MLM - Network Marketing Blog

MonaVie CEO Dallin Larsen On Imagenetix Lawsuit

If this is true, then the question really becomes:

Sloppy Management or Questionable Ethics?

Are we really to believe that Dallin Larsen either...

A. Didn't realize that MonaVie no longer contained Celadrin?

B. Didn't realize that over 16,000 entries about MonaVie/Celadrin can be found on Google?

Dear Diamonds and Above,

A few days ago in San Diego, California, a company by the name of Imagenetix filed a lawsuit against MonaVie and named many of our top distributors in the suit.  This was in breach of an agreement we had reached with Imagenetix earlier in the week.  We expect this issue to go away over the next few days.

To give you some perspective and to calm any concerns you may have, when MonaVie first launched in 2005, we included in our product a trademark ingredient called Celadrin®.  Because we weren’t able to reach terms of use back in 2005, we stopped using this ingredient.  However, Imagenetix has claimed that some of our distributors continued to refer to Celadrin® as an ingredient found in MonaVie Active and as such, Imagenetix believes that MonaVie has violated their intellectual property rights in the ridiculous amount of $2.5 billion!!!   

As a show of good faith, we’ve reached an agreement to once again include Celadrin® in MonaVie Active.  However, we are also very disappointed that Imagenetix chose to breach our agreement through the filing of their lawsuit.  We’ve obviously been in contact with them and their attorney called us as early as yesterday apologizing for the filing of the lawsuit, stating that he was uninformed that MonaVie and Imagenetix had already reached an agreement.  He was obviously embarrassed and we were less than amused.

Imagenetix has assured us that they will retract the filing and make a statement of such over the next few days and we fully expect them to keep their word.  If for whatever reason, they remain in breach of our agreement, rest assured that MonaVie is well prepared as always, to protect the interests of all our distributors.  Feel free to share this information with anyone in your respective groups who may have inquired as we’ve fielded approximately a dozen calls over the last few days at the company.  However, I would caution you not to overly concern anyone by spreading discussion on this topic, as again, we fully expect it to go away over the next few days.

I guess this means we’re no longer under the radar!  Keep up the good work!!!  And let this serve as a reminder, MonaVie DOES NOT contain Viagra!

Dallin

MonaVie: The Culture Of Claims?

I first heard about MonaVie before it launched, over four years ago. Because I write about the Network Marketing industry for two media outlets in addition to this site, I try to keep up with what's happening in the industry.  I subscribe to hundreds of news feeds and follow companies as closely as possible.

MonaVie jumped back on my radar in 2006 when former Nascar driver Geoff Bodine claimed:

“It’s (Monavie) got rid of the majority of my arthritic pains,”

I wrote about it, but didn't really think about it much further until a MonaVie distributor posted another  comment on one of my blogs:

I'm looking for people who are suffering from asthma, high blood pressure, diabetes, Monavie drink, has the #1 anti-oxidant to help peaple who suffers from these diseases...

God bless her, she is simply trying to grow her business and she mentioned that her upline told her about blogs that could get her leads.

I began to see a pattern of behavior on behalf of MonaVie distributors.  About that time, I also got reports from people going to live MonaVie meetings where all kinds of crazy things were being said. "The lame can walk and the blind can see with MonaVie", wrote the reader. The reader was obviously joking, using an exaggeration about the lame and blind, but his point was that the meetings centered around miraculous claims.

Then a few months later, I was on YouTube and found dozens of MonaVie distributors talking about the product and diseases such as Lyme Disease and Arthritis. I wrote about and posted one of the videos on this blog. A day later, I found a comment on the YouTube video saying the following:

"who said there is no cure for Cancer Logon to the monavie,com and use ID # 580838 from the Enroll to get ur health better,Cancer no more"

At this point, it was obvious that the culture in MonaVie was to make claims. Culture does not travel up from the newest distributor. Culture filters down from the leadership.

Because most of the time these MonaVie claims were made face to face, the FTC and FDA can not come down on the company without a complete and costly investigation. However in the age of YouTube and Blogging, the evidence of these claims was overwhelming and it forced MonaVie to react.

Rather than reel in the leadership and educating the distributors, MonaVie reacted by banning web sites produced by anyone below the level of Black Diamond, a move that might prove devastating to the Black Diamonds and above since they are now being sued over the Celadrin claims.

When you build your business on a culture of questionable (or untrue) claims, it will eventually catch up with you.

$2.75 Billion MonaVie Lawsuit Details

Additional details have come in about the Imagenetix vs. MonaVie Multi-Billion Dollar lawsuit.

In my last post I wrote about a "culture of overlooking" and I am now more convinced that is true of the leadership behind MonaVie.  There is little question that MonaVie has (had?) some serious momentum.  The only question is how they got the momentum.  It appears at this point that much of the momentum was created with questionable claims about the MonaVie juice product.

I feel bad for the individuals within "The Team", apparently mislead about the leadership behind MonaVie.  They leave the lawsuits, chaos and turmoil of Quixtar to find themselves with a $2.75 Billion lawsuit hanging over their heads, (out of the frying pan and into the fire, so to speak).

OK, enough commentary and opinion, here is a great summary of what is known from IBOFightBack at Get The Facts - The Truth About Amway and Quixtar:

MonaVie apparently added small amounts of Celadrin to one of their products for a brief time in 2005, but never purchased further supplies of Celadrin, and never obtained the sub-licence to use the Celadrin trademark. Despite this, there exist over 10,000 webpages advertising MonaVie as containing Celadrin    and promoting Celadrin's health benefits - including recent sites by TEAM affiliated former Quixtar IBOs, the major MonaVie training company, Black Diamond University, and even a document still available on MonaVie's own corporate website. According to the Imagentix There also exists video footage from February this year (2008) of MonaVie's top distributor, Black Diamond Brig Hart, explicitly describing Celadrin as an ingredient in MonaVie Active and touting Celadrin's health benefits.

Remember what I said about a "culture of overlooking"?

Based on the number of questionable health claims that I found on YouTube and throughout the Internet, there was a culture of touting these claims within MonaVie.  This is much less of a problem when the touting is done face to face, but we don't (only) live face to face any longer.  We also live with technology.  MonaVie associates took their illegal claims enthusiasm for the product online and eventually ran into trouble when the claims were pointed out. 

Culture in Network Marketing does not happen from the bottom - up, it happens from the top - down.  In other words, low level associates did not all of a sudden get a bright idea to start talking about how MonaVie cures Lyme Disease. It was part of the culture.

Now we have this whole Celadrin issue.

There is clearly no Celadrin in MonaVie, yet everyone from the company to the top distributor (Brig Hart) is talking about the benefits of the Celadrin found in MonaVie.

Again, it's the culture.

If the leaders are saying:  "We'll look the other way and things will be OK as long as we are growing."

That is not true leadership and clearly that is not that way to operate a business that so many people rely on as their sole income.

"There is no moral precept that does not have something inconvenient about it."

- Denis Diderot

MonaVie (and Top Leaders!) Sued By Imagenetix

This story is just breaking...

MLM Company, MonaVie is being sued by Imagenetix Inc. for $2,750,000,000.00 (I believe that is $2.75 Billion!) in a trademark infringement lawsuit.  The scary part of this is the fact that not only is MonaVie being sued, but so are a number of top leaders, including...

Dallin Larsen, Henry Marsh, Randy Larsen, Amy Cowley, John Brigham Hart, Lita Hart, Steven Merritt, Gina Merritt, Corbin Roush, Holly Roush, Charles Kalb, Deborah Kalb, Ronald Prudhomme, Brenda Prudhomme, Edward Aristizabal, Shelly Aristizabal, Brian Cattano, Jill Cattano, Matthew Curtis, Kimberly Curtis, Tina Dupart, Todd Hartog, Angelique Hartog, Rodney Howard-Browne, Adonica Howard-Browne, Mickey Karshner, Victoria Karshner, Jason Lyons, Carrie Lyons, Angel Matos, Grayson Maule, Ken Porter, Robert Robinson, Linda Robinson, Devon Robinson, Todd Smith, Stephanie Smith, Frank Soucinek, Jr, Cynthia Soucinek, Brian Thayer, Jacqueline Thayer, Bo Vanpelt, Carrie Vanpelt, Black Diamond University Inc, Darrell Utterbach, Tracy Utterbach, Joseph Licciardi, Patrice Licciardi, Andre Walton, Penny Walton, James Bellacera, Denise Bellacera, Kelly Bangert, Jillian Bangert, Eric M Gutman, Rebekah Gutman and Does 1 - 10,000, inclusive

Apparently, MonaVie (and it's leaders) has been touting a trademarked ingredient called Celadrin without the permission of the trademark owner.

My opinion:

I have long thought that there was a "culture of overlooking" at MonaVie. The company first caught my attention because of it's associates illegal product claims like "curing cancer". So many of these crazy claims were taking place that it was obviously part of the culture within the company.

Culture and leadership are such a vital part of building a long term Network Marketing business and it appears as though MonaVie CEO, Dallin Larsen has sacrificed some of that for the sake of short term growth.

I will post more details as they roll in.

Orrin Woodward Lowers Tools Prices By 33% To His MonaVie Team

According to a recent post at Orrin Woodward's blog, the TEAM is lowering tool prices by 1/3 on tools related to building MonaVie.

The most telling (to me) is the following...

MonaVie rewards so lucratively in their pay plan that the MonaVie Executive Policy Council thought it was time to start the virtuous cycle we have been talking about.  Lower prices leads to a better education of the new person on business building techniques and principles.

You see, I believe that the profit motive in the tools system is a direct result of one of the worst compensation plans in Network Marketing.  Quixtar/Amway diamonds work very hard to get to their level of success and it's human nature to want to be rewarded equitably for your labor. I wouldn't be surprised if Orrin made double his Quixtar income with less people doing less volume in his new business.  That is not so much a testament to MonaVie (although they are certainly growing!) as it is a condemnation of Quixtar's plan.  Orrin could have picked a number of great companies and accomplished the same goal.

If Quixtar truly rewarded their associates in an equitable fashion, there would be no need for the diamonds to replace supplement their income with an unequitable amount of tool money.

 

Amway Buys MonaVie?

Ugh.  I can't believe I thought of this April Fools Joke 3 days too late.

Imagine the fun created by an Amway buyout of MonaVie...

On a serious note, I have often thought about why Amway doesn't buy up and coming Network Marketing companies. Tupperware actually owns 8 brands (I think all through acquisition) including BeautiControl and the acquisitions have spurred growth in a number of markets.

Bo Short and Ty Tribble Merge Online Network Marketing With Face To Face Building In Max International

CHARLOTTESVILLE, VA — (MARKET WIRE) — 03/07/08 —   Bo Short and Ty Tribble have formed a groundbreaking partnership, uniting their collective expertise in the Network Marketing Industry, under the name MaxImpact International, LLC. They have affiliated their new organization with a cutting-edge Network Marketing company called Max International. The goal of their organization is to create a new paradigm for success for the millions of people that have faced the conventional challenges associated with building a network marketing organization.

According to Industry leader Ken Dunn, “The partnership of Bo Short and Ty Tribble will no doubt have people talking in the Network Marketing Industry. It’s almost like Google(TM) partnering with Costco(TM), you will get the best of online and offline training and mentorship.”

MaxImpact International, LLC has offices in the states of Washington and Virginia. They are currently building teams throughout the United States and Canada. In a recent Max International news release, Bo and Ty were recognized for their achievements in two separate categories. They were honored as Top Revenue Recruiters and Top Associate Recruiters.

Ty said, “Building a successful Network is a team effort. We are working with some of the greatest partners in the industry that truly care about the success of their teams and are passionate about assisting them as they build their independent businesses. We are honored to serve them.”

In addition, they were recently identified to be among “52 of the brightest minds inside and outside network marketing.” Included in that list were notables such as Robert Kiyosaki, Paul Zane Pilzer, and Dr. Denis Waitley.

According to Bo, “Our primary focus is to mentor individuals on our team to achieve success. We cultivate leaders, not followers. We are attracting individuals that want to build a long-term income, create value through association and establish a new paradigm of success in this industry.”

Mike Dillard, creator of “Magnetic Sponsoring” and “Building on a Budget,” commented, “Ty Tribble is one of the few networkers out there who’s really on top of the Internet marketing world… If you want to learn from one of the best, Ty’s your man…”

Rudy Ruettiger, author, speaker and the inspiration for the motion picture “RUDY,” said, “Bo Short develops great leaders. He has a talent for coaching people to attain significance in their personal and professional lives.”

For More Information Contact: MaxImpact International, LLC www.MaxImpactllc.info 1-801-461-5000

Orrin Woodward Teams With MonaVie?

A court injunction doesn't allow Orrin Woodward to do anything for at least another 45 days, but it looks like Orrin will bring on MonaVie as one of his suppliers in the near future.

Just a guess, but I suspect that Orrin is thinking bigger than just MonaVie.

More commentary and analysis to come soon.  Off to my son's basketball game!

MonaVie Opinions From The Web

PowerSupplements:

We do not blame the Monavie corporation for this one, but some of their independent reps have been making outrageous claims online.  Saying that Monavie can cure diseases is dishonest and irresponsible.  We of course believe that Acai has tremendous health benefits, but a number of Monavie reps have crossed the line and sold some very sick people a false set of promises.

Making untrue and unfounded health claims for Monavie and Acai is bad for everyone.  We hope that the Monavie corporation will do everything in its power to stop representatives from making unfounded health claims. 

The Grossest MonaVie Video Yet

Look what MonaVie did for this guys warts! Yummy! 

MonaVie Income Disclosure: How Much Do They Really Make in MonaVie?

I just had a look at the new MonaVie Income disclosure (found here). Frankly, the numbers look pretty good. Over 10% of the active distributors within MonaVie earn over an average yearly income over $9,000 while most of those are working the MonaVie business part time.

A part time business that earns over $9,000 is not too shabby and many are earning larger incomes.

Remember this, a lot of people earning a little bit of money in Network Marketing is a really good thing because statistically an extra $200 a month is all that people need (usually) to keep from filing bankruptcy.

Advertise Your MonaVie Business For Free

Want to advertise your MonaVie business?

Head on over to MonaVie Uncensored and post your links and comments or join in the no holds barred discussion.

MonaVie Rep. Claims Juice Cures Cancer, But I am the Sensationalist

I thought this was pretty funny.

A couple of days ago, I posted a video from a MonaVie rep. talking about how MonaVie helps him with his Lyme Disease.  The video was posted on YouTube and one of the comments said that following:

"who said there is no cure for Cancer Logon to the monavie,com and use ID # 580838 from the Enroll to get ur health better,Cancer no more"

So I posted the comment as well. (An obvious illegal claim).

Then I get the following comment from a MonaVie rep reader:

This isn't the first sensationalist comment you've made simply to draw attention to yourself. And every time I follow up, I find nothing of substance.

OK, let me get this straight.  One MonaVie rep. goes on YouTube talking about Lyme Disease (and there are dozens of other videos talking about Arthritis and other ailments) and another rep. posts their ID number saying that MonaVie is a cure for cancer, yet I am the sensationalist?

That's funny.

Quote me on this:

If MonaVie doesn't get a handle on this illegal claims, the FTC and FDA will get a handle on it  for them. That can include hefty fines, lawsuits and shutdown.

Update: The video that started this little exchange has been pulled from YouTube. Someone is apparently listening.

Will MonaVie Get Shut Down by the FTC or FDA? Video of Illegal Claims

I was looking at some YouTube vidoes and found several from MonaVie reps talking about how MonaVie cured them of Cancer, Lyme Disease, Arthritis, etc.

Here is a quote from one of the comments:

who said there is no cure for Cancer Logon to the monavie,com and use ID # 580838 from the Enroll to get ur health better,Cancer no more

This is absolute proof of an illegal disease claim...

Check this out:

Let me say this.  I'm sure that MonaVie is a good product, but if you expect to continue to build your business by telling people that MonaVie cures cancer, the company will be shut down by the FTC and FDA.  MonaVie is growing, but I fear that the majority of the growth is coming from the use of illegal claims.

Update: The video was removed from YouTube. Perhaps MonaVie is clamping down a bit.

MonaVie Lowest ORAC Score vs. Xango and Thai-go

Press Release:

Health and nutrition researcher Kimberly Day tested three of the top selling antioxidant drinks on the market to determine if they are delivering the benefits they claim to offer.

Ms. Day sent samples of MonaVie, Xango, and Thai-Go to Brunswick Laboratories, which is a nationally recognized for their antioxidant testing. The drinks were tested to determine their ORAC value. Oxygen Radical Absorbance Capacity (ORAC) is the most widely accepted method of measuring antioxidant content in food.

Results indicated that MonaVie had the lowest hydro-ORAC value (23,323), with Xango just slightly higher at 24,480. However, Thai-Go was nearly twice as high as either of the other two beverages tested, coming in at 51,939. All three drinks are comparatively priced and all are marketed as high-quality antioxidant beverages.

(We can assume that the entire bottle was tested - not serving size or per oz.)

Antioxidants work to protect your body from free radical damage. Free radicals are highly reactive forms of oxygen that are missing an electron. When they come into contact with normal molecules, they try to steal an electron, damaging the healthy cell and its DNA.

Free radical damage has long been believed to be a risk factor of many of the chronic diseases that accompany aging-including heart disease, eye degeneration, memory loss, damage from UV light, and cancer. Antioxidants, however, deactivate free radicals, preventing them from doing damage.

One Blog Asks: Is MonaVie a Scam?

Interesting article about MonaVie on this site:

My conclusion overall is that monavie is not a scam in itself and distribution via mlm is perfectly legal. However, I would have reservations about becoming a seller as mlm’s inherently perform badly for the newer recruits, whilst lining the pockets of the early entrants. Of course, some dedicated people will always be successful so I would expect to hear from some of those through the comments below!

Verdict: NOT a scam, however, may not be a sure money maker either.

MLM Uncensored

Ready for something new?

Today, I am launching a new section of the MLM Blog Network today called MLM Uncensored.

The concept is pretty simple.

We set up a blog about a Network Marketing company but we don't express any opinions about the company.  The opinions come from you. 

Your comments drive the content of the blog.  I am calling it MLM Uncensored because I am not going to moderate the comments (except for obvious cases of spam). 

You are free to post links to your company web sites, you are free to post your opinions...good, bad and ugly. The conversation is 100% yours.  I might join in the conversation now and then but I will drive the boat (so to speak).

So, I need your help to get the ball rolling.  A new company called Zrii has made a bit of a splash in the industry so Zrii gets the first MLM Uncensored site.

Check out Zrii Uncensored here.

Update: MonaVie Uncensored and Body Alive Uncensored are now live.

Illegal Monavie Product Claims?

I think it is neat that Monavie is sponsoring the NASCAR driver, Geoff Bodine, but I would suggest the company let him know about a small department of the United States government called the FTC.

I am pretty sure that the FTC does not like to see product claims like this:

“It’s (Monavie) got rid of the majority of my arthritic pains,”

Now, I'm sure that Mr. Bodine didn't really mean to say that Monavie got rid of his arthritic pains. He surely meant to say that Monavie seems to have helped him with his joint discomfort.

Because arthritis is a disease and if Monavie were to say that it "got rid" (cured?) a disease, it would be considered a drug and therefore regulated and...

You get the picture.