VeloVita function within the dietary complement MLM area of interest. The corporate is predicated out of Miami, Florida, nonetheless this isn’t disclosed on their web site or social media pages.
Heading up VeloVita are co-founders Kosta Gara (CEO) and Jeff Mack (President).
Kosta Gara (proper) appeared on BehindMLM’s radar final 12 months, as iGalen’s Chief Govt Advisor.
On the time iGalen was being sued by its product provider ATM Metabolics.
A settlement noticed iGalen lose entry to their flagship product, prompting its collapse in November.
Via Gara Group, Kosta Gara additionally offers growth options to MLM corporations.
Site visitors to Gara Group’s web site seems to have peaked whereas iGalen was working. It has since declined.
We first got here throughout Jeff Mack in 2012 as CEO of Vidacup. Vidacup ran for a couple of years earlier than closing up store.
I wasn’t in a position to pinpoint a precise date however I imagine it was someday between 2015 and 2016.
After Vidacup Mack (proper) promoted himself as an “worldwide community advertising enlargement skilled“.
Replace sixth October 2022 – In lately researching one other MLM alternative, I’ve discovered VeloVita is a LaCore Enterprises firm.
I initially thought it may be a brand new growth, owing to Velovita INC being a comparatively new Texas firm:
Company data from Florida nonetheless reveal Velovita was at all times a LaCore Enterprises firm:
I double-checked and there’s no point out of LaCore Enterprises or proprietor Terry LaCore wherever on Velovita’s web site.
Being a LaCore Enterprises isn’t a adverse for Velovita however not disclosing firm possession is.
LaCore Enterprises is predicated out of Texas and owns a lot of MLM corporations, all of which market merchandise manufactured by LaCore Labs.
/finish replace
Learn on for a full evaluation of VeloVita’s MLM alternative.
VeloVita’s Merchandise
VeloVita’s flagship product is Bran, a water combined dietary complement made within the US.
Brān is a well-rounded nootropic with a forefront nanotechnology for max affect to ship an on the spot increase to the central management unit of your physique – your mind.
Brān accommodates a mix of 16 vitamins for a clear and long-lasting vitality increase and temper enhancer whereas serving to the physique to burn glucose and saved physique fats.
Bran is obtainable in three flavors; chocolate sea salt, lemon drop and caramel macchiato.
A field of Bran accommodates twenty-five single-serve pouches. Retail pricing isn’t offered, nonetheless we do know Bran wholesales for $64.95 a field.
Retail pricing will probably be greater than wholesale however by how a lot I can’t say.
VeloVita’s Compensation Plan
Though there’s no point out of it of their compensation plan, VeloVita’s fee qualification requires retail buyer acquisition.
On condition that, we’ll give them the good thing about the doubt on retail gross sales. The corporate additionally pays referral commissions on merchandise ordered by recruited associates.
Residual commissions are paid by means of binary staff cycles, rounded out by extra performance-based bonuses.
VeloVita Affiliate Ranks
There are six affiliate ranks inside VeloVita’s compensation plan.
Together with their respective qualification standards, they’re as follows:
- Affiliate – enroll as a VeloVita affiliate and qualify for MLM commissions
- Star – recruit two MLM fee certified associates and be incomes 10 residual fee cycles per week
- All Star – recruit and preserve 4 MLM fee certified associates and be incomes 25 residual fee cycles per week
- Rock Star – preserve 4 personally recruited MLM fee certified associates, have one Star or greater ranked affiliate on either side of your binary staff and be incomes 50 residual fee cycles per week
- Tremendous Star – preserve 4 personally recruited MLM fee certified associates, have 4 Star or greater ranked associates on either side of your binary staff and be incomes 150 residual fee cycles per week
- V-Star – preserve 4 personally recruited MLM fee certified associates, have 4 Rock Star or greater ranked associates on either side of your binary staff and be incomes 500 residual fee cycles per week
MLM Fee Qualification
To qualify for MLM commissions, a VeloVita affiliate should recruit two associates and refer and preserve three retail clients.
Retail Commissions
By requiring associates to refer and preserve three retail clients, it’s assumed VeloVita pays retail commissions.
Usually retail commissions are paid out because the distinction between the wholesale price and retail worth of merchandise ordered.
There’s no point out of retail commissions within the firm’s compensation plan although, so we are able to’t provide you with any specifics.
Referral Commissions
Referral commissions are paid on bins of Bran ordered by personally recruited associates.
- Advocate and Promoter tier associates obtain a ten% referral fee price
- Influencer tier associates obtain a 15% referral fee price
- Ambassador tier associates obtain a 20% referral fee price
Residual Commissions
VeloVita pays residual commissions through a binary compensation construction.
A binary compensation construction locations an affiliate on the prime of a binary staff, cut up into two sides (left and proper):
The primary stage of the binary staff homes two positions. The second stage of the binary staff is generated by splitting these first two positions into one other two positions every (4 positions).
Subsequent ranges of the binary staff are generated as required, with every new stage housing twice as many positions because the earlier stage.
Positions within the binary staff are stuffed through direct and oblique recruitment of associates. Be aware there is no such thing as a restrict to how deep a binary staff can develop.
On the finish of every week VeloVita tallies up new gross sales quantity on either side of the binary staff.
Residual commissions are paid primarily based on “cycles”.
A cycle is generated when 200 GV in gross sales quantity on the weaker binary staff facet is matched towards 400 GV on the stronger facet. One cycle pays out $30.
Residual commissions are capped primarily based on rank:
- Stars can earn as much as $6000 per week (200 cycles)
- All Stars can earn as much as $12,000 per week (400 cycles)
- Rock Stars can earn as much as $27,000 per week (900 cycles)
- Tremendous Stars can earn as much as $54,000 per week (1800 cycles)
- V-Stars can earn as much as $120,000 per week (4000 cycles)
Matching Bonus
VeloVita pays a Matching Bonus on residual commissions earned by downline associates.
The Matching Bonus is tracked through a unilevel compensation construction.
A unilevel compensation construction locations an affiliate on the prime of a unilevel staff, with each personally recruited affiliate positioned instantly underneath them (stage 1):
If any stage 1 associates recruit new associates, they’re positioned on stage 2 of the unique affiliate’s unilevel staff.
If any stage 2 associates recruit new associates, they’re positioned on stage 3 and so forth and so forth down a theoretical infinite variety of ranges.
VeloVita caps the Matching Bonus down seven ranges of recruitment:
- Star ranked associates earn a 5% match on stage 1 (personally recruited associates), 4% on stage 2 and three% on stage 3
- All Star ranked associates earn a 6% match on stage 1, 5% on stage 2, 4% on stage 3 and three% on stage 4
- Rock Star ranked associates earn a 7% match on stage 1, 6% on stage 2, 5% on stage 3, 4% on stage 4 and three% on stage 5
- Tremendous Star ranked associates earn an 8% match on stage 1, 7% on stage 2, 6% on stage 3, 5% on stage 4, 4% on stage 5 and three% on stage 6
- V-Star ranked associates earn a 9% match on stage 1, 8% on stage 2, 7% on stage 3, 6% on stage 4, 5% on stage 5, 4% on stage 6 and three% on stage 7
Way of life Bonus
The Way of life Bonus is a weekly bonus paid out to Star and better ranked VeloVita associates.
- Stars obtain $125 per week
- All Stars obtain $250 per week
- Rock Stars obtain $500 per week
- Tremendous Stars obtain $1250 per week
- V Stars obtain $2500 per week
Quarterly Partnership Bonus
VeloVita takes 1% of company-wide income and locations it into the Quarterly Partnership Bonus pool.
V Star ranked associates every obtain an equal share within the pool, paid out quarterly.
5 Yr Retirement Bonus
If a VeloVita affiliate maintains MLM fee qualification for 5 straight years, the corporate waives their annual charges and rank quantity necessities.
Becoming a member of VeloVita
VeloVita affiliate membership is $49.95 a month.
New associates should additionally buy bins of Bran:
- Advocate – 1 field of Bran for $64.95
- Promoter – 6 bins of Bran for $324.75
- Influencer – 12 bins of Bran for $649.50
- Ambassador – 25 bins of Bran for $1299
Be aware that for the Influencer and Ambassador tiers, the annual payment is waived for the primary 12 months.
Along with bundled product, how a lot a VeloVita affiliate spends once they enroll impacts their earnings potential.
Conclusion
It’s a bit nit-picky however I’ve to deliver up the title of VeloVita’s flagship product; Bran.
The corporate helpfully informs us that Bran is “pronounced breyn” (mind, get it? *groan*). This begs the query although, why they didn’t simply title it that?
VeloVita is an American firm run by Individuals from inside America. America doesn’t do the “line above e” factor so, extra seemingly than not, Bran goes to be known as “bran”.
Personally I don’t have an issue with that that. It simply appears foolish to give you a classy title in your product that no person goes to intuitively pronounce accurately.
That apart VeloVita markets Bran as an vitality drink:
Utilizing wholesale pricing as a template, one serving of Bran involves $2.60 a serve. Retail will probably be greater than that however as a result of retail pricing isn’t offered, how far more who is aware of.
I famous particular caffeine quantities aren’t offered on Bran’s dietary data chart, nonetheless it does include “inexperienced espresso bean extract”.
For a marketed vitality drink I discovered it odd caffeine content material wasn’t disclosed. The remainder of the elements sound like the standard chemical stuff you discover in vitality drinks.
Should you’re a daily client and/or well being acutely aware, by all means run a comparability.
Out of curiosity I went and regarded up Pink Bull, which additionally accommodates niacin and nutritional vitamins B6 and B12. A can of Pink Bull has 75 mg of caffeine, Bran has method much less sugar and energy.
Alpha-GPC seems to be the “gasoline your mind” ingredient in Bran. It’s seems in “nootropics” branded drinks. Doesn’t appear to be massive within the vitality drink market.
Transferring onto VeloVita’s compensation plan, the very first thing that struck me was “pay to play”.
At the least as introduced in VeloVita’s compensation plan, an preliminary product buy are necessary.
What would a brand new VeloVita affiliate want with 20 bins of twenty-five servings of Bran every? No concept.
Appears like a great candidate for stock loading.
Extra importantly, how a lot a VeloVita spends once they enroll dictates their referral fee price. That is blatant pay to play and is a regulatory compliance situation.
On the flip facet, VeloVita requires associates to keep up three retail clients to stay MLM fee certified.
I’m assuming this implies every buyer should be ordering no less than one field of Bran a month.
When weighed towards an affiliate’s personal one field a month autoship, that’s a fairly good ratio. Bonus factors for making an affiliate’s autoship free (1 field) in the event that they MLM fee qualify.
VeloVita may run into issues if nearly all of associates stay caught making an attempt to qualify for commissions, however we’ll must see how that performs out (the corporate is at present in prelaunch).
One factor that struck me as odd was the “low cost pricing” provided.
Until I’m studying that unsuitable, VeloVita associates can obtain as a lot as a thirty % low cost… offered they buy 40 bins of Bran a month.
That’s a thousand servings and is available in at $2598 with no reductions. The 30% low cost drops the worth to $1816.60.
Nonetheless, even with enthusiastic sampling no person must be spending that a lot a month on affiliate autoship. And if they’re, three retail clients on autoship isn’t wherever close to sufficient.
One factor VeloVita may is ramp up required clients on autoship per field of Bran an affiliate themselves has on autoship.
One field on autoship = one retail buyer on autoship. Two bins = three retail clients on autoship. Three bins = 5 retail clients and many others.
The remainder of VeloVita’s compensation plan is satisfactorily balanced and easy to observe. They simply want to handle pay to play and potential stock loading.
One last item I’ll point out is I’m assuming Bran is supposedly to be consumed as a day by day complement. Limiting bins to 25 servings appears to be a sneaky technique to get folks to purchase extra.
If that is intentional, I’m not a fan of such practices. If not, certainly it will possibly’t be too exhausting to bump the serving dimension as much as a extra conventional thirty? Modify Bran’s pricing accordingly.
Pending VeloVita addressing the considerations raised above, strategy with warning.