The air leak at the International Space Station was first detected in 2019, with a small leak discovered on the ISS.

The leak was initially thought to be the result of a micrometeorite, but it was later found to be a manufacturing defect in the Soyuz MS-09 spacecraft.

The defect caused a tiny crack in the inner shell of the living module, which was not detected during the pre-launch check and was only discovered after the spacecraft had been in orbit for two months.

The crack was sealed with special glue, but it later dried out and was squeezed out, revealing the crack.

In 2020, the leakage rate increased fivefold, and the crew had to take measures to isolate the affected area.

The source of the leak was eventually traced to a crack in the Russian segment of the ISS, specifically in the Zvezda module.

The crack was found in the intermediate chamber of the Zvezda module, and the necessary equipment and materials to repair it were sent to the ISS on a Progress cargo vehicle.

The air leak was not fully fixed, and in 2024, it was reported that the rate of air loss from the Zvezda module had doubled, with about two pounds of air being lost per day.

Despite the ongoing issue, the Russian space agency Roscosmos stated that the situation was under control and did not pose a risk to the crew or the station.

The incident highlights the aging and wear and tear of the ISS, with Russian officials warning that the station is becoming too dangerous for their cosmonauts.

The air leak at the International Space Station was first detected in 2019, with a small leak discovered on the ISS.

Title:

Content: Ribbon
01 January 07: 01
All news
vk.com / Cosmonaut Ivan Wagner
Moscow, January 1.
Russian cosmonauts Pyotr Dubrov and Anton Shkaplerov discovered in the Zvezda module on the International Space Station, presumably the last place of air leakage.
This was reported in the press service of Roscosmos.
The first small leak was discovered on the ISS back in 2019, since then, astronauts have been monitoring the situation and eliminating cracks in the hull.
Experts know how to return the module tightness.
This will be done as soon as Progress delivers the necessary equipment to orbit.
“Russian cosmonauts Peter Dubrov and Anton Shkaplerov found a possible last place of air leakage in the intermediate chamber of the service module“ Star ” of the Russian segment of the ISS ”, — stated in the message.
Russian President Vladimir Putin previously admitted the possibility of continuing the operation of the ISS after 2024.
This is necessary to maintain high launch activity.
Go back
Comment

The leak was initially thought to be the result of a micrometeorite, but it was later found to be a manufacturing defect in the Soyuz MS-09 spacecraft.

Title:

Content: Soyuz manufacturing defect causes air leak at International Space Station
Kazakhstan News Agency / Astana / September 3 - According to the Russian satellite network reported on the 3rd, Russian rocket space sources said that the manufacturing defect is the cause of the "Soyuz MS-09" spacecraft leak.
There was an air leak on the International Space Station on August 30.
The astronauts examined all the compartments and found tiny cracks in the Soyuz MS-09 spacecraft.
It is located in the living module, not in the return module, so it will not affect the return of the spacecraft to Earth.
It was previously thought that the fissure was the result of a miniature meteorite hitting the spacecraft.
The next night, Russian cosmonauts used special sealant to fill the hole.
The source said: "The cause of the crack in the inner shell of the living module has been identified and it has appeared on Earth.
The person responsible for the fault was identified. "
According to another source, the crew likely sealed the leak with special glue after realizing the mistake, so it was not detected during the pre-launch check and the spacecraft ’ s first two months of orbital flight.
"However, the glue later dried out and was squeezed out, revealing cracks," he said.
The Russian space agency said a special committee would investigate and determine the cause of the accident.
Сейчасчитают

The defect caused a tiny crack in the inner shell of the living module, which was not detected during the pre-launch check and was only discovered after the spacecraft had been in orbit for two months.

The crack was sealed with special glue, but it later dried out and was squeezed out, revealing the crack.

In 2020, the leakage rate increased fivefold, and the crew had to take measures to isolate the affected area.

Title:

Content: Links for simplified access
ISS crew reports smoke and smell of burnt plastic
In the Russian module “Zvezda ” on the International space station (ISS) last night worked fire alarm, reports RIA“ Novosti ” with reference to the negotiations of the crew with the Earth, which broadcasts NASA.
Around five in the morning Moscow time, cosmonaut Oleg Novitsky told the Mission Control Center about the smoke and smell of burnt plastic.
After that, the devices showed the presence of harmful substances in the area of the medical cabinet in the Zvezda module.
French astronaut Tom Pesquet said that the smell of burnt plastic or electronics also penetrated the American segment of the ISS due to the working ventilation.
The source of the smoke and smell has not yet been identified.
The ISS included a system for removing harmful impurities.
Later, Roscosmos said that the smoke sensor and alarm system worked on the ISS “during automatic recharging of batteries. ”
Currently, all systems of the station are working normally, the department notes.
The Russian service module Zvezda docked to the ISS in July 2000.
Its main frame was built in the 1980s as the core of the Mir-2 space station, which was to replace the Mir station, but then it was decided to use it in the ISS program.
Zvezda allows a crew of three cosmonauts to stay in space, and the module can also dock with the Progress cargo ship, which once every three months delivers the necessary supplies to the station and adjusts its orbit.
In the fall of 2019, an air leak was recorded on the ISS.
A year later, the leakage rate increased fivefold.
Sequential sealing of the station compartments allowed us to establish that the cause of the leak was a crack in the Russian segment of the ISS - Zvezda.
The astronauts sealed it with a sealant, but the air leak continued.
Recently, during the survey of the International Space Station, cosmonauts found non-through cracks on the oldest module - "Dawn".
At the end of July, a meeting of the Presidium of the Scientific and Technical Council of Roscosmos took place, where it was noted that the station is breathing on incense.
The International Space Station will expire in 2024.
Earlier, Vladimir Solovyov, General Designer of the Energia Rocket and Space Corporation, predicted an avalanche of failure of numerous elements at the station after 2025.
This mainly concerns the tightness of the housing and complex computing facilities that have developed their resource, Solovyov noted.
XS
SM
MD
LG

The source of the leak was eventually traced to a crack in the Russian segment of the ISS, specifically in the Zvezda module.

Title:

Content: Possible location of air leak from the International Space Station
Space
International Space Station
Copy Link https: / / www.rt.com / s7a8
The media office of the Roscosmos Foundation announced that the Russian cosmonauts discovered in the unit "Zvezda", the possible place of air leakage from the International Space Station.
According to the information office, the materials and equipment needed to repair this place will be sent aboard the Progress cargo vehicle.
"The equipment and materials necessary to stop air leakage will be sent with the first Progress cargo vehicle launched to the International Space Station, to solve this problem once and for all," the statement said.
Astronauts Peter Dobrov and Anton Shkaplerov discovered the possible location of the air leak in December in the middle chamber of the Zvezda unit.
NASA has said it is considering isolating the Zvezda module completely if necessary.
The Roscosmos media office commented: “The concerns of our partners are unfounded and surprising. ”
Source: Novosti
Agree.
This website uses cookies. You can read the terms of use to activate this feature by clicking here

The crack was found in the intermediate chamber of the Zvezda module, and the necessary equipment and materials to repair it were sent to the ISS on a Progress cargo vehicle.

The air leak was not fully fixed, and in 2024, it was reported that the rate of air loss from the Zvezda module had doubled, with about two pounds of air being lost per day.

Title:

Content: 29 Feb, 2024 11:18

Russia comments on space station leak

A NASA official had previously reported that air loss from the Zvezda module had doubled

Air leaking from a segment of the International Space Station (ISS) poses no risk to its crew or the orbital outpost, the Russian space agency Roscosmos has said.

A NASA official had previously reported that the rate at which air was escaping from the satellite's Russian Zvezda module under certain circumstances had doubled. The situation is under control and being constantly monitored, the Roscosmos told Interfax on Wednesday, when asked about remarks by NASA’s ISS program manager, Joel Montalbano,.

”The aging of the station’s structure and the growing need for repair and maintenance work on board require a significant portion of the crew’s time,” Roscosmos said.

Montalbano mentioned the issue during this week’s briefing on the upcoming SpaceX Crew-8 mission, which is scheduled for launch on Friday.

”There is an area in the aft end of the International Space Station. [There is] a small leak. We’ve seen this leak increase about a week before the recent Progress launch and docking,” he said, referring to a Russian automatic supply freighter.

The volume of lost air has increased to about two pounds a day, compared to a pound a day previously, Montalbano said.

”The hatch is closed in that area. It’s not an impact on Crew-8, but I didn’t want anyone to be surprised, if they hear about that later,” he explained.

The use of the module for retrieving the Progress shipment didn’t pose any issues in terms of the leak, he said. The next opening of the hatch is expected in April. While it’s closed, the rest of the station is “solid.”

Technical issues at the ISS are being reported on a regular basis. Roscosmos has said the age of the station is a key reason why it is developing plans for a new purely Russian-manned orbital structure as an alternative to participating in the international project.

Podcasts
0:00
27:58
0:00
26:56

Despite the ongoing issue, the Russian space agency Roscosmos stated that the situation was under control and did not pose a risk to the crew or the station.

The incident highlights the aging and wear and tear of the ISS, with Russian officials warning that the station is becoming too dangerous for their cosmonauts.

Title:

Content:
"This Is Bad" - Russian Cosmonauts Discovery Tiny Cracks In Space Station

by Tyler Durden
Saturday, Sep 04, 2021 - 09:55 AM

Russian cosmonauts have discovered small cracks on the International Space Station (ISS), and it's unclear whether the cracks are causing air leaks in the orbiting space lab, according to Reuters

Vladimir Solovyov, the chief engineer of Moscow-based company Energia, the top contractor for Russia's spaceflight program, told Russia's state-owned RIA news agency that "superficial fissures have been found in some places on the Zarya module."

Solovyov warned: "This is bad and suggests that the fissures will begin to spread over time."

He didn't mention if the cracks were the source of air leaks which Russian cosmonauts discovered.

The 23-year old space station has been fraught with problems. NASA and the Russian Space Agency Roscosmos searched for a small air leak last year when air pressure dropped in the space station.

Readers may recall, in 2018, the station experienced an air leak that was initially thought to be the result of a micrometeorite - but turned out to be a "deliberate sabotage."

Several other recent incidents have been reported on the space station, such as a software glitch that ignited thrusters on the Russian research module Nauka and sent the ISS out of normal pitch. There was also a piece of space junk that sliced through a robotic arm

Meanwhile, Moscow has given their farewell warning that it will depart from the ISS in 2025. Russian officials have said the aging ISS is too dangerous for their cosmonauts:

"We can't risk the lives [of our cosmonauts]. The situation that today is connected to the structure and the metal getting old, it can lead to irreversible consequences - to catastrophe," Deputy Prime Minister Yuri Borisov recently said.

At the same time, China has launched a new space station that is expected to outlast the ISS.

0


The air leak at the International Space Station was first detected in 2019, and since then, astronauts have been monitoring the situation and eliminating cracks in the hull.

The leak was initially thought to be the result of a micrometeorite, but it was later discovered that the cause was a manufacturing defect in the Soyuz MS-09 spacecraft.

The defect was found in the living module, not in the return module, and it was determined that the person responsible for the fault was identified.

The crew likely sealed the leak with special glue after realizing the mistake, but the glue later dried out and was squeezed out, revealing cracks.

In 2021, Russian cosmonauts discovered small cracks on the International Space Station, and it was unclear whether the cracks were causing air leaks in the orbiting space lab.

The cracks were found in the Zarya module, and the chief engineer of Moscow-based company Energia warned that "this is bad and suggests that the fissures will begin to spread over time".

In December 2021, Russian cosmonauts Pyotr Dubrov and Anton Shkaplerov discovered the possible location of the air leak in the intermediate chamber of the service module "Zvezda".

The equipment and materials needed to repair the leak were sent aboard the Progress cargo vehicle, and NASA considered isolating the Zvezda module completely if necessary.

However, the Roscosmos media office commented that "the concerns of our partners are unfounded and surprising".

In February 2024, a NASA official reported that the rate at which air was escaping from the Russian Zvezda module had doubled, and the situation was being constantly monitored.

The leak was observed in the tail part of the ISS, and the air in the transition chamber of the Zvezda module began to leave twice as fast.

The volume of lost air increased to about two pounds a day, compared to a pound a day previously.

The hatch was closed in the area, and the rest of the station was "solid".

The Russian space agency Roscosmos said that the aging of the station's structure and the growing need for repair and maintenance work on board require a significant portion of the crew's time.

The International Space Station is expected to expire in 2024, and the Russian space agency has predicted an avalanche of failure of numerous elements at the station after 2025.

The air leak has been a recurring issue, and the crew has been working to find and eliminate possible leakage sites.

The data coming from the station are transmitted for analysis to specialists in the normal mode, and the crew regularly carries out work to find and eliminate possible leakage sites.

The situation does not affect the safety of the crew, but it is a concern for the longevity of the station.

The Russian space agency has said that the station is "breathing on incense" and that the situation is under control.

The air leak has been a challenge for the crew and the station, but it has not posed a risk to the crew or the orbital outpost.

The cause of the leak has been identified, and the necessary equipment and materials have been sent to repair it.

The crew has been working to eliminate the leak, and the situation is being constantly monitored.

The air leak at the International Space Station is a complex issue that has been ongoing for several years, and it requires constant monitoring and maintenance to ensure the safety of the crew and the station.

The Russian space agency has been working to address the issue, and the crew has been doing their best to eliminate the leak and maintain the station's integrity.

The air leak is a reminder of the challenges and risks associated with space exploration, and it highlights the importance of constant monitoring and maintenance of the station.

The International Space Station is a remarkable achievement, and it has been a valuable resource for scientific research and discovery.

Despite the challenges, the crew and the Russian space agency have been working tirelessly to ensure the station's continued operation and safety.

The air leak is a significant issue, but it is not the only challenge facing the station, and the crew and the Russian space agency are working to address all the challenges and ensure the station's continued success.

The air leak at the International Space Station was first detected in 2019, and since then, astronauts have been monitoring the situation and eliminating cracks in the hull.

Title:

Content: Ribbon
01 January 07: 01
All news
vk.com / Cosmonaut Ivan Wagner
Moscow, January 1.
Russian cosmonauts Pyotr Dubrov and Anton Shkaplerov discovered in the Zvezda module on the International Space Station, presumably the last place of air leakage.
This was reported in the press service of Roscosmos.
The first small leak was discovered on the ISS back in 2019, since then, astronauts have been monitoring the situation and eliminating cracks in the hull.
Experts know how to return the module tightness.
This will be done as soon as Progress delivers the necessary equipment to orbit.
“Russian cosmonauts Peter Dubrov and Anton Shkaplerov found a possible last place of air leakage in the intermediate chamber of the service module“ Star ” of the Russian segment of the ISS ”, — stated in the message.
Russian President Vladimir Putin previously admitted the possibility of continuing the operation of the ISS after 2024.
This is necessary to maintain high launch activity.
Go back
Comment

The leak was initially thought to be the result of a micrometeorite, but it was later discovered that the cause was a manufacturing defect in the Soyuz MS-09 spacecraft.

Title:

Content: Soyuz manufacturing defect causes air leak at International Space Station
Kazakhstan News Agency / Astana / September 3 - According to the Russian satellite network reported on the 3rd, Russian rocket space sources said that the manufacturing defect is the cause of the "Soyuz MS-09" spacecraft leak.
There was an air leak on the International Space Station on August 30.
The astronauts examined all the compartments and found tiny cracks in the Soyuz MS-09 spacecraft.
It is located in the living module, not in the return module, so it will not affect the return of the spacecraft to Earth.
It was previously thought that the fissure was the result of a miniature meteorite hitting the spacecraft.
The next night, Russian cosmonauts used special sealant to fill the hole.
The source said: "The cause of the crack in the inner shell of the living module has been identified and it has appeared on Earth.
The person responsible for the fault was identified. "
According to another source, the crew likely sealed the leak with special glue after realizing the mistake, so it was not detected during the pre-launch check and the spacecraft ’ s first two months of orbital flight.
"However, the glue later dried out and was squeezed out, revealing cracks," he said.
The Russian space agency said a special committee would investigate and determine the cause of the accident.
Сейчасчитают

The defect was found in the living module, not in the return module, and it was determined that the person responsible for the fault was identified.

The crew likely sealed the leak with special glue after realizing the mistake, but the glue later dried out and was squeezed out, revealing cracks.

In 2021, Russian cosmonauts discovered small cracks on the International Space Station, and it was unclear whether the cracks were causing air leaks in the orbiting space lab.

Title:

Content:
"This Is Bad" - Russian Cosmonauts Discovery Tiny Cracks In Space Station

by Tyler Durden
Saturday, Sep 04, 2021 - 09:55 AM

Russian cosmonauts have discovered small cracks on the International Space Station (ISS), and it's unclear whether the cracks are causing air leaks in the orbiting space lab, according to Reuters

Vladimir Solovyov, the chief engineer of Moscow-based company Energia, the top contractor for Russia's spaceflight program, told Russia's state-owned RIA news agency that "superficial fissures have been found in some places on the Zarya module."

Solovyov warned: "This is bad and suggests that the fissures will begin to spread over time."

He didn't mention if the cracks were the source of air leaks which Russian cosmonauts discovered.

The 23-year old space station has been fraught with problems. NASA and the Russian Space Agency Roscosmos searched for a small air leak last year when air pressure dropped in the space station.

Readers may recall, in 2018, the station experienced an air leak that was initially thought to be the result of a micrometeorite - but turned out to be a "deliberate sabotage."

Several other recent incidents have been reported on the space station, such as a software glitch that ignited thrusters on the Russian research module Nauka and sent the ISS out of normal pitch. There was also a piece of space junk that sliced through a robotic arm

Meanwhile, Moscow has given their farewell warning that it will depart from the ISS in 2025. Russian officials have said the aging ISS is too dangerous for their cosmonauts:

"We can't risk the lives [of our cosmonauts]. The situation that today is connected to the structure and the metal getting old, it can lead to irreversible consequences - to catastrophe," Deputy Prime Minister Yuri Borisov recently said.

At the same time, China has launched a new space station that is expected to outlast the ISS.

0

The cracks were found in the Zarya module, and the chief engineer of Moscow-based company Energia warned that "this is bad and suggests that the fissures will begin to spread over time".

In December 2021, Russian cosmonauts Pyotr Dubrov and Anton Shkaplerov discovered the possible location of the air leak in the intermediate chamber of the service module "Zvezda".

The equipment and materials needed to repair the leak were sent aboard the Progress cargo vehicle, and NASA considered isolating the Zvezda module completely if necessary.

Title:

Content: Possible location of air leak from the International Space Station
Space
International Space Station
Copy Link https: / / www.rt.com / s7a8
The media office of the Roscosmos Foundation announced that the Russian cosmonauts discovered in the unit "Zvezda", the possible place of air leakage from the International Space Station.
According to the information office, the materials and equipment needed to repair this place will be sent aboard the Progress cargo vehicle.
"The equipment and materials necessary to stop air leakage will be sent with the first Progress cargo vehicle launched to the International Space Station, to solve this problem once and for all," the statement said.
Astronauts Peter Dobrov and Anton Shkaplerov discovered the possible location of the air leak in December in the middle chamber of the Zvezda unit.
NASA has said it is considering isolating the Zvezda module completely if necessary.
The Roscosmos media office commented: “The concerns of our partners are unfounded and surprising. ”
Source: Novosti
Agree.
This website uses cookies. You can read the terms of use to activate this feature by clicking here

However, the Roscosmos media office commented that "the concerns of our partners are unfounded and surprising".

In February 2024, a NASA official reported that the rate at which air was escaping from the Russian Zvezda module had doubled, and the situation was being constantly monitored.

Title:

Content: 29 Feb, 2024 11:18

Russia comments on space station leak

A NASA official had previously reported that air loss from the Zvezda module had doubled

Air leaking from a segment of the International Space Station (ISS) poses no risk to its crew or the orbital outpost, the Russian space agency Roscosmos has said.

A NASA official had previously reported that the rate at which air was escaping from the satellite's Russian Zvezda module under certain circumstances had doubled. The situation is under control and being constantly monitored, the Roscosmos told Interfax on Wednesday, when asked about remarks by NASA’s ISS program manager, Joel Montalbano,.

”The aging of the station’s structure and the growing need for repair and maintenance work on board require a significant portion of the crew’s time,” Roscosmos said.

Montalbano mentioned the issue during this week’s briefing on the upcoming SpaceX Crew-8 mission, which is scheduled for launch on Friday.

”There is an area in the aft end of the International Space Station. [There is] a small leak. We’ve seen this leak increase about a week before the recent Progress launch and docking,” he said, referring to a Russian automatic supply freighter.

The volume of lost air has increased to about two pounds a day, compared to a pound a day previously, Montalbano said.

”The hatch is closed in that area. It’s not an impact on Crew-8, but I didn’t want anyone to be surprised, if they hear about that later,” he explained.

The use of the module for retrieving the Progress shipment didn’t pose any issues in terms of the leak, he said. The next opening of the hatch is expected in April. While it’s closed, the rest of the station is “solid.”

Technical issues at the ISS are being reported on a regular basis. Roscosmos has said the age of the station is a key reason why it is developing plans for a new purely Russian-manned orbital structure as an alternative to participating in the international project.

Podcasts
0:00
27:58
0:00
26:56

The leak was observed in the tail part of the ISS, and the air in the transition chamber of the Zvezda module began to leave twice as fast.

The volume of lost air increased to about two pounds a day, compared to a pound a day previously.

The hatch was closed in the area, and the rest of the station was "solid".

The Russian space agency Roscosmos said that the aging of the station's structure and the growing need for repair and maintenance work on board require a significant portion of the crew's time.

The International Space Station is expected to expire in 2024, and the Russian space agency has predicted an avalanche of failure of numerous elements at the station after 2025.

Title:

Content: Links for simplified access
ISS crew reports smoke and smell of burnt plastic
In the Russian module “Zvezda ” on the International space station (ISS) last night worked fire alarm, reports RIA“ Novosti ” with reference to the negotiations of the crew with the Earth, which broadcasts NASA.
Around five in the morning Moscow time, cosmonaut Oleg Novitsky told the Mission Control Center about the smoke and smell of burnt plastic.
After that, the devices showed the presence of harmful substances in the area of the medical cabinet in the Zvezda module.
French astronaut Tom Pesquet said that the smell of burnt plastic or electronics also penetrated the American segment of the ISS due to the working ventilation.
The source of the smoke and smell has not yet been identified.
The ISS included a system for removing harmful impurities.
Later, Roscosmos said that the smoke sensor and alarm system worked on the ISS “during automatic recharging of batteries. ”
Currently, all systems of the station are working normally, the department notes.
The Russian service module Zvezda docked to the ISS in July 2000.
Its main frame was built in the 1980s as the core of the Mir-2 space station, which was to replace the Mir station, but then it was decided to use it in the ISS program.
Zvezda allows a crew of three cosmonauts to stay in space, and the module can also dock with the Progress cargo ship, which once every three months delivers the necessary supplies to the station and adjusts its orbit.
In the fall of 2019, an air leak was recorded on the ISS.
A year later, the leakage rate increased fivefold.
Sequential sealing of the station compartments allowed us to establish that the cause of the leak was a crack in the Russian segment of the ISS - Zvezda.
The astronauts sealed it with a sealant, but the air leak continued.
Recently, during the survey of the International Space Station, cosmonauts found non-through cracks on the oldest module - "Dawn".
At the end of July, a meeting of the Presidium of the Scientific and Technical Council of Roscosmos took place, where it was noted that the station is breathing on incense.
The International Space Station will expire in 2024.
Earlier, Vladimir Solovyov, General Designer of the Energia Rocket and Space Corporation, predicted an avalanche of failure of numerous elements at the station after 2025.
This mainly concerns the tightness of the housing and complex computing facilities that have developed their resource, Solovyov noted.
XS
SM
MD
LG

The air leak has been a recurring issue, and the crew has been working to find and eliminate possible leakage sites.

Title:

Content: NEWS
NEWS
February 28, 20: 41
Science
Roscosmos reported air leakage on the Russian segment of the ISS
Photo: telegram channel "State Corporation" Roscosmos "
Air leakage occurred on the Russian segment of the ISS, the crew and the station itself is not threatened.
This writes TASS with reference to the press service of Roscosmos.
“Indeed, experts fix the leakage of air on board the ISS.
The crew regularly carries out work to find and eliminate possible leakage sites, and the data coming from the station are transmitted for analysis to specialists in the normal mode, ” the state corporation said.
According to "Interfax" with reference to the head of the NASA program on the ISS Joel Montalbano, the leak is observed in the tail part of the ISS.
“We saw that the leak increased about a week before the last launch of Progress and its docking with the station, ” he said.
The head of the NASA program on the ISS said that the air in the transition chamber of the Zvezda module began to leave twice as fast.
According to Montalbano, experts are in contact with Russian colleagues on the next steps.
However, this situation does not affect the safety of the crew, he said.
Last year, Russian cosmonauts Oleg Kononenko and Nikolai Chub in outer space disconnected the faulty circuit of the additional radiator on the module "Science" from the main circuit of the module.
Before that, they went into outer space, opening the exit hatch of the module "Search" of the International Space Station.
More news — in the telegram channel Moscow 24 Subscribe!
close
Contact Us
Feedback form
Attach file
Send
close

The data coming from the station are transmitted for analysis to specialists in the normal mode, and the crew regularly carries out work to find and eliminate possible leakage sites.

The situation does not affect the safety of the crew, but it is a concern for the longevity of the station.

The Russian space agency has said that the station is "breathing on incense" and that the situation is under control.

The air leak has been a challenge for the crew and the station, but it has not posed a risk to the crew or the orbital outpost.

The cause of the leak has been identified, and the necessary equipment and materials have been sent to repair it.

The crew has been working to eliminate the leak, and the situation is being constantly monitored.

The air leak at the International Space Station is a complex issue that has been ongoing for several years, and it requires constant monitoring and maintenance to ensure the safety of the crew and the station.

The Russian space agency has been working to address the issue, and the crew has been doing their best to eliminate the leak and maintain the station's integrity.

The air leak is a reminder of the challenges and risks associated with space exploration, and it highlights the importance of constant monitoring and maintenance of the station.

The International Space Station is a remarkable achievement, and it has been a valuable resource for scientific research and discovery.

Despite the challenges, the crew and the Russian space agency have been working tirelessly to ensure the station's continued operation and safety.

The air leak is a significant issue, but it is not the only challenge facing the station, and the crew and the Russian space agency are working to address all the challenges and ensure the station's continued success.


The multi-level marketing (MLM) business model has experienced a decline in recent years, with many companies facing a surge in losses and a decrease in popularity.

Some MLM companies, such as Optavia, have reported a significant decline in revenue, with a 34.7% decrease in Q2 report.

This decline can be attributed to the lack of transparency and limited network marketing visibility, making it difficult for companies to attract and retain distributors.

On the other hand, companies like Educational Development Corp. (EDUC) have seen growth and increase in revenue, with a strong value proposition and fair valuation.

EDUC's MLM model has been successful, with a network of around 55,000 active consultants and a replication cost of around $27.5 million.

However, the MLM industry as a whole has faced criticism and controversy, with some companies being accused of being pyramid schemes.

Avon and Tupperware, two well-known direct selling companies, have also experienced a decline in recent years, with Avon's stock value falling from over $30 to just over $3.

Tupperware's stock value has also dropped over 90% in the last 5 years, with the company struggling to adapt to the changing market.

The pandemic has had a significant impact on the MLM industry, with some companies experiencing a surge in growth due to the increase in home-based work and online sales.

However, as the pandemic subsides, it is likely that the industry will continue to face challenges and decline in popularity.

The multi-level marketing (MLM) business model has experienced a decline in recent years, with many companies facing a surge in losses and a decrease in popularity.

Title:

Content: Optavia – Limited Network Marketing Visibility Leads To Decline?

By Team Business For Home

Optavia-Medifast, a Billion Dollar network marketing company, reportedly generated $1,600 million in revenue for 2022. The company has strong financials with a healthy cash position and no debt, but its sales have plummeted. Their Q2 report showed that the company revenue was down 34.7% to $296 million. For more specific details on this report, you can refer to the article here.

According to the OPTAVIA website:

“Optavia offers four components to support you as you begin your journey toward Lifelong Transformation, One Healthy Habit at a Time. Your independent OPTAVIA Coach guides and supports you throughout your journey to optimal health & wellbeing.”

If any network Marketing company has a strong decline it is very hard to turn the decline around. We have observed strong lack of independent distributor recognition.

Optavia – Medifast in Facts and Figures

Facts and figures as of the day of publication of this article:

  • Business for Home rating: A+
  • Current Business for Home Momentum Rank: 70 out of the 900+ world-wide network marketing companies in the BFH database.
  • Similarweb Rank: 61,126 globally, which ranks it 31 out of the 900+ world-wide network marketing companies in the BFH database.
  • Optavia – Medifast has 0 reviews on Business for Home, which ranks it at position 377 out of the 900+ world-wide network marketing companies in the BFH database.
  • Number of Recommended Distributors: 0
  • Business for Home Pageviews: 18,555
  • CEO of Optavia – Medifast: Daniel R. Chard
  • Company location: United States

Data provide by the proprietary Business for Home Intelligence Engine

(article continues below)

Why Optavia is downgraded to a Business for Home A-grade

There are various reasons contributing to a lower rank, such as incomplete information, sparse press releases, lack of transparency, lack of presence of top earners and top leaders, and distributor and social media influencers visibility.

Incomplete Information

Business for Home relies on comprehensive, factual, and substantiated information to accurately assess a company. However, the information shared by Optavia – Medifast appears to be either fragmented or unsubstantiated, adversely affecting its credibility for network marketing prospects.

Sparse Press Releases

Regular and informative press releases and success stories are vitally essential to keep the wider industry abreast of the sales force achievements and decisions. Missing out on this, Optavia – Medifast loses the chance to directly communicate its progresses with prospects.

Absence of Top Earners and Top Leaders visibility

Visible successful (top) earners are vital to any Network Marketing company. They serve not just as inspiration for prospects, but also proof of the company’s success. With a noticeable lack of top earners, Optavia – Medifast is missing out on a key aspect of its appeal.

Distributor Presence

The lack of strong presence in the industry by Optavia – Medifast’s distributors compared to Triple A grade companies adds to its challenges. A visible robust distribution network is vital to make the products more accessible and visible to consumers. Companies sharing consistently success stories are getting the eyeballs on their business opportunity.

How Optavia – Medifast could improve their visibility

Publishing success stories and company press release offer several advantages for Optavia. Here are some of the key advantages of publishing success stories and links to several high performing articles from different companies as examples of a shining marketing strategy anno 2023 :).

Inspiration Motivation, Credibility and Trust

Success stories serve as sources of inspiration and motivation for others. When people read about others who have overcome challenges and achieved their goals, they are often motivated to pursue their own aspirations. They can enhance your credibility and build trust with your audience. Real-life examples of achievements provide evidence that your strategies, products, or services are effective and can deliver results.

Social Proof and Differentiation:

Success stories provide social proof that your offerings have been valuable to others. Potential customers or clients are more likely to engage with your products or services if they see that others have benefited from them. In competitive markets, success stories can set you apart from competitors. Demonstrating your track record of achieving results can give you a unique selling point.

Overall, success stories and press releases have the power to inspire, educate, and foster connections. Whether in the business, personal development, or social spheres, sharing stories of achievement can bring about positive change and growth in Network Marketing.

Optavia – Medifast Conclusion

Based on the information provided by Business for Home, it seems that Optavia – Medifast has the potential to generate decent income for an independent distributor.

However, their limited Network Marketing transparency suggests caution when evaluating the company’s profitability for a Network Marketing Professional. The company seems to have a strategy like Network Marketing company Melaleuca:

“Do not talk about the Network Marketing opportunity, focus on the products.”

That seems not to work to well anymore.

The post Optavia – Limited Network Marketing Visibility Leads To Decline? appeared first on Direct Selling Facts, Figures and News.

Source:: https://www.businessforhome.org/2023/11/optavia-limited-network-marketing-visibility-leads-to-decline/

Some MLM companies, such as Optavia, have reported a significant decline in revenue, with a 34.7% decrease in Q2 report.

This decline can be attributed to the lack of transparency and limited network marketing visibility, making it difficult for companies to attract and retain distributors.

On the other hand, companies like Educational Development Corp. (EDUC) have seen growth and increase in revenue, with a strong value proposition and fair valuation.

Title:

Content: Educational Development Corp.: Growth Risk Might Be Overblown

Moat Investing
1.46K Followers

Summary

  • EDUC is the exclusive US co-publisher of educational children's books produced by famous Usborne Publishing by leveraging multilevel marketing (MLM) strategy.
  • It has strong fundamentals, fair valuation, and a compelling growth story that is being ignored by the market.
  • We arrived at a target price of $12.4 to $14.6 without incorporating any future growth and expansion in operating margins.

Investment Idea

Educational Development Corporation (NASDAQ:EDUC) has an attractive value proposition, strong financials, and optionality of significant growth ahead due to structural changes caused by COVID. On top of that, the valuation is reasonable, and management has skin in the game (owns 23% of shares outstanding). For these reasons, we remain bullish.

Business Overview

EDUC is the exclusive US co-publisher of educational children's books produced in the UK by Usborne Publishing, and EDUC also exclusively publishes books through their ownership of Kane Miller.

The business operates in two segments:

Home Business Division (Usborne Books & More or "UBAM") -(95% of revenues) - This segment sells books through consultants directly to consumers using a multilevel marketing model (MLM). Consultants sell books by hosting home parties, social media, and hosting book fairs with schools and public libraries.

Publishing Division – (5% of revenues) - Sells books to bookstores, toy stores, and other retail outlets.

If you would like to get the gist of our thesis, you can watch our YouTube video below.

Value Proposition

The children's books market is very competitive and fragmented. There are more than 135 publishers of children's books in the US. EDUC is competing with Scholastic and Pearson, which have extensive resources to run marketing campaigns and are well-positioned in both online and offline distribution channels. Although EDUC has a little moat, they have some strengths to their business model that will allow long-term value creation.

They have an exclusive and long-term relationship with Usborne. Therefore, clients of the Usborne in the US must acquire their books via EDUC. Also, there is a consensus that Usborne books are high quality and among the industry's best.

Their sales are a function of the number of active sales consultants. Commissions paid to consultants are a variable cost, and they are only paid when sales are made. Although this makes SG&A grow as the top line grows, since it's not a fixed cost to the business, it allows EDUC to achieve significant operating leverage. Also, it allows them to scale quickly and have flexibility.

Direct sales strategies like multilevel marketing are commonly referred to as pyramid and Ponzi schemes. However, the table below shows that it does work sustainably and increases revenue growth over the long run despite the negative press.

Source: S&P Capital IQ

Why might EDUC be mispriced?

There are multiple factors. Firstly, it's a micro-cap. This usually means there is limited analyst coverage, and due to the stock's illiquidity, there is low institutional interest. These factors, coupled with others, leave the company under the market radar despite its business is doing well and has promising perspectives.

Second, there is negative press around the MLM business models. The MLM model deployed by EDUC is vastly different from dodgy tactics used by other players. For example, many MLM models require the seller to purchase the inventory from the company before selling. However, this reduces the risk for the company and puts extra pressure on the seller, which can be left with expensive inventory that cannot be sold or returned. In the case of EDUC, there is no requirement to hold inventory.

Third, markets might be believing that the business's tailwinds are temporary due to COVID. Amidst Covid, schools were closed, and parents were working from home; this drove home-based learning and benefited EDUC. Additionally, unemployment rates soared, and many were left looking for work. This allowed EDUC almost to double its consultant count from 33 to 60 thousand. We believe the post-pandemic work from home trend will persist, supporting their sales. Furthermore, the active consultant might not fall back to the pre-pandemic level as these roles are usually part-time work which fits nicely with the trending gig economy.

The evidence speaks louder than words

There are also some clues from the management that revenue generated amidst pandemics might be sticky.

Management increased its dividend per share from $0.20 to $0.32. A dividend increase should be seen as a signal that a business is in solid financial shape and management is confident about its future.

Management increased capital expenditures to $4.15 million from $0.64 in 2020. This expenditure was primarily associated with equipment purchases to increase daily shipping capacity. These are some early signs that management is expecting positive growth going ahead. Additionally, this also improves their margins as amidst Covid they paid a premium for extra shifts.

EDUC has increased its inventory; the inventory build-up is approximately 60% of its total assets. This has been in anticipation of an increase in the sales, as it takes a four to six-month lead-time to have a title printed and delivered to them.

Source: Koyfin

Value Investing Approach: Asset Value

To calculate the actual asset value of the company, we tried to replicate the business from scratch. Therefore, below you will find the last reported balance sheet, where we have made some adjustments.

The value of the land recorded on books was $4.1 million. They own a 40-acre complex at 5402 South 122nd East Ave, Tulsa, with 400,000 square feet of office and warehouse space. They also own a facility located at 10302 East 55th Place, Tulsa, that has 105,000 square feet of usable space. According to our channel checks with realtors, the average price per square foot of their land lies between the range of $100 to $115. To remain conservative, we took the average price square feet to be $85. Therefore, we estimate the value of its land to be $42.9 million.

They also have a network of around 55,000 active consultants. To construct such a network from scratch is both costly and time-consuming. We estimate the replication cost of this network to be around $27.5 million ($500 per consultant). This is also roughly five months of sales commission cost incurred by EDUC in the fiscal year 2021.

The rest of the items are taken on book value.

Based on the above adjustment, we arrive at the total asset value of 106.7, and the fair value per share to be $12.4

Source: Moat Investing

Value Investing Approach: Earnings Power Value

This approach allows us to value EDUC without incorporating any growth. Here, we consider the business's historical figures (last five years) to get the normalized earnings and operating margin. To calculate the sustainable earnings, we smoothed out the company revenues for the previous five years to $131 million and then calculated the firm's average operating margin (6.5%) to arrive at the sustainable Operating Income of $8.5 million.

We add back the expenses typically spent on growth, and we estimate around 4.5% of sales is spent on growth marketing, i.e., promotion, advertisement, and discounts. Hence, we add this back as this expense is not required if the firm was not aiming to achieve growth.

We assume the normalized tax rate to be 26% and the estimated cost of equity at 9%. Therefore, we estimate Earning Power Value of the operating business to be $134 million. To that, we add the non-operational cash ($1.8 million), and we subtract long-term debt (10.8); we arrive at an implied market cap of $125.6 million or $14.6 price per share, with 12.3% upside potential, without incorporating any growth or expansion in operating margins.

Source: Moat Investing

Risks to Our Investment Case

  • Stringent regulation regarding MLM companies. For instance, the requirement to treat consultants as employees. This could have implication when it comes to taxation, wages paid and welfare concerns for workers. This could, in turn, shrink the bottom line or, worse, business model tatters.
  • The most straightforward risk is consultants quitting or switching to find other employment as the US economy improves. However, within our valuation model, we have smoothed the growth of revenue in the last five years, which is a function of l consultants recruited. Even if there is some mean reversion in terms of consultants working with EDUC due to the COVID base effect, our thesis would be less impacted.
  • As highlighted earlier EDUC’s inventory level is a significant portion of its asset. Whatever reason they become unsalable (i.e., change in taste or controversy in terms of published content) could impact our valuation.
  • Oil prices have increased significantly since last year (see below). Shipping costs are amongst the most significant component of its COGS; further rise in oil prices (consequently increasing shipping cost) could make it difficult for EDUC to remain profitable.

Source: Trading Economics

Conclusion

EDUC has an attractive value proposition, strong financials, and optionality of significant growth ahead due to structural changes caused by COVID. On top of that, the valuation is reasonable, management has skin in the game (owns 23% of shares outstanding), and investors are not even paying for any future growth at current prices. For these reasons, we remain bullish.

This article was written by

1.46K Followers
We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by deep diving into valuations, key business drivers, risk/reward, and different future scenarios.
Follow

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.

EDUC's MLM model has been successful, with a network of around 55,000 active consultants and a replication cost of around $27.5 million.

However, the MLM industry as a whole has faced criticism and controversy, with some companies being accused of being pyramid schemes.

Title:

Content: 'Direct Selling' - Avon, Tupperware - Is Extinct

Nov. 18, 2022 11:25 AM ETHLF, MED, NTCO, NUS, PRI, TUP, USNA3 Comments
Robert FitzPatrick
394 Followers

Summary

  • Direct Selling became obsolete generations ago. So how is it that millions today get recruited for "income opportunity" in "direct selling" and billions are traded on "direct selling" stocks?
  • Avon and Tupperware are cited by "multi-level marketing," or MLM, promoters as "proof" that MLM, e.g., Amway, Herbalife, is "direct selling."
  • Usable data on actual income and churn rates of MLM "direct sellers," market saturation, and retail sales to actual customers are not provided.
  • In fact, Avon and Tupperware for years have been walking dinosaurs, still trying to do "person-to-person" sales to end-users with commodity products, while MLMs hype "unlimited" income.
  • The shrunken and devolved state of Avon and Tupperware today reveals that direct selling is extinct. MLM is not, and never was, direct selling.

It is generally accepted that "direct selling" was killed off generations ago by mass merchandising, big box stores, mail-order and then the internet, among other societal changes. The "Fuller Brush man" is long gone. No one's at home. No one wants or needs or has time for a "personal" salesperson. Everything's in stores or online. And, even when "direct selling" still lived, no one ever went into that tough line of work thinking they would get rich from it.

Yet, each year, millions are recruited, and pay thousands, for the "opportunity" to work as "direct sellers," with promises and expectations of "unlimited" income. The number involved today is many, many times greater than ever worked in that "extinct" field decades ago. Billions are being traded on Wall Street for shares of "direct selling" companies. How can this be?

In my book, Ponzinomics, the Untold Story of Multi-Level Marketing, I document the death of "direct selling" and the 1945 invention of "multi-level marketing," or MLM. I describe how "MLM" falsely assumed direct selling's revered old identity. I trace MLM from its Adam, a little California-based company called "Nutrilite," to today's "industry" led by Amway, Herbalife (HLF) down 64% YTD, Nuskin (NUS) down 31%, USANA Health Sciences (USNA) down 49%, Primerica, Inc. (PRI) down 13%, and Medifast (MED) down 45%. MLM's financial solicitations for consumers to become "direct sellers" have reached into – and led to losses for – virtually every household in America.

In the newly invented "MLM," the main source of revenue shifted from end-user customers to the salespeople themselves who are incentivized to "be their own customer" by buying their own products. Obviously, no one makes money purchasing their own inventory, but MLM offered a unique reason to do so – "unlimited" income potential.

No More Need to Knock on Doors

All MLM "direct sellers" can potentially gain "unlimited" income by recruiting an "endless" chain of other "direct sellers." No need to pound the pavement and get rudely rejected at front doors any more. Each "direct seller" on the chain has to meet a quota to "qualify" for future rewards from their recruits who, in turn, are their "own customers" and recruiters too, ad infinitum. The chain can grow without continuous personal effort. The qualifying quota can usually be met by just making a personal monthly purchase of inventory. "Commissions" on all these transactions, all the way down to the "last ones in," flow up the chain. In the MLM pay plan, most of the total commissions go to the top 1%. So, all new "direct sellers" try mightily to recruit (and buy) their way to those top ranks. Of course, only a tiny few can ever be at the top.

Some people argued this is a pyramid recruiting scheme, inherently unfair and deceptive, and a counterfeit of direct selling. In the design and the pay plan, bottom ranks – the vast majority – will inevitably lose. They said constantly adding salespeople in any area destroys profitable retail selling potential, if any exists to start with. They cited data on 90-99% loss rates and huge churn rates among new "recruits" and asked, where are the retail "customers"?

While offering no data on retail customers or salespeople losses or market saturation, MLM promoters offered "proof" that MLM is direct selling by pointing to two long-established and respected direct selling companies in their ranks, Avon and Tupperware (TUP). Both companies were members of the Direct Selling Association, DSA, and both were "direct selling" icons, Avon for its "ladies" and Tupperware for its "parties." To any pyramid scheme accusations, MLM promoters indignantly countered: "Are you calling Avon and Tupperware pyramid schemes?"

Walking Dinosaurs

The truth for both companies is very different from the MLM-spin. Avon and Tupperware used to have differentiated products and real consumer demand. Their salespeople made money from their own retail sales. But moving into the 21st Century, Avon and Tupperware became walking dinosaurs, vestiges of the extinct era of "direct selling." They were still trying to base their businesses on their historical brands and on person-to-person retail sales to real customers, as direct selling companies always used to do.

Despite MLM's citing Avon and Tupperware, and thereby bestowing legitimacy on the "MLM" members of the Direct Selling Association, deep differences between those icons of the old era and MLM burst into public view in 2013-14. The two companies publicly quit the Direct Selling Association, charging ethics violations and DSA-member connections to pyramid schemes.

Avon's Long Good-Bye

Avon had been a true direct seller for decades before MLM was invented. But as the door-to-door model faded, Avon began a long decline. In 2000, Avon began shifting its focus to "incentivizing" salespeople to recruit more salespeople and getting them to buy inventory, MLM-style. In 2009, during the Great Recession, Avon ran its most expensive ad in history, on television during the Super Bowl. The ad never mentioned any Avon products! It only solicited "salespeople." Still, global revenue dropped continuously over the next 10 years. Avon stock value fell from over $30 to just over $3.

Finally, Avon split off its faltering North American business and sold it to the Korean company, LG Household & Health Care. Avon claimed to have 250,000 sales representatives in North America. The remaining global business was later sold to the Brazilian MLM, Natura (NTCO) down 50% YTD, which also owns the retailer, Body Shop. Though Avon global was much larger, Avon shareholders traded 3 shares of Avon for just one in Natura.

The Korean-owned segment of Avon in North America is now classic MLM, selling the proverbial MLM "income opportunity" along with "health" supplements, make-up, jewelry, clothing, scented candles, even toothpaste.

On the Canadian Avon website, Avon promotes the "income opportunity," urging prospects in large bold black type: "Think big. Sell Avon part-time, full-time, you decide how much! It’s your business, your way!"

A disclosure (legally required in Canada, but not in the USA) appears midway down a long webpage in tiny, barely visible gray lettering: "The 2020 earnings of a typical Avon Leadership Representative was between $0 and $2,620 in commissions and bonuses." That's $0 to $50 a week, before subtracting all costs! And the "disclosure" does not break out how much of that tiny return comes from personal sales or the "downline."

Avon quietly rejoined the Direct Selling Association. The Brazilian company, Natura, which took over Avon's global business in 2020, has lost over 60% of its stock value in the last year.

Tupperware on the Brink

Tupperware was one of the first "party plan" companies, which are technically a small subset of MLM. They employ an "endless" recruiting chain, but are more rooted in retail sales transacted at "parties." Tupperware used to have a popular brand with innovative, differentiated products. But, as true direct selling began to disappear, Tupperware went into decline. It added MLM-type "health and beauty" commodities to bolster recruiting appeal but then deleted them. This year, it began also selling its products in Target department stores. Its kitchen-related goods are generally not distinct from other brands. A 10-months "Income disclosure" for Canada (not published in the USA) showed that half the "party planners" were classified "inactive," earning less than $30 for the period on average. 94% of the "active" ones reportedly received about $12 a week on average, before expenses.

In the last 5 years, the stock value of Tupperware has dropped over 90%. Its latest financials warned investors the company may violate loan agreements, setting off speculation Tupperware might declare bankruptcy.

The shrunken and devolved state of Avon and Tupperware, the most famous brand-icons of "direct selling," makes citing them as a defense of "multi-level marketing" as extinct as their old business model.

This article was written by

394 Followers
Robert L. FitzPatrick is the author of the new book, Ponzinomics, the Untold Story of Multi-Level Marketing (2020),the first comprehensive history and analysis of the "MLM" phenomenon, addressing its political influence, propaganda techniques and use of cult persuasion. FitzPatrick is an expert in examining and revealing deception and fraud in Ponzi schemes, pyramid schemes and bogus home-based businesses. He served as expert or consultant in more than 30 court cases involving pyramid schemes and multi-level marketing. He is co-author of False Profits (1997), an examination of the values and beliefs that support the delusions of pyramid schemes. He was featured on NBC Dateline, ABC World News, and CBS 60 Minutes, the documentary film, Betting on Zero and the podcast, The Dream.He has been quoted in many newspapers around the world, including the New York Times and Wall Street Journal. His booklet, Pyramid Nation, has been translated to Chinese and used by government regulators in writing China's first laws on pyramid schemes. His booklet, "The 10 Big Lies of Multi-Level Marketing", has been translated into four languages and posted on numerous websites. His White Paper, "The Main Street Bubble", which details the extensive influence-buying of the direct selling industry was featured in a CNBC Documentary, Selling the American Dream. In 2005, he delivered a seminar to in Colombo, Sri Lanka to central banking representatives from that country as well as India, Bangladesh, Bhutan, Maldives and Nepal. Robert FitzPatrick has developed informational resources for consumers, journalists, academics and regulators including a multi-media PowerPoint presentation and a statistical analysis of the losses suffered by participants in pyramid selling schemes. He also published a widely read booklet on the landmark federal case brought against the Amway Corporation. He is a expert network member of GLG Research, and Coleman Research Group, as well as other networks of experts who are referred to clients for consultation, speaking and report writing. In this capacity, he has provided expert consultation to financial many analysts who sought information about multi-level marketing companies and pyramid and Ponzi schemes. Robert FitzPatrick co-founded and serves as president of Pyramid Scheme Alert, the first international organization to expose and prevent pyramid scheme fraud. He personally responds to hundreds of consumer and news media inquiries each year. He has served as consultant and expert witness for Attorney General or State Attorney offices in four states, the US Dept. of Justice, and in numerous cases involving distributor fraud and pyramid schemes. Robert FitzPatrick is not an investor in multi-level marketing companies. He has never owned and never plans to own stocks of multi-level marketing companies. He has never been compensated based on any stock's performance. He does not offer investment advice and he is not an attorney.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article is for educational purposes only. It discusses fundamentals of the "direct selling" business model and the evolution of "multi-level marketing."

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.

Avon and Tupperware, two well-known direct selling companies, have also experienced a decline in recent years, with Avon's stock value falling from over $30 to just over $3.

Tupperware's stock value has also dropped over 90% in the last 5 years, with the company struggling to adapt to the changing market.

The pandemic has had a significant impact on the MLM industry, with some companies experiencing a surge in growth due to the increase in home-based work and online sales.

However, as the pandemic subsides, it is likely that the industry will continue to face challenges and decline in popularity.