Alex Morton denies knowledge of Vemma FTC bust
Although it was more of a pitch for Jeunesse by Luke Hessler, a former top earner in Vemma, Alex Morton did speak for a good fifteen minutes in an attempt to clear the air.
The platform of choice was a two-part Periscope video titled “The Truth Call” parts 1 and 2.
Hessler waffled on for the first part of the call and start of the second (he referred to it as the “decision call”), with Morton taking over about a quarter of the way through.
Like I said, it was mostly a pitch for Jeunesse (Hessler has ditched Vemma for Jeunesse following the FTC bust), but Morton did reveal some backstory to his own decision to leave Vemma.
According to Morton (right), he began to feel things weren’t quite right at Vemma after his father informed him his business was in decline.
About eighteen months ago my dad started tracking numbers, he’s a numbers guy, and every week he would basically tell me that, y’know, we weren’t really growing.
A lot of the weeks we were having negative autoships, like negative growth you would say. Decay, or whatever you want to call it.
Morton does not mention retail sales as a measure of his business declining, only affiliate autoships.
I was gung-ho the whole time. I mean I literally never stopped.
Some of my top leaders took breaks, some of my top leaders they did other endeavors, some of them did other things. They lost passion for it but I just kept beating the drum.
I kept going, I kept recruiting, I kept enrolling, I kept building. Y’know I sponsored a lot of phenomenal people but it just kept going down.
Again Morton doesn’t mention efforts to market Vemma products to retail customers. The business model inside the YPR movement within Vemma very much appeared to focus solely on affiliate recruitment.
With his business crumbling, Morton claims the “last straw” was Vemma’s most recent convention.
I was standing back stage, y’know, just kind of thinking to myself and going over what I wanted to talk about.
Somebody walks off stage and y’know I’m going up on stage … doing my thing and for the first time in my career, I walked off stage and I didn’t believe what I’d said.
I literally did not believe what I was saying on stage.
Morton claims his suggestion to source “better leadership training” was met with ridicule and hostility by other Vemma leaders.
That to me was kind of the beginning of the end.
Claiming to be “super emotional” after the event, Morton then set his parents off to go and scout out other MLM opportunities.
Morton maintains that while his parents evaluated potential MLM opportunities for him to join, that he continued to focus on “building Vemma”.
After a few weeks Morton’s parents got in contact with Jeunesse affiliates. Under a seal of secrecy, Morton met with Jeunesse affiliates in Vegas and Mexico, eventually opting to leave Vemma and sign up himself as a Jeunesse affiliate.
Morton insists his decision had nothing to do with the FTC investigating Vemma, which he claims he had no knowledge of.
As a leader, when you see your people’s checks crash, month after month and week after week… and your only qualified Presidential six-figure earner is your younger sister, as a leader who actually cares about their team – it doesn’t just eat you up inside.
I mean I was getting panic attacks, I was just not right. I was sick, I was crying myself to sleep.
Our intention was not to drop a bomb on this company. Our intention was not to cause a riot to this company, y’know.
We had no idea about this FTC thing. We had no idea that Vemma was going to shut its doors and get closed down.
Y’know I’m a firm believer that we had guardian angels watching over our family.
How else do you explain four weeks before the company that, y’know you were a bit part of, a big brand, a big face of the company, and four weeks later when you leave the doors get closed – and you have the “Plan B” ready for everybody else.
And there you have it, according to Morton, he had no idea the FTC were investigating Vemma, much the less about to shut them down.
Definitely one of the biggest coincidences I’ve seen in the MLM industry yet.
Meanwhile whilst acknowledging perception of his persona is that of a “loud mouth, arrogant, cocky dickhead who’s only concerned about money”, Morton acknowledged he “made mistakes” in Vemma.
According to Morton though, Vemma themselves should shoulder some of the responsibility for that perception and mistakes made.
I’ve always been kind of the “rah rah guy” for B.K. and his company.
Get everybody excited and jacked up, and screaming “I will win” and “We’re going to the moon, we’re going to a billion”… Y’know that was a the role that was given to me.
I fit it, y’know I think I’m a fairly decent speaker. I ran with that role.
And y’know what, at twenty-one or twenty-two, when you’re giving a kid thirty to fifty thousand dollars a month… what do you think is going to happen?
And the company is pumping you with everything you want. Y’know they took us on private jets, we had a care program, it was built around lifestyle and luxury – which fed into this entire persona.
I grew up in a midwest town called Bexley, Ohio and I had a hundred and six kids in my highschool graduating class.
Y’know I’m a normal kid and today I’m back to that normal kid. I’m not loud, I’m not obnoxious anymore.
I’m twenty-six in two months and this time I’m not gunna go into Jeunesse… this time we’re gunna do it the right way.
Morton doesn’t elaborate on what exactly “the right way” means to him, or how it differs from how he built his Vemma business.
Thus far all I’ve seen personally is the continuation of the autoship recruitment mess in Vemma, switched over to Jeunesse.
Are things really all that different this time around, or are we looking at Jeunesse being built up as Vemma 2.0?
Published less than 30 mins ago on Alex Morton’s Facebook:
4. recruit others who sign up place an autoship order?
It really is Vemma 2.0…
According to Morton’s own statements, he was simply acting in a role.
That was my impression too. “A pumped up image of a person”.
Vemma’s Alexa ranking confirms his story about a gradually declining number of reps / gradually reduced monthly paychecks.
alexa.com/siteinfo/vemma.com
The statistic indicates more people leaving Vemma than the number of new people joining it — over a long period of time, more than a year.
That usually happens when a program is 100% focused on recruitment. “It will run out of people to recruit”, i.e. the supply of people is clearly limited. And it will be even more limited if the focus is on specific groups of people.
Vemma would most likely have collapsed anyway, sooner or later, if it had continued with its current model.
YPR Young People Revolution is a short term idea. It will work for a few months until a local market (college, etc.) is completely saturated, leaving that market almost “dead” for months or years to come, negatively affecting other similar markets.
It’s actually the idea that will fail, not the company. The idea will be “used up” and “worn out” and will need to be replaced by a new one.
My prediction:
Alex Morton will continue to under-perform in Jeunesse too, after the first initial months (if he continues with the same idea). He will be “yesterday’s news” in the market, “the outdated model only a few people can be interested in”.
Middle-aged People Revolution?
MPR in the house yo.
according to a blog post, vemma was called for a meeting with BBB officials over concerns regarding the recruitment of students. vemma allegedly agreed to change its practices.
vemma was under media pressure from around 2013 regarding it’s YPR movement under the leadership of alex morton.
it’s entirely possible boreyko told morton to kill YPR and find a new market. the resultant slowing down, may be reflected in the alexa rating and the pissedoffness of morton which led to him finally quitting vemma. i mean , maybe?
“Male Fourthies Revolution”, just to be sure to limit the market to one specific, identifiable group.
The market for income opportunities works just like any other market. If you try to present something as “hot” and “trendy”, it will usually be short lived.
Penny auction based Ponzi schemes were “hot and trendy” in 2012, but that idea is almost guaranteed to fail if anyone tries to introduce the same idea now.
It’s the idea itself that will fail. That idea has simply been “used up” and “worn out” in all its variations. You will find a few enthusiast trying to relive “the good old days” as they remember it, but that’s all.
It will be similar for YPR. That idea has most likely been used up and worn out long time ago. If it failed to work in Vemma then it will also fail to work in other companies.
My prediction was simply based on “basic market knowledge” about how markets in general work.
From Wikipedia.
Revolution.
YPR didn’t really deliver any fundamental changes in power or organizational structure. It only made young people look inexperienced / easy to lead and mislead — like a new group of “low hanging fruits”.
“Resistance in the market”
Several comments here and other places have mentioned that “Vemma didn’t deserve it (the FTC action)”, pointing out that the action “most likely was related to the YPR hype a year ago”.
One example (the first one I found):
“Brad and Alex did a good job” means that they screwed it up, generating a lot of complaints to FTC / IC3, and a lot of negative publicity.
“2012 idea”
“World Ventures, Norway”
World Ventures tried a similar strategy in Norway, trying to introduce it among higher education students. It generated the same type of negative publicity, and WV was eventually banned from that market 2 years later (after a long regulatory process, including 2 counter lawsuits).
CONCLUSION
I’m reasonably sure that the YPR idea will continue to create trouble for the ones who tries to make it work.
Yeah, it’s very convenient that Alex left Vemma, a few weeks before all of this went down…
He probably left Vemma because of reduced paychecks / reduced motivation over a long period of time — more than a year (18 months according to his own story).
That’s the difference between “professional skepticism” and “neurotic suspicion”. One of them will accept some stories as “believable enough”.
I have left a “high motivation sales job” for some similar reasons, so his story is believable enough to me.
If it first have brought trouble, then the idea will be completely unusable for years to come.
I checked some further details in a different thread, e.g. complaints from parents. The number of complaints literally exploded in 2012 and 2013.
behindmlm.com/mlm/regulation/ftc-issue-warning-to-mlm-opportunities-similar-to-vemma/#comment-345706
THE PROBLEM
Young people (e.g. 14-18 years, 18-23 years) can be seen as a “vulnerable group of consumers” due to lack of experience. It can be seen as “predatory trade practice” when someone tries to recruit them into a recruitment driven opportunity.
Vemma didn’t handle that problem correctly either. It placed the cause of the problem “out there, among school principal teachers and parents”.
It wasn’t Verve that was banned, it was the whole idea.
“Parental protests” literally means “if you want to teach entrepreneurial skills to kids, focus on your own children and stay away from mine”.
From some of the comments (businessforhome).
There’s a general lack of “contact with reality” among half of the people (the ones who directly made comments about it), e.g. “THEY should try to understand US” (that’s probably exactly what THEY did).
with practically everybody blaming alex morton and the YPR movement for vemmas current crisis, his parents have stepped in to clear the air.
in a post under vemma lawyer kevin thompsons video, which includes disparaging comments about the YPR movement, marc morton says:
marc mortons clarification will of course be biased, seeing that he is alex mortons daddy, but there can be some truth in the idea that alex morton did not ‘individually’ create the YPR movement but had the full support of boreyko and the alkazins.
Marc Morton might be believable if Alex Morton wasn’t creating a Vemma 2.0 autoship recruitment downline over at Jeunesse.
Who’s he going to blame for orchestrating that?