New affiliate marketing business model unveiled
Vemma Founder and CEO BK Boreyko couldn’t wait to share some exciting perks of our new affiliate marketing business model, which begins in the U.S., Canada and Puerto Rico on April 1.
Vemma chose to move to an affiliate marketing model because it’s more customer acquisition focused and aligns with its current standards: everyone is first a customer with zero sign-up costs; customers can earn free product and product credits; Affiliates don’t have to buy product to be paid; there are no renewal fees; and Affiliates have free, fully enabled ecommerce websites, free Back Office support, and the free mobile app capabilities to manage and promote their independent Vemma businesses.
Watch his video explaining these incredible updates and how your business will be positively impacted by the changes.
Have a question? We have the answers! Visit support.vemma.com and type in your question.
Here’s a quick transcript of the video (in case you’re reading this from your phone):
BK Boreyko: Hello my wonderful network of Affiliates, BK Boreyko here.
BK: Last year, after much discussion with the field leadership of this company, I made a huge decision to move away from the Network Marketing, MLM business model and make some key changes that align Vemma with an Affiliate Marketing business model. Basically, change the way we’ve been telling the Vemma story for the last 9 years, and start telling it in a more up-to-date way. A way that’s easier for people to understand.
Affiliate Marketing and Network Marketing are very similar. The biggest difference is that AM has more of a customer acquisition focus and you don’t need to buy product in order to earn bonuses. Now, different AM companies have different compensation plans. Some use single tier, some multi-tier.
BK: What I like about affiliate marketing is that
-We don’t charge you to sign up
-You don’t have to buy product to be paid
-There are no renewal fees
-We give you fully enabled ecommerce website
-We give you a free Back Office
-Plus, you also get a free mobile app to manage and promote your affiliate business.
We have done so many things differently over the years than traditional M-L-Ms so it made sense for us to make this change. We do market ultra premium products, so they do cost a bit more, but we also have products in our line that are priced the same as what you’d find in your local grocery store. Going forward, we want to emphasize more of a customer acquisition focus, which also allows us to be more transparent about the way we do business. To be less like Amway and more like Amazon.
Think about this, if Amazon can do $70 billion last year through their affiliate program selling things you can buy anywhere, what can Vemma do? Exclusive brands, a global footprint, huge capabilities in mobile technology and a highly motivated, socially networked group of affiliates.
We started this whole process back in January and it took a full 3 months to implement. I think you’re going to love this move to affiliate marketing and I’m excited to share these changes with you. Okay, let’s get started.
The best way to start this is by explaining who an Affiliate is and who a Customer is.
An Affiliate is a person who has either:
a) Purchases an Affiliate Pack at the time of enrollment.
b) Or Enrolls a Customer or an Affiliate
A Customer is a person who:
a) Just wants to purchase product
b) Has not enrolled another Customer or Affiliate
Now, keep this in mind, a customer can have another customer join in order to earn free product and discount credits and decline the invitation to upgrade to an affiliate status.
So, now that we know who we’re talking about here and how great it’s going to be to have even more Customers, let’s get down to business and explain the key differences of the two when it comes to the rewards.
<SLIDE 3: New Customer Bonus- Customers>
You’re probably already familiar with what we called the “Fast Start Bonus” that’s paid on the first order. We understand that there’s typically costs involved in promoting the Vemma brands, this bonus is designed to help offset them. One change you’ll notice is that bonus it now called the New Customer Bonus and here’s something new, that bonus will now also reward our Customers.
Now, we can’t pay them money because of some legal mumbo jumbo, but Customers will have the opportunity to earn and accumulate product credit with the New Customer Bonus by introducing others that buy Vemma. Customers will receive up to a $20 product credit, which they can use on their online order starting in April in their shopping cart.
Affiliates will still earn the same cash bonuses they’re used to on each of the products as part of the New Customer Bonus program.
<SLIDE 4: New Customer Bonus- Customer, Example>
Let’s take our Customer Mary as an example. Once Mary has helped a friend place an order, she’ll earn a product credit on her friend’s order. That product credit will show up as a credit in her shopping cart then, that credit will be applied to her online order.
<SLIDE 5: Vemma products>
A few quick things to keep in mind: this product credit needs to be used within one year.
Customers will be given a max amount of $20 for any person’s purchase and they don’t have to make a purchase in order to qualify for it. And, they can earn as many product credits that they want, but if they find this fun and easy, we think they’ll see the opportunity with Vemma and want to become Affiliates down the line.
How cool is that? I think this is a great way just to say thank you for your business.
<SLIDE 6: Updates to Customer Referral Program>
Okay, so a few updates on our Customer Referral Program. Since we are now rewarding your Customers and increasing your order retention, we’ve made a few updates. Both Customers and Affiliates will be able to earn a maximum of 120 QV or two cases of free product monthly. Now, if a customer upgrades to an affiliate, you’ll need to add another customer to make up for that volume. What we’ve found is some of our best affiliates simply start out as a customer and then, fall in love with our products. They become our best advocates for healthy lifestyles.
<SLIDE 7: Existing Customers & the Benefits>
Now, we do want to highlight one important piece here about your existing Customers.
Customers enrolled since January 1, 2014 or any of those who have helped you qualify for free product since January 1, 2014 will continue as qualifiers for you to earn free product. And as part of this Affiliate change, you now get full Commissionable Volume on your Customers’ orders.
Also, two huge affiliate changes that will be important to you are:
– HALF of your customer Qualifying Volume counts as your own personal qualifying volume every month they order. This means if you introduce 1 customer with a 60 QV order, 30 QV counts toward the 120 QV you need to be bonus qualified.
Now, get a load of this, if you got 4 customers on a 60 QV order for a total of 240 QV, since you get 50% of that towards your account, that would fully qualify you and you’d get a free case of product! Just 2 more customers would land you a second free case of product every month they order!
-Now, just when you think adding Customers to your business couldn’t get any better, it does! They now count as your Personally Enrolled Qualifiers.
Make sure you download the Vemma app from the App Store or Google Play Store so you can see where your qualifying volume is real time, find out how close you are to rank advancing and earning that new car.
Guys, this is HUGE and I hope you can now start to see why I’m so excited about our move to affiliate marketing!
So, as you can see, we’ve enhanced our plan to make it even easier and more lucrative for you to attract new Customers and retain those Customers. Plus, we’re making it easier for you to qualify every month while still rewarding you.
It’s all a win-win here and I can’t wait for you to experience it in the U.S., Canada and Puerto Rico.
For international markets, we haven’t forgotten about you. Here’s what you can expect for the roll out:
Over the next two months, the following locations will experience these affiliate compensation plan updates:
Mexico, Iceland, New Zealand, Australia, South Africa, Asia
Updates to the Customer Referral Program will be implemented on May 1 for those areas.
On May 9, the following locations will experience these affiliate compensation plan updates:
Africa, Japan, The Caribbean, India
Updates to the Customer Referral Program will be implemented on June 1 for those areas.
BK: Team, I hope you can see how excited I am about this move. Over the next few months, I will be telling you more about the biggest deal I’ve done in my career.
It’s a huge, multi-million dollar investment on my part, all in an effort to help you attract and keep customers, AND keep them happy.
This move will make our Affiliates some of the most successful people in our industry. It’s all part of our overall plan to make Vemma a household brand around the world. A plan to increase your level of credibility and more importantly, the pride you have in what you do. Because I’m proud of each and every one of you that reps these Vemma brands. You are my brand ambassadors and I thank you for that.