Pyramid Scheme - Vemma Verve

What is Verve?:
A Product that I would NEVER endorse nor support. A picture of the cans can be seen here.

Why're You Posting this?:
I have to submit a thesis for a paper that I am writing for my Business Ethics and Legal Work course at my university and I am planning to use Vemma's Verze, "the healthy energy drink."

Why is this in the "Something For All" Section?:
I understand this is somewhat homework help, but it is more appropriate in this section. The underlying reason of me posting this thread is that I wish to find out when and where this pyramid scheme is popping up. The sooner the better. I also wish for members to, after posting if they have seen it/heard of it or not and what location they are in, begin discussing this pyramid scheme based on some basic research that I will present below.

What is a Pyramid Scheme?:
FBI.gov's Definition:

As in Ponzi schemes, the money collected from newer victims of the fraud is paid to earlier victims to provide a veneer of legitimacy. In pyramid schemes, however, the victims themselves are induced to recruit further victims through the payment of recruitment commissions.

More specifically, pyramid schemes—also referred to as franchise fraud or chain referral schemes—are marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product. The real profit is earned, not by the sale of the product, but by the sale of new distributorships. Emphasis on selling franchises rather than the product eventually leads to a point where the supply of potential investors is exhausted and the pyramid collapses. At the heart of each pyramid scheme is typically a representation that new participants can recoup their original investments by inducing two or more prospects to make the same investment. Promoters fail to tell prospective participants that this is mathematically impossible for everyone to do, since some participants drop out, while others recoup their original investments and then drop out.​

What is Vemma/Verve?:
Vemma's distribution network is not seen along side RedBull and Monster in stores on the selves. Instead, it is sold through online websites of "affiliates." These affiliates are recruited by a prior affiliate and told that for $500, they too can get a case of the product and start selling the idea to other people and then all of their "sales" net you profit.

Who is stupid enough to pay $500?:
Many people. Since this has sprung up at my university (fairly small) on Saturday, there are already 5 people signed up.
-What does Vemma/Verve Offer?

• To be continued

​

 

What I've been wondering is why the whole thing hasn't been broken up by the government. They're basically running on a negative option offer system, which is technically legal (while also being extremely shady), but it's pretty obviously a pyramid scheme. Hell, they barely even try to hide it.

Here's a solid article pointing out some of the many flaws in Vemma's business plan and the actual energy drinks, which have been deemed completely unsafe in some cases (namely high lead content without proper warning).

 

Also, just listen to this guy right after 1:10 when he mentions "pyramid scheme" and "scam" - he's literally speaking so fast that it's completely unintelligible. Then he follows it up with name calling, a typical deflection of attention from the actual point at hand (scam/pyramid scheme). I actually laughed when I replayed him spitting out a dozen words in half a second.

 

My friend to sell me on this, you're right that it can't be considered anything but a pyramid scheme.


While I'm personally not for government trying to interfere with peoples voluntary interactions it is pretty obviously a pyramid scheme and the energy drinks themselves taste like absolute shit. You'd have to be really stupid to buy into this but if you do its your own fault that you're out the $500 or whatever :/

 

I was also confused as to why it hasn't been shut down. That is why I am trying to find out the extent of the problem... My paper is going to be sick if I can get people to tell me where they have heard of this product!

I also LOL'd @ him just rambling for half a second.

Darkest.. where are you from? (City prefered by general state/university location is fine too!)

I am trying to compile an external list of data outside their list of "universities we are at" page or what not.

 

This is actually the first time hearing about this product, I believe. I was doing some pyramid scheme research here recently though and found out quite a bit. The thing about the government shutting them down is that they have to gather the information and go through the various legal channels. They really can't just say 'this is a pyramid scheme and we're shutting you down.' The interesting thing, to me at least, is that these kind of schemes create a cult like atmosphere. A charismatic leader who sends his followers out to proselytize and recruit more followers to feed his own ego. He isn't preaching religion though, he preaches something universal: money.

Damn, I was reading the comments section on an article about this stuff and everyone is saying almost the EXACT same things about the product. They're talking about how it cured her mother of Alzheimers or about how their friends and family haven't been sick for a year since drinking this shit every day. Then they go on to talk about how they're making $100k a year doing it. It is even more like a cult than I thought. Also most of them are college students or younger.

 

I am very familiar with this scheme of a "healthy" energy drink. It started in 2011, I had gone down to Punta Cana with my family over the course of march break. I met a high school graduating class from Minnesota most of them pursuing ivy league school scholarships that coming Fall. I was on the other hand staying in Canada going to university.

Not even two weeks in one of the guys I had stayed in contact with over Facebook claims he has a crazy promotion he wants to run by me over Skype. I was very skeptical at first as to how I could help him considering I live in Canada! He demanded I video chat him, and so I did. He starts selling me the Verve/Vemma energy drink!! He even went to the extent of not talking to me, pausing and cracking open a verve in hopes to sell this product to me even more! I was disgusted that he wanted me to become that scum bag at my university campus and try to sell Verve/Vemma to my friends!

A year had passed, I kinda forgot about having someone sell me Vemma/Verve. Until a -- weird -- Highschool buddy named Youssef approached my group of friends and I. A guy a year older than us attempted to sell the ideology of Vemma/Verve to us. I laughed in his face and just spilled the beans on how this is a pyramid scheme, illegal, sucking people in, etc.

I guess I didn't do a good enough job as three of my friends took the bait and joined thinking they will make more investing 500$ on a 'builder pack' than working a minimum wage job on top of going to school.

My three friends who did join, have slowly slipped out realizing what they really invested (or threw away) their money into! It's a program for cheap skates who really think there's such thing as get rich quick schemes. It's not an honest living considering you suck your friends into dispensing 500$ expecting them to only do the exact same to theirs!

Good luck with your paper. I hope, in some way, this is helpful!

Edit: For your own comedic sake: Twitter tag @YPRbroYPR -- Enjoy the douche bag of the week! lmao.

 

I am interested in knowing what places these people go to and what places you go to (college/university [if US])!!

 

@irl seller I'm living in northern california

 

Thanks for that!

So far the reported colleges/town include:
-UTenn
-Northern Cali
-UCali
-UNH
-UNY
-Boston College
- Babson College
-Havard Univerisity



I still need to hear from many more members!

 

I talked to my ex who goes to Calhoun college in Northern Alabama, so it doesn't seem to be there yet. I live really close to UT and I haven't heard about it from anyone I know/any of my friends, so it isn't in the SW Virginia area yet. I suppose it makes sense to only 'infect' larger campuses, because they're more people to spread it to.

 

I am at a fairly small university. <10K students + faculty.

Can walk across campus in ~8 minutes.

Waiting for it to infect everywhere tbh

 

Can we see the paper when you're done?

 

After it is done and graded I can share my compiled data and presentation with those that shared information with me!

 

still looking for locations this has been!

 

people at my school wanted to, @ Sweden like 1000 students

 

It was in my high school last year a few friends bought in and all of them lost their 500$. Another older acquaintance spews "We can do it" bullshit on facebook constantly. Now I have no idea whether it's popular where I live because I only associate with people who wouldn't fall for a scheme like that now. I'm willing to tell you what highschool/exact location is on skype

 

Thank you for the info gentleman! I am really focusing in on the US, but I guess it can't hurt to have some Canadian info as well

 

I attend the University of Alabama, a campus with over 30,000 people, and never heard of this product. So, at least it's not here yet.

 

I remember this from a year or two ago...this shit was ridiculous. I asked one of the kids about how the referral money got passed down the line, and it was some bullshit where even if a kid sold the entire case of Verve, Vemma would still be down money from giving away the referral earnings.

I contacted one of their customer supports too for just their website. I had no interest in any of the physical product or the support, and I gave a very detailed explanation of what I planned to do and my qualifications to run an eCommerce site, and all they did was send me a generic email back telling me to purchase the entire $500 package. I just wanted an affiliate site to sell their product and even then, they wouldn't give it to me -_-