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Whenever a direct sales company is shut down by the the Federal Trade Commission (FTC) for allegedly operating an illegal pyramid, the entire network marketing industry receives a great deal of scrutiny.

Vemma headquarters, 1621 W. Rio Salado Parkway, Tempe, AZ.

Well this week the FTC announced the shut down of Vemma.

The consumer protection agency said that Vemma told recruits that they could make as much as $50,000 per week selling its nutritional beverage Vemma, energy drink Verge or protein shake Bod-e. An initial investment of $600 was paid for products and business tools and $150 in Vemma products had to be bought each month to receive bonuses. The FTC said Vemma provided little help on how to sell its products and instead rewarded them for recruiting more people.

I think the Vemma probably got into trouble when they targeted college students.

In the complaint, the FTC said Vemma employees visited college campuses and told students that selling the beverages was an alternative to a regular job. Its marketing materials features young people in luxury vehicles, jets and yachts, the FTC said.

If you follow my post you might recall that I first wrote about Vemma’s potential problems in an article titled “Is Vemma Targeting College Students and Operating An Illegal Pyramid?”

What Can We Learn From Vemma’s Shutdown?

Off of the top of my head I can think of two important lessons that we all can learn from Vemma’s misfortune.

Lesson 1. I’ve said it once and will say it again, learn how to properly promote and market your business! Flashing money and making FALSE income claims only lead to trouble. Spamming your friends and family on Facebook and other social media sites will just get you blocked or banned.

Lesson 2. Please learn the importance of branding yourself. If you spend all of your time and efforts promoting Vemma’s Opportunity and products then all you were doing is branding the company not yourself. What happens now that the company is out of business? All of your hard work goes down with the company. So if you didn’t brand yourself as a person of value, create a following or list, then you will have to start all over from scratch each and every time you change companies.

My Message To Vemma Affiliates

I have never been a Vemma affiliate nor have I ever been a customer. I do know some friends that have tried and liked their products. I also have some friends that were affiliates for the company.

If you were a Vemma affiliate I know that you are disappointed and maybe even hurt. Trust me the Vemma shut down hurts all of us no matter what company we represent. I personally know what you are feeling…been there, done that, and got the t-shirt. For some of you this may have been your very first network marketing company and you might be feeling like you were scammed.

Well don’t be keep your head up. The network marketing business model is sound.

Many businesses fail just like many entrepreneurs fail. But just think if Michael Jordan would have given up after he was cut from the High School Basketball team or if Oprah Winfrey would have quit after she was fired from her job as a reporter look what they have become. You see for them quitting when it got a little rough was not an option!

When you have been in this industry as long as I have you will see many companies come and go, don’t worry about it. Keep pressing on and keep your eyes on the prize.

To Your Success!