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Coordinates: 33°38′38″N 111°53′57″W / 33.643787°N 111.899148°W / 33.643787; -111.899148
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Vemma is a [[multi-level marketing]] (MLM) company<ref name=nypost /><ref name=truthinadvertising /><ref name=verge>{{cite news|last=Stroud|first=Matt|title=Is the FTC ready to take on multi-level marketing?|url=http://www.theverge.com/2013/12/23/5239080/is-the-ftc-ready-to-take-on-pyramid-schemes|accessdate=13 January 2014|newspaper=The Verge|date=23 December 2013}}</ref> which describes itself as an [[affiliate marketing]] company.<ref>{{cite web|url=http://www.international.to/index.php?option=com_content&view=article&id=27338%3Avemma®-makes-the-move-to-affiliate-marketing&catid=309%3Apitchengine&Itemid=446&utm_source=vemmaus&utm_medium=email&utm_campaign=vemmaus&utm_content=Vemma+Worldwide+Sales+Hit+%24221+Million+-+Relive+2013+Success|title=Vemma Makes Move To Affiliate Marketing|date=January 06, 2014|accessdate=2014-01-11}}</ref> The company sells its products through independent distributors (referred to internally as ''affiliates'') who can potentially earn a share of the revenue from their own product sales as well as those from the network of distributors they build.<ref>{{cite web|url=http://drinkformoney.com/what-is-verve-energy-drink-vemma-energy-drink/|title=What is Verve Energy Drink?|date=March 18, 2013|accessdate=2013-11-16}}{{paywall}}</ref><ref>{{cite web|url=http://www.international.to/index.php?option=com_content&view=article&id=27338%3Avemma®-makes-the-move-to-affiliate-marketing&catid=309%3Apitchengine&Itemid=446&utm_source=vemmaus&utm_medium=email&utm_campaign=vemmaus&utm_content=Vemma+Worldwide+Sales+Hit+%24221+Million+-+Relive+2013+Success|title=Vemma Makes the Move To Affiliate Marketing|date=January 6, 2014|accessdate=2014-11-14}}{{paywall}}</ref><ref>{{cite web|title=BK's Blog Finishing The Year Strong and Introducing Vemma 2.0|url=http://www.youtube.com/watch?v=cngBqn7-bYM|date=November 12, 2013|accessdate=2014-01-11}}{{paywall}}</ref> As of 2012, about 75% of distributors who qualify as active distributors made less than $1,327 a year.<ref name=nypost />
Vemma is a [[multi-level marketing]] (MLM) company<ref name=nypost /><ref name=truthinadvertising /><ref name=verge>{{cite news|last=Stroud|first=Matt|title=Is the FTC ready to take on multi-level marketing?|url=http://www.theverge.com/2013/12/23/5239080/is-the-ftc-ready-to-take-on-pyramid-schemes|accessdate=13 January 2014|newspaper=The Verge|date=23 December 2013}}</ref> which describes itself as an [[affiliate marketing]] company.<ref>{{cite web|url=http://www.international.to/index.php?option=com_content&view=article&id=27338%3Avemma®-makes-the-move-to-affiliate-marketing&catid=309%3Apitchengine&Itemid=446&utm_source=vemmaus&utm_medium=email&utm_campaign=vemmaus&utm_content=Vemma+Worldwide+Sales+Hit+%24221+Million+-+Relive+2013+Success|title=Vemma Makes Move To Affiliate Marketing|date=January 06, 2014|accessdate=2014-01-11}}</ref> The company sells its products through independent distributors (referred to internally as ''affiliates'') who can potentially earn a share of the revenue from their own product sales as well as those from the network of distributors they build.<ref>{{cite web|url=http://drinkformoney.com/what-is-verve-energy-drink-vemma-energy-drink/|title=What is Verve Energy Drink?|date=March 18, 2013|accessdate=2013-11-16}}{{paywall}}</ref><ref>{{cite web|url=http://www.international.to/index.php?option=com_content&view=article&id=27338%3Avemma®-makes-the-move-to-affiliate-marketing&catid=309%3Apitchengine&Itemid=446&utm_source=vemmaus&utm_medium=email&utm_campaign=vemmaus&utm_content=Vemma+Worldwide+Sales+Hit+%24221+Million+-+Relive+2013+Success|title=Vemma Makes the Move To Affiliate Marketing|date=January 6, 2014|accessdate=2014-11-14}}{{paywall}}</ref><ref>{{cite web|title=BK's Blog Finishing The Year Strong and Introducing Vemma 2.0|url=http://www.youtube.com/watch?v=cngBqn7-bYM|date=November 12, 2013|accessdate=2014-01-11}}{{paywall}}</ref> As of 2012, about 75% of distributors who qualify as active distributors made less than $1,327 a year.<ref name=nypost />

The company has heavily focused on recruiting college students as distributors,<ref>{{cite news|last=Murphy|first=Kate|title=College students gamble with network marketing|url=http://www.elonpendulum.com/2013/10/college-students-gamble-with-network-marketing/|accessdate=13 January 2014|newspaper=The Elon University Pendulum|date=14 October 2013}}</ref><ref name=panther>{{cite news|last=Oliver|first=Elizabeth|title=Network marketing attracts students|url=http://www.thepantheronline.com/news/network-marketing-attracts-students|accessdate=13 January 2014|newspaper=The Chapman University Panther|date=5 November 2012}}</ref> which has brought attention from [[consumer organization]]s, some of whom have labeled the company a [[pyramid scheme]].<ref name=nypost /><ref name=truthinadvertising /> Prior to September of 2013 the company also recruited high school students, although the company has discontinued that practice.<ref name=truthinadvertising />


==False advertising complaints==
==False advertising complaints==

Revision as of 18:28, 14 January 2014

Vemma Nutrition Company
Company typePrivate
IndustryDietary supplements
Predecessor
  • New Vision International
FoundedTempe, Arizona (2004 (2004))
FounderBenson K. Boreyko
Headquarters
Scottsdale, Arizona
,
United States
Area served
Worldwide
Key people
BK Boreyko (CEO)
Karen Boreyko (co-founder)
Lauren Boreyko (co-founder)
Brad Wayment (COO)
Yibing Wang (Chief Scientific Officer)
ProductsVemma, Verve, Bod·ē, NEXT
Websitevemma.com

33°38′38″N 111°53′57″W / 33.643787°N 111.899148°W / 33.643787; -111.899148

Vemma (/ˈviːmə/) Nutrition Company is a privately held affiliate marketing[disputed – discuss] company that sells energy drinks, nutritional beverages and weight management products.[1] The company, based in Scottsdale, Arizona, was founded in 2004 by Benson K. Boreyko.[2][3][4]

History

Vemma was preceded by New Vision International, a Tempe, Arizona-based dietary supplement company founded by the Boreyko family in March 1995.

Products

Vemma has five product lines, all based on their core Vemma nutritional formulation: Vemma, Verve, Thirst, Bod-e, and Next.[5] The name "Vemma" is an acronym representing: vitamins, essential minerals, mangosteen, aloe.[6] Several of the company's products contain caffeine, with some drinks in the Verve line being similar in caffeine content to energy drinks.[7]

Business Model

Vemma is a multi-level marketing (MLM) company[3][4][8] which describes itself as an affiliate marketing company.[9] The company sells its products through independent distributors (referred to internally as affiliates) who can potentially earn a share of the revenue from their own product sales as well as those from the network of distributors they build.[10][11][12] As of 2012, about 75% of distributors who qualify as active distributors made less than $1,327 a year.[3]

False advertising complaints

The parent company, New Vision International, was enjoined in 1999 by the Federal Trade Commission against engaging in certain advertising practices they were accused of using previously.

New Vision was accused in the FTC complaint[13] of "unfair or deceptive acts or practices, and the making of false advertisements" about the health benefits of some of their products. In the Decision & Order,[14] the FTC ordered New Vision to stop making various claims; specifically they were ordered (1) to stop saying that one of their product recipes was effective in treating ADD or ADHD, or useful as an alternative to Ritalin; (2) that they not indicate or imply that any testimonial or endorsement of any of their products is typical or ordinary; and (3), that they make no claims about safety or effectiveness in reducing the risk of developing any disease or disorder; and that they communicate all this to their team members in mailings.

References

  1. ^ "Vemma, Building A Solid Nutritional Foundation IS Vital To Your Overall Health". Vemma. Retrieved 2014-11-14.
  2. ^ "Executive Bios". Vemma. May 2013. Retrieved 2013-08-01.
  3. ^ a b c Celarier, Michelle (29 September 2013). "Verve energy drink turning college students into sales force". New York Post. Retrieved 11 January 2014.
  4. ^ a b "Nine Things You Should Know About Vemma". Truth in Advertising.org. 4 October 2013 (updated). Retrieved 11 January 2014. {{cite web}}: Check date values in: |date= (help)
  5. ^ "Products". Vemma. July 2013. Retrieved 2013-08-01.
  6. ^ "Vemma Science - Vemma Formula". Retrieved 6 September 2013.
  7. ^ "Vemma Verve Nutritional Facts". Brian Willet. May 25, 2011. Retrieved 2014-01-11.
  8. ^ Stroud, Matt (23 December 2013). "Is the FTC ready to take on multi-level marketing?". The Verge. Retrieved 13 January 2014.
  9. ^ "Vemma Makes Move To Affiliate Marketing". January 06, 2014. Retrieved 2014-01-11. {{cite web}}: Check date values in: |date= (help)
  10. ^ "What is Verve Energy Drink?". March 18, 2013. Retrieved 2013-11-16.(subscription required)
  11. ^ "Vemma Makes the Move To Affiliate Marketing". January 6, 2014. Retrieved 2014-11-14.(subscription required)
  12. ^ "BK's Blog Finishing The Year Strong and Introducing Vemma 2.0". November 12, 2013. Retrieved 2014-01-11.(subscription required)
  13. ^ US Federal Trade Commission, Donald S. Clark, Secretary (March 1999). "New Vision International Inc. - Complaint No. C-3856". Ftc.gov. Retrieved 2013-06-21.{{cite web}}: CS1 maint: multiple names: authors list (link)
  14. ^ United States of America, Federal Trade Commission, Robert Pitofsky, Chairman (March 1999). "New Vision International Inc. - Decision and Order No. C-3856". Ftc.gov. Retrieved 2013-06-21.{{cite web}}: CS1 maint: multiple names: authors list (link)
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