For some time ago the obvious fact that the coffee Zinzino distributes, Rombouts & Malongo, can be imported from Continental Europe to North Europe perfectly legal has been highlighted here on zinzinotruth. And for a while an operation like this has been run in Estonia. What is being offered is to get pass the hassle of ordering coffee yourself since Rombouts tries to cut all parallel streams of goods. You will need a few tricks in your sleeve to order the coffee yourself.
You can also order coffee to other Baltic and Nordic countries from kohvitellimus.ee. We have been sent word from a customer in Finland that it works fine. You can order both coffee and espresso machines cheaper than ordering from Zinzino.
A simple calculation I did yesterday in an answer to a comment showed that if there was 1000 people that would split the profits in Zinzino, they would only make 625 EUR a month before taxes.
Haha, given thousands of people their freedom? That is impossible. In order to give 1000 people financial freedom, I would say 20 000 EUR a month BEFORE taxes is needed (10 000-15 000 EUR after tax). That is 20 000 000 EUR a month and 240 000 000 EUR for one year. Zinzino sales was 18 500 000 EUR 2012. Those numbers doesn’t add up, right? Orjan and the closest buddies would need 2 000 000 EUR for themselves, and profits to dole out is maybe 50 % of sales. 18,5 million – 2 millions for Orjan and friends – 9 million expenses, that leaves 7,5 million EUR. But we needed 240 millions! How do you explain that?
7,5 million EUR to 1000 persons, that is 7500 EUR per person, 625 EUR per person and month. Say taxes are 30%, that leaves 438 EUR a month. That is not much to show for, is it? And you said “giving freedom to thousands of people”, how is that possible?
So how many successful people are there that go to these Zinzino events? It is obvious that the only purpose of these events is to put faith into people that they will be successful too, if they only listen to a bunch of rich charlatans. I guess that just shaking their hands will give you more than a Masters Degree in Business Economics. The purpose is also to make people continue making purchases even though they are supposed to be partners and making money. These charlatans are selling hopes and dreams about being rich and laying on the beach as a religion and these scammers are the prophets..
In a real business you will not need tens of thousands of people just to make a tiny 600 000 EUR profit. Look at this Swedish family company that is in the hamburger restaurant business: http://www.121.nu/onetoone/foretag/max-hamburgerrestauranger-aktiebolag-66FC/ekonomi. It has 1548 employees and a turnover of 165 million EUR, almost ten times that of Zinzino. The profit was 8,3 million EUR for 2012, MORE than ten times that of Zinzino. And the average employee got 27 000 EUR for 2012. In Zinzino the average partner pays in order to work. So, frying hamburgers is obviously more profitable for the employees AND the shareholders. That is what a good business is all about. Not fooling people and extract money from them, that is a fraud. In order for Zinzino to have a turnover of 165 million EUR, they would need hundreds of thousands of partners, a middle sized town or the whole country of Island. So how much value would those hundreds of thousands of people create with their time? What if all businesses operated like Zinzino? Nothing would ever be produced and hence all people would be poor. No, business is about innovation and combining resources in an efficient way. That makes a bigger a output for less effort and that is what makes a country richer.
But where there is money and hopes about money, there will always be illegitimate so called companies that will try to fool people. And unfortunately, it is often easy to fool people when you play on the right strings.
Well, well Zinzino finally bought a new home page. The old one had one of the worst designs ever. But since they now have a answer section to what I presume are frequently asked questions, I will give you answers from another perspective. Continue reading
The evil price cutters have put another machine on sale! Not as great as the Oh Espresso for 45 euro however. But hey, price cutters are evil! Go to good ole Zinzino and buy this machine for 249 euro as a customer! Or why not as a sales partner for 499 euro! Don’t make stupid comments about subscription rebate. 1: cost is added to your monthly fee. 2: Subscription is a contract and always bring down the price, same with telephones. And as shown in the sidebar, the customer offer is twice as expensive as Malongo’s own web shop. WITH subscription, so that comparison is not even fair for the part of Malongo web shop.
Today’s lesson for MLM scammers: have control of your brand. Selling a brand distributed normally in other EU countries makes it to easy to reveal your scam. How exclusive does this machine seem to you? Maybe Zinzino thinks that a exclusivity agreement automatically will make the Oh Mathic machine exclusive.
Just go down to the continent, take a truck load of machines with you and start flooding the market with these machines. With blessings from Brussels, of course. But anyway, Ubaldi has no legal right to refuse you because of nationality from ordering this machine directly either.
We have all read about how Nespresso patents are starting to expire. Now the same seems to happen to Rombouts/Malongo pods. Some patents seems already to have expired. European patents cannot last longer than 20 years. The question should be if you can make compatible pods with only the oldest patents expired. All patents regarding pods in the link should apply for the 1,2,3 Spresso system. Several patents regarding the 1,2,3 Spresso system will expire the next few years. If they design a new system, they would still need to make the old pods. And other manufacturers could make compatible pods. That would put pressure on prices.
But still, Rombouts global has not that big turnover, and 1,2,3 pods may not attract competitive interest. And we must study the patents further to figure out how many that must expire to make compatible pods legal.
Owner of the patents is Mediterraneenne Cafes. Oldest patents on page 5:
It has earlier been discussed how Balance oil is just fish oil blended with olive oil, altough I did make the reservation that a deeper analysis should be made on this product. My statement may have been true, but it can be claimed that excellent quality on both the fish oil and olive oil is very important factors how good effect the product has. So also the way the two oils are actually blended. The two oils together can be claimed to give improve your fatty acid profile in a way other products can’t.
My biggest criticism against Zinzino is the coffee part, because it is obviously seriously overpriced and sold using very deceptive tactics. That should make the credibility of Zinzino Zero!
Making my usual price comparison will not be that easy since this is a very niched and also new type of product. Which is of course a very common way for MLM companies to avoid price comparison. They will NEVER want price comparison, which shows you that their distribution model is expensive and of no use for end customers. Only the people behind the scheme.
However, the price of the oil did go up after Zinzino acquirement of shares and options in Bioactive Foods and the starting of distribution in Zinzino’s sales network. And there are other companies that produce and sell “balance oil” with at least the same quality and they will be cheaper than Zinzino. AND they will NOT talk about buying overpriced coffee machines and they will not try to make you give them 100 of your friends and family’s contact information.
How anyone can give Zinzino the credibility needed for distributing essential health products after their fraudulent scheme in the coffee business is beyond me.
Will be back for more info on “balance oil” and the prices of the competitors that sells this in ordinary distribution chains. Add to this the juridical problems with EU and that will show you that Zinzino will be in trouble economically, regardless of the moral aspect of luring your friends into this scheme.
Sometimes Zinzino tries to make the argument that extortionate pricing is OK because of “zinzino4free” (refer customers 4 times your turnover, get your consumption for free). Well, that is a preposterous statement. Think about this for a while. High prices is OK because of referring customers TO Zinzino makes YOUR consumption free of charge. OK, so what will happen when you run out of suckers? Because the last people referred that can’t get their own Zinzino4Free will quit. However the most common way is to sign up on subscription. So a lot of people will be stuck with subscription for at least a year, unable to get rid of it when they realize they will NOT get Zinzino4Free.
Furthermore, lets set up a simple series notation to analyze what would happen if everyone followed a perfect Zinzino4Free scheme. Lets assume that its starts with one customer, and every generation is a multiple of 4 from the above level and lets assume that every generation except for the lowest one gets Zinzino4Free, because every generation except for the last one obviously found 4 new customers.
The n-th term would be given by:
an = 4^n-1 n starting at 1
For example:
a1 = 4^0 = 1
a2 = 4^1 = 4
a3 = 4^2 = 16
a4 = 4^3 = 64
So the sum of the n first terms is given by:
∑ 4^n-1
That means that if we sum up n generations, for example 8, we would get:
∑ 4^n-1 (8 on top of 1) = 1 + 4 +16 + 64 + 256 +1024 + 4096 + 16384 = 21845. That would be the sum of the first 8 generations. Those 8 generations will get Zinzino 4 free if the last generation finds 4 new customers each. That is 65536 customers that those 21845 customers in the last generation must find.
First of all, that means 21845 non paying customers and 65538 paying customers. That is like giving a 25 % rebate to all customers. Look at Zinzino numbers, they could not afford that. If you make this calculation properly, you would find this 25 % value to be true for all generations going to higher and higher numbers.
So those numbers doesn’t add up. Then consider the other aspect, the sum of 18 generations is 22 906 492 245.
That is about every man, woman and child on the face of the earth + 16 billion aliens. Go figure.
Lets say all people want to refer to get their Zinzino4Free after 1 month at most. Sound reasonable? Well, after 18 months there are definitely no more suckers. For sure.
So there goes the argument that Zinzino4Free makes the extortionate prices viable.
But wait! IF Zinzino could afford the “25 % rebate”. Don’t think so, but still: the lowest level will QUIT, because they CANNOT get Zinzino4Free, and definitely not after 18 generations. Because Zinzino will have to give a lot of customers Zinzino4Free they cannot hold as low prices as an independent supplier of the goods. They will also have to pay residual income to a lot of partners, which an independent supplier of the same goods doesn’t need to. What will happen is that people will drop out when they figure out they cannot get Zinzino4Free and the result will of course be a collapse of this scheme.
Obviously, Zinzino4Free is just a deceptive selling tactics, trying to make people not to think about the extortionate pricing.
The 900 euro starter kit for business partners looks really bad. It is obvious that the semi automatic machine is old and that there are some machines that are on sale in continental Europe. Stores must get rid of these shelf warmers. Who would be stupid enough to buy the 900 euro starter kit if they knew that they could buy the two machines for 99 EUR instead and add the cost for Sales Representative for 30 EUR? There is of course no reason to “upgrade” to sales partner until your team generate a positive cash flow. But wait! If everyone was that smart? Then the whole company would collapse, because there is no reason for anyone to buy anything from Zinzino? No one would ever generate a cash flow! D’oh!
Add to this the juridical problems from our friends in Brussels… all laid up for catastrophe .. we will see tomorrow how sales have been the first quarter. I am not that sure it will be that bad this time. But it will be discussed tomorrow However, their operation is starting to get big enough to draw attention. It is impossible they will be successful in Europe. And in the USA they can’t prevent parallel imports either…
Don’t be surprised to see another brand new MLM company in 5 years from the same guys. But I will blog about any company they can come up with. I’m curious what they will be up to…
Documents on Zinzino prices etc are starting to get published on Google docs. Here is a price list for Latvia, but prices are about the same everywhere in Zinzino area.
Here is more evidence on how the compensation system works. To earn a lot of credits, you shall get business partners. For example: Business Partner – Zinzino x 2 for 909 euro. That includes two half automatic machines, 9 packages of coffee/tea, a milk frother and a CD box. The value of the CD box we can set to zero, two half automatic machines cost 160 euro and 9×16 pods would be about 9x16x0.3 euro = 43 euro. And lets add sales representative cost to that. And lets say a milk frother cost 50 euro to be generous. A total of 293 euro to get started!
I don’t see how 909 euro is motivated for new business partners for 293 euro value other than that this payment structure premiers business partner recruitment. To get 200 credits for yourself and all of your upline. If prices wasen’t so high, 200 credits could not be dolled out to the whole upline. The only reason to buy the business partner kit is when you think there are other suckers. P… p… p*****d scheme anyone?
For heavens sake, stop questioning my motives! But, hey! Go ahead, I did not know that I was so interesting…
It is in Norwegian, but try Google translate.
Zinzino for the small guy? Dolling out tens of thousands of euros to top guys
Well well, where should i start? You can notice that this guy maybe actually starts to realize that EU might destroy their business. Do I always like EU? No. In this case I can use an application on the treaty of the functioning of the European Union. So I use it. However, MLM-companies are using the very lame juridical environment to thrive in the first place so that would be fair enough.
OK, so MLM companies are defending the little guy? Well, how are the coffee farmers any better off paying the top guys in Zinzino thousands of euro’s? Furthermore, capitalism works to make prices lower for customers. Who is fighting Wall Mart? Customers? No, the ones loosing because of Wall Marts operation. I am not saying Wall Mart is only a good thing, of course not.
The coffee farmers get nothing more if we give top p*****d guys a lot of money. Fair trade farmers already got their part if we order the coffee from a French web shop. Price cutters makes goods cheaper and free up resources. Why should people waste their time going to Zinzino meetings, and “educations”? There is no need for it, we can just order goods on a web site. Or at a store.
A store with a turnover of 5 million euro selling Rombouts pods on the shelf, is that a monopolist compared to Zinzino? Funny when we are talking about monopolies, Zinzino tries to gain monopoly in North Europe and USA, but will fail. EU allows parallel imports and any EU web shop are obligated to deliver to any EU country. In the USA, only a specific product line made only for USA will prevent parallel imports. But unfortunately Rombouts can’t probably afford to develop a separate product line. They would probably have to come up with a replacement to the patented 1.2.3 Spresso system to prevent parallel imports to USA.
And how is ripping people of with the 500-1200 euro starter kits defending the small guy? Ripping of easily persuaded 18 year olds and other people that maybe even doesn’t have a job at the moment… they must be real heroes, Zinzino people.
This guy is starting to realize that there is at threat to his livelihood and makes whatever arguments he can come up with.
And btw, why did Zinzino Nordic buy zinzinotruth.org if this blog is so unimportant?
For some time ago the obvious fact that the coffee Zinzino distributes, Rombouts & Malongo, can be imported from Continental Europe to North Europe perfectly legal has been highlighted here on zinzinotruth. And for a while an operation like this has been run in Estonia. What is being offered is to get pass the hassle of ordering coffee yourself since Rombouts tries to cut all parallel streams of goods. You will need a few tricks in your sleeve to order the coffee yourself.
zinzinotruth 
