (i.e. company going out of business, etc). I am a firm believer that you need to stick to and commit to building a network marketing business for at least a year before you can truly evaluate it and determine if it is right for you.
If you are involved in Monavie and you are happy with it, congratulations! I would love to assist you in building your business. I offer a free report that will show you the 7 ways that I personally use (and teach to my team) to have as many prospects as I want to talk to about my network marketing business. These strategies are generic, which means that they can be used in any network marketing company. In fact, I know that many leaders in MonaVie who are having success are using many of the same strategies that I use, so that's called a clue that they work.
If you enjoyed this review, please feel free to leave your comments at the bottom of this blog. Also feel free to use the "bookmark and share" button at the top as that will allow other people to find this as well if you enjoyed this.
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If you are actively looking to join a business opportunity, you can check out the opportunity that I am involved in by visiting http://www.createthelifestyle.com
If you like anything in particular, please feel free to bookmark and share this content. This way, others will be able to learn about it and they will be able to enjoy it as well.
Also, please be advise that the large majority of the links that you see on this blog I do receive compensation if you purchase the products and services that they offer. This includes the links in the actual blog posts as well as the banner ads that you see throughout the blog.
So if you like what you see here and you like one of the link recommendations that I make, feel free to visit and purchase from one of them.
If you would rather just send me money directly, you can do so by clicking on the donate link below. Note that I am a FOR PROFIT organization and while I am doing this to help people I am also doing this to make money as well. After all, isn't network marketing a FOR PROFIT industry?
Monday, April 13, 2009
MonaVie Compensation Plan Review
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8 comments:
Hi Roosevelt. I am starting to read the things on your blog and so far it's been great. The techniques and principles that you outline are great pieces of advice.
I have not gotten involved with MonaVie yet but I am interested. More specifically, I am interested because of the organization called TEAM, and their "TEAM Approach" to MonaVie. Basically, there are training materials that I have gone through like CD's and Books, that help teach a lot of the principles that you feature in your blog. In a quick description of what they do, they focus on creating and driving depth down each of the binary legs with the help of leaders and mentors. Leaders, mentors and others in your upline, help drive depth while you learn and master "the system" and the power of duplication.
Now I understand that you have a red flag because the TEAM approach may focus on recruiting, and building a community, through which the product flows, as opposed to the product itself. I do agree, its important to get involved as long as you feel good about the product.
But, MonaVie has come out with a preferred customer program in which basically, if you sell the prodcut to somebody over the Internet, using a credit card, and it being delivered directly to their house, you will make $25 for the case you sell, and you get 50 points added to your lesser leg, which will also go to everybody in your upline. So then, if you sell 5 cases of the product, your 1 case of product is free.
Your thoughts and advice would be greatly appreciated. Thank you again for your all of your contributions to network marketing.
Hello VSnow,
Thank you for your nice comments about my blog. I appreciate it!
In regards to your question about recruiting, let me clarify what I am referring to because I think you may be confusing two different concepts.
I have no issues with was is known as a "recruiting first" concept. What that means is you focus on recruiting and building a team as oppose to making product sales. Sometimes I recruit first and sometimes I sell first. It all depends on what the needs of the prospect are at the time.
My issue with the Monavie compensation plan is that it is difficult to make $500 a month just by signing up customers. Because you cannot control what your team is going to do, it is important that you have the ability to make $500 a month REGARDLESS of what your team does. Otherwise, you won't cover your monthly expenses.
While yes, if you sell 5 cases, that covers your 1st case, you need to buy TWO cases every 28 days to maximize the compensation plan. That means you actually need to sell 10 cases just to cover your own product cost.
That doesn't even factor in other expenses such as your tools, going to trainings and events, etc.
There are lots of other companies that you can be in profit with a much lower number of products being retailed. However if you are passionate about the product and you feel confident that you are joining a good organization with a great support structure in place, GO FOR IT as those two factors are much bigger contributors to your success.
Hi Roosevelt. Thank you very much again for answering. I got worried for a second there lol.
I did decide to go with MonaVie and I did take into strong consideration what you said, and used it to help myself make $500 a month as you said. Here's my strategy:
I am on one case autoship. The five preferred customers covers the cost of my one case. Also, I get 250 PV from those five preferred customers. The first 100 goes to my active status, so I don't need to buy an extra case in order to maximize the compensation plan. The remaining 150 goes to my lesser leg. I am 3 fifths of the way to accomplishing that goal and it is just my first week.
As for the tools, I totally understand what you're saying, but so far, people in my upline have been just letting me borrow there's. I bought just a couple, put them on my IPod and then lent them out to others. Also people in my upline have been adding people to my downline, helping to build depth.
But beyond all that, I listened to what you said. I don't want to sound like I'm selling the product at all, but I have become very passionate about the product, especially the new Emv. And also I love the organization I'm a part of. You said those should be two of the biggest factors I should consider.
Anyway, I will continue to read your blog because I think it is great and I will promote it to others in the business. Thank you again!
TEAM is a good organization. You should do well as long as you stick to it and be consistent.
I think you just about missed all of other bonuses in MV compensation plan...
Like first order bonus up to $40, Bulk order bonus up to $75
and star maker bonus $40
and "forgot" to mention that you can get MV for about 20 US$ delivered per bottle on bulk orders.. this alone will give you 100% profit on retail sales ...I wonder why you did not mentioned all of the above ????profit per bottle is $20 and per case $80 (no $29).. There is no fee to join Monavie since Feb this year and support from the corp is second to none ....Forget about promoting your company for the moment while writing about other people's business by doing so you will become true leader... sorry to say but this is not the case this time ...
Hi Kristoff,
Thank you for your comments. This review is simply my opinion and what I look at when evaluating a compensation plan. If someone wants to look at every aspect of the compensation plan, I trust that the distributor from Monavie that they are working with can provide that information much better than I can.
If it's not here, it's not here because of one or two reasons...
1) An oversight on my part
2) It's not something that's important to me in what I look at and evaluate.
For example, the bulk order was an oversight on my part and I will correct it. I wouldn't base the entire review on everyone getting started and buying the largest bulk order, but I do think it should be at least mention explicitly in the review and I will do so.
Bulk order bonuses are not something that are a "make or break" decision in my opinion. The bottom line is you make money when you sell something and you make money when your team accumulates a certain amount of balanced volume and those concepts were explained in this review.
Questioning my leadership just because you have a different opinion doesn't further your cause. There are plenty of people that I disagree strongly with, but I don't take shots at their leadership just because I have a different opinion.
If you look at the comments made by VSnow, this is exactly the type of behavior I am looking to promote. He evaluated the company. He evaluated the team he was joining. He evaluated outsider opinion and then he made a decision. By the way, he did decide to join Monavie.
That's how you evaluate an opportunity, not by just listening to the guy recruiting you or listening to some guy on the internet in another company with a blog.
Great article... I'm new with monavie and drink the products (both the juice and energy drink)
I'm working it very part time, and realize that it'll take some time to build a substantial residual income. Once again thanks for insight.
To Your Success,
Rob Sevilla
http://www.mymonavie.com/robertsevilla
Thanks Rob, I appreciate your comments! I also appreciate the fact that you are a product of your product. As long as you are willing to commit to learning and you are willing to put your time in, you should do well!
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