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Javita Scam? Pyramid Scheme? My Personal Experience with Javita!

While coming back from New York, I had a connecting flight from LA to Fresno. Since my flight from New York got delayed, I missed my flight to Fresno from LA. So, I decided to rent a car and just drive. A couple was traveling on the same flight and missed their flight to Fresno as well. I had a conversation with them at the airline counter and we decided to all drive together. While renting the car, I asked them where they were coming from. They said, "Bahamas". I said, "that's nice, must have been expensive". They said that it was $10,000 but their company paid for it. I started thinking, what could they be doing. They told me that the wife actually works for the coffee company called Javita. The husband was just accompanying her. I will not mention their names to protect their identity.

While driving, we started talking further. The wife started telling me all the good stuff about Javita coffee, that it's weight loss coffee and contains Garcinia Cambogia and other herbs. I have explored multiple business opportunities in the past and know about most industries. I was quick to pick-up on it. I said, "that's awesome, Coffee is the 120 billion dollar industry and weight loss is not behind either". They said, "yes, you are getting things quickly. Both weight loss and coffee industry together are over 200 billion".

The wife started telling me more about Javita and their coffee product line. She mentioned that  it is great for weight loss and since everyone drinks coffee anyway and it is much better than taking a pill or supplement which you might forget. On top, its instant coffee! Moreover, she added that no other coffee contains Garcinia Cambogia. I asked, "how you are actually making money with it?" She said that she does marketing. I asked, "what kind of marketing". She said, "network marketing".

Right then pyramid scheme popped up in my brain. I asked further, "what exactly do you do to make money, do you have to recruit people? sell coffee?" She said, "you first start with $500 package. You get 14 packages of coffee. Each package contains 24 sticks". I said, "oh it is a pyramid scheme". She said, "we don't call it that, don't use that word". I laughed. I said, "so what do you call it?", She said, "Network Marketing". I was still laughing! However, I thought to myself that this might be a good opportunity if they actually have a great product.

She told me about bonuses and that their "Network Marketing" model goes up to 13 level down for commissions. She told me she got a BMW from recruiting partners and made $18,000 last month. She was saying all the right words. She had my attention.

I quickly did a calculation and found out that each stick is $1.48. She said, "that's the starting package which includes your website and print material and setting you up". I said, "ok, how much will it cost if a customer buys it". She said, $35". Which is still $1.45!! I thought if no other product contains these herbs, maybe people will pay this premium price. We exchanged numbers and they asked me to come to one of their coffee parties the following week.

While leaving she said, "I was thinking while renting the car whether I am going to have you as a partner by the time we get to Fresno". I thought to myself, she was planning to get me and if this idea is so great, why would someone plans on spending that much time to recruit one partner?

I discussed the idea with friends and did some research. Following is what I found out:

  1. Javita is not the only coffee with Garcinia Cambogia, there are plenty others.
  2. Javita does not have exclusive right to use Garcinia Cambogia or any other herb in their coffee.
  3. I asked 10 friends that drink coffee and noone was willing to pay $1.45 per packet of coffee.
  4. You can get a k-cup for $0.65 per packet, which is almost half the price of Javita packet.
  5. There are plenty of listings of Javita on Amazon selling package of 24 packets for as low as $25.
  6. Javita founder has been involved in herb business for a while. He worked on a business selling herbs for many years which was a failure.
  7. You can buy a similar product called Nuvia Trim Coffee with Garcinia Cambogia for $18.79 with 30 packets each. Which comes out to $0.62 per packet. Significantly cheaper!
  8. The business is focused more on recruiting more partner than selling coffee.

I called the wife and talked to her and mentioned my concerns. I told her that noone is willing to pay $1.45 per packet of coffee. She said, it is because they are not seeing the benefits. I said, "I talked to them, told them about the benefits, and they still do not want to pay that much money". She said, "they simply don't understand. This coffee has Garcinia Cambogia". I said, "other coffees have Garcinia Cambogia too". She said, "there is no way. There is no other coffee is Garcinia Cambogia". I said, "I will send you the link".

I then said, "you can buy the same Javita coffee cheaper on Amazon than what I would be selling by talking to people and spending much time and resources". She said, "some partners do list the coffee on Amazon, but Javita does not endorse them and takes them down". I said, "regardless, the option is available and anyone would go for a cheaper option, so for me to spend all that time is for no reason. After I tell them all the benefits of the coffee, they can just go search on Amazon and simply buy online and I will get no commissions". She said, "that is not true, people want to have personal touch or personal relationship while buying something". I laughed and said, "No, people will always go for the most cost effective option, haha".

She said people will buy from your link from Javita Partner instead of Amazon because they can then refer someone else and get free coffee after referring more customers that subscribe to atleast 6 packages in total per month. I said whoever is willing to buy from Javita Partner link for free bonus coffee has to then convince others to buy overly priced coffee as well. It won't work!

I further asked, "the business is focused on recruiting more partners than selling coffee. How much of Javita's revenue comes from actually selling coffee to non partners (just customers) and how much from recruiting more partners". She said that she does not know. I had done some research and it is about 80% from recruiting partners, lol, makes sense! Poor partners!

I said I am not interested and terminated the call and she started texting me and her tone changed completely. What followed was shocking. Before this conversation, she also had me talk to one of the "black diamond" partner who was allegedly making a lot of money. The text conversation after is said No is below:
 

In a nutshell. The one who get in early, make money from the 13 tier system by recruiting initial partners via conferences and then sit back and let them do all the work since they know they will be paid up to 13 levels down. They make the most money on the expense of few ambitious people who become partners with a hope to make money. These people are usually the owners or the friends of the owner. It is impossible for an average Joe to match their earning potential.

It is illegal to have a pyramid scheme without a product, that's why all pyramid schemes actually have products but since they have to pay bonuses and commissions, the products are usually way overpriced.

My advice: Stay away from all pyramids schemes that involves in recruiting partners. You will destroy all relationship with your family and friends, trying to sell them overpriced stuff. Plus, you will certainly not make enough money to match the minimum wage for the amount of hours you put into it. You are better of working at McDonalds or WalMart in your spare time.

There is a reason companies go with "Network Marketing" route then to hire people at minimum wage to do marketing for them! Think about it!

One of my friend was involved in a same business, she was working on getting her family and friends to switch their cable and utility companies to make commissions. I calculated the amount of hours she put into it and the expenses she had to pay organizing parties and came to conclusion that she made $3/hr after everything was said and done.

Javita is not really a scam, it is a legal business. However, you will have to scam your family and friends to purchase coffee for twice the price. It is like selling a used car worth $10,000 to your friend for $20,000 to make commission. I have a soul, I couldn't do it! and I don't believe you can be successful running this kind of business model and trying the sell coffee for twice the price.

If you really want to, you should make your own coffee called Joe's coffee or something and add a few herbs in it. Then sell that for twice the price. You will make a lot more money with your own coffee than you ever will with Javita.

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