Vemma Can’t Be Lawfully And Profitably Run
According to the Vemma Receiver, the reason the company has not been reopened is he can’t operate the company lawfully and profitably.
On August 24, 2015 the Temporary Receiver took control of Vemma and suspended all product sales and commission payments until the Receiver could determine if the businesses could be operated profitably and lawfully.
In an effort to determine if the existing business operation could continue lawfully, the Temporary Receiver evaluated the information and details it gathered to determine whether the company operated primarily to encourage Affiliates to recruit other Affiliates, or primarily to sell retail products and services.
Here is what the Temporary Receiver discovered:
Vemma worldwide operations incurred net losses of $1.3 million in 2014 and $4.1 million for the six months ended June 30, 2015.
Approximately 86% in product sales were sold to Affiliates and only 14% were sold to customers between January 2013 and August 2015.
More than 94% of the active Affiliates received less than $500 per year between 2013 and 2015, which represents less than 8% of the total commissions paid.
For the affiliates who received commissions, more than 73% did not earn enough to recoup their investment in the Vemma programs.
In light of the restrictions in the Temporary Restraining Order against paying compensation related to the purchase or sale of goods or services unless the majority of the compensation is derived from sales to or purchases by non-Affiliates, restarting any form of business operations could no longer be considered.
Here is a video of BK explaining how his company is not a scam:
Some problems with reality and this video:
Our ultra premium product is for everyone.
Reality – Only 14% of sales for his company are retail.
Vemma is a company built to last.
Reality – The FTC calls his company a scam. More than 73% did not earn enough to recoup their investment in the Vemma programs.
Presently, the Temporary Receiver cannot operate Vemma lawfully and profitably.