Is Velovita A Scam, Pyramid Scheme, or Legit?

In this review, I’m going to share with you if ViloVita is a scam, pyramid scheme, or legit. 

I’ll share with you the characteristics of a pyramid scheme and then see if VeloVita shares these characteristics.

Over the last few years, I’ve been busy creating reviews about all kinds of online products and opportunities.

Some turned out to be fake others were legit ways to make money online but in the process, I learned how to spot scams.

After reading this post, you can decide for yourself if Velovita is worth your energy, time, and money.

What is VeloVita?

VeloVita is a health and wellness company founded by Kost Gara and Co-founder Jeff Mack.

They pride themselves on being a hybrid of direct selling and e-commerce by giving their distributors personal websites that they can operate with. 

VeloVita sells supplements and wearables designed to maintain and improve your health and Wellness. You could think of supplements that boost brain function, improve your immune system, and wearables that guard you against electric magnetic fields.

Where is VeloVita located?

VeloVita is active in more than 70 countries but its official headquarters is located at 1111 Park Centre Blvd, Miami, Florida 33169, US.

Check out this video from Velovita’s official YouTube page to find out more about what the company is about.

How does VeloVita MLM work?

Velovita is a company that distributes health and wellness products. Instead of directly selling it to consumers they have chosen to use the MLM model which gives you the choice to earn money by:

• Selling the products for a commission
• Recruiting people to earn bonuses.

What is MLM?

MLM (a.k.a network marketing or direct selling) stands for multi-level marketing.

According to Wikipedia, multi-level marketing is a marketing strategy for selling products or services where the revenue is derived from a non-salaried workforce.

As a part of this workforce, you sell the products from the company, and/or recruit people to do the same thing. This group of people you recruit will work under you and is referred to as your downline.

The bigger your downline is the more money you can earn passively (technically speaking) because you’re getting paid a percentage based on the performance of your downline.

This also means the person that recruited you which is called your upline is making money based on your performance.

The act of recruiting turns an MLM company into a pyramid-shaped organization where the first people to join make the most and are on the top of the pyramid and those last to join are at the bottom.

Source: Wikipedia

MLMs have been around for a long time. There are Multi-level marketing companies active today that were founded in the 1950s. MLM has a lot in common with pyramid schemes, so scammers often use MLM to disguise their pyramid schemes.

Is it absolutely necessary to recruit people? No.

You can also stick to just selling products you can order at wholesale price (25% discount) and re-sell to make a profit. This is easier said than done for multiple reasons which is why most members try to recruit others so they can earn more money.

How to join VeloVita

Most people get referred to VeloVita but you can also sign-up through their website.

After that, you can become a VeloVita affiliate by following these 3 steps.

Step 1: Buy V-cloud 
This is your virtual office and website for $49,99

Step 2: Purchase Bran Boxes
Dependent on how many you buy you’ll be eligible for different entry ranks that come with 
a higher commission rate.

Step 3: Qualify by recruiting
Get your first 2 recruits after which you qualify to start earning money.

Is VeloVita a pyramid scheme?

To answer this question we need to know what a pyramid scheme is.

What is a pyramid scheme?

A pyramid scheme is a type of scam where people are promised money for joining the scheme and recruiting other people instead of selling products and services. 

No selling of a product or service is involved whatsoever.

So you might be wondering where the money comes from.

The people that join are expected to pay a one-time or a monthly fee and in exchange for that, they get a percentage of the fee of everyone they recruit after.

The remaining money goes to the creators at the top of the pyramid.

The problem with this model is from a mathematical standpoint it’s impossible for everyone to make money because you simply run out of people.

Take a look at this picture below showing how it’s impossible for everyone to earn money.

• Source: Wikipedia

As you can see, in this pyramid model it’s required to recruit 6 people. You’ll notice from the 12th level and further, it’s not possible anymore for everyone to earn money.

The 2.2 Billion people on the 12th level need 13.1 billion recruits in total for them all to make money which is more people than there are currently on Earth.

At the point that people can’t be recruited anymore, the pyramid collapses because not enough money is coming in to pay members and sustain the pyramid.

Looking at the description of a pyramid scheme, VeloVita can’t be classified as a pyramid scheme from a legal perspective. VeloVita products have given people a method to make money without recruiting people.

Who can benefit from Velovita?

Who could benefit from joining Velovita’s MLM program:

• Expert salesmen
• Expert recruiters
• People that already have an audience

That being said, even then I wouldn’t recommend it.

Who shouldn’t join Velovita’s MLM Program:

• People that hate sales jobs.
• People that hate recruiting
• People that don’t have the budget for it
• People that expect to earn passive income
• People that expect to earn a full-time income

Vilavita products

Velovita focuses on improving the health, wellness, and performance of people. They do this by manufacturing and distributing supplements. Currently, they’ve placed their supplements in 5 different categories.

What products does Vilivita sell?

Bran

Bran pronounced breyn, is a nootropic which is a blend of 16 different nutrients created with the help of nanotechnology. They use the nano-tech to break down the particles as small as possible to help the body with absorption.

Some of the benefits of Bran are:

• Mental energy boost
• Focus and alertness improvement 
• Modd improvement 
• Improves Mental Acuity
• Supports Positive Thinking

Zlem

zlēm, pronounced zleem, is a supplement that is a blend of 20 ingredients that is designed to help you fall asleep, sleep soundly, and burn body fat while you’re sleeping.

Uuth 

uüth, pronounced yüth is designed to make you feel and look younger. The Uuth segment of products is all anti-aging products that contain ingredients such as collagen peptides, aronia berries, an abundance of rich antioxidants, vitamins, and immune-supporting properties.

Plos 

plôs pronounced pluhs are Velovitas non-dairy creamers that can be added to all kinds of beverages for health benefits such as weight management, boosting metabolism, and curbing cravings.

Tuun

tuün pronounced tune is a wearable device with Biohacking Enhancement Technology that helps you stay “fine-tuned” when in contact with external stressors such as electromagnetic fields and other electrosmog.

Do Velovita products have side effects?

Up until this point, there hasn’t been any information published about side effects that could occur while using Velovit products. Velovita does recommend consulting a health practitioner before using these products.

Is Velovita Safe and FDA approved?

Are Velovita products FDA-approved? No. None of the Velovita products have been evaluated by the FDA. 

On the FDA website, they’ve mentioned that Velovita hasn’t gone through the evaluation process needed to get FDA-approved.

There don’t seem to be any crazy ingredients in their products but I don’t think it’s up to me to decide whether Velovita products are safe to use.

Pros and Cons

Pros

• No bad business reviews 

Cons

• Products are not FDA-approved
•  The business model has been proven to give members a low chance of succeeding

Vilavita Compensation Plan

Velovita’s compensation plan is based on the binary MLM system. In this system, every member only gets to have 2 recruits. Your recruits are also only able 2 have 2 recruits and so on at every level. These are basically your 2 “legs”.

Unlike normal MLM models where there’s a limit to the levels you can get residual income from, the binary system makes it possible to earn residual income infinite levels deep.

Now let’s take a deeper look into the compensation plan and the business model.

Velovita makes it possible to earn money in 3 ways. 

• Retail commission based on sales 
• Referral commission 
• Residual commissions

Retail commission based on sales

This is a method that allows you to earn a commission based on how much PV you sell. It’s a simple and straightforward method of earning money.

Referral Commissions

A referral bonus is earned by recruiting others and having them purchase products. Dependent on your rank the percentage you’ll get as a commission will differ. 

These are the entry-level titles:

• Member
•  Apprentice
• Promotor
• Influencer
• Ambassador

Up to the promotor rank you’ll earn a bonus of 10%
An Influencer will get a bonus of 15%
An ambassador will get a bonus of 20%

Team Commissions

These are commissions based on the performance of your team. You’ll be paid based on the performance of your smaller leg (The pay leg). This doesn’t mean after recruiting that your job is done. You still at the very least need to have the rank associate.

Your smaller leg needs to collect at least 200BV and the bigger leg needs to collect at least 400BV.

VeloVita Affiliate ranks

When you start creating teams to recruit you’ll earn affiliate ranks and based on those ranks the bonuses you’ll get will increase. You can see the ranks and qualifications in the picture below.

How much does it cost to start a VeloVita “business”?

VeloVita is advertised as only costing $49,95 but there are hidden fees you have to take into account. The most noteworthy is the collection of BV to maintain your bank on a monthly basis.

Yes, you’re buying products with the goal of reselling them but you still need to spend money. Also, what happens if the sale doesn’t go through? Now you’re stuck with products you don’t need. 

Unfortunately, I wasn’t able to find out how much 1 BV is in dollars at the moment but I wouldn’t be surprised if people are spending 2 to 3x the marketed amount of money to keep their VeloVita business alive.

Why don’t people earn decent money with companies like VeloVita?

I have summed up the reasons why it’s hard to make money with VeloVita and MLM companies in general into 3 points. As a VeloVita affiliate, you’ll have to deal with the first 2 points mentioned below.

1. MLM companies are often associated with pyramid schemes
MLMs have a pyramid recruiting structure that you often have to join to be able to make decent money or at the very least not lose money. The problem is a lot of pyramid schemes disguise themselves as MLM programs making it difficult to differentiate the two.

This is the biggest problem why most distributors have a difficult time recruiting people. The moment people hear about how you can make money by recruiting people red flags appear in most people’s minds.

This isn’t good for your sales.

2. You have to consistently invest your money to earn commissions
You’re only eligible for bonuses and commissions if you buy their products. The bigger the bonuses, the more product you have to buy. You do get discounts but if you can’t sell the products I can see you easily fall into a financial deficit (which happens to the majority of distributors of MLM companies).

3. The price of the product often isn’t aligned with the market

It’s hard for a multi-level marketer to sell products because most MLM products tend to be a lot more expensive than similar products sold by non-MLM companies. This means even if you’re really good at recruiting your downline still needs to sell those same expensive products for you to make decent money.

You can see that translated in these statistics I found about Multi-level Marketing.

• Nearly half (47%) of MLM participants reported that they lost money.
• One in four (27%) MLM participants reported that they broke even (made no money).
• MLM participants are 7% more likely to declare bankruptcy during their lifetime.
• Direct sales have risen 79% in the last decade, but MLM participants continue to lose money.
• 90 – 99% of distributors in multilevel marketing only receive a couple of hundred dollars in commission per year.
• Out of the 33,000 interviewed, 90 people made enough money to cover the costs of building their businesses.
• 50% of the people who start a network marketing enterprise abandoned it in the first year.

Sources:
FTC
AARP
Jobsinmarketing.io

My Personal Take

What I like about VilaVita 

1. No bad reviews
I went to do some research about VeloVita’s products and to my surprise, I couldn’t find any negative reviews. This might be because it’s relatively new but they seem to be promoting it a lot on social media right now. 

If I come across negative reviews, I’ll update this section but right now after 3 years, I do think it’s impressive not to have any negative reviews.

What I don’t like about VilaVita 

1. You have to pay to play

The fact that you have to buy products in order to resell them and also convince others to do the same doesn’t sit well with me. Technically, it’s possible to earn a profit doing this but it comes with financial risk.

Should you not be able to sell the products you lose money.

I have no problem with investing in an opportunity but I’d at least have a 100% certainty I’d get something in return. It doesn’t have to be money. Acquiring knowledge or tools that can increase my chances would be more than enough.

2. Saturated market

The health and wellness market especially in the MLm sector is a bit saturated. As someone, that reviews MLMs almost every day I can confidently say that this isn’t an untapped well full of potential.

There are hundreds of MLM companies that work in the same niche and you’ll have to compete with their distributors to sell products and recruit people.

3. Bad business model

The MLM business model has been around for decades and because of that, we have a lot of information about how they perform. It turns out that more than 95% of MLM members either lose or make no money.

4. Not FDA approved

VeloVita products are not FDA-approved which will make it harder to sell the products because you can’t point to that to show that it’s safe.

Verdict

Is Velovita A Scam, Pyramid scheme, or Legit?

Velovita isn’t a scam or pyramid scheme but it isn’t legit either. 

I’d place it under the category bad business opportunity because Velovita isn’t sharing any untruths. The degree of difficulty when it comes to succeeding is just exceptionally high.

Velovita Alternative

Unfortunately, Velovita isn’t for everyone. 

It comes with significant financial risk and it’s hard to scale because most of the marketing is done face-to-face and you can’t be at multiple places at once.

This is why I suggest to those that don’t want to deal with these 2 factors an alternative.

It is called affiliate marketing. 

It’s the method I use to earn most of the money I earn online.

How do you earn money with affiliate marketing?

You don’t have to sell products or services and you don’t have to recruit people.

The only thing you’ll be doing is referring people (that already are interested) to merchant websites such as Amazon, Walmart, and eBay. 

When people buy something based on your recommendation you’ll get a percentage of the purchase.

My #1 recommendation is an affiliate marketing training platform with more than 1.5 million members. 

Memberships are basically an all-in-1 package that comes with expert-level training, resources, and support from a community of people doing the same thing. 

Want to learn more? Take a look at my comprehensive review of the affiliate marketing platform.

Do you have any experience with MLM or Modere let me know in the comments!

That’s all for today. 

See you in my next post!

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