Javita's August incentives, promoted by its marketing arm Javanomics, heavily emphasize recruitment, raising questions about the company's long-term business model. The compensation plan historically allowed members to focus on signing new recruits to autoship programs rather than selling products at retail. This structure enables recruiting members to collect FastStart bonuses and residual income from new member autoship requirements.
Such a strategy rarely proves sustainable for an MLM business. But Javita's plan offered no direct disincentive against it. The company could choose to prioritize recruitment numbers or build a product-driven market presence.
Javanomics' initial marketing efforts, however, suggested a clear lean towards recruitment. One campaign promised "$16,000 per month to your income by finding one person per month by sharing coffee?" The concept outlined that if a member enrolled one person monthly, and those recruits did the same, a member could earn over $16,000 from autoship commissions after 12 months.
This model required directly and indirectly recruiting 4096 new members within a year. Each of those 4096 members would then attempt to replicate the same results. This exponential recruitment model quickly becomes unsustainable, effectively removing the product line's significance from the company's business.
Javanomics' marketing materials suggest Javita accepts members relying solely on recruitment to build their businesses. The initial marketing push launched in June 2011. New efforts from Javanomics confirm recruitment remains central, rather than a product-driven approach.
For August, Javita, through Javanomics, introduced two new incentives aimed at existing members to boost recruitment. One incentive offers a $2000 cash award each week to the top three enrollers in the company. The award is based on business volume. For new members, this volume typically translates directly into the business volume generated by their autoship orders. The incentive effectively rewards whoever recruits the most new members each week.
