VMA Life Review: Vemma pyramid scheme alive and well in Asia
According to a published “company profile”, VMA Life initially launched as Vemma Asia.
Vemma Asia was
founded in 2004 by Kenneth Koh in partnership with BK Boreyko from the United States.
Under Kenneth’s careful guidance and leadership, the company has grown to become a regional powerhouse in the field of premium liquid nutrition in Asia over the last 12 years.
In 2015 Vemma Asia changed its name to VMA Life.
Realizing the huge potential of the Asian market, Vemma Asia re-evaluated and re-strategized its vision and mission, and subsequently, VMAlife was born in late 2015.
Well, that’s one way of putting it.
In August, 2015 the FTC alleged Vemma was a $200 million dollar pyramid scheme and shut it down.
That saw Vemma Asia drop the name and reboot as VMA Life a few months later.
There’s no mention of BK Boreyko on the VMA Life website today, putting a question mark over whether he’s still tied to the company.
VMA Life retains Vemma’s orange and green color pallete for marketing. “VMA” is also an obvious abbreviation of “Vemma”.
Vemma Asia Founder Kenneth Koh (right) serves as CEO of VMA Life.
Koh seems to be the main driving force behind the business and, at least publicly, in charge of the company.
Koh’s corporate bio credits him with a career in the media prior to founding Vemma Asia.
It was only after a relative became ill that Koh got involved in MLM.
When his brother was diagnosed with cancer with only six months to live, Kenneth began scouting for health products.
On one of his trips to America, he chanced upon a liquid-based supplement.
After doing some personal research, Kenneth decided to give it to his brother.
12 years on and his brother is alive and well.
He attributes his brother’s amazing recovery to the daily consumption of the product.
That’s a testimony from the CEO of VMA Life, in an official VMA Life marketing brochure, attributing consumption of Vemma’s products with curing his brother of cancer.
Having witnessed the miraculous effects the product had on his brother, Kenneth was convinced of its benefits and sought to bring the product into Asia to offer other people a chance at renewed health.
Any guesses on how Koh might have marketed Vemma throughout Asia?
Interestingly enough VMA Life’s Policies and Procedures warns affiliates they cannot
claim that drinking VMAlife will help treat diabetes, heart disease, cancer, or any other disease.
Wink wink, nudge nudge.
At the time of publication VMA Life has offices in Singapore (head office), Malaysia, Hong Kong, Indonesia, Taiwan and Thailand.
Read on for a full review of the VMA Life MLM opportunity.
VMA Life Products
Whereas Vemma’s products were manufactured inhouse in the US, VMA Life states it
manufactures all its products in Good Manufacturing
Practices (GMP) factories in Taiwan.
The flagship product is Velixir, which seems identical to Vemma’s own branded mangosteen drink.
Velixir is VMAlife’s flagship health supplement.
It is a superior liquid nutrition that is made from a unique and powerful blend of whole-fruit mangosteens, organic decaffeinated green tea and aloe vera.
Velixir is sold in a box of 30 single-serve sachets for 163 SGD ($121 USD). It is also available in a twin pack (2 boxes) for 261 SGD ($193 USD).
Other products VMA Life markets include:
- O-M-G! Energy Gel – retails at 58.80 SGD ($44 USD) for a box of ten single-serve sachets
- Active C – “a comprehensive antioxidant super serum”, retails at 117 SGD ($87 USD) for a 30 ml bottle
- Beau One Face Spa – retails at 72 SGD ($53 USD) for two 30 ml bottles
- Bio-Placenta Gold – “concentrated anti-aging serum”, retails at 192 SGD ($142 USD) for a box of fifteen 2 ml serves
- Cleanser – “rejuvenating rose hip seed oil”, retails at 54 SGD ($40 USD) for a 180 ml bottle
- Eye Beauty – “nourishing eye recovery cream”, retails at 138 SGD ($102 USD) for a 15 ml tub
- FaceUp – “instant age eraser”, retails at 81 SGD ($60 USD) for a 14 ml tube
- Facial Exfoliant – “natural honey scrub”, retails at 54 SGD ($40 USD) for a 60 ml tube
- HGF Age Renewal – “pigment spot corrector”, retails at 166 SGD ($123 USD) for a 30 ml bottle
- Aqua Restore – “deep moisturizing formula”, retails at 166 SGD ($123 USD) for a 30 ml tub
- Moon Glow – “overnight repair mask”, retails at 153 SGD ($113 USD) for a 60 ml bottle
- Sunshield 30 PA+++ – “high protection sunscreen lotion”, retails at 76 SGD ($56 USD) for a 30 ml bottle
- Toner – “energizing skin balancer”, retails at 54 SGD ($40 USD) for a 120 ml bottle
- Triple Max Serum – “Botox alternative”, retails at 159 SGD ($118 USD) for a 30 ml bottle
VMA Life’s personal care products are also available in various bundle packs.
The VMA Life Compensation Plan
The VMA Life compensation plan pays affiliates to recruit new affiliates, both directly and residually.
Additional performance based bonuses are also available.
VMA Life Affiliate Ranks
VMA Life has ten affiliate ranks within their compensation plan.
Along with their respective qualification criteria, they are as follows:
- Bronze – earn and maintain at least five residual binary commission cycles in a four week period
- Silver – earn and maintain at least twenty residual binary commission cycles in a four week period
- Gold – earn and maintain at least sixty residual binary commission cycles in a four week period
- Platinum – earn and maintain at least one hundred and twenty residual binary commission cycles in a four week period
- Topaz – earn and maintain at least two hundred and forty residual binary commission cycles in a four week period
- Sapphire – earn and maintain at least five hundred residual binary commission cycles in a four week period
- Emerald – earn and maintain at least one thousand residual binary commission cycles in a four week period
- Ruby – earn and maintain at least three thousand residual binary commission cycles in a four week period
- Yellow Diamond – earn and maintain at least six thousand residual binary commission cycles in a four week period
- Royal Diamond – earn and maintain at least twelve thousand residual binary commission cycles in a four week period
MLM Commission Qualification
To qualify for MLM commissions, a Vemma affiliate must generate a minimum of 60 PV a month.
PV stands for “Personal Volume” and is sales volume generated by sales to retail customers and an affiliate’s own purchases.
Note that VMA Life affiliates who sign up with a Starter Pack receive MLM qualification for 8 weeks (two months).
Anyone who purchases VMA Life products is automatically signed up as an affiliate.
VMA Life pay a 25% Fast Start Bonus on first product orders made by recruited affiliates.
The 25% bonus is paid on sales volume generated by the order.
VMA Life pay residual commissions via a binary compensation structure.
To qualify for residual binary commissions, each VMA Life affiliate must recruit at least two affiliates.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
Sales volume is generated in the binary team via retail sales and purchases of affiliates in the binary team.
At the end of each week VMA Life tallies up sales volume generated on both sides of the binary team.
VMA Life affiliates are paid $12 for every 120 GV matched on both sides of the binary team. This is referred to as a cycle.
Residual binary earnings are capped at up to $35,000 a week, based on the following rank-based qualification criteria:
- purchase one VMA Life product (60 PV minimum) and earn up to $1000 a week
- purchase two VMA Life products (120 PV minimum) and earn up to $3000 a week
- purchase a Starter Pack and receive up to $20,000 a week
- purchase a Builder Pack and receive up to $35,000 a week
VMA Life pay a matching bonus on residual binary commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
VMA Life pay the Matching Bonus down a maximum ten unilevel team levels, based on the following qualification criteria:
- level 1 (12% match on personally recruited affiliates) – sign up with an affiliate pack and recruit at least one MLM commission qualified affiliate
- level 2 (10%) – have a total downline of at least two MLM Commission qualified recruited affiliates
- level 3 (8%) – personally recruit at least two MLM commission qualified affiliates and have a total downline of at least three MLM commission qualified affiliates
- level 4 (5%) – qualify at the Gold rank or higher and personally recruit and maintain four Silver or higher ranked MLM commission qualified affiliates
- level 5 (5%) – qualify at the Gold rank or higher and personally recruit and maintain five Silver or higher ranked MLM commission qualified affiliates
- level 6 (5%) – qualify at the Gold rank or higher and personally recruit and maintain six Silver or higher ranked MLM commission qualified affiliates
- level 7 (5%) – qualify at the Platinum rank or higher and personally recruit and maintain seven Silver or higher ranked MLM commission qualified affiliates
- level 8 (5%) – qualify at the Platinum rank or higher and personally recruit and maintain eight Silver or higher ranked MLM commission qualified affiliates
- level 9 (5%) – qualify at the Platinum rank or higher, personally recruit and maintain nine Silver or higher ranked MLM commission qualified affiliates
- level 10 (5%) – qualify at the Platinum rank or higher, personally recruit and maintain ten Silver or higher ranked MLM commission qualified affiliates
Affiliate Pack and Autoship Commissions
VMA Life rewards affiliates who sign up with an affiliate pack and sign up for monthly autoship.
Affiliate Pack and autoship commissions are paid out via a 2×10 matrix.
A 2×10 matrix places a VMA Life affiliate at the top of a matrix, with two positions directly under them:
These two positions form the first level of the matrix. The second level of the matrix is generated by splitting these two positions into another two positions each (4 positions).
Levels three to ten of the matrix are generated in the same manner, with each new level housing twice as many positions as the previous level.
According to the VMA Life compensation plan, the matrix is populated with directly and indirectly recruited affiliates who sign up with an affiliate pack and sign up for autoship.
- $6 is paid per affiliate placed in the matrix who signed up with a Starter Pack
- $12 is paid per affiliate placed in the matrix who signed up with a Business Builder Pack
- 30 cents is paid per month on affiliates in the matrix who continue to purchase a monthly autoship order of at least 60 PV
VMA Life take 3% of global company-wide sales and place it into four Global Pools.
VMA Life affiliates can qualify for shares in the pools by qualifying at the Emerald and higher ranks:
- Emerald affiliates qualify for a share in a 0.75% pool
- Ruby affiliates qualify for a share in two 0.75% pools
- Diamond affiliates qualify for a share in three 0.75% pools
- Royal Diamond affiliates qualify for a share in all four 0.75% pools
Joining VMA Life
Anyone who purchases at least one VMA Life product is automatically enrolled as an affiliate.
The VMA Life compensation plan states:
To fast-track your VMAlife business, AFFILIATE PACKS are the way to go!
VMA Life offer affiliates four packs as follows:
- Basic Pack (selection of VMA Beau products) – 595.50 SGD ($441 USD)
- Starter Pack (8 boxes of Velixir) – 1088 SGD ($806 USD)
- Pro Consultant Pack (selection of VMA Beau products) – 1561.80 SGD ($1156 USD)
- Builder Pack (15 boxes of Velixir) – 2040 SGD ($1511 USD)
In addition to bundled products, the primary difference between the above packs is income potential through the VMA Life compensation plan.
VMA Life exists in an alternate reality wherein the FTC didn’t shut Vemma down for being a pyramid scheme.
Unfortunately being based in Singapore and concentrating on the Asian market, doesn’t make VMA Life any less of a pyramid scheme than Vemma was.
The key problem with VMA Life’s business model is the cannibalization of retail customers into affiliates.
To become a VMAlife Affiliate, it is quite simple.
Either enter the business with an Affiliate Pack and you will become one automatically, or simply buy 1 or 2 pack to become an Ordinary Member.
Once you make a purchase and activate your account, you will receive full access to your VMAlife Backoffice system and all
the helpful information it has to offer!
Anyone who purchases a VMA Life product is an affiliate.
The VMA Life MLM opportunity is clearly geared towards signing up with an Affiliate Pack, signing up for 60 PV autoship (one box of Velixir a month) and recruiting others who do the same.
VMA Life state that signing up for autoship
saves you the trouble of having to call in or go online to place orders and ensures you remain active to receive bonuses.
Autoship in MLM is supposed to be a convenient way for affiliates to order product each month.
If it’s primarily used to qualify for commissions (on other affiliates signed up for autoship), you’re in a pyramid scheme.
Pay to play is also a compliance issue, with an Affiliate Pack purchase required to max out residual binary and matrix commissions.
And if that’s not enough for you, here’s VMA Life spelling out their autoship recruitment pyramid scheme in their compensation plan.
According to VMA Life, the “best way to boost your (VMA Life) business” is to
- Enter the business with an Affiliate Pack (you will be eligible to earn ALL bonuses)
- Enable monthly delivery of 1 pack of products every month (autoship) and
- Enrol Affiliates who also enter the business with an Affiliate Pack
That’s all that’s required to max out the VMA Life compensation plan. As in Vemma, retail sales in VMA Life are non-existent.
As with all pyramid schemes, VMA Life’s success as an MLM company hinges on constant affiliate recruitment.
When that slows down (or a regulator in Asia steps in) VMA Life will collapse.
As those in Vemma learned the hard way, the reality of a pyramid scheme is the majority of participants lose money.