Emergen-C-The Truth about Energy Drinks, Healthy Nutrition Supplement or MLM Scheme

The Panacea- 1) Zrii, 2) Vemma, 3) Vrroom, 4) AdvoCare, 5) Emergen-C; and Amway.

I write. My venue of choice are coffee shops. Small coffee shops, or chain, I don’t really care. I do prefer Starbucks, simply because of the uncomfortable seating atmosphere and the irritation of the coined and repetitive speaking culture by their employees and management. This is in addition to their repetitive music marketing pumped through the speakers while you’re inside and the CD’s readily available for an impulse purchase right at the register. I know Starbucks employees wish they could bring in their own music because I talk to them at Starbucks all over California, Arizona, and, previously, in Oregon-they go bananas from being inside the store listening to the same music over and over.

Every writer must find stimulus, or the lack thereof, to be a catalyst for their writing. This happens to be mine. Unfortunately, or fortunately depending on your perspective, I am approached semi-regularly by individuals wishing to sell their product or service as they, too, are in business for themselves.

My initial reaction is to grit my teeth and hold my breath and smile with a slight “I’m irritated” look, but I’m working on that. I usually end up telling myself to be polite, listen, and take a deep breath. Following these actions, I ask a couple of genuine questions. I make a rapid assessment and I am blunt with the inquiry so as to receive their information promptly. I want to get back to work. I may make a recommendation for them and tell them I’m not interested to achieve the same result-to get back to work with minimal delay.

The most frequent approach, especially once the would be salesman or recruiter identifies the fact that I am affiliated with health & fitness, is that of a “new” miracle nutritional supplement in the form of a drink.

I have done extensive research on these supplements and companies. Several of these supplement “miracles” are always the “latest” and “hottest” trend only recently available, or they claim they have been available for years and they have science to prove they work! It’s ironic that these products all seem to have so many doctors on-board for their brand and celebrities promoting their product, to boot.

Furthermore, these nutritional companies typically can be traced back to having multi-millionaire and billionaire support at their foundation. They also share some other important commonalities such as a heavy emphasis on marketing, advertising, and charitable contributions (or the appearance thereof anyway.) Many times, these companies also have one of a few different deceitful strategies employed-those that have been successful for over 20 years-that of a Ponzi scheme, a pyramid scheme or a slight variation thereof. The perpetuators, usually blinded, ignorant, or simply good intentioned and fooled individuals, attempt to gain additional “owners” or “distributors” or “Brand Partner’s,” or they are given similar titles upon being recruited by their “up-line.” Yes, it is true that many of the sellers of these products make a high salary and sometimes leave their real job to only engage in their newly found business venture. And, in some cases, these people become “regional representatives” (or similar title) for their product, yada yada yada. My fuse has grown shorter and shorter with these companies as they use deceitful tactics to get your dollar, and they try to get mine. I am like a dentist with his magnifying glasses on with a high-powered light and a dental pick and mirror in each hand. I will not allow the deceit to go unnoticed any further.

• The Scheme

Yes, it is a scheme. I’m sorry to say it, but it’s true. I will first identify the pyramid scheme and Ponzi Scheme methodology, because that’s what they are-just add a peppering of a product, oh I don’t know, let’s say in the form of something popular today like a diet supplement! MLM, known as multi-level marketing, is another methodology that is employed by these companies looking to avoid confrontation with the FTC (federal trade commission.)

• Pyramid Scheme Definition:

“In the classic "pyramid" scheme, participants attempt to make money solely by recruiting new participants into the program. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same.

The fraudsters behind a pyramid scheme may go to great lengths to make the program look like a legitimate multi-level marketing program. But despite their claims to have legitimate products or services to sell, these fraudsters simply use money coming in from new recruits to pay off early stage investors. But eventually the pyramid will collapse.” U.S. Securities and Exchange Commission

Ponzi Scheme Definition:

“A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity.

With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue. Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.” U.S. Securities and Exchange Commission

Another definition of a Ponzi scheme:

“Definition: A Ponzi scheme is a scam in which a gullible public is enticed with the promise of very high returns, which is based upon paying off early "investors" from the cash from (hopefully ever increasing numbers) of new "investors." The whole structure collapses when the cash outflow exceeds cash inflow. The key in running a successful Ponzi scheme is to keep it going as long as you possibly can.” Dr. Steven Knope

Similarities between the pyramid and Ponzi schemes:

• “Ponzi and pyramid schemes are closely related because they both involve paying longer-standing members with money from new participants, instead of actual profits from investing or selling products to the public.” U.S. Securities and Exchange Commission.

Also see this link for a side-by-side comparison of the ‘hook’s employed to pull in the participants for these schemes.

• Amway

First, hey don’t shoot the messenger! Many Amway representatives that I have known in my life are really good hearted people, and some have been my close friends.

Amway has been under scrutiny, and charged, since the 1970’s! Countries have pursued ban of Amway sales in their countries! Um, hello?

There are a number of ‘watchdog’ type of groups that can be found by a little research. One of those groups is the Pyramid Scheme Alert (PSA).

As the PSA accurately assesses:

• “One of the most problematical of business models is multi-level or network marketing (MLM ). Many MLM programs show all the effects and characteristics of a pyramid scheme, but the MLM industry has nonetheless been allowed to continue and flourish. Though considered benign by many, its insidious and corrupting influence and the financial and social harm suffered by participants is considerable. Unfortunately, victims of these programs seldom complain, blaming themselves for their failures.
• A chaining hierarchy of levels of distributors -- more than is functionally justified -- is recruited without area limits, which leads to extreme leverage and perceived saturation in the marketplace.
• RVE-EHI. Relative vertical equality (RVE) in compensation systems leads to extreme horizontal inequality (EHI) in payout over the entire network of distributors -- huge payouts to a tiny percentage of participants, while the vast majority wind up losing the money and effort they invested over a period of time.
• Significant purchase or recruiting quotas are required (or incentives offered) to qualify for increasing bonus levels or purchasing discounts in an ascending hierarchy of payout levels (the "pay to play" feature).”*

There are too many complaints and allegations against multi-level marketing companies to list them all, so I will only refer to a couple to keep this brief and to the point. Additionally, it’s all about getting your money folks, how many times must I say this? Marketing professionals know this and I’ve listed a spiel, too, for entertainment.

• A complaint to the Federal Trade Commission: Here
• Multi-Level Marketing promoter, to increase profits: Here

Skeptics like myself can take hits like the best of them.

“The most prominent Vemma Business complaint you hear is that it is a pyramid scheme or some sort of scam. These words get tossed around a lot by people who seem to have a vendetta against the whole network marketing industry. They might have joined an MLM company 10 years ago, didn't make any money, so now they want to save the world from 'pyramid schemes'. Is your best friend one of these people?”*

I do have a vendetta against deceit from diet companies-regardless of where it emanates from. My analogy is this, I don’t like crime. Just because the FBI statistics (see Table 49) say that there were 10% more murders and robberies in the Unites States by blacks in 2009, does this mean that I don’t like blacks? No, not at all. Do those statistics represent the black community as a whole? No, not at all. I can just as easily cite the fact that whites raped 20% more frequently than blacks in 2009, so should I now not like whites? It’s the crime that I don’t like-get the picture?

So, yes, I do have a vendetta, but it’s against the deceit and pompous arrogant promotion of products that have not been identified scientifically to truly be healthy and safe for the public. Instead, there are layers of deceit instituted by these adept and highly skilled marketers that takes time to sift through. Time that most people simply do not have in their busy lives. Well, guess what? I take the time, and I offer my evaluations as just and unbiased as possible, in spite of my potential inclinations.

Quite frankly, there is too much emphasis on diet today. “Take this, it will help you with that. Do it this way, it will make this happen for you. All you have to do is this, and your problems will be eliminated, I know it’s worked for me.” Etc.

Here is a great excerpt from a Zen master on diet,

• “You should eat everything; then your mind becomes broad and generous. But at the same time you should control, have a little of each thing and not too much of any.” Taisen Deshimaru, Questions to a Zen Master.

An example of an “objective” promoter of the available product Vemma.

• “Vemma is a good opportunity with some great products, but without the secrets of recruiting like the top producers, I'd be surprised if you lasted 3 months. Take my word for it. You don't have enough family and friends who will want to join your business to create a legitimate income from your Vemma business.”*

Alas, I love it when I run across great motivational speakers and smooth talkers. They are rare, which is one reason they are so successful. It’s ironic that part of this marketers strategy is to up-talk the Vemma product, yet knife them in the back (in addition to the skeptics!) as far as their strategies for success are concerned. Oh, but you can learn the right methods and sales techniques to sell Vemma, “If I hear from you today... you can download my entire system (and the bonuses above) for a mere $39.95.”* Of course I can.

• The funny thing is, by my mere referencing both Vemma and this MLM strategist, both of their traffic flows will increase in addition to their revenue and publicity. They win either way. My aim, however, is to not to give free publicity to entities I don’t believe in. My focus is to give you good people, who are interested in being fully informed, both the good and the bad information. You, then, can ultimately decide for yourself what is right. What you find to be right may be completely different than what I find to be right-and that is okay.

Here is a link of another MLM strategist trying to make money on Vemma, though they ‘support’ the product and company, they hammer their techniques to sell it. So why then is it they are not just selling the product and instead are selling you on learning how to sell it? This is what I call the scammers scam, taking all of the benefit of a profitable company and attempting to walk on their coattails.

“Family & Friend Fraud” FBI

Some quotes from FBI officials from the above FBI video, which is outstanding:

• “I think a lot of these scam investments are sold by those that are great salesmen, quite frankly.”
• “I think the maxim buyer beware is appropriate.”
• “Check out what’s being offered through as many independent sources that you can. Just don’t take the statements or materials given to you by the person selling you the security as truth.”

Four of the most recent “nutritional” magic drinks that I’ve been approached repeatedly to sell and become a “distributor” for in the last two years, all of which are popular, are:

1)Zrii

2)Vemma

3)Vrroom

4)Spark by Advocare

I’m going to include 5) Emergen-C in this 5 part write-up series simply because of the indirect promotion of the product that I’ve encountered on a regular basis by several real and “ordinary” people.

• Emergen-C

Founded in 1972 by Alacer Corporation-Emergen-C was introduced in 1978.

• Based in Foothill Ranch, California.

Promoted by well over 100 outlets such as: Vons, GNC, Fry’s, K-mart, CVS, Sport Chalet, Walgreens, Trader Joe’s, it’s very popular. Also available in Canada.

• Emergen-C is a powder that is loaded with vitamin C- 1000mg. It also has a variety of other vitamins and minerals within.

In short, it’s a mixable juice drink.

The nice thing about the Emergen-C Web site is the fact that their nutrition facts labels have a mouse-over capability which allows you to easily identify what each of the minerals characteristics are and what they are supposed to do for you.

Emergen-C doesn’t make any wild health claims, they simply tell you what their product is and what the reported ingredients may do for you with the typical disclaimer, “*These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.”

They advertise their product as, “ Our original formula and still our best seller, featuring 24 nutrients, including 1,000 mg of immune supporting vitamin C,* 7 B vitamins to enhance energy naturally* (no caffeine, no crash), electrolytes to refuel and replenish post-workout,* and more!”*

They do, however, begin to push the envelope, with making broad health statements about their specialty formulations, “which address support for joint, bone and heart health.” And, also, when identifying their history they state, “The novel delivery system for vitamins and nutrients soon had a loyal following who found Emergen-C to be the fast, fun way to support their health and energy.”* Putting Emergen-C into perspective against Zrii, Vemma, and AdvoCare, these statements pale in comparison with regards to those companies health benefit assertions. The statements by Emergen-C are clear, simple, and labeled with a disclaimer-all of which make it easy to understand.

• Science

As for science, Emergen-C does not have a full panel of doctor’s, Deepak Chopra or the Chopra Center for Wellbeing as a nutritional ‘endorsement’, and they do not have a slew of doctors and Phd’s putting their face on the product like Zrii, Vemma or AdvoCare. Instead, they seem to abide by the military K.I.S.S. principle. (For those of you that don’t know this acronym, Keep It Simple Stupid.) Their recommendations are straight-forward and direct. Similar to Vrroom, they are a product orientated company, not MLM, Ponzi, or pyramid in nature.

Quoted from their Web site,

• “What are the age recommendations for Emergen-C vitamin fizzy drink mix products?
• Emergen-C Kidz® Complete Multi-Vitamin & Multi-Mineral Supplements are for children ages 2 and older. Directions for use are as follows:
• Ages 2 & 3: Mix half a packet daily with 2-4 oz of water
• Ages 4 & up: Mix one packet daily with 4-6 oz of water
• All other Emergen-C drink mix products are for adults 15 years of age and older.
• What do you do to assure the quality and safety of your ingredients?
• We test 100% of our incoming raw materials to confirm that what we received is what we ordered. We use very sophisticated laboratory equipment that takes a near infra red fingerprint of all incoming raw materials, and it compares that fingerprint to our approved raw materials library. If it does not match, the ingredient is rejected.”*

Emergen-C goes on to give a quality Q&A for questions about glucose, gluten and the like, regarding their product.

By in large, my research concludes with Emergen-C being shown to have a basic product based business structure that is both popular and successful. The health benefits have not been fully evaluated by the scientific community, in spite of their prominence in the marketplace over the last 32 years.

A worthy article to read that discusses Emergen-C is, “Who’s the Latest to Jump into the $560 Million Energy Shot Market?” by Carlotta Mast and published September 9th, 2009 by The Nutrition Business Journal.

As noted in that article, “Known for its immune-support powdered offerings, Alacer also introduced an immunity shot called Emergen-C immune System Booster.” My concern with the terminology is that most people will read immunity support or immune booster and simply believe that the product has been proven by science to actually provide immunity to infirmity or sickness, which is not the case. It’s actually a form of misleading representation. Since Emergen-C is a profit seeking company, reportedly making over $500M per year by themselves, it stands to reason that the consumer should still be leery of newly termed products as they can be very deceitful. The Latin term, “caveat emptor ,” a thought usually reserved for buying cars, or similar, seems to apply naturally here.

Gatorade, Powerade, Emergen-C, take your pick. Emergen-C certainly has a load of vitamin C that everyone still considers to be a positive attribute. I’ve had it, it tastes good. I look forward to one day reporting back about Emergen-C and the other products after science has identified what the long-term use benefits and/or contraindications for use are. Until then, my choice with Emergen-C will be like my similar choices with Gatorade and Powerade-perhaps every few weeks I’ll have one as a beverage-maybe after a workout, maybe just on a Sunday afternoon. That is my choice, now you get to have yours!

This is the fifth, and last, write-up on nutrition energy drink companies of a 5 part series. See my other write-ups by following these links! Zrii, Vemma, Vrroom, and AdvoCare. Thank you for your time, your attention, and your votes!

Dwayne Ivey, keeping nutritional companies honest daily.

© Dwayne Ivey - October 2010