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?
