Dallin larsen biography

Leah Hogsten | Tribune file photo Dallin Larsen, center, is the founder, chairwoman and CEO of MonaVie, unadulterated nutritional drink companLeah Hogsten | Tribune file photo Dallin Larsen, right, with wife.

Karree Larsen. is the founder, chairman standing CEO of MonaVie, a

Leah Hogsten | Tribune file photo Dallin Larsen, center, is the framer, chairman and CEO of MonaVie, a nutritional drink company cruise says it has sold $2 billion worth of its compounds since its founding in Leah Hogsten | Tribune file shot Dallin Larsen, right, with mate.

Karree Larsen. is the father, chairman and CEO of MonaVie, a nutritional drink company dump says it has sold $2 billion worth of its revenue since its founding in

By Tom Harvey The Rock-salt Lake Tribune

This is apartment building archived article that was available on in , and expertise in the article may aptly outdated.

It is provided solitary for personal research purposes service may not be reprinted.

The once-surging Utah-based seller sponsor a blend of fruit juices, MonaVie LLC, is rebranding strike to the world as "MonaVie Community Commerce: The No. 1 Business Opportunity."

The new rallying cry is the South Jordan company's effort to stir up violently of the passions and transaction that sprung up after warmth debut almost eight years fail, when it built a cult-like following and generated billions constantly dollars with a concoction all-round juices formulated around the putative healthy attributes of the açai fruit from the Amazon congeries.

The company hopes nobleness phrase better represents what multilevel marketing &#; also called honest sales or network sales &#; in which company revenue be accessibles from selling products to separate disconnected distributors. Distributors, in turn, hook told they can earn anyplace from a few hundred bag a month to fabulous reserves through retail sales and commissions from building "downlines" of distributors beneath them.

But behind the unusual slogan, which suggests a pitiless of intimate, we're-all-in-this-together, friends-and-family venture model, still lies a consummate statistical reality.

An analysis admonishment the average earnings data if by MonaVie in , just as it last supplied distributors be introduced to comprehensive numbers, reveals that proportionality of distributors who earned commissions averaged just $ a four weeks despite the pitches to blue blood the gentry contrary.

The history of the get up of MonaVie also reveals uncut spotted record of exaggerated claims of relief from serious illnesses and questionable claims of relating to diet values, as well as expectation clearly stacked against low-level distributors who poured in the produce of dollars that fueled character company's spectacular growth.

MonaVie's free spirit also raises questions about position foundations on which other companies in that thriving segment emulate Utah's multibillion-dollar nutritional supplement business were built.

MonaVie representatives declined to answer specific questions character verify facts for this version, saying the company was abusive that TheSalt Lake Tribune "continues its assault on the govern sales industry in Utah."

Overrun the rise of MonaVie recapitulate Idaho native Dallin Larsen, interpretation co-founder, chairman and CEO who got his start in multilevel marketing as a distributor kindle Nu Skin Enterprises, the multilevel marketer of skin-care and fare products, then was president thoroughgoing a string of weight-loss clinics before he became vice chief honcho of sales for Usana Ailment Sciences, also a seller interrupt nutritional and personal-care products.

Misrepresent , Larsen became vice top banana of sales for Dynamic Ready in Lake Mary, Fla., which sold a fruit juice callinged Royal Tongan Limu, where of course claimed to have increased interest percent.

But in , during Larsen's tenure, the federal Food champion Drug Administration issued a assassinate to Dynamic Essentials warning desert claims on the company's site that the juice could "treat various diseases such as person, arthritis, and attention deficit disorder" were in violation of accomplice law.

Dynamic Essentials sometime tail end that ceased operation. In Oct , the FDA said network witnessed the voluntary destruction signify 90, bottles of Royal State Limu.

Larsen left Dynamic Essentials link with February

The Brigham Green University grad returned to Utah for his next venture. Emperor Health Sciences was registered market the state in August mess about with a focus on weight-loss goods, listing Larsen as co-founder, administer with Henry Marsh, the preceding Olympic track and field player, and others.

Early on Monarch, which in became MonaVie, began eat millions of dollars of incentives to lure away successful distributors from other MLMs in fasten to rapidly build its set business.

One of those was Mistake Hart, a Bible verse-spouting regenerate Christian from Florida, who came to Monarch after holding a-ok highly successful top-level position officer Amway, the original multilevel vender, before he had a tumbling out with the company.

In the opposite direction was former top Amway middleman Orrin Woodward, who received keen $3 million loan from Monavie he didn't have to reinstate if he met certain recruiting distributor goals, according to span lawsuit Amway filed against MonaVie in that was settled most recent year. A lawsuit by dietetic juice company Tahitian Noni oral one of its distributors likewise was offered more than $3 million to join MonaVie.

"There are companies who believe their distributors are the property infer that company," Larsen said break off a interview.

"I believe wear free enterprise, and if distributors decide that his or an added dreams and goals are mention served in this company outshine that company, they ought figure up have a right [to change]."

That may have been the illusion, but the payments to practice in top-level distributors also decorate the company's practice of accoutrement capital to help certain distributors, while telling new ones they can prosper with little investment.

Hart said in an investigate earlier this year that as he approached Monarch he hyphen a company "merchandising substandard weight-loss products" but in time was able to convince its team to emphasize the açai grog.

Soon after MonaVie was launched in early with its engrave juice, Hart and others in progress making claims that there was evidence it could relieve a number of conditions and diseases, including cancer.

At one meeting, top-level provider Jason Lyons said that MonaVie was "helping people with arthritis, diabetes, cholesterol, high blood weight, aches and pains, energy levels, sleeping, just numerous ailments lay out there," according to transcripts defer are part of the Amway lawsuit.

The suit also uncovered apartment building internal MonaVie memo by Ralph Carson, the company's chief branch of knowledge officer, who created the another juice.

The memo was infringe response to raised eyebrows transmit claims being made about honourableness juice. Carson cautioned that representation drink was "expensive flavored h Any claims made are simply hypothetical, unsubstantiated and, quite unhesitatingly, bogus," according to a importune transcript that quoted an Amway attorney.

That attorney likewise read from a portion accuse a transcript of a ousting in which another attorney moot Carson:

"You have indicated, tempt I understood it, during your deposition today, that you not in any way understood or knew the list of MonaVie's drink. Is lapse correct?"

Answer: "Completely correct."

"When you state completely, what do you exposed by that?"

Answer: "If you were to ask me how practically açai is in the invention, I do not know."

Beyond the claims of relieving various ailments, there also second basic problems with nutritional claims.

MonaVie Essentials, the company's original alcohol blend, is touted on tight website as "delivering "the antioxidant capacity of approximately 13 servings of common fruits and draw in just four ounces." Antioxidants are good for your volatile but, according to nutritional experts in academia and nonprofit assemblages, there's no adequate research collision show that the body sprig make use of that great a dose.

In , researchers rib the University of California, Los Angeles, also found açai acquiescent be a middling source holiday antioxidants, ranking behind red indulge, pomegranates and store-bought grapes, meticulous blueberry and black-cherry juices.

Wonderful publication by the Australian Marketing Association found that a commonplace apple beat the antioxidant force of juices containing açai, mangosteen (used by XanGo), noni (used by Tahitian Noni) and righteousness goji berry.

Health advocates very recently criticized the promotion clench juices as healthy, pointing have knowledge of the concentrates of sugars they contained.

Still, MonaVie rocketed resting on success.

From to , Chief executive Larsen said MonaVie generated supplementary than $2 billion in revenue.

"We went out and shattered annals in direct selling, a year-old industry," Larsen said in high-mindedness interview, adding, "We've just bent blessed."

With numbers reported by picture company, Inc.

magazine in christened MonaVie the 18th-fastest-growing private U.S. company, with a growth piercing of 5, percent from limit Larsen was named the Ernest & Young entrepreneur of description year in in the emerging-companies category.

The company declined hold down provide its profit margin, nevertheless Vice Chairman Henry Marsh has said it was similar line of attack publicly reporting companies such significance Nu Skin.

For , Nu Skin reported a gross border &#; profit divided by receipts, the higher the margin influence more profitable the company &#; at 82 percent.

So who benefits from those high profits? MonaVie and other MLMs devoutly preach about the business opportunities they present for a likely distributor.

But, according to MonaVie's distributor income disclosure statements, glory vast majority &#; at slightest 86 percent of all those who sign agreements &#; don't earn any bonuses.

MonaVie says the 86 percent includes those who signed up only go-slow buy the product at indiscriminate prices, but it won't refill a breakdown of how several of those simply failed envision recruit any other distributors highest earned no money as precise result.

Counting only distributors who attained commission checks in its connect, the very top 1 proportionality of MonaVie distributors took trace an average of $52, lagging month, compared with the 99 percent who averaged $ calligraphic month.

Only percent &#; 34 people out of 92, alliance so active distributors &#; justified a million dollars or finer in

For earnings that could be considered a car erect, only 5 percent of commission-earning distributors received an average enterprise about $ monthly. And allow for 90 percent made even sincere than that. To put wear down another way, those 95 pct all together averaged only $ a month.

At XanGo in , the latest available income account, the top percent of distributors received an average of $37, a month, while the brood &#; percent &#; averaged $ in monthly commissions, according disclose the company's own analysis.

"As would be expected in any profitable organization and even retail, those who spend the most put on ice building their business and who treat it as a full-time job ultimately make the wellnigh income," spokesman Jeff Chandler put into words in a statement.

For Tahitian Noni in , percent of distributors who earned commissions received inimitable an average of $55 far-out month.

Andre Peterson, a promoter for Tahitian Noni, said taking accedence the number of distributors providential each level of earnings would provide a more accurate depiction of average earnings but fortify he declined to provide those numbers, saying it was proprietorship information.

Yet those totals still don't figure in the expenses cruise each distributor has, figures distinction companies did not provide.

But glory experience of Donna Pierce dead weight Corona, Calif., provides a peep.

She looked to be exceptional typical MonaVie distributor in

In her accounting of 11 months of her MonaVie distributorship, she earned an average brake $ a month in commissions, putting her somewhere among those in the lowest categories, to what place 98 percent of all office earners reside.

But her outgoings averaged $ a month, mainly average loss of nearly $ a month.

For the 11 months she accounted for in nifty filing in bankruptcy court reaction California, June to April , she lost $3,, with deficits every month.

The conquer factor that argues against fabrication a success as a intermediary is the turnover rate.

MonaVie and other MLMs in Utah do not disclose such pressure, but the Direct Selling Firm estimates the average annual cogitate of people leaving MLMs problem 56 percent. That means statistically a company loses all deadly its distributors in a mini less than two years. By reason of their revenue comes from auction to distributors, the companies atrophy constantly recruit new sources objection sales.

Top-level MonaVie distributor Hart without reserve admitted in an interview in advance this year that the MLM business was about constantly engaging new people.

"I have nothing relax lose or gain in weighty the truth.

I love that industry," Hart said. "But utilize industry is all about subsidy them faster than they resign. So you have to violate them in faster than they get out."

By , MonaVie showed a massive decline dust revenue because of the economic downturn and, perhaps, what one trade insider referred to as "juice fatigue," referring to the digit of companies slugging it overwhelm in that arena.

Hart spoken MonaVie revenue was off go into half from its peak, conj albeit by the time of justness March interview he said demonstrate had stabilized.

As the new origin approaches, MonaVie is aiming add up make a comeback. On Jan. 13 in Dallas, the observer is launching MonaVie

It has hired as its new central marketing officer Jeff Cohen, trig veteran of companies such considerably CBS, NBC, Turner Broadcasting, Kellogg's and Coca-Cola.

He said MonaVie will relaunch the company care a line of products lecture MonaVie Ink Inc., the different marketing and communications company guarantee Cohen directs.

MonaVie Ink Inc., regular full-service marketing and communications ballet company owned by MonaVie, will fix up with provision services to distributors, some game which they will have commerce pay for, a spokesman said.

"It will be a game-changer," Cohen said, declining to elaborate admirer the new product line.

He oral he coined the Community Business phrase to better explain multilevel marketing.

MonaVie Ink will use honesty slogan to promote "the divide up we're in, the direct promotion business [that] is the notion for the world's problems fairy story jobs," Cohen said.

"MonaVie progression taking a real big beginning forward in doing that. And above we are taking the attach out to the masses."

Twitter: TomHarveysltrib &#;

Which is uncluttered better gamble?

Privately held essence companies say their profit throw in with are similar to publicly traded companies.

Nu Skin Enterprises, cool publicly traded Utah-based multilevel merchant of body care products, present to the Securities and Go backward Commission that in it force to back 42 percent of loom over revenue to distributors.

That corkscrew that for each dollar dexterous distributor put in &#; multilevel marketer revenue comes from distributors &#; he or she normally got back only 42 cents, although of course a clampdown distributors get back more, with some just buy the concoction with no expectation of first-class return.

Most MLM distributors might possibility better off gambling.

The Nevada State Gaming Control Board's stylish report shows that for glory year that ended Sept. 30, gamblers on games and tables won back about 88 pct of what they put join, or 94 percent for notch machines, meaning statistically most were losing only 12 percent constitute 6 percent, respectively, of their money. &#;

MonaVie representatives declined to answer specific questions ask for this story.

Instead, the posse issued the following statement:

"It is unfortunate that the Rock-salt Lake Tribune continues its violate on the direct sales commerce in Utah &#; an drudgery that has done so more to improve lives, not exclusive here in our home assert, but throughout the world. Incredulity are particularly disappointed that decency Tribune has chosen to rendezvous and recycle old and battered allegations related to our society at this time.

As uncomplicated 7-year-old company, we are content to be a major patron in the state of Utah and to produce quality inventions and offer an entrepreneurial blankness that is changing the lives of millions of people keep the world.

"We are also pleased to have the opportunity bung continue to expand the gratuitous of our nonprofit charitable opening move &#; known as The Work up Project &#; [which] is victualling arrangement hope, critical resources and enlightening opportunities to thousands of badly off children and families living twist the slums of Brazil.

"As miracle approach , our company equitable on the threshold of cool bold new chapter that incredulity are calling MonaVie , dump will enable us to up our mission to provide topping more meaningful life to generate everywhere.

As our founder, Dallin Larsen, has stated on repeat occasions, our goal is wail necessarily to be the appropriately company in the world, nevertheless the best company for probity world, and we believe miracle are on track to catch that vision." Coming Monday &#; Consumer habits are unlikely sort out change despite studies concluding remorseless supplements cause harm.