Zinzino- pyramid scheme?

Zinzino- pyramid scheme? According to Swedish law Zinzino is not, because Zinzino has a product and some limited consumer-only selling going on. If Zinzino would have only distributors, Zinzino would be a pyramid scheme. But since these companies always collapse when they run out of suckers for their overpriced products- so will Zinzino, and the amount of distributors are very high, it is by any practical standards a pyramid scheme……it just that Zinzino seem a little bit more legit, and grows and collapses more slowly than a genuine pyramid scheme. Just like Orjan Saeles last company Seven Nox. You should also study the compensation plan of Zinzino and notice the focus on finding new distributors.

In Zinzino distributors are placed in a binary compensation plan (http://en.wikipedia.org/wiki/Binary_plan). There could also be more downlines than two. To maintain status as a distributor of Zinzino, you must consume at least about 70  € worth of products EVERY MONTH. The reason, according to Zinzino is that you must consume the products to show that you really like Zinzino products to potential consumers. If you get customers and partners to consume Zinzino products 4 times your turnover, you will get your expensive coffee for free. That means you got to sell overpriced Zinzino coffee machines to maybe 10 people, since subscription is 30 € a month for 60 pods. You then have sold about ten 300 € machines to ten people. 3000 € worth of macines, that should cost about 100 € each.

You see that there are HUGE PROFITS to the founders of Zinzino. You also got 10 people to sign up forZinzino coffee subscription, paying 12×30 € => 360 €! That 720 pods would cost 190 € in a french shop. So when you have succeeded to not need to pay for your overpriced Zinzino coffee, you have sentbig profitss to the top of Zinzino by screwing your non-aware poor friends. The price difference between what you have distributed to 10 people in one year and what the cost would be in France is a staggering 3700 €. While doing this you earned NOTHING expect for some cash bonuses, you payed 840 € for expensive Zinzino coffee the presumptive first year plus about 1000€ for your starter kit. And all this is repeated again, and again and… until there are no more suckers. Do you think anybody will buy this expensive coffee when there are no more suckers? The Zinzino starter kit for partners is about 500-1000 € at LEAST. The  often pitch a more expensive package. You get one or two 80 € machines, coffee pods and maybe some more junk.

And if you check the history, since I got no access to numbers for Zinzino, the top guy earned 800 000 € out of Seven Nox in 2004. The 3800 distributors earned 100 € each on average. And their total compensation was less than the one founder, Orjan Saele. Thats where you friends and family’s money end up. As for that 100 € for distributors, bear in mind that they have to pay taxes and they also probably spent money on products just like in Zinzino! And also going to different events and so on. The average guy lost money.

malongo1Are Zinzino products worth paying for? You just need to go to the Webshop-links page here on zinzinotruth.com and what you just read to find that out. And this picture is all you need when comparing with Zinzino. Although there are even lower prices out there. Zinzino claim that the coffee machines are cheaper with subscription. Yes, but then Zinzino will raise the price for subscription, so there is minimal difference. You will pay about 300 € for the half automatic Zinzino machine even with subscription. And when you sign 12 months subscription you will ALSO PAY FOR OVERPRICED PODS FOR 12 MONTHS! The Zinzino pods is at least twice as expensive as in ordinary shops i France. How can Zinzino charge theese ridiculous prices? Well, Rombouts-Malongo made Zinzino the concessionaire.

Summary: cheapest products you find at web shops or supermarkets, not at Zinzino and such.

There are many reasons not to become a partner, even though the products themselves are OK:

  • Retail prices are inflated
  • Partners are being ripped of
  • Cash flow is very much derived from partners purchases right now – pyramid scheme
  • You could get bad reputation among your friends
  • Owners/front figures have been involved in heavily critizised companies
  • EU may force Rombouts web shops to deliver to all of EU, making the exclusivity agreement less valuable
  • You got no guaranties how the compensation plan will look like in the future
  • You pay in order to work
  • Rombouts could cancel exclusivity agreement if sales are falling
  • In order to make 2000 EUR after taxes each month you’ll need hundreds of people in your team, and your team needs to be balanced
  • Markets will be saturated
  • You have tens of thousands selling the same products
  • Parallel imports of the coffee is legal and are already starting to be done in a larger scale in some cases
  • Balance Oil has competitors already, offering a long term cheaper offer
  • Most people can’t get Zinzino4Free and may change supplier
  • Zinzino is spreading dishonest propaganda about the usage of pods in Europe
  • The average income right now cannot be more than 500 EUR a year for every partner. It cost 1000 EUR at least the first year to get started

 Disclaimer,  prices vary and are approximate. This is an early calculation and some numbers may not be correct. Do your own calculations too.


10 responses to “Zinzino- pyramid scheme?

  • Chris Bear

    Hello Mr.Einstein.

    Its not true that the zinzino’s coffe are expensive, or say it like this: how much do you pay for an CafeLate at an Cafe?! 4-5 Euro?! Thats the price in Norway, and with the zinzino machine, you can make an CafeLate for not more than 1 euro.
    That price include all other types of coffe you can make with the Zinzino machine.

    Expensive Coffe?Coffe Machine?! Porsche are more expensive than a Lada, but you will atleast drive something called a Car..when you drive Porsche…

    You have also forgot an very important thing, with an Coffe-subscription you will also get an Waranty included, IF something happends with the machine..you will get an new one.
    Just saying it…:)

  • mlmnemesis

    Compared to you I would probably be called Einstein… I have already dismissed these “arguments for complete fools”. But lets do it again.

    Of course it is foolish to compare drinking coffee at home and drinking it at a cafe. Do I really have to explain this? Why would you buy a cup of coffee for 5 EUR? You pay for being able to sit down at the cafe, often to socialize with others at a place which are no ones home for instance. “But what about takeaway”? Well, sometimes the same price, but you pay for the service to grab a coffee because you want it right away. You think that people could always bring a trolley bag with batteries, AC/DC converter, water, milk steamer, coffee, coffee machine so that they don’t have to pay 5 EUR for a latte?

    So.. If you can make cheap lattes with Zinzino machines you can certainly make even cheaper ones with other brands. The money you save for paying ridiculous prices you could put in a real expensive espresso machine with grinder and milk steamer. So these arguments are no arguments for Zinzino, they are just arguments that you can make lattes cheaper at home. Of course you can.

    If a Porsche did cost 400 000 EUR in Norway new and 200 000 EUR in Germany new because Porsche had granted a pyramid scheme the rights to sell Porsche in Norway, would you buy it in Norway anyway? No everyone would import and firms would even start parallel imports so those prices would be unsustainable.

    But what about Zinzino? Easy. It is still small scale. Markets are not as perfect as in theory, there is a lag. And many who buys the partner kits are just bamboozled to think that it is an investment, despite that they know the stuff costs nothing in other EU countries. Unethical “business” practice.

    About warranty, read this post:

    http://zinzinotruth.com/2013/03/20/zinzino-lets-see-what-zinzinotruthblogspot-dk-is-up-to/

  • asas

    Chris Bear are you an idiot?
    Just asking… :)

  • Alex

    I’m not a Zinzino partner nor a client, but I’m familiar with Zinzino. This is pretty much bullshit, machines are ridiculously cheep and coffee tastes better than anything you can buy for the price.

    Ofcorse there are people who fail to sell anything and wind up paying 1K euro for nothing, but that is totaly those peoples fault. Cause if you cant make anybody buy your coffee even to save your life and refeses to learn the skills. Then this person pretty much messed up! Should have use his brain in the first place.

  • Ziggy

    Hi, Mr.Einstein! this good name, right? In some points you are right, but you are taking out from full sentence some points. the points what you like. I do not know your target, but you are little bit wrong in many cases. the one price cannot be the same in all the countries. Historically Rombouts was selling in some area and thats why is one price, plus they have to compete again historically with cheap producers in their area. Start your own business, start to import from them to other countries and then you will see all the points. whay are you saying anything about Oriflame or Amway? Because you are nuts who is sitting at home and checking internet just some prices. I am seller (not zinzino now), but reagrding prices for other products are nonsense around. its is always cheap prices, but in many cases some problems with it. and go and buy from France for 22 cents for a pod and drink in Norway. can you doit. I know one person who has relatives in France, buying Rombouts pods and sending via post tp him, at the end, the price is almost as the same as zinzino, but not warranty for machine. what can you say? if you are so smart, why are you do not make business, because you are doing nothing just blaaa blaa bllaa

  • pr0xzen

    The rank aroma of a pyramid scheme was obvious when my GF came home with the basic model “manual” machine and a 6-pack subscription 3 years ago. The machine cost ~300 euro and the subscription was about 50 euro / 2 months (6-pack every 2 month). But simplicity of the machine (thus low-maintenance) and the quality of finished product have grown vastly on over the years.

    Personally I run the manual machine (flick on, wait, flick off) to really fill those small cups. Makes for a nice coffee, rather than a picante espresso. Neither did we ever want a large expensive, complex (and high maintenance) machine.

    We still have that same old machine. Servicing it means 2 allen screws up front, unslot all parts, soak and rinse in HOT water and put them back again. Once in a while, a light scrub with a damp cloth inside and a descaler, Now I’m sure any “automatic” machine would be much worse.

    What we did do, quite some time ago – was cancel that damn subscription. We live in Norway. Not only are the pod prices (and all postal shipment) ridiculously expensive, but communication with the distributor is crap. We already found the 2 brands we like the best – and we now order pods in bulk and ship-by-proxy in/from the UK. Paying 7.5 euro for a 12-pack of pods, /on subscription/ is a dirty rip-off. But paying 2.5 euro, no subscription – now that I can live with.

    The UK seller/web-shop we currently use, also sells the “current generation” manual operated machine for ~100 euro, and about every other month offer it for ~70 euro. They do /not/ deal in subscriptions – period. They offer some customer deals from time to time, but only direct sales to end customers.

    While it might not be perfectly ideal, this route has gone from a rip-off to a decent compromise for us.

    And to comment on the part of paying 5 euro or more for a “Starbucks” latté. Well, sure you can make it a whooole lot cheaper at home. But then again you don’t run the type of 15.000 + euro, high maintenance equipment they do. Neither do you run a _coffee bar_ and have to pay employee wages and insurances, commercial space rent etc etc. And yes, a “to go” coffee is likely to be as expensive as an in-house one; Even if /you/ don’t sit down, the same ammount of rent, employee wages etc still applies. You’re paying for a lot more than coffee beans. C’est la vie, my friend.

  • Active partner

    Hello and greetings dear MLMnemesis!

    I have read your posts about zinzino for a while now, before i joined zinzino and during my active partnership.
    Now just to make it clear – i am currently an active partner and been so for the past 3 months.
    I’m sorry, i do not mean to be condescending as you seem to be, but you, dear sir, are somewhat misleading and full of bull dung! I would respect what you claim, if you had anything real to back it up with. Unfortunately all you do is bash the Zinzino business model and blow smoke up peoples bottom.
    It seems to me, that your almost epic dedication to discredit Zinzino is derived from you once being part of the MLM model (any network marketing company) – someone who joined, invested into the start up kit, then did nothing to grow your business, obviously failing at making any money or reaching success and turned out to be just a bitter man, with nothing better to do, but sit at home, creating a website just to dampen your anger of failure somwhere.. Am i anywhere close!?

    So i might be – what you would call – one of those “suckers”. But hey, i call your slander and raise you a decent pay check! By that i mean, i set aside my predispositions, ignored my inexperience with network marketing and disregarded my complete and utter lack of sales skills, i studied from the best, i learned the basics, and worked in a steady, methodical way, and today, 3 months later, i have over 20 personal customers, around 20 partners with another 90+ customers in my downline and making weekly and monthly more than i ever did, while working in traditional pay-jobs.

    All of that, by the way, without destroying any friendships or causing financial perils for any of my customers.
    You seem to base your arguements solely on the pricing of R&M coffee and how one can get them cheaper from French supermarkets or whatever. Well sorry my friend, but most people are not going to go to France, to get quality coffee just to save some cents. In addition, if you have someone buy it straight up and post it to you from france – in most cases, the postage to any EU country will overlap the “saving” and eventually come to the same total, if not more. Plus the hassle of finding that someone to do it for you. I know ’cause i’ve checked!
    The fact of the matter is that an average coffe cup (latte/espresso or cappucino) will cost an average home customer around 55 euro cents. Not that much really. Plus your prices and calculations are quite off! not a little, but quite a bit really. Plus you mix up customer prices/special offers with partner kits.

    Also about your warranty post – you might aswell go and scream at these people with “apparently correct” info, because you have been fed with bad intel. The extended warranty covers any damage to the machine, and will be either fixed if possible and completely replaced if not, all of that at no extra cost! True, you can’t replace your machine 10 times a year – if it breaks down or falls off the table or whatever so many times, clearly you need to rething the positioning of your device!

    And with how you regard to the business model and propesed collapse, you couldn’t be more wrong. I’ve studied many MLM compensation plans as well, before i joined Zinzino, as obviously there are so many out there. Compared to one – Amway, which has been around for 50 years and still going strong, Zinzino is just so much more better, as it’s backbone is customer consuption rather than just retailer personal consuption and resales. In addition, just to show this in figures, in the baltics, the average partner-to-customer ratio is 1/6, so per every thousand partners we have 6000 customers! In addition, there are no partner acquisition or “head hunter” fees, so we do not get paid for partner enrollment. We get paid when we bring in new customers. So i do not see any reason what so ever, to justify or agree with your claims about zinzino going down anytime soon.

    So all in all, i think you need to stop discourageing people with partial or incorrect info and do something more useful with your time – like go help out at your local soup kitchen for the homeless or something the likes!

    All the Best,
    -me

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