2019 saw the establishment of ViaVeta, an MLM company that specializes in personal care.
On its website, ViaVeta lists its company address as being in the Netherlands. Hedi Khezrzadeh, the company’s creator and CEO, who, as far as I can gather, is headquartered in Turkey, is in charge of running it.
I’m not clear what ViaVeta’s link to the Netherlands is except for being incorporated as Viaveta Netherlands B.V.
Khezrzadeh (right) established himself as a top earner in Mega Holdings and the MLM sector.
Mega Holdings was a pyramid scam that focused on offering inflated online services for sale. Mega Holdings failed at the beginning of 2018.
The major domain of ViaVeta’s website, “viaveta. EU,” was registered in July 2018. The official Facebook page for the firm was started in September 2018, which suggests that this was during the time of its debut.
Continue reading for a thorough analysis of ViaVeta’s MLM prospect.
A limited number of personal care items are sold by ViaVeta:
La Joanne Face Serum costs $165 a bottle and is advertised as a product that “helps to diminish symptoms of aging, lessen the appearance of lines & wrinkles while boosting the skin’s renewing process for a younger-looking feel.”
La Joanne Eye Cream, which promises to give eyes a young appearance and rejuvenation, costs $143 for a 1.01 fl. oz. container (30 ml)
La Joanne Face Cream costs $154 a tub and claims to “help the skin become firmer, smoother, and more radiant looking.”
ViaLife Hy-Collagen costs $138 a pouch and is described as “a potent, nutrient-dense solution with collagen, hyaluronic acid, and all seven essential vitamins for radiantly gorgeous hair, skin, and nails.”
Where I could, I added the container/serving size. It should be noted that while retail and comprehensive pricing are offered, container and serving sizes are sometimes absent from the ViaVeta website.
Additionally, ViaVeta withholds information on manufacturing. I did learn that the goods are manufactured in Switzerland and Turkey.
ViaVeta’s products are also offered in a $374 Skincare Pack and a $594 Perfect Skin Pack for individuals looking to purchase in large quantities.
The Compensation Plan for ViaVeta
An intriguing approach to paying out on total unilevel team volume may be seen in ViaVeta’s compensation structure.
Affiliate Ranks for Viet
The pay structure of ViaVeta has 23 affiliate ranks.
They are as follows, along with their respective qualifying standards:
Refer two ViaVeta clients who have each spent at least 60 PV on a product (QI), and QI 1 must produce and sustain 180 GV over a rolling 31-day period.
Generate and maintain 360 GV throughout a rolling 31-day period, according to QI 1.1.
Create and maintain 540 GV during a rolling 31-day period by QI 1.2.
Produce and maintain 1080 GV on a rolling 31-day period for QI 2.
Generate and maintain 1620 GV throughout a rolling 31-day period, according to QI 2.1.
Generate and maintain 2160 GV throughout a rolling 31-day period according to QI 2.2.
Produce and maintain 2880 GV during a rolling 31-day period for QI 3.
Produce and maintain 3960 GV during a rolling 31-day period according to QI 3.1.
Produce and maintain 5400 GV during a rolling 31-day period according to QI 3.2.
Produce and sustain 7200 GV during a rolling 31-day period (QI 4).
Produce and maintain 12,000 GV during a rolling 31-day period according to QI 4.1.
Produce and maintain 21,000 GV during a rolling 31-day period according to QI 4.2.
QI 5: Over the course of a rolling 31-day period, produce and maintain 42,000 GV.
Produce and maintain 60,000 GV throughout a rolling 31-day period by QI 5.1.
Create and maintain 90,000 GV throughout a rolling 31-day period by QI 5.2.
Generating and maintaining 120,000 GV throughout a rolling 31-day period is part of QI 6.
Produce and maintain 180,000 GV during a rolling 31-day period, according to QI 6.1.
Create and maintain 240,000 GV during a rolling 31-day period by QI 6.2.
300,000 GV must be produced and maintained during a rolling 31-day period for QI 7.
Produce and maintain 600,000 GV during a rolling 31-day period by QI 7.1.
Produce and maintain 900,000 GV during a rolling 31-day period by QI 7.2.
Generating and maintaining 1,200,000 GV during a rolling 31-day period is part of QI 8.
Group Volume is the acronym for GV. GV is the total amount of sales volume produced by ViaVeta’s complete downline. Retail orders are included here.
Note that retail order volume must account for 55% of the needed GV. Additionally, a single unilevel team leg can only credit for up to 40% of the necessary GV.
MLM Commission Requirements
Affiliates must earn and maintain 55% of their total sales volume as retail sales to be eligible for MLM commissions from ViaVeta.
Affiliates of ViaVeta receive compensation for items sold to retail consumers.
The difference between the retail and full pricing of items ordered by retail customers is used to calculate retail commissions.
“Wholesale is generally 10% less than Retail,” according to the compensation plan for ViaVeta.
Affiliates of ViaVeta receive a 15% commission on any personally suggested sales. I think this covers both affiliate recruited orders as well as retail orders.
For both retail and recruited affiliate order volume on level 2, 5% is rewarded.
Residual Commissions ViaVeta uses a unilevel compensation system to pay residual commissions.
An affiliate is put at the head of a unilevel team in a unilevel pay system, and each affiliate they recruited is positioned immediately under them (level 1):
New affiliates brought on by any level 1 affiliates are added to the original affiliate’s unilevel team at level 2.
If any level 2 affiliates bring on new affiliates, they are promoted to level 3, and so on down a theoretically endless number of levels.
Daily calculations and payments are made for residual commissions based on rank:
QI 1 partners make 40 cents QI 1.1 Affiliates make $0.70 QI. $1 QI is made by 1.2 affiliates. $2 QI is made by 2 affiliates. 2.1 affiliates bring in $3 in QI $4 QI for 2.2 affiliates 3 associates generate $6 QI 3.1 associates bring in $8 QI 3.2 affiliates bring in $12 in QI $15 QI is made by 4 affiliates. 4.1 Associates get $25 in QI 4.2 affiliates bring in $45 in QI 5 associates bring in $90 QI. Affiliates make $125 QI in 5.1. Affiliates make $200 QI in 5.2 6 partners make $300 QI 6.1 Associates generate $400 QI 6.2 affiliates bring in $600 in QI. 7 partners generate $800 QI Affiliates generate $1600 QI in 7.1. Affiliates make $2400 QI on average. Eight affiliates receive a $3200 matched bonus.
Affiliates that directly recruit affiliates receive a 25% Matching Bonus on their residual commissions.
Bonus Coded Matching
Another 66% is given out via a Coded Matching Bonus in addition to the 25% direct Matching Bonus.
QI Affiliates in position one receive a 10% Coded Matching Bonus QI. Affiliates who rank 1.1 receive a 12% Coded Matching Bonus QI. 14% Coded Matching Bonus QI is earned by 1.2 ranking affiliates. Earnings for the top two affiliates are 18% coded matching bonuses. Affiliates with a rank of 2.1 receive a 20% Coded Matching Bonus QI. Affiliates who rank 2.2 receive a 22% coded matching bonus QI. A 26% Coded Matching Bonus QI is given to the top three affiliates. Affiliates with a rank of 3.1 receive a 28% coded matching bonus QI. Affiliates that are 3.2 rated receive a 30% Coded Matching Bonus QI. A 34% Coded Matching Bonus QI is received by 4 ranking affiliates. Affiliates who are rated 4.1 receive a 36% Coded Matching Bonus QI. Affiliates who rank 4.2 receive a 38% coded matching bonus QI. A 42% Coded Matching Bonus QI is received by the top five affiliates. Affiliates who are rated 5.1 receive a 44% Coded Matching Bonus QI. Affiliates who rank 5.2 receive a 46% Coded Matching Bonus QI. A 50% Coded Matching Bonus QI is given to the top six affiliates. Affiliates who are rated 6.1 receive a 52% Coded Matching Bonus QI. affiliates who rank 6.2 receive a 54% coded matching bonus QI. A 58% coded matching bonus QI is received by seven rated affiliates. Affiliates who rank 7.1 receive a 60% Coded Matching Bonus QI. Affiliates who rank 7.2 receive a 62% Coded Matching Bonus QI. A 66% Coded Matching Bonus is earned by the top 8 affiliates.
When higher-ranking affiliates get the difference between their rank and lower-ranked affiliates, the bonus’s coded nature becomes apparent.
For instance, an associate who ranks QI 5 earns a 42% coded matching bonus. The remaining amount to be paid out is 24%.
Depending on who discovered the first upline via the unilevel team, the 24% is paid out to QI 5.1 and higher-ranking affiliates.
When a QI 8-rated affiliate is located, the coded matching bonus is terminated. Affiliates in the QI 8 category either get the full 66% of personally recommended volume or whatever is still owed on someone else’s volume.
Membership as a ViaVeta associate is free.
Two consumers must be referred to qualify for commissions, and an affiliate agreement must be signed.
Technically, ViaVeta has no retail customers. Everyone is an affiliate who has the potential to earn commissions or hasn’t.
Whoever chooses to upgrade their account to take part in Influencer Rewards is an influencer [I].
Simply refer two customers who have purchased product(s) worth 60 VP or more to ViaVeta as a Free User or Active Customer to upgrade to Influencer status. Following completion of our KYC procedure, you can upgrade from your back office.
To become an Influencer, there are no costs or requirements for purchases.
Typically, this is an issue (see Herbalife and Vemma). The otherwise non-compliant “everyone is an affiliate” concept is balanced out by ViaVeta’s 55% retail volume requirement.
A fantastic retail incentive is “V-Bucks,” which are simply single-level commissions repurposed for affiliates who are not eligible.
Retail clients of ViaVeta receive V-Bucks instead of commissions up until they recommend order-placing consumers. It is only possible to use V-Bucks on ViaVeta items.
Overall, ViaVeta’s compensation structure is intriguing. Except when paid through a unilevel team and based on a rolling 31-day qualification period, affiliates are paid binary team style, computed daily.
I’m not sure exactly why this is being done, especially whether it would benefit ViaVeta or the affiliates.
The model includes potential commission volatility as one of its features. Due to the daily calculation of residual commissions, a substantial quantity of volume expiring within a 31-day window without being rebalanced might result in a significant change in an affiliate’s commissions for the month.
However, the affiliate would observe the fluctuation in real time every day rather than having it spread out over the course of a month. I’m unsure of how beneficial that is for developing an MLM business.
Although ViaVeta’s incentive structure is retail-focused and takes a novel approach, I believe the company’s product line severely underwhelms.
It seems strange that ViaVeta would combine four personal care items. Why are these things being offered, where do they originate from, and is such a tiny assortment even adequate to support a business?
Do not forget that these are personal care items, not vitamins. There must be a compelling reason to try something new or alter one’s care regimen because everyone has them.
Things started to make more sense until I found ViaVeta’s Turkish website.
The Turkish website of ViaVeta offers twenty-five goods as compared to the four on the western page. It is a far more substantial product.
I’m not sure why there is a difference, but the end effect is that ViaVeta’s “beyond Turkey” service appears to be a shoddy attempt at a money grab.
I’m sure there is a business justification for the gimped service, but consumers or affiliates of ViaVeta shouldn’t have to deal with it. There is certainly no justification given by ViaVeta on their website.
Although the retail-focused compensation plan is excellent, I don’t believe there is enough there to effectively promote a credible MLM business.