The global direct selling market, which includes multi-level marketing (MLM) companies, was $688.45 billion in 2022 and is projected to reach $1,125.52 billion by 2027, growing to $763.85 billion in 2023 with a compound annual growth rate of about 10.2% from 2023 to 2027.

Asia-Pacific led the direct selling market in 2022, followed by North America.

Demand for additional income has been a key driver of direct selling growth, while the rise of online shopping has challenged traditional direct-selling establishments and forced adaptation.

Artificial intelligence is an emerging trend in direct selling that companies are adopting to enhance operations and customer engagement.

The COVID-19 pandemic accelerated digital transformation and increased reliance on digital transaction management, contributing to shifts in how direct selling organizations operate and scale.

Overall pandemic impacts on MLM were mixed, with some companies growing and others struggling due to changing consumer dynamics and operational constraints. [8].

Nu Skin saw sales and recruiting boost during the pandemic, with its stock value tripling from March 2020 before later facing headwinds tied to China, which accounts for over 20% of its revenue.

Educational Development Corp benefited from home-based learning demand and rising unemployment during the pandemic, increasing its consultant count and signaling confidence in sustained post-pandemic demand, although shipping costs remain a risk.

Optavia-Medifast reported $1.6 billion in revenue for 2022, but revenue declined 34.7% to $296 million in a subsequent quarter despite a healthy cash position and no debt.

Bravenly Global reported $8 million in revenue for 2022 with a 700% year-over-year increase and a 55% commission payout rate.

Natural Health Trends experienced significant pressure earlier, with Q2 2019 revenue down 54% to $23.4 million alongside a 10% decline in its active member base.

Avon shifted toward an MLM-style model in 2000 but suffered a prolonged decline, with its stock value falling from $30 to $3 between 2000 and 2019 and its North American business sold to LG Household & Health Care.

Tupperware added MLM-type products and later deleted them, and in October 2022 began selling through Target stores as part of a move away from its traditional direct sales model amid steep stock declines and potential bankruptcy risk. [7].

Some MLM companies have closed or switched to simpler direct-to-consumer models without recruitment in response to regulatory pressure and declining sales, indicating a structural shift in parts of the sector.

Tiber River dropped its ambassador program and moved to direct-to-consumer online sales after facing business challenges.

Geopolitical shocks have also shaped MLM operations, with Amway leaving Russia and Herbalife halting shipments there, resulting in closures of dozens of sales centers.

Avon and Oriflame also encountered severe difficulties in Russia and signaled intentions to exit, underscoring regional market risk.

In India, the direct selling industry grew 12% in 2022–23 to Rs 21,282 crore, with wellness and nutraceuticals contributing 73.5% of turnover and cosmetics/personal care 11.3%.

India recorded about 86 lakh active direct sellers in 2022–23 and an industry CAGR of 8.3% from 2019–20 to 2022–23, while ranking 11th globally in 2022.

India modified Consumer Protection Rules to distinguish legitimate direct selling players and has been cracking down on fake customer reviews, reflecting tighter compliance expectations. [1].

New Indian advertising guidelines issued in 2022 require ads to be honest and truthful and impose penalties for violations, adding to the regulatory backdrop for direct sellers.

In Taiwan, proposed amendments would shift multilevel marketing from a reporting to a licensing regime, increasing regulatory density and raising constitutional concerns.

U.S. self-regulatory oversight has intensified, with the DSSRC referring Vyvo’s implied earnings claims to the FTC for potential enforcement after nonresponse.

Several technology and channel trends are reshaping MLM, including the integration of e-commerce, influencer collaborations, and data-driven personalization across platforms such as TikTok, Instagram, and YouTube.

Mobile commerce, optimized checkout, AR try-ons, and scalable cloud infrastructure are being used to enhance digital customer experiences and conversion in direct selling.

AI and blockchain are being explored to improve transparency, security, and operational efficiency in MLM, though adoption is constrained by security, privacy, and regulatory concerns. [18][65].

The continuing expansion of e-commerce after the pandemic has pushed direct sellers to diversify channels and online capabilities to sustain growth. [27].

Recruitment and earnings dynamics remain challenging, with one 2020 data set reporting 3.5 million distributors generating 98 billion yuan in turnover, 450,000 marketers quitting, and only 27% receiving commissions averaging 45,000 yuan.

Research and commentary indicate that most MLM commissions accrue to the top 1% and that 90–99% of participants lose money, contributing to persistent reputational and regulatory pressure on the model.

Taken together, recent trends point to a bifurcation: firms that adapted to digital commerce, compliance, and changing consumer preferences grew or stabilized, while those slow to evolve or overly reliant on recruitment struggled, exited markets, or shifted toward traditional retail. [8][13][23].

The global direct selling market, which includes multi-level marketing (MLM) companies, was $688.45 billion in 2022 and is projected to reach $1,125.52 billion by 2027, growing to $763.85 billion in 2023 with a compound annual growth rate of about 10.2% from 2023 to 2027.

Title:

Content:
Global Direct Selling Establishments Market On Trajectory Of Substantial Growth, Projected To Reach $1,125.52 Bn By 2027

(MENAFN- EIN Presswire)

Direct Selling Establishments Global Market Report 2023 : Market Size, Trends, And Global Forecast 2023-2032

The Business Research Company's Direct Selling Establishments Global Market Report 2023 – Market Size, Trends, And Global Forecast 2023-2032

The Global Market Report for Direct Selling Establishments by The Business Research Company, detailing market size, trends, and providing a global forecast for the years 2023 to 2032.” - The Business Research Company

LONDON, GREATER LONDON, UK, December 12, 2023 /EINPresswire / -- The global direct selling establishments market is positioned for remarkable expansion, characterized by a segmentation based on type, products, and price range.

Market Size and Growth Projection: The market size for global direct selling establishments is set to burgeon from $688.45 billion in 2022 to $763.85 billion in 2023, exhibiting a robust compound annual growth rate (CAGR) of 11%. Looking ahead, the market is anticipated to soar to $1,125.52 billion in 2027, sustaining a CAGR of 10.2%.

Driving Factors: The escalating demand for additional income avenues, particularly in developing and underdeveloped countries, stands out as a primary driver for the direct selling establishments market. The Associated Chambers of Commerce and Industry of India (Assocham) forecasts the Indian direct selling industry to reach $2,169 million by 2021, underscoring the growing significance of direct selling as a viable part-time income source. Promoting self-employment and financial independence, direct selling addresses the need for supplementary income opportunities, a trend expected to propel market growth.

Explore comprehensive insights into the global direct selling establishments market with a detailed sample report:

Major Players : Key players in the direct selling establishments market include Herbalife, Amway, Mary Kay Inc., Infinitus, Tupperware, Vorwerk, Natura, JoyMain, DXN, and Belcorp. These industry leaders play a pivotal role in shaping market dynamics through innovative approaches and product offerings.

Market Restraints: The surge in demand for online shopping poses a challenge to direct-selling establishments, as e-commerce platforms often entice consumers with discounts. To adapt, some direct selling platforms have shifted their business models to incorporate e-commerce channels, addressing the evolving market landscape. The competition from online portals and changing consumer preferences is influencing strategic shifts within the direct-selling industry.

Emerging Trend : Artificial Intelligence (AI): Artificial Intelligence (AI) is emerging as a transformative trend in the direct selling establishment market. AI applications are revolutionizing customer interactions, enabling personalized marketing strategies, and optimizing inventory management. Technologies like chatbots and AI-powered software, such as Ventaforce, are enhancing operational efficiency and customer service in the direct selling industry.

Regional Insights: In 2022, Asia-Pacific led the direct selling establishments market, with North America securing the second-largest position. The geographical coverage of the direct selling establishments analysis encompasses Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

Access the complete report for an in-depth analysis of the global direct selling establishments market:

Direct Selling Establishments Global Market Report 2023 from TBRC covers the following information:
.Market size date for the forecast period: Historical and Future
.Market analysis by region: Asia-Pacific, China, Western Europe, Eastern Europe, North America, USA, South America, Middle East and Africa.
.Market analysis by countries: Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

Trends, opportunities, strategies and so much more.
The Direct Selling Establishments Global Market Report 2023 by The Business Research Company is the most comprehensive report that provides insights on direct selling establishments market size, direct selling establishments market drivers and direct selling establishments market trends, direct selling establishments market major players, direct selling establishments market competitors' revenues, market positioning, and market growth across geographies. The direct selling establishments market report helps you gain in-depth insights on opportunities and strategies. Companies can leverage the data in the report and tap into segments with the highest growth potential.

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Asia-Pacific led the direct selling market in 2022, followed by North America.

Demand for additional income has been a key driver of direct selling growth, while the rise of online shopping has challenged traditional direct-selling establishments and forced adaptation.

Artificial intelligence is an emerging trend in direct selling that companies are adopting to enhance operations and customer engagement.

The COVID-19 pandemic accelerated digital transformation and increased reliance on digital transaction management, contributing to shifts in how direct selling organizations operate and scale.

Title:

Content: Digital Transaction Management Market Overview – Key Futuristic Trends and Competitive Landscape by 2032

In an era defined by digitization and technological innovation, the landscape of transaction management is undergoing a seismic shift towards digitalization. The Global Digital Transaction Management (DTM) Market, propelled by the burgeoning adoption of digital technologies and evolving business practices, is poised for exponential growth in the coming years. A recent study by Report Ocean forecasts a remarkable CAGR of 21.5% for the DTM market, underscoring its pivotal role in transforming traditional document-based processes and driving operational efficiency across diverse industries.

Request To Download Free Sample of This Strategic Report @-https://reportocean.com/industry-verticals/sample-request?report_id=MR454

The Dawn of Digital Transaction Management

Digital Transaction Management encompasses a spectrum of electronic tools and techniques designed to streamline and automate document-based processes, revolutionizing the way organizations conduct business transactions. From electronic signatures to blockchain technology, DTM solutions offer a robust framework for secure, efficient, and paperless transaction management, catering to the evolving needs of a digital-first economy. With the proliferation of mobile devices and internet access, digital transactions have become ubiquitous, driving the demand for advanced DTM solutions that ensure seamless and secure transaction workflows.

Driving Forces of Market Growth

Several factors catalyze the rapid expansion of the Global DTM Market. Chief among these is the escalating adoption of digital technologies by organizations worldwide to optimize document-based processes and enhance operational efficiency. The advent of mobile transaction gateways has accelerated the pace of digital transactions, enabling swift and convenient financial interactions. Moreover, the imperative for secure record-keeping and compliance further fuels the demand for DTM solutions, driving innovation and market growth. However, the specter of data security and privacy concerns looms large, posing a significant challenge to market expansion amidst the rising threat of cyberattacks and fraudulent transactions.

Get a Free Sample PDF copy of the report @-https://reportocean.com/industry-verticals/sample-request?report_id=MR454

BFSI Sector: A Beacon of Innovation

The Banking, Financial Services, and Insurance (BFSI) sector emerge as a frontrunner in embracing DTM solutions, leveraging digital technologies to streamline banking procedures and enhance customer experiences. DTM solutions play a pivotal role in minimizing paperwork, facilitating quick and easy banking transactions, and enhancing operational efficiency. With the advent of digital transaction banking solutions, BFSI institutions are transitioning towards digital-first strategies, capitalizing on mobile banking and personalized financial services to cater to evolving consumer preferences.

Technological Advancements Propelling Market Expansion

Rapid technological advancements are driving innovation in DTM solutions, ushering in a new era of secure and efficient transaction management. Blockchain technology, with its immutable and decentralized ledger, offers unparalleled security and transparency in transaction management, safeguarding against fraudulent activities and ensuring data integrity. Similarly, electronic signature technology enables seamless authentication and approval processes, accelerating transaction workflows and reducing operational costs. As organizations strive to enhance productivity and streamline operations, the demand for advanced DTM solutions is poised to surge, creating lucrative opportunities for market players.

Navigating Challenges: Addressing Data Security Concerns

Despite the promising growth prospects, the Global DTM Market faces formidable challenges, chief among them being data security and privacy concerns. The proliferation of cyberattacks and security breaches poses a significant threat to digital transactions, undermining consumer trust and confidence in DTM solutions. As organizations grapple with the escalating threat landscape, robust cybersecurity measures and risk mitigation strategies are imperative to instill trust and ensure the integrity of digital transactions.

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Impact of COVID-19: Accelerating Digital Transformation

The COVID-19 pandemic has acted as a catalyst for digital transformation, reshaping consumer behaviors and business practices across industries. The imperative for contactless transactions and remote operations has propelled the adoption of digital transaction management solutions, driving market expansion amidst the pandemic-induced disruptions. With a surge in mobile wallet usage and e-commerce transactions, the pandemic has underscored the resilience and adaptability of digital transaction management in navigating unprecedented challenges.

Competitive Landscape: Driving Innovation and Collaboration

The Global DTM Market is characterized by intense competition, with leading players such as Adobe, DocuSign Inc., and OneSpan spearheading innovation and driving market growth through strategic partnerships and alliances. As organizations vie for market share, investments in research and development, technological innovation, and customer-centric solutions are key to gaining a competitive edge. By fostering collaboration and driving innovation, market players can capitalize on emerging opportunities and navigate the evolving landscape of digital transaction management.

For an in-depth analysis, you can refer sample copy of the report @-https://reportocean.com/industry-verticals/sample-request?report_id=MR454

Seizing the Opportunity: Embracing the Future of Transaction Management

As the Global Digital Transaction Management Market continues to evolve, stakeholders across industries are presented with unparalleled opportunities for innovation and growth. By harnessing the power of digital technologies, fostering collaboration, and prioritizing data security, organizations can navigate the complexities of digital transaction management and unlock new avenues for value creation. In a digital-first economy, the future belongs to those who embrace innovation, adapt to change, and seize the opportunities that lie ahead.

In conclusion, the Global Digital Transaction Management Market represents a transformative force in reshaping transaction management practices and driving operational efficiency across industries. With digital technologies at the forefront, organizations have the opportunity to streamline operations, enhance security, and unlock new levels of productivity in an increasingly digitized world. By embracing innovation and addressing challenges proactively, stakeholders can navigate the evolving landscape of digital transaction management and unlock the full potential of a digital-first economy.

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Overall pandemic impacts on MLM were mixed, with some companies growing and others struggling due to changing consumer dynamics and operational constraints. [8].

Nu Skin saw sales and recruiting boost during the pandemic, with its stock value tripling from March 2020 before later facing headwinds tied to China, which accounts for over 20% of its revenue.

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Nu Skin’s Biggest Customer Base Is in China. Now It’s Accused of Spreading Covid.

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The Covid pandemic was good for the business of multilevel marketing firms like Nu Skin Enterprises, as furloughed workers tried to make ends meet by selling vitamins and skin creams from home. Salespeople swelled the bottom of Nu Skin’s marketing ranks, and its stock tripled in value from March 2020 to a June 2021 peak of $62, before sliding back to a recent $47.

Now Covid is a problem for the company in China, the nation where Nu Skin (ticker: NUS) gets its largest number of customers and more than 20% of its revenue. A...

Educational Development Corp benefited from home-based learning demand and rising unemployment during the pandemic, increasing its consultant count and signaling confidence in sustained post-pandemic demand, although shipping costs remain a risk.

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

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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.

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Optavia-Medifast reported $1.6 billion in revenue for 2022, but revenue declined 34.7% to $296 million in a subsequent quarter despite a healthy cash position and no debt.

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/

Bravenly Global reported $8 million in revenue for 2022 with a 700% year-over-year increase and a 55% commission payout rate.

Title:

Content: Bravenly Global Ranked As Triple AAA+ Opportunity For 2024

By Team Business For Home

Bravenly Global, a promising start-up network marketing powerhouse, demonstrated impressive performance in the year 2022 with a total revenue of $8 Million. The product based company notably stands above the pack, rewarding its associates generously with 55% commission pay-out in the reported year, far surpassing the 35% industry standard. This review takes a balanced, look at the commendable progression of Bravenly Global’s opportunity.

This article is written by Team Business For Home and is fact checked by Ted Nuyten – CEO of Business For Home.

Network marketing company, Bravenly Global, has recently made headlines with its noteworthy additions to the team. Top leaders, Ron and Sandy Brittain, renowned Top Leader Dr. Ralph Bietz, industry icon Keith Halls, and top leaders Garrett & Sylvia McGrath have all joined Bravenly among many others.

These key additions, added to its promising location, have contributed to Bravenly Global’s recognition as a promising start-up in the field of network marketing. Continuing this momentum will be critical for Bravenly’s next steps.

Bravenly Global in Facts and Figures

In 2022, Bravenly Global, a company located in the United States and led by CEO Aspen Emry, reported a significant 700% increase in its revenue, amassing a total of $8 million. As the 2023 revenue is not released yet, we calculate with 2022.

The increase allowed the possibility of a $4 million commission payout, of which 55% was actualised in accordance with its compensation plan. It is noteworthy that these strides in financial growth garnered for the company a Business for Home Rating of AAA+, occupied by only the top-rank companies in the industry.

Further still, Bravenly Global currently ranks 42 out of over 800 network marketing companies in the Business for Home Momentum Rank. On a similar note, its place in the Similarweb Rank is 507,144 globally. It is ranked 179 out of 800 such companies in the BFH database, for a startup a pretty nice number.

As per its customer reviews on Business for Home, it enjoys 99 reviews, making it the 31st highest in the database. Bravenly Global has 25 recommended distributors though it currently hosts no top earners, yielding a total of 13,791 pageviews on Business for Home.

Facts and figures as of the day of publication of this article. The ranks are calculated based on 800+ world-wide network marketing companies in the Business for Home database.

  • Business for Home Rating: AAA+: The Top rank
  • Compensation plan payout: 55%
  • Current Business for Home Momentum Rank: 42
  • Number of Recommended Distributors: 25 (Rank 7)
  • Number of Top Earners: 0 (Rank 198)
  • Business for Home Pageviews: 13,791 (Rank 126)
  • Similarweb Rank: 507,144 (Rank 179)
  • YouTube views: 60,663 (Rank 309)
  • Bravenly Global has 99 reviews on Business for Home (Rank 31)
  • CEO of Bravenly Global: Aspen Emry
  • Company Country: US

Data provide by the proprietary Business for Home Intelligence Engine

(article continues below)

Recommended Distributors Bravenly Global

View “Ricky Durant”

Ricky Durant

View “Miranda Gauthier”

Miranda Gauthier

View “Jessika Durant”

Jessika Durant

View “Jennifer Hutto”

Jennifer Hutto

View “Shawn Gwin”

Shawn Gwin

View “Brittany Beck”

Brittany Beck

View “Sam van Born”

Sam van Born

View “Ashlie Sieg”

Ashlie Sieg

View “Rebeccah Rayfield”

Rebeccah Rayfield

View “Ranim Reda Aguilar”

Ranim Reda Aguilar

You might want to team up with a Bravenly Global recommended distributor. You find them above and at the bottom of this article.

Here’s a glimpse of what people are writing about Bravenly Global

The reviews for Bravenly Global present a mix of positive experiences about the company’s products, leadership, and compensation plan.

  • Amanda Gende called Bravenly Global’s training “unlike no other.” She revealed that the company not only improved her social selling skills but also helped her earn extra cash. She appreciated how she had the chance to meet the CEO of the company, something she viewed as exceptional.

“Bravenly global has helped me improve my social selling skills and earn some extra cash for my family”

  • Stacy Kuhl described the company as “literally mind-blowing” and her gratitude for being a part of it was evident. Moreover, she advised anyone interested to join the company now to catch its momentum.

“I am so thankful everyday that I am with Bravenly. The business model is led by excellence through a simple and duplicable process.”

  • Tracy Thompson emphasized the supportive nature of the community and how it helped her to strive out of her comfort zone. Just like Amanda Gende, Tracy applauded the CEO for being an inspiring leader.
  • Rebecca, a healthcare professional, highly commended the quality of products and considered aligning with Bravenly as genuinely beneficial.
  • On her behalf, Bill Chaco was full of praises for the leadership team and the emphasis on improving everyone’s health. For him, Bravenly Global was about making everyone a better version of themselves.

“Bravenly Global offers a superior suite of healthy lifestyle products, a revolutionary compensation plan design and unmatched tools and training.”

  • Whitney Rowe insisted on the effectiveness of the products. Eunice, on the other hand, placed weight on the company’s leadership dedicated to making everyone successful and the clean, organic ingredients used in the products.
  • Stacy Jo highlighted the positive impact of the supplements on her health. For her, Bravenly had been a “God-send.”

In conclusion, the majority of the reviewers voiced satisfaction with Bravenly Global. They commended the company’s community spirit, the leadership, and the high-quality products. These positive reviews illuminate a promising future for the company and its potential new members.

Bravenly Global Conclusion

Bravenly Global has demonstrated impressive performance in 2022, with a total revenue of $8 million. The company stands out by offering its associates a generous 55% commission pay-out, surpassing the industry standard of 35%. The recent addition of top leaders, such as Ron and Sandy Brittain, Dr. Ralph Bietz, Keith Halls, Garrett & Sylvia McGrath, has further added to Bravenly Global’s reputation as a promising start-up in the network marketing field.

Bravenly Global is located in the United States and is led by CEO Aspen Emry. The company reported a 700% increase in revenue, allowing for a $4 million commission payout. This significant growth has earned Bravenly Global a Business for Home Rating of AAA+, the Top Rank.

The company currently ranks 42nd out of over 800 network marketing companies in the Business for Home Momentum Rank and has a Similarweb Rank of 507,144 globally. Overall, based on the extensive information provided by Business for Home, it appears that one could potentially make decent money with Bravenly Global.

As with all opportunities, success cannot be promised or guaranteed. Success within the Network Marketing channel results only from successful sales efforts, building up a customer and affiliate team, which require hard work, diligence, skill, persistence, competence, and leadership.

The post Bravenly Global Ranked As Triple AAA+ Opportunity For 2024 appeared first on Direct Selling Facts, Figures and News.

Source:: https://www.businessforhome.org/2023/12/bravenly-global-ranked-as-triple-aaa-opportunity-for-2024/

Natural Health Trends experienced significant pressure earlier, with Q2 2019 revenue down 54% to $23.4 million alongside a 10% decline in its active member base.

Title:

Content: Natural Health Trends' (NHTC) Management Discusses Q2 2019 Results - Earnings Call Transcript

SA Transcripts
128.21K Followers

Natural Health Trends Corp. (NASDAQ:NHTC) Q2 2019 Earnings Conference Call August 7, 2019 11:30 AM ET

Company Participants

Ariel Papermaster - IR, ADDO

Chris Sharng - President

Scott Davidson - SVP & CFO

Conference Call Participants

Operator

Greetings and welcome to the Natural Health Trends Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Ariel Papermaster, with ADDO Investor Relations. Thank you, you may begin.

Ariel Papermaster

Thank you and welcome to Natural Health Trends second quarter 2019 earnings conference call.

During today's call, there may be statements made relating to the future results of the Company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance, or achievements could differ materially from those anticipated in such forward-looking statements due to the result of certain factors, including those set forth in the Company's filings with the Securities and Exchange Commission.

It should also be noted that today's call will be webcast live and can be found on the Investor Relations section of the Company's corporate website at naturalhealthtrendscorp.com. Instructions can be found for accessing the archived version of the conference call in today's financial results press release, which was issued at approximately 9:00 AM Eastern Time.

At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.

Chris Sharng

Thank you, Ariel, and thanks to everyone for joining us. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer.

To begin, I would like to discuss our second quarter performance, as well as our initiatives to restore top-line growth. I would then hand the call over to Scott to discuss our financials in greater detail.

Beginning with our second quarter results, total revenue was down 54% to $23.4 million compared to the second quarter of 2018. As we previously disclosed, we voluntarily suspended our member activities during the vast majority of the first quarter and extended that further to the entirety of the second quarter in response to the Chinese Government January 8th announcement of its 100 day campaign.

Throughout this campaign which included a thorough review of certain food, equipment, small appliance manufacturers, and service providers that claim to promote beneficial health function. Our cooperation with the Chinese Government's inspection, investigation and document request has been our top priority.

So the campaign expire in late April. There has been no official conclusion to formally end the program. The operating environment in China remains difficult for a company like ours.

However we were pleased with our leader's capability to come together and adapt our business operations to this new environment. As a result our second quarter revenue was up 21% compared to the first quarter of 2019.

Following the 100 days, we are maintaining our member activity moratorium in Mainland China for the foreseeable future. This entails a voluntary suspension of company sponsored business meetings and product roadshows. I would reiterate my comments from our last call that we strongly support the actions taken by the Chinese Government to root out bad products and deceptive practices in order to protect Chinese consumers. I still believe that our proactive approach to member activities in China is the best way to position our company for longer-term success despite the interim adverse impact to our financials.

Throughout the quarter, we deployed several different promotions to encourage product purchases which were very well received by our members. Despite the overall year-on-year revenue decrease, our second quarter reorders actually increased over a year-ago and accounted for more than half of our total revenue.

This is a very constructive development and reflects the underlying strength of our brand and the loyalty of our consumers. Aside from what has been taking place in China, we have been steadily ramping up activities in other promising markets including Latin America, Southeast Asia, and Europe.

Terrific progress has been made in Latin America led by Peru. Our presence in Peru has more than doubled in size versus a year-ago and has also grown sequentially quarter-over-quarter. We held our Peru Success Forum in Lima in May drawing in over 2000 attendees. We are moving forward with building new bases in Bolivia and Colombia.

In Asia, we staged our first Fly High training event for our Chinese members outside China with over 420 attendees in South Korea in early June. And follow that up with an event in Hong Kong with over 400 in attendance. Of note, members sentiment was all around very positive, considering the challenges our industry has been facing in China.

Additionally, the large introduction of Adonis, our latest skin care system performed well with sales reaching an accumulated $700,000.

In Malaysia, we conducted a product roadshow for Premium Noni Juice which in addition to other product specific promotions encouraged strong product reorders.

In India, we celebrated the grand opening of our office in Mumbai just six weeks ago. At our April event in Mumbai and Delhi, we introduced both Alura Lux and our Skindulgence firming system, generating $129,000 in total sales during the second quarter. Further product registration should drive incremental sales during the second half of 2019. We believe that India represents a significant opportunity.

In Europe, we achieved great traction with our growing base of preferred customers; well those who enjoy our products as consumers and do not look to earn a commission on direct sales of our products. The number of preferred customers grew both year-over-year and quarter-over-quarter, primarily in Sweden, where our preferred customer base was first developed in May of 2017.

With our logistic support and the success of the preferred customer base, our hope is that it will proliferate into other EU markets.

Lastly, we have a brand new European specific app in development to facilitate member communication and productivity. Through this proprietary application, we are working to develop an integrated enterprise system to unify the front and the back end software platform eventually for all markets, more on this to come in future quarters.

In summary, while we face challenges in China that place significant pressure on our top-line, we were very pleased with the high level of commitment shown by our members through the difficult operating environment.

With that, I'd like to turn the call over to Scott Davidson, our CFO, to discuss our second quarter financials in detail. Scott?

Scott Davidson

Thank you, Chris.

Total revenue for the second quarter was $23.4 million, a decline of 54% compared to $50.9 million in the second quarter of 2018 and an increase of 21% compared to $19.3 million from the first quarter of 2019. The year-over-year decline was primarily the result of the 100 days campaign in China.

Our active member base decreased 10% to 70,280 at June 30 from 87,300 at March 31 and was down 16% from 93,000 at June 30 of last year.

Turning to our cost and operating expenses. Gross profit margin of 76.9% declined from 79.6% in the second quarter last year and improved from 73% in the first quarter of 2019. The year-over-year decline in gross profit margin reflects product promotions and a higher logistics costs.

Commissions expensed as a percent of total revenue of 48.7% increased from 43.8% in the second quarter last year and decreased from 49.1% in the first quarter of 2019. The year-over-year increase as a percentage of net sales was largely due to higher costs of a special incentive program to help ease qualification status for our members during this extraordinary period.

Selling, general and administrative expenses for the quarter decreased 18% to $6.6 million from $8.1 million a year-ago and decreased 9% from $7.3 million in the prior quarter. The decrease versus the same quarter a year-ago was primarily due to a decrease in both employee-related costs and credit card fees, partially offset by member-related costs, event costs, and professional fees. The decrease versus the prior quarter is due to less event cost as our first major event at the year occurred in March.

As a result, operating loss for the quarter was $4,000 compared to operating income of $10.1 million in the second quarter last year and our operating loss of $2.7 million in the first quarter of 2019. Our second quarter operating loss included $1.2 million of mainly team support, product discount, and legal costs incurred during the quarter that we do not anticipate we'll be recurring at this elevated level going forward.

We recorded income tax benefit of $28,000 for the quarter due to the current period loss. This compares to income tax provision of $1.1 million recognized in the second quarter last year.

Net income for the second quarter totaled $397,000 or $0.04 per diluted share compared to $9 million or $0.80 per diluted share in the second quarter of 2018 and a net loss of $1.9 million or $0.17 per diluted share in the first quarter of 2019.

Net cash used in operating activities was $3.7 million during the quarter including $1.7 million installment payment on tax payables arising from the 2016 Tax Reform Act compared to net cash provided by operating activities of $5.3 million in the second quarter of 2018.

Total cash and cash equivalents were $108.1 million at June 30 down from $118.7 million at March 31.

During the quarter we repurchased nearly 613,000 shares of our common stock at an average price of $10.90 per share for a total of $6.7 million. As of June 30, 25.3 million of the previously approved stock repurchase program remained available for future purchases.

As always, we will continue to evaluate our capital allocation strategy going forward to deliver increased value to our shareholders.

That completes our prepared remarks. I will now turn the call back over to the operator.

Question-and-Answer Session

End of Q&A

Thank you. Ladies and gentlemen this does conclude today's teleconference. We thank you for your participation and you may disconnect your lines at this time.

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Avon shifted toward an MLM-style model in 2000 but suffered a prolonged decline, with its stock value falling from $30 to $3 between 2000 and 2019 and its North American business sold to LG Household & Health Care.

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."

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Tupperware added MLM-type products and later deleted them, and in October 2022 began selling through Target stores as part of a move away from its traditional direct sales model amid steep stock declines and potential bankruptcy risk. [7].

Title:

Content: Skip to Content

Tupperware has been struggling for years. Three charts show just how bad it’s been.

By Alex Leeds Matthews, CNN

Tupperware may be on the verge of collapse, but the 77-year-old business’ potential demise isn’t necessarily a harbinger of worsening economic conditions.

While sales data shows the rest of the US consumer retail sector — including some of the company’s competitors in the food storage space — seems to be recovering from the pandemic dip, Tupperware sales continue to decline.

Some business experts say that’s because Tupperware has failed to adapt to changing consumer behaviors. And now, faced with mounting debt, declining sales and plummeting stock prices, perhaps little can be done to save the company from bankruptcy.

In a statement emailed to CNN, a Tupperware spokesperson said the brand has been affected by “the pandemic, inflation and high interest rates,” and is working with financial advisers and partnerships including Target and Amazon to strengthen the brand.

“For over 75 years, Tupperware Brands has been one of the world’s most beloved, iconic household brands — and we are excited to remain at the heart of dining room tables, kitchen counters and pantry shelves for many more years to come,” the spokesperson said in the statement.

The Tupperware brand name is so iconic that it’s become shorthand for all food leftover storage. That might be part of the problem, as other brands have emerged to compete against Tupperware, sometimes at lower price points.

“A great brand name can be a blessing or a curse,” said Christie Nordhielm, a marketing consultant and adjunct professor at Georgetown University’s McDonough School of Business. “It’s a curse when you kind of rest on your laurels and milk the brand for profits and don’t continue to invest in a brand.”

If you bought your “tupperware” in a store before October 2022, it was unlikely to be the actual brand. The company just introduced its products into Target stores last fall, a move that is likely, “way too little, too late,” said Barbara Kahn, a professor of marketing at the University of Pennsylvania’s Wharton School of Business.

“At worst, it’s one of these things where their brand name is almost generic, and not in a good way,” Kahn said. “That doesn’t have to be a bad thing… People might call things Kleenex, but they know the difference,” she added.

Tupperware has historically only sold to consumers through “direct sales,” most commonly at “Tupperware parties.” These parties were gatherings where people who enjoyed the product would demo and sell the Tupperware brand to their friends and acquaintances. That direct selling model worked well at first but fell out of favor as consumer habits changed in the decades preceding the pandemic, according to Kahn.

The fact that Tupperware moved away from that direct sales model and into Target was an “admission” that their core business model wasn’t working, said Tim Calkins, a marketing professor at Northwestern’s Kellogg School of Business. While some businesses may have taken hits during the pandemic, Tupperware’s decline wasn’t sudden.

“The company has gradually lost steam,” Calkins said. “It hasn’t gone off a cliff so much as over many years it’s just become weaker.”

The pandemic, which affected most businesses negatively, just exacerbated those failures of Tupperware to adjust to changing consumer behaviors and competitive landscapes.

“You could have seen them making that transition very beautifully, but instead they moved into brick and mortar stores,” Nordhielm explained. “If you go and look at Tupperware in a Target, all you’re doing is seeing how incredibly undifferentiated they are, how many other substitute storage containers there are available.”

Instead, people tend to compare the products based on price, Kahn said, and Tupperware’s most valuable asset — its brand equity — loses all its meaning. Tupperware has also failed to innovate in response to these changes in competition and consumer behavior, Nordhielm said. As a result, Tupperware’s sales have been declining for years.

Meanwhile the rest of the consumer retail sector is showing signs of recovery after the pandemic. At the worst of the pandemic, sales saw a stark decline, but they have been improving since, recovering more than 60 percent since their nadir in April 2020.

“The state of the consumer remains relatively strong,” Hamilton said. “If a recession is in the cards, it’s not showing up yet in measures for the consumer sector.”

But the recovery in sales doesn’t mean other retailers are immune to collapse. Calkins points out that financing remains tight, creating a challenge for businesses across the sector that face high debt burdens or need support for innovation. Tupperware may be an early casualty because it was already in a weak position. The brand had to restructure its debts in May 2020.

“Sadly, I think this is not the last one of these stories we’re gonna hear,” Calkins said.

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Some MLM companies have closed or switched to simpler direct-to-consumer models without recruitment in response to regulatory pressure and declining sales, indicating a structural shift in parts of the sector.

Tiber River dropped its ambassador program and moved to direct-to-consumer online sales after facing business challenges.

Title:

Content: 'How can we adapt': Local businesses moving online amid rising challenges

Tiber River, known for its natural body care products, is dropping its ambassador program due to numerous business challenges.

The company said the program, where people sell products based on commission, is no longer sustainable.

"Our economy is heading into a recession, supply chain issues are numerous, interest rates are at an all-time high and people have to make choices between necessities and desires when making purchasing decisions," read a joint statement from Adriana De Luca and Michelle Lalonde, Tiber River's owners.

"Costs are going up, but the ability people have to pay for consumer goods and services is going down."

The company will now focus on direct-to-consumer online sales but will still have a Winnipeg store.

The Winnipeg Chamber of Commerce said many of the hardships Tiber River is experiencing are being felt by the wider business community.

"Part of that ongoing experience of being a business owner, you're always looking at your model and how you operate, saying, 'how can we adapt to an ever-changing environment,'" said Loren Remillard, the chamber's president and CEO.

In a recent survey of chamber members, two thirds say they are optimistic about 2023, but the majority are expecting slower growth and a much smaller profit margin.

Remillard said many businesses were already expanding their online presence prior to the pandemic, but COVID-19 and subsequent challenges accelerated the process.

"You're now able to sell your wares all around the world, but you're also competing on the internet with every business around the world," explained Remillard. "How do you differentiate? How do you make sure you're connecting to potential audiences?"

Even with more businesses moving online, Remillard doesn't see physical stores going away.

THRIVING ONLINE

Radiance Gifts decided to give up its brick-and-mortar location last year after 27 years on Corydon Avenue.

Lisa Tjaden, the store's owner, said she made the move due to increased overhead costs and ongoing safety challenges.

"The significant cost that sort of drove us to this was actually shrinkage, the shoplifting, so that made the decision more palatable."

Now operating out of a warehouse, Tjaden said the change in business model was a success, being able to offer more items at a reduced price.

She noted the transition was still bittersweet for loyal customers.

"It was sad for them and does take a bit of adjusting. To realize it is still us and it's still the same business," said Tjaden.

She said she offers same or next-day delivery, and customers can still use the chat feature if they want to communicate with staff.

"We are still a local business. That's the perspective that is sometimes difficult for people to understand," Tjaden said. "We're still contributing to our community."

Geopolitical shocks have also shaped MLM operations, with Amway leaving Russia and Herbalife halting shipments there, resulting in closures of dozens of sales centers.

Title:

Content: Russian Federation
Moscow
+ 21 °
Society27 July 2022 10: 40
Amway is leaving the Russian market.
Oriflame and Avon next?
The largest players in various fields continue to leave the domestic market.
Direct selling is no exception.
This opens wide horizons for domestic brands
Dmitry VASILIEV
Photo by Shutterstock
SNOW KOM
March 11, among the first who made a statement about the termination of work in Russia, was the American Herbalife.
62 sales centers stopped shipping their products.
Today, such news does not seem out of the ordinary – foreign companies continue to close.
Rumors that Amway (USA) is also about to join the ranks of “sinking ships ” went for four months and, finally, found confirmation.
At the end of June, the global board of directors announced the official decision: “We have reached a point where economic, technological, organizational and operational circumstances have made it impossible for us to continue our work. ”
Meanwhile, Amway is the number one direct selling company in the world and of course many companies follow it.
STORMITH!
It is known that two other foreign brand leaders – Avon (USA) and Oriflame (Sweden) – are also going through hard times today.
According to various sources, employees admit that they do not feel a sense of stability: “The decision to leave Russia is made by top management located abroad.
We are kept to the last in the dark, in limbo, ” admits an Avon employee, who wished to remain incognito in the framework of the publication. – Do my colleagues and I expect that the story of “Amway ” will repeat itself?
Yes, unfortunately, we are preparing for the worst. ”
According to the analysis of the sites, Avon and Oriflame products are in short supply, which may indirectly indicate problems with production.
And although neither Avon nor Oriflame made any official statements, their actions are in many ways reminiscent of Amway.
ALL YOUR OWN, MOTHERLY
As you know, a holy place is never empty.
The released niches are filled by domestic manufacturers: new Russian brands are actively developing, and already well-known market players are increasing their capacities.
The departure of foreign brands will definitely not cause a decline in the direct sales industry.
Moreover, business analysts indicate that Russian direct sales companies demonstrate high crisis resistance.
First of all, they will not be closed for political reasons.
Secondly, in the conditions of limited choice in the labor market, economic recession and rising prices, they offer people the opportunity to earn extra money, as well as the purchase of high-quality goods for personal use with a good discount.
Of course, the most affected are those who built a business in foreign companies and planned to transfer it to children.

Avon and Oriflame also encountered severe difficulties in Russia and signaled intentions to exit, underscoring regional market risk.

Title:

Content: March of foreign agents Mary Kay, Avon, Oriflame
3: 40.
Ufa, April 2024.
Thousands of women in identical red jackets marching through the streets of the city.
This is not a creative performance, but the finalists of the all-Russian competition Mary Kay, who with their procession honor the founder of the company and one of the founders of feminism, the American Mary Kay.
But this is only the tip of the iceberg of foreign network structures.
Today, more than 400 individuals, media and NGOs are recognized as foreign agents of influence.
But there are large foreign direct selling companies, whose impact on society is greater than that of many bloggers with millions.
The three main foreign direct sales players, Avon, Mary Kay and Oriflame, are headquartered in London, Washington and Stockholm, the capitals of the most aggressive countries against Russia.
The position of the United Kingdom and the United States regarding Russia is obvious to everyone, but few people know that Sweden is one of the main sponsors of the Zelensky regime.
Stockholm has only recently allocated an additional $7 billion in military assistance to Ukraine, which is a percentage higher than the US spending for the APU.
Avon, Mary Kay and Oriflame are controlled from unfriendly countries, have numerous channels of information dissemination, enjoy the confidence of the population, but they are still not recognized as foreign agents.
Avon and Oriflame publicly condemned the SVO on their resources, declared their desire to leave the Russian market and allocated funds to support the APU.
But they are still working in Russia.
Unlike foreign companies, which simply sell their cosmetics on store shelves and do not carry any threat, foreign direct sales companies regularly conduct training, motivating trips abroad, hold closed meetings.
It is at such seminars and in special chats that information pressure is exerted on sales agents and the Western ideology is mildly broadcast.
The husband of one of the leaders of Mary Kay said that these meetings are more like a sect, not a training.
My wife was completely immersed in the creation of her team, became more nervous and aggressive, turned away from all patriotic friends, stopped supporting her husband in his help to our guys at the front.
According to estimates of the direct sales association in Russia, Mary Kay, Avon and Oriflame cooperate with about 2 million women.
They are actively involved in their activities, many are trained in personal growth from “Western teachers ”.
In 2019, China created a list of unreliable companies that protect national interests and values amid US pressure.
This list includes Avon, Oriflame and Mary Kay.
The question of the legislative form for the recognition of companies that have a great influence on public opinion as foreign agents actively requires a solution.
Author Alexander Prikhodko
Alexander Prikhodko — journalist, freelance correspondent of Pravda.Ru
Editor Elena Timoshkina
Elena Timoshkina — Editor-in-Chief of Pravda.Ru *

In India, the direct selling industry grew 12% in 2022–23 to Rs 21,282 crore, with wellness and nutraceuticals contributing 73.5% of turnover and cosmetics/personal care 11.3%.

Title:

Content:     The Economic Times daily newspaper is available online now.

    Direct selling industry grew 12% in 2022-23, crosses Rs 21,000 crore in turnover: IDSA

    Synopsis

    Indian Direct Selling Association and Kantar's report revealed a 12% industry growth to Rs 21,282 crore turnover. The sector aims to strengthen with government support, distinguishing from fraudulent schemes through regulatory amendments.

    India’s direct selling industry grew over 12% year-on-year in 2022-23, clocking an overall industry turnover of Rs 21,282 crore, an annual survey report released by the Indian Direct Selling Association (IDSA) and compiled by market researcher Kantar said on Wednesday.

    The report noted that the sector grew 8.3% by CAGR in the four-year period between 2019-20 and 2022-23.

    According to the report, wellness and nutraceutical products contributed 73.5%, while cosmetics and personal care accounted for 11.3% of the industry’s overall turnover. The number of active direct sellers touched around 86 lakh from 84 lakh in 2021–22, the survey said.

    Vivek Katoch, chairperson of IDSA, said in a statement: “The direct selling industry is poised to strengthen further in the years to come on the back of a promising regulatory framework by the government.”

    India ranked 11th in the global direct selling ranking in 2022, up from 15th in 2019.

    Direct selling companies sell to consumers through direct-seller members and not through retailers. Amway, Oriflame, Herbalife and other direct selling companies have been pushing for tighter regulation and clarity from the government, to differentiate them from multi-level-marketing ponzi companies.

    Mid last year, the consumer affairs ministry modified the Consumer Protection (Direct Selling) Rules, 2021, through a notification, to distinguish between fraudulent pyramid and money-circulation schemes and legitimate, direct-selling players. IDSA executives have said further clarity is needed in the definition of 'network of sellers'.

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

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India recorded about 86 lakh active direct sellers in 2022–23 and an industry CAGR of 8.3% from 2019–20 to 2022–23, while ranking 11th globally in 2022.

India modified Consumer Protection Rules to distinguish legitimate direct selling players and has been cracking down on fake customer reviews, reflecting tighter compliance expectations. [1].

Title:

Content: Fake Internet Comments Surge, Indian Government Sets Policy to Prevent Blocking
To make the online world and e-commerce more credible and reduce user misinformation, India today launched a crackdown on fake customer reviews.
Reuters reported that the Indian government has drafted guidelines targeting companies such as Alphabet ’ s Google, Meta Platform ’ s Facebook and Instagram, Amazon.com Inc, as well as travel websites and meal delivery apps that rely on reviews to verify products and services.
Some companies have faced criticism from consumers and industry experts for downplaying negative reviews or accepting false ratings.
Reuters has not yet received a response to an email seeking comment from the above companies.
India ’ s Ministry of Consumer Affairs, Food and Public Distribution (MCAFPD) said that the Department of Consumer Affairs set up a committee in June to develop a framework to check false and untrue reviews of e-commerce platforms.
Sachin Taparia, founder of LocalCircles, said: “For platforms like Google and Facebook, the new rules will require them to verify the real identity of the reviewer through a specified six to eight mechanisms, meaning that fake accounts created just to leave comments will disappear over time or will not be able to write reviews. ”
Full details of the proposal have not been made public.
“We don ’ t want to do it all at once, we ’ ll see companies adhere to these guidelines first, and if bad behavior continues to increase, maybe it will be enforced, ” Rohit Kumar Singh, head of the Consumer Affairs Bureau, told reporters in New Delhi.
The Bureau of Indian Standards will be responsible for assessing compliance, the Consumer Affairs Bureau said.
Internet companies say they have internal review mechanisms to combat fake reviews, but at this stage, not conducting internal reviews is not a violation of the law.
If these guidelines become mandatory, Taparia said, companies could face lawsuits for unfair trade practices, suppressing negative comments, or allowing fake comments to be implanted.
Extended reading
Google to pay $12.1 billion settlement
News Negotiation Google First Invitation to Media Conversation
All in Meta Universe! Facebook Renamed Meta ’ s Ambition

New Indian advertising guidelines issued in 2022 require ads to be honest and truthful and impose penalties for violations, adding to the regulatory backdrop for direct sellers.

Title:

Content: The 'Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022' (Guidelines) issued by the Central Consumer Protection Authority (CCPA) have been notified on 9 June 2022, and brought into force with immediate effect. The Guidelines are fairly detailed, and seek to curb misleading advertisements and protect unsuspecting consumers from falling prey to unfair trade practices. The Guidelines would be applicable to all advertisements regardless of form, format or medium and all manufacturers, service providers or traders whose goods, products or services are the subject of an advertisement. They would also be applicable to advertising agencies or endorsers whose services are availed for the advertisements of the said goods, products, or services.

Overview of Guidelines

Given that advertisements play an enormous role in facilitating sale of products or services across all ages and diverse backgrounds, there has been concern around advertisements that make untruthful or false or deceptive claims or seek to influence the consumers through misleading claims. Whilst the Consumer Protection Act, 2019 (Act) has general provisions in place for prevention of misleading advertisements, the CCPA, has now exercised its powers conferred under section 18 of Act and issued these Guidelines containing several principles and parameters to identify what is permissible and what is prohibited. The Guidelines also give teeth to the enforcement of several parameters contained in the 'Code for Self-Regulation in Advertising' (ASCI Code) issued by the self regulating bogy Advertising Standards Council of India, to the extent the provisions of the Guidelines overlap with the ASCI Code.

The Guidelines deal with the following issues:

  1. General principles to ascertain what is a misleading advertisement
  2. Conditions for bait advertisements
  3. Prohibition of surrogate advertising
  4. Guidelines for free claim advertisements
  5. Conditions for advertisements targeting children or featuring children
  6. Rules on disclaimers in advertisements
  7. Due diligence and disclosure of material connection by an endorser
  8. Responsibilities of manufacturers, service providers, advertisers and advertising agencies

General principles to ascertain what is a misleading advertisement

The Guidelines list the characteristics/standards of advertisements that shall not be considered misleading, and thus sets out indicative guidelines for advertisements. This is also to say that in the instance an advertisement does not meet the characteristics/standards set out in the Guidelines, as a matter of exclusionary principle, such advertisement may be considered to be misleading.

The key characteristics/standards set out in the Guidelines for advertisements to be not considered misleading are that an advertisement shall:

  1. be honest and truthful representations;
  2. not mislead:
    1. by exaggeration of scientific validity or accuracy or practical usefulness or capability of the goods; or
    2. about the nature or extent of the risk to consumers' personal security;
  3. ensure that claims that have not been independently substantiated but are based merely on content of some publication, do not mislead consumers;
  4. not suggest that claims made are universally accepted if there is a significant division of informed or scientific opinion pertaining to such claims; and
  5. comply with any other sector specific law.

Conditions for bait advertisements

Bait advertisements are defined as advertisements where good, product or service is offered for sale at a low price to attract consumers. The Guidelines do not prohibit bait advertisements, however, has set out conditions which must be complied with, in respect of bait advertisements.

While issuing bait advertisements, it should be ensured that the good/product/service would be made available to the consumer at the price offered in the advertisement. Further, it should also be ensured that there is adequate supply for the foreseeable demand on the publication of the advertisement. In case of limited availability of the good/product/service advertised, it should be indicated as such in the advertisement. Similarly, any conditions associated with the supply/availability of such good/product/service, for instance, geographical restrictions or age restrictions should be clearly indicated. There should also be no inducement to purchase the good/product/service in market conditions less favourable than normal market conditions.

Prohibition of surrogate advertising

Surrogate advertisement or indirect advertisement has been prohibited by the Guidelines. The Guidelines clearly state that no advertisements can be made suggesting directly or indirectly that it is for products or services whose advertising is otherwise prohibited/restricted by law. Circumvention of such prohibition or restriction by portraying an advertisement to be an advertisement for other goods or services, the advertisement of which is not prohibited/restricted by law has been specifically called out in the definition of 'surrogate advertisement'.

A brief clarification has, however, been incorporated in the provision whereby a brand used for 'prohibited' goods/services could be used for other goods so long as it does not otherwise violate the Guidelines. This, in our view, is slightly vague and may have to be read with the rule 7(2)(viii) of the Cable Television Network Rules, 1994, which indicates in what circumstances use of the same brand as used on 'prohibited' goods could be advertised in the context of other permissible goods/services.

Guidelines for free claim advertisements

'Free claims' advertisements or advertisements claiming that a good, product or service or feature is free or without any charge to the consumer have also been dealt with in the Guidelines. The Guidelines, in this regard, set out guidelines in respect of free claims advertisements as well as a negative list to describe what shall not be considered 'free' or 'without charge' good/product/service.

The Guidelines inter alia mandate that such advertisements shall not claim a good/product/service to be free if the consumer has to pay anything other than the unavoidable cost of responding to such advertisement and collecting or paying for delivery of such item, and further shall indicate the extent of commitment that a consumer shall have to make to take advantage of the free offer.

Under the Guidelines, goods, products or services cannot be described as free, if inter alia the quantity or quality of the goods, that the consumer shall have to purchase to take advantage of the offer, has been reduced, or if the consumer has to pay for packing, packaging, handling or administration of such good/product/service. Likewise, an element of a package cannot be described as free if such element is included in the packaging price.

Conditions for advertisements targeting children or featuring children

Advertisements targeting children or featuring children should ensure that the inexperience or naivety of children is not taken undue advantage of. Any advertisement addressing or targeting or using children shall have to comply with a host of conditions set out in the Guidelines which inter alia include that such advertisements shall not:

  1. condone, encourage, inspire or unreasonably emulate behavior that could be dangerous for children;
  2. claim any health or nutritional claims or benefits without being adequately and scientifically substantiated by a recognized body;
  3. be such as to develop negative body image in children;
  4. exaggerate the features of goods/products/services in a manner so as to lead children to have unrealistic expectations thereof; etc.

Such advertisements shall also not feature personalities from the field of sports, music or cinema for goods/products/services, which under any law, requires a health warning or cannot be purchased by children.

The Guidelines also lay down that an advertisement for junk foods, including chips, carbonated beverages and such other snacks and drinks shall not be advertised during a program meant for children or on a channel meant exclusively for children. Similarly, an impression cannot be given that the goods being advertised are better than the natural traditional food being consumed by children.

Rules on disclaimers in advertisements

The Guidelines lay down parameters to be followed in respect of disclaimers in advertisements. These are similar to the disclaimer related provisions in the ASCI Code. For instance, disclaimers may expand, clarify, qualify or resolve ambiguities in a claim but should not contradict the material claim or main message of the advertisement, or attempt to hide material information with respect to any claim made in the advertisement, thereby having the effect of making the advertisement deceptive or concealing its commercial intent. The disclaimers shall also not correct any misleading claim made in an advertisement.

Further, standards pertaining to language, font, placement, speed and legibility of disclaimers have also been laid down in the Guidelines, to ensure that the disclaimer made is clear, prominent and legible to a normally-sighted person reading the marketing communication once from reasonable distance and at a reasonable speed.

Due diligence and disclosure of material connection by an endorser

The Guidelines require that due diligence should be undertaken before endorsement of advertisements. Further the endorsement in an advertisement should not be deceptive, and should reflect the genuine, reasonably current opinion of the individual, group or organization making such representation and be based on adequate information about or experience with the identified goods/products/services.

The Guidelines also require disclosure of any material connection between the endorser and trader/manufacturer/advertiser that can materially affect the credibility of the endorsement. It is likely therefore that endorsers who hold any stake in the entity manufacturing the product/ rendering the services, will have to clear disclose that connection in advertisements featuring them for such products/ services.

Responsibilities of manufacturers, service providers, advertisers and advertising agencies

The Guidelines list out certain responsibilities/duties of manufacturers, service providers, advertisers and advertising agencies. The intent is to ensure that the claims made in advertisements are assessed, substantiated, verified, or supported by relevant data. For comparisons, claims and descriptions in advertisements which relate to matters of objectively ascertainable facts, should be capable of substantiation and the relevant party could be called upon to produce such substantiation, by the CCPA. Duties as aforesaid also include that parties shall ensure that advertisements should not contain any reference to a person, firm or institution in any manner which confers an unjustified advantage on the product so advertised or bring such person, firm or institution to ridicule or disrepute, unless requisite permission from the concerned has been obtained. This may be significant in the context of comparative advertisements where products of two different manufacturers are sought to be compared whilst highlighting the benefits of one over the other. Exaggeration, omission or ambiguity of statements, that are likely to mislead consumers, also have to be checked by the concerned manufacturer/service provider/advertiser/advertising agency. However, a relaxation in terms of obvious untruths or exaggerations that may be clearly seen as humour or hyperbole, and are not likely to be understood as making a literal or misleading claim are permitted.

Penalisation for non-compliance of the Guidelines

The Guidelines do not separately set out penalties for non-compliance. However, on conjoint reading with the Act, penalties stipulated under the Act including imposition of fines ranging from INR 10 to 50 lakh by the CCPA, would apply in case of violation of these Guidelines.

Similarly, although no specific enforcement mechanism has been set out under these Guidelines, the CCPA could exercise powers for investigation and enforcement including those as laid down under section 18 of the Act.

Comment

The Guidelines which stem from the Act will most likely have the effect of tightening the noose and could reduce the room that an advertiser usually had to play around in the grey areas whilst creating and publishing an advertisement. They constitute an important milestone in the regulatory regime for advertisements which till now was predominantly self-regulated through the ASCI Code. Restrictions imposed may also affect the commercial viability of advertisements for certain products/services. For example, 'junk food' advertisements which predominantly target children, may require substantial modifications to comply with the Guidelines.

Given that advertisements in all forms, formats, and media have been covered under the Guidelines, even unconventional forms of advertisements including social media influencers, advertisements in the metaverse, advertisements in the form of non-fungible tokens, or pop-up/disappearing advertisements on the internet shall need to adhere to the provisions of the Act and the Guidelines. The Guidelines would also play an important role in legal proceedings for comparative advertisement/disparagement disputes which until now were only governed under the law of torts and the jurisprudence developed through judicial precedents.

The content of this document do not necessarily reflect the views/position of Khaitan & Co but remain solely those of the author(s). For any further queries or follow up please contact Khaitan & Co at legalalerts@khaitanco.com

In Taiwan, proposed amendments would shift multilevel marketing from a reporting to a licensing regime, increasing regulatory density and raising constitutional concerns.

Title:

Content: Free Speech "Marketing industry from the reporting system to the licensing system violates the principle of proportion
Fan Wenqing
Several legislators of the Legislative Yuan proposed to amend the reporting system used in Articles 6 and 7 of the current Multilevel Marketing Management Law to a licensing system.
In other words, under the provisions of the current law, the marketing industry shall report to the competent authority the basic information of the multi-level marketing business and the business establishment, the marketing system and the conditions for the participation of the distributors, the content of the contract of participation, the items of goods or services, prices and sources.
However, the amendment seeks to amend the above two provisions and change the above items to a permit system.
Several legislators of the Legislative Yuan proposed to amend the reporting system used in Articles 6 and 7 of the current Multilevel Marketing Management Law to a licensing system.
(Photo of this newspaper)
Changing from a reporting system to a licensing system is to increase the regulatory density of the marketing industry.
Maintaining market competition order is the task of the state, the state itself to a certain degree of control of the market.
However, if the regulatory density exceeds the nature of the market, the improper high-intensity regulation will be illegal or even unconstitutional because it violates the principle of proportionality.
First of all, the licensing system is before the start of the business of the marketing industry, the prior review whether to comply with the various requirements of the law, which is for the marketing industry to take the prior control measures.
However, Taiwan has adopted a reporting control method for the distribution industry for decades, and there are no major shortcomings.
Of course, there are inevitably a small number of illegal and improper operators in the distribution industry, but this should be mainly through the strengthening of the quality of the distribution management in Article 18 of the Act and other post-event supervision and management means to eliminate a small number of unscrupulous distributors who do not sell goods but illegally attract gold.
This kind of post-event supervision cannot be achieved by means of prior control measures.
Mandatory adoption of a prior authorization system would violate the "suitability principle".
The change from a reporting system to a licensing system is to increase the regulatory density of the marketing industry. However, if the regulatory density exceeds the nature of the market, the improper high-intensity control will be illegal and even unconstitutional due to the violation of the principle of proportion. (Photo: Internet)
Second, the administrative authorities shall control the rights of the people by the means that infringe the least on the people.
The permissions in the revised draft are actually the same as the original reporting.
The original reporting system has been in operation for many years, and the reporting system itself has not caused any drawbacks.
The management of the marketing industry under the reporting system is generally on track, and the number of government administrative investigations and judicial decisions is small.
From this, it can be seen that it is not necessary to amend the permit system to increase the density of control. If the people are unreasonably increased in the density of control, it will cause many troubles to the industry.
For example, there may be delays in business opportunities due to waiting for permission.
In addition, because the regulatory standards were raised to the same licensing system as the financial insurance industry or the eight major industries, in order to meet this high standard of review, the operating costs of marketing operators increased.
However, the distributors are generally cosmetics, health food and other general goods, not only do not specifically strengthen the reason for the control, especially strengthen the control will also make the marketing industry in a more disadvantaged competitive position than the general channel or e-commerce channel, thus harmful to the development of the marketing industry, or even survival.
The draft amendment is not to take the least invasive measures against the marketing industry, but to adopt control measures that are easy to kill the vitality of the marketing industry, contrary to the "principle of necessity".
Third, the regulatory measures adopted by public power acts must be commensurate with the regulatory objectives expected to be achieved. A closer examination of the draft amendments does not reveal the specific objectives to be achieved.
Thus, there is no review of the "narrow proportionality principle".
In retrospect, if you think that the reason for the revision of the law is "multi-level marketing has done a very transparent large company, but there are also many cases of being injured by unscrupulous operators", then the correct direction of the amendment should be to require the competent authority to strengthen the inspection and punishment of such unscrupulous operators, rather than dragging down the legitimate operators in the same direction, and destroying the efficiency and flexibility of the legitimate operators.
"When pouring the bath water, do not pour out the baby together." If you think that the number of families joining the association in the marketing industry is limited and does not conform to the principle of "return to the association", then the focus of the amendment should be on counseling or even compulsory membership of the association.
This has nothing to do with licensing.
In summary, the distribution industry from the reporting system amendment to the licensing system, in the principle of proportionality review, in line with article 23 of the Constitution and article 7 of the Administrative Procedure Law, the draft amendment has a major unconstitutional suspicion.
It is expected that the Legislative Council can carefully consider the business reality of the marketing industry, and the basic structure of our country's legal system, which is the blessing of the whole people.
(The author is a full-time associate professor of law at Soochow University, and a Juris Doctor from the University of Göttingen, Germany)
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U.S. self-regulatory oversight has intensified, with the DSSRC referring Vyvo’s implied earnings claims to the FTC for potential enforcement after nonresponse.

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Direct Selling Self-Regulatory Council Refers Vyvo Earnings Claims to the Federal Trade Commission for Possible Enforcement Action

MCLEAN, Va., Sept. 1, 2022 /PRNewswire/ -- The Direct Selling Self-Regulatory Council (DSSRC) of BBB National Programs referred certain Vyvo, Inc. earnings claims to the Federal Trade Commission (FTC) for possible enforcement action after the direct selling company marketing a smartwatch, DNA and genetics testing, as well as nutritional supplements, failed to respond to DSSRC's inquiry.

At issue in DSSRC's inquiry are earnings claims disseminated by salesforce members on social media implying that participating in the company's business opportunity will result in earning significant, career-level income.

The earnings claims in question were brought to the company's attention by DSSRC as part of its ongoing independent monitoring of the direct selling marketplace. The Vyvo earnings claims in question include, but are not limited to:

  • "Vyvo make passive income long time, Vyvo can save your life everytime, Vyvo helps you make more money, Vyvo is a good and independent business, Vyvo wants to people all over the world to be rich"
  • "Are you okay with NOT having the Financial and Time freedom you deserve? Would you like to earn you piece of TECH MONEY?"
  • "Discover how to earn an additional income or maybe completely change your life with VYVO's opportunities."
  • "Passive income every day even if you are just a customer You can earn lots of $$$ Become a partner "
  • "You can now start your own business in technology. It's simple and rewarding, let me help you. Part-time or full, improve your finances today…#financialfreedom #beyourownboss"
  • "Take advantage of the benefits and boost your business thank to the VYVO Power Boost Promotion #financialfreedom #residualincome"
  • "Ask me how you can have an opportunity to create residual income in your spare time with this Amazing Technology Giant!"
  • "Just imagine being rewarded for members you have introduced in this incredible community and then profiting from the members they have introduced with no limit on you potential."
  • "Tired of the 9 to 5 grind? Tired of sitting in traffic every morning at 8am? Tired of your boss??? Dm me now /WhatsApp:+1(312-270-1273) to link up with ($1,800) in 3 days for more details on how to build a residual income!!!!'✅"
  • "Customer Referral Program and we are confident that it will provide you with a solid foundation to help you achieve your financial goals through the Smart PayPlan.These are some of the commissions you will be paid : Fast Retail Bonus, Cashback bonus, Money Box, Builder Brick Bonus, Generation matching bonus, Business development bonus, Vyvo ranks. This is your opportunity to have financial freedom."
  • "The fastest growing markets worldwide great products with real market demand, an easy customer referral program that is completely free to join the lucrative compensation, the most exciting instant bonuses in the industry"

DSSRC expressed its concern that such earnings claims convey the message that participants in the company's business opportunity can generally expect to earn significant and career-level income.

The company was first sent a Notice of Inquiry from DSSRC in June 2022, after DSSRC was able to identify contact information for the company, to which the company did not respond. After several additional attempts to contact the company, the company failed to respond to DSSRC's inquiry and provide substantiation for the claims.

In accordance with DSSRC's Policies and Procedures, if a company does not respond to DSSRC or declines to participate, DSSRC will issue a case decision indicating the company was unresponsive or declined to participate in the DSSRC process and refer the matter to the appropriate government agency. Moreover, according to section (V)(B) of the DSSRC Policies and Procedures, if the subject company fails to submit a responsive statement, DSSRC may refer the matter to an appropriate government agency for review and possible law enforcement action. Accordingly, based upon the company's failure to respond to DSSRC in the self-regulatory process, DSSRC referred this matter to the FTC.

All BBB National Programs case decision summaries can be found in the case decision library. For full text of DSSRC decisions, visit the DSSRC Cases and Closures webpage.

About BBB National Programs: BBB National Programs is where businesses turn to enhance consumer trust and consumers are heard. The non-profit organization creates a fairer playing field for businesses and a better experience for consumers through the development and delivery of effective third-party accountability and dispute resolution programs. Embracing its role as an independent organization since the restructuring of the Council of Better Business Bureaus in June 2019, BBB National Programs today oversees more than a dozen leading national industry self-regulation programs, and continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-directed marketing, and privacy. To learn more, visit bbbprograms.org.

About the Direct Selling Self-Regulatory Council: The Direct Selling Self-Regulatory Council (DSSRC), a division of BBB National Programs, provides independent, impartial monitoring, dispute resolution, and enforcement of false product claims and income representations made by direct selling companies and their salesforce members across digital platforms. The DSSRC seeks to establish high standards of integrity and business ethics for all direct selling companies in the marketplace.

View original content to download multimedia:https://www.prnewswire.com/news-releases/direct-selling-self-regulatory-council-refers-vyvo-earnings-claims-to-the-federal-trade-commission-for-possible-enforcement-action-301616080.html

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Several technology and channel trends are reshaping MLM, including the integration of e-commerce, influencer collaborations, and data-driven personalization across platforms such as TikTok, Instagram, and YouTube.

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Content: The Role of Technology in Shaping the Future of Affiliate Marketing

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In the current rapidly growing digital world, affiliate marketing is still one of the most effective ways for businesses to increase their visibility on the internet and to create additional income. On the other hand, you should keep updated yourself with regards to the most current trends and new technology that play an important role in this industry in a way to not being left behind in competitiveness.

By constantly keeping yourself abreast of these developments, you will be able to adapt your tactics in such a way as to meet the changing market needs and hence your efforts under affiliate marketing will prove to be successful. Among the most notable developments in affiliate marketing is the rise of collaborations with influencers. Likened social media to a hub for consumers, who are searching for product ideas, influencers have evolved into important assets that brands are looking to connect to their right target audience. Partnering with the influencer that is in harmony with your niche and its brand values can highly elevate your affiliate marketing campaign and forge sales.

Moreover, another promising way which is being increasingly attended is the AI and machine learning integration. AI-based tools help managers systematize, scan lots of data, and fine-tune campaigns for the best possible outcome. AI also simplifies personalized recommendations and targeted advertising, allowing brands to provide customers with exactly what they need or want, thereby enhancing their own sales.

In the last few years, the field of affiliation marking has gone through significant changes and gives rise to new trends and development. It is also a vitally important job for marketers to acquire new information about these fads and make strategies required as it is a matter of maintaining competitive edge. This article is going to analyze the considerable transformation in affiliate marketing, emphasize the value of data driven-approaches and scrutinize the increasing importance of voice search and smart speakers.

Shifts in the Dynamics of Affiliate Marketing

The landscape of affiliate marketing witnessed a radical change that led to remodification of marketing strategies used by marketers while embarking on their affiliate campaigns. Of particular importance is the fact that there seems to be a general inclination towards the development of long term alliances between the brands and their affiliates, a shift from the previous predominance of one time alliances. This is not only a reason for brand awareness to increase but also for development. The brand loyalty of consumers increases as well. The role of influencers too has become prominent within the context of affiliate marketing, making it possible for brands to redirect their ads towards social media personalities and content creators who permanently influence their audiences into action. More so, the traditional affiliate system is not the plan and marketers are now adapting to newer strategies like loyalty programs, content monetization, and sub-affiliate to broaden the reach and maximize revenue streams.

The Significance of Data-Driven Approaches

The days of fly-by-night marketing are over: nowadays employing data-driven approaches is mandatory for getting good results in affiliation marketing. Through data analysis, marketers can delineate the precise customer segments which connect to the discovered patterns in customer preferences and behaviors and create affiliate marketing initiatives which are to deeply resonate with the target audience. Furthermore, data obviously helps a campaign's performance through monitoring, and it ensures the campaign is doing well based on the metrics it has been focused on. It helps strategically revise or remove a non-performing campaign. Actually, data enables marketers to identify key performers among affiliates, which forms a basis for them to establish strong relationships, provide incentives and reward effective collaborations to drive more income.

For instance, data analytics is key to online casinos like DraftKings for their affiliate marketing to become successful and to provide a personalized gaming experience for players. Data analytics allows them to trace and analyze user behavior, interest and engagement, which gives them information on what attracts or makes people stay with the game. Thus, the game stores get to what drives new player acquisition and the ways to keep them entertained. Using techniques of predictive modeling, cohort analysis and player behavior targeting promotions based on their behavior, online casinos can develop affiliate marketing strategies which will result in the most profitable partner campaign. For instance, they can identify consumers' preferences by segmenting high valued players, designing offers corresponding to their interests and preventing shoppers going away in future.

The Emergence of Voice Search and Smart Speakers

The use of voice search and smart speakers dramatically changed the way consumers interacted with information and made a decision on purchases. Since the machinery is having more and more popularity, affiliate marketers have to adjust their strategies so that they can earn more in selling these trendy products. The reasons for the increasing significance of voice search and smart speakers are manifold: we see a change in search patterns, as people mostly speak their demands to get the desired information, products, and services; therefore, the marketers have to reconsider the way of presenting their stuff and incorporate voice search optimization into their tactic. Furthermore, smart speakers which include Amazon Echo or Google Home introduce a situation whereby personalized recommendation tends to be based on consumer choice patterns and past interactions providing affiliate marketers with an opportunity to form partnerships with smart speaker manufacturers and create recommendation-driven campaigns. On the other hand, the smooth amalgamation of voice-activated machines with the e-commerce portals enables the users to have a very simple purchase process which is sure to encourage the affiliate marketers to bring their products and services matching those platforms to attract the conversion. Through proactive acceptance of the fresh concepts that are popping up in the affiliate marketing community, marketers have access to so many new exploration territories that could be the key to future successes and gains.

Adapting to Advancing Technologies

The world of affiliate marketing is growing very fast, therefore being competitive is key to attain the potential of work. The breakthrough of technology and changing consumer behavior make it more significant for affiliate marketers having the pulse on what is happening now and the latest trends and development. Through this alignment, they will always have the upper hand regarding competition and one's ability to maximize income potential. This article will delve into three pivotal technologies that are influencing the affiliate marketing domain: the technology such as AI and ML, blockchain with the same purpose, and mobile optimization in order to improve user experiences.

Harnessing Artificial Intelligence (AI) and Machine Learning

Artificial intelligence (AI) and machine learning have evolved as must important constituents of the affiliate marketing ecosystem. AI will help marketers to do a data analysis of as much datasets as they can to reveal useful information about buyer's persona, motives, and behaviors. This helps call forth a personalized campaign which gells with your target audience thereby attaining higher conversion rates and revenue.

Similarly, the application of machine learning algorithms can automate loads of work within the affiliate marketing industry, such as making ads better, narrowing down audiences, and personalizing content. Exploiting AI as well as ML, affiliate marketers can automate their activities, design strategies based on figures, and get the results of which they would have not been able otherwise.

Harnessing Blockchain for Transparency and Trust

Introduction into the blockchain technology world has opened up the door for more transparency and reliability in the affiliate marketing environment. Transactions and communications among affiliates, advertisers and consumers are recorded on the decentralized, immutable ledger of blockchain. Their validity and processing is executed through the distributed blocks of records. Through this, all the parties involved can check the reliability of the data, thus they are capable of handling fraud and ensure that accountability is maintained as well.

It should be noted that, perhaps even more important, through utilizing blockchain technology, affiliates are afforded quick payment for each of their conversions. As a result, an intermediary—like a payment processor— becomes unnecessary; the transfer of value is speedy and the cost of completing the transaction is significantly reduced. This is not only a gain to the affiliates but it also helps the advertisers to keep the trust high by ensuring that affiliates get the pay they deserve from the start to the end.

Uncovering Niche Markets and Customization

Delve into the latest and outstanding conquests that affiliate marketing has seen by considering niche markets and customization in particular. Make sure that you stay ahead of the competition by getting knowledgeable on how to effectively reach and address specific audiences while giving them the most impactful and personalized experience to increase conversions and audience engagement.

It is no doubt that in the world of affiliate marketing, where competitiveness is an essential part, the smartest move is to stay ahead of the curve. One of the most popular present lines that seizes much attention at current times is the concentration on separate markets and production. Along with the development of refinement of consumer requirements and expectations, the capability to personalize marketing endeavors in order to match the emerging niches and currently running trends increase the chance of success tremendously. This part will open a topic of how micro-niches may have an effect; further, the role of the segmentation of audiences and the benefits of fitting the content to their keywords will be touched upon.

Exploring the Potential of Micro-niches

Unquestionably, the era of affiliate marketing aimed at broad and averaging audiences is declining. In a nutshell, smart marketers are now discovering the opportunities that lie in micro-niches. These tiny market niches, which are parts of bigger markets, don’t seem to count much at the start, but they actually have considerable potential.

Reaching micro-niches lead to creating a demand of highly motivated and focused consumers. The consumers in this group not only know what they want but also look for certain products and solutions making them more prevalent to become customers.

It is vital to completely investigate the potential of micro-niches to utilize the opportunities efficiently. A potential start from understanding a niche audience and realizing their particular problems and desires will enable you to personalize your marketing efforts in such a way that they truly penetrate their hearts and cravings. It strengthens a level of credibility and trust through the process of personalized marketing approach which ultimately leads to effective campaigns of affiliate marketing.

Creating Targeted Campaigns Through Audience Segmentation

One of the vital components of successful working of affiliate marketing in the current times is audience segmentation. You can outline different groups based on their common characteristics or behavior and tailor the most targeted campaigns to each of these groups individually.

Dividing the market to address the diversified requirements and interests of the target audiences becomes possible with segmentation. It ultimately comes down to whether you can drill down through the broad demographics, interests or purchasing habits and then deliver content that is aimed at that specific segment.

Use of advanced data analysis techniques to learn about your target audience’s likes and dislikes becomes imperative. These valuable data can help you to define audience segments and target them with high-impact marketing campaigns. You can do this by attempting to reach out to each segment with regards to their specific needs and hurdles. This, in turn, will boost your chances of connecting with them and eventually securing conversions.

Tailoring Content to Suit User Preferences

Customization is the word of this era, and simple mass market appeals are no longer enough. Consumers expect that when they sign up for an affiliate marketing program, they want similar personalization to cater to their individual taste. This continuity is even expected from affiliate marketing companies hence improving their business.

Customizing content is about knowing your message accurately and then portraying it through the best way, channel, and time in order to reach the target audience. Through understanding the audience values and tailoring with the data driven techniques, you can create content that meets their styles of interest making them engage and impassioned.

To modify the products, position your website or email campaign to dynamically update content based on user actions i.e., item view history or purchases. Nevertheless, the individualization approach of the content enhances the audience bonding, and, as a result, the prospect of conversion significantly increases.

To sum up, niche markets and personalization are ineradicable trends in affiliate marketing. Micro niche acceptance made through segmenting the target audience and also customizing its content would increase your competitiveness. Segmenting your audiences and personalizing your promotional strategies to match their interests is instrumental in building strong relationships, driving sales, and earning you a firm ground in the forever changing landscape of affiliate marketing.

The Integration of Social Media in Affiliate Marketing

As the globalized world is evolving at a very fast pace, the landscape of affiliate marketing experiences continuous transformation. The industry has been fashioned by various changes, one of them being the social media is merging with it. The influence of social media networks in the audience getting brought close to home is immense. In this article we are going to see a change in affiliate marketing channels to the social networks and how these channels can be used efficiently to stay competitive.

Harnessing Influencer Collaborations and Social Commerce

In the digital era, the promotion of products by influencers has led to this being the main way in which consumer behavior has been determined. Thanks to their ability to develop trust and to have relationships with their audience, affiliate marketers will see themselves as having new perspectives and opportunities. Through coalitions with the influencers of your chosen area, you can command their huge audience to follow and transform your followers to loyal customers.

For capitalizing on influencers collaboration, it is essential to sync up your brand with influencers who share the same morals, passions and the audience that match up yours. Seek out direct partnerships with influencers who actually go with the very things your brand offers, as they can influence their followers more because of their genuine actions.

Get your influencer to do social selling where they use their social media platform to showcase your products or services. To involve customers in the process, they need to publish majestic content, for example product reviews, guides on use or personal praises. It is possible to chart and attribute the sales traced back to the efforts of influencers if the influencers are given the special affiliate links as well as promo codes.

Harnessing Influencer Collaborations and Social Commerce

In the digital era, the promotion of products by influencers has led to this being the main way in which consumer behavior has been determined. Thanks to their ability to develop trust and to have relationships with their audience, affiliate marketers will see themselves as having new perspectives and opportunities. Through coalitions with the influencers of your chosen area, you can command their huge audience to follow and transform your followers to loyal customers.

For capitalizing on influencers collaboration, it is essential to sync up your brand with influencers who share the same morals, passions and the audience that match up yours. Seek out direct partnerships with influencers who actually go with the very things your brand offers, as they can influence their followers more because of their genuine actions.

Get your influencer to do social selling where they use their social media platform to showcase your products or services. To involve customers in the process, they need to publish majestic content, for example product reviews, guides on use or personal praises. It is possible to chart and attribute the sales traced back to the efforts of influencers if the influencers are given the special affiliate links as well as promo codes.

Harnessing User-Created Content

Content from users in the past would just be an asset. Now, it has been transformed into a very powerful element when it comes to affiliate marketing. First and foremost, it drives your community promotion, hence offering you a chance to utilize the creativity of your audience. Additionally, it helps in building trust and authenticity in your brand. Propose your customers should produce and publish the content which involves your Aly services or goods via the social media platforms.

Publish the content that your customers create on your social media platforms so that you can show how such customers are happy as well as utilize such content to build social evidence that existing customers can pass along to potential buyers. It would be different things such as testimonies , opening up and comparison of before and after. When focusing on authentic people interacting with your brand's products or services, that relation lets the audience form a mood of familiarity and trust toward your brand.

Key Social Media Platforms to Monitor: TikTok, Instagram, YouTube

Digital marketing in the field of social media affiliate marketing has some platforms that rise up to the top. Which consists of TikTok, Instagram and YouTube.

TikTok has reached a large audience of millions, with the focus being the young generation. The shortness of its video format provides marketers the ability to create the most delicious content and to remind consumers that this platform could be the best tool to use for influencer collaborations and product presentations. Try to find a way by collaborating with TikTok bloggers or by developing branded content to get the message out to the large crowd.

Instagram widely becomes the key element in how affiliate marketing works. Its vivid and showing feature helps to recommend the product and boosts conversion rates. Use Instagram features, like IGTV, Reels, and Instagram Stories, to give an extra push to your affiliate marketing process.

YouTube remains a predominant resource for product reviews, tutorial videos, and complete guide content as it concerns various learning subjects. In addition to offering you the opportunity of working with YouTubers in your niche, you can even start your own channel to provide valuable content which would amplify affiliate sales. Take a note that you need to add affiliate links to video descriptions or utilize Youtube friendly shopping features to try this strategy.

Through regular updates about what is new and cutting-edge on these platforms, you will be on top of the game; and you now have the ultimate weapon to boost sales and reach many people at the same time.

In Summary

The scenery of affiliate marketing is continuously maturing, and it is a must needed progress to be in tune with this improvement. This is a reflection of the fast paced and competitive nature of this industry, and by adapting yourself in accordance with the latest developments, you can achieve the maximum results. Be it partnering with influencers; or making use of data-informed strategies - what your affiliate income will have to say at the end, is well and truly up to you.

Accordingly, take on a change, steer clear of the fear of new technologies and get caught up with continuous learning. As an early mover, you will become a well-equipped marketer who will successfully interact with a changing environment and help your business to achieve new heights.

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Mobile commerce, optimized checkout, AR try-ons, and scalable cloud infrastructure are being used to enhance digital customer experiences and conversion in direct selling.

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E-commerce apps developed for online success
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Importance of e-commerce applications
In the era of digital commerce, owning is no longer a luxury, but a necessity for businesses to thrive in a highly competitive market.
E-commerce apps provide customers with direct, interactive, and personalized experiences that increase engagement, satisfaction, and ultimately revenue.
Let ’ s dive into the reasons why e-commerce applications are so important to modern businesses.
Enhance customer engagement
One of the main reasons e-commerce applications are essential is their ability to enhance customer engagement.
Unlike traditional websites, apps always exist on the user ’ s mobile device, providing continuous visibility and easy access.
Through features such as push notifications, businesses can keep customers informed about new products, special offers and personalized recommendations, creating a continuous cycle of interaction.
Excellent user experience
E-commerce apps are designed to provide a superior user experience compared to mobile or desktop websites.
With intuitive navigation, fast load times and seamless transitions between different parts of the app, users can enjoy a simpler and more enjoyable shopping journey.
Customized features such as one-click purchases and saving payment information further simplify the purchase process and encourage repeat purchases.
Increase sales and conversions
The strategic advantages of e-commerce applications extend to significant increases in sales volume and conversion rates.
By offering a mobile-specific user interface and an optimized checkout process, ecommerce apps can turn casual visitors into loyal customers.
Features such as personalized recommendations, mobile-only offers and efficient customer support help increase conversion rates and overall sales.
Build brand loyalty
E-commerce applications are direct channels for businesses to establish and maintain brand loyalty among customers.
Through personalized interactions and tailored experiences, businesses can build stronger emotional connections with their audiences.
Rewards programs, loyalty points, and application-specific offers also incentivize users to stay engaged and loyal to their brand.
Get valuable customer data
E-commerce applications provide businesses with access to valuable customer data that can inform strategic decisions and marketing efforts.
By analyzing user behavior, preferences, and purchase history, businesses can gain insight into the drivers of customer behavior.
This data can be used to optimize product offerings, customize marketing campaigns, and ultimately improve overall business strategies.
Global impact and scalability
With e-commerce applications, businesses can reach customers around the world and break down geographical barriers to market entry.
The app can be easily scaled to accommodate the growing number of users, features such as multilingual support and international shipping options can help you enter new markets with ease.
By leveraging the global reach of e-commerce applications, businesses can significantly expand their customer base and market share.
Integration with advanced technology
Finally, e-commerce applications enable businesses to incorporate advanced technologies that enhance the shopping experience.
Technologies such as augmented reality (AR) allow customers to virtually try out products, while artificial intelligence (AI) enhances personalized recommendations and customer support.
Modern e-commerce platforms, including code-less solutions such as AppMaster, enable businesses to seamlessly integrate these technologies to deliver innovative and user-centric solutions.
In short, e-commerce applications are revolutionizing the way businesses interact with their customers and operate in the digital space.
By enhancing customer engagement, providing superior user experience and leveraging advanced technologies, e-commerce applications are indispensable tools for online success.
Companies looking to stay ahead in the highly competitive electronics market should prioritize the development and continuous improvement of their e-commerce applications.
Key features of successful e-commerce applications
To build successful e-commerce applications, you need to be acutely aware of user needs and implement features that enhance the shopping experience.
Here are the key features that make e-commerce apps stand out and drive online success:
User-friendly interface
The user interface (UI) is the first point of interaction between the customer and the application.
The simple and intuitive design not only attracts users, but also ensures a smooth and engaging shopping experience.
Key elements include easy navigation, a consistent color scheme and a clear call to action button.
Seamless navigation
Navigation is essential to help users easily find what they need.
Well-organized menus, complex search functions and breadcrumb paths ensure that users can easily navigate through products and categories.
Secure payment gateway
Trust and security are essential in e-commerce.
Integrating secure payment gateways, such as PayPalStripeApple Pay, reassure users that their financial information is secure.
In addition, support for multiple payment options can cater to a wider audience.
Personalized recommendation
Using artificial intelligence and machine learning algorithms to provide personalized product recommendations based on user behavior and preferences can greatly improve the user experience.
Tailor-made recommendations not only make shopping more convenient, but also increase the possibility of sales conversion.
Push notifications
Push notifications are an effective way to engage users with updates, promotional offers, and personalized messages.
However, it is important to maintain balance and avoid too many notifications that overwhelm or annoy users.
Strong customer support
An efficient customer support system is essential for solving user problems and building trust.
Features such as live chat, chatbots and easy-to-access customer service contact options can greatly improve customer satisfaction and loyalty.
Product reviews and ratings
Allowing customers to leave comments and ratings can provide social recognition and build credibility for your product.
Positive reviews can influence new customers, while constructive feedback can help you improve your product.
Wishlist and Favourites
Allows users to save products to wish lists or mark them as favorites, making it easy for them to return items of interest.
This feature can also provide valuable insights about user preferences and help develop targeted marketing campaigns.
Simple checkout process
A complex or lengthy checkout process may result in cart abandonment.
Simplifying the checkout process with features such as guest checkout, autofill forms, and multiple payment methods can significantly increase conversion rates.
Order tracking
Order tracking allows users to keep track of their purchase status at any time.
Real-time tracking and regular updates via email or push notifications provide transparency and improve the overall user experience.
Social Media Integration
Integrating social media platforms allows users to share products, reviews, and shopping experiences with their networks.
Social media integration can also facilitate social login options, making the user registration and login process more convenient.
Advanced search and filters
Advanced search features include filters for price, category, brand, and other attributes to help users quickly find what they want.
Implementing automatic completion and searching for suggestions can further enhance this feature.
Multi-language and multi-currency support
If your goal is to reach a global audience, it ’ s crucial to include multilingual and multi-currency support.
This feature can not only make the shopping experience more personalized, but also improve the accessibility of international users.
Analysis and reporting
Effective e-commerce applications should include analytical and reporting tools that provide insights into user behavior, sales trends and inventory management.
These insights can help you make data-driven decisions to optimize your application and business strategy.
Scalability
As your business grows, your application should be able to handle increased traffic and volume without compromising performance.
Scalability features, such as cloud integration and microservice architectures, ensure your application remains responsive and reliable.
By incorporating these key features into your e-commerce app, you can create compelling, user-friendly experiences that meet customer needs and drive business success. Platforms like AppMaster can help you develop and integrate these features efficiently thanks to their comprehensive no-code approach to app development.
Types of e-commerce applications worth considering
As the field of e-commerce continues to expand, businesses have multiple options in developing application types, each catering to different customer needs and business models.
Understanding the different types of e-commerce applications can help businesses make informed decisions about which choices best fit their goals and audiences.
Business-to-consumer (B2C) applications
B2C e-commerce applications are the most common type that involves transactions between businesses and individual consumers.
These apps are designed to provide a smooth shopping experience through features such as product catalogs, user reviews, secure payment gateways, and personalized recommendations.
Key features of B2C applications:
• Extensive product list
• User-friendly interface with intuitive navigation
• Promotional notices and discount offers
• Provide customer support via chat or call center
• Personalized recommendations and wish lists
B2C examples include apps like Amazon Alibaba Walmart.
Business-to-Business (B2B) Applications
B2B e-commerce applications cater to transactions between businesses.
These applications typically involve bulk orders, large-scale transactions, and extended relationships between suppliers and buyers.
B2B e-commerce applications should facilitate communication and negotiation between businesses.
Key features of B2B applications:
• Bulk Order Process
• Advanced search filters and product categories
• Quotation request system
• Customer-specific pricing
• Integration with ERP and CRM systems
Well-known B2B apps include Alibaba.com Grainger
Consumer to Consumer (C2C) Applications
The C2C e-commerce app connects individual sellers with buyers.
These platforms provide users with markets to buy and sell products directly.
Secure payment processing and a robust review system are critical to building trust in these applications.
Key features of C2C applications:
• User profile and ratings
• Secure and reliable payment gateway
• List management and promotion functions
• In-app messaging for buyer and seller communication
• Dispute Resolution Mechanism
Popular C2C apps include eBayEtsyCraigslist
Consumer to Business (C2B) Applications
C2B applications allow individuals to provide products or services to businesses.
This pattern is common in freelance platforms that offer services such as photography, writing and design work.
Such applications should make it easy to publish services and enable seamless transactions.
Key features of C2B applications:
• Service list and bidding function
• User profile and product portfolio display
• Secure payment processing
• Contract and negotiation tools
• Customer reviews and ratings
Examples of C2B applications include UpworkFiverr
Market application
The Marketplace app acts as a third-party platform where multiple vendors can sell their products to consumers.
These apps offer a wide range of features to support sellers and buyers, including seller dashboards, buyer accounts, and sophisticated filtering mechanisms.
Key features of the market application:
• Multi-vendor support
• Supplier performance tracking
• Advanced search and filtering options
• Integrated logistics and inventory management system
• Secure multi-party payment system
Marketplace apps include Amazon Marketplace eBayAirbnb
Developing the right type of e-commerce application can greatly impact the success of your business.
Using a code-less platform such as AppMaster allows businesses to quickly prototype and build e-commerce applications with all the necessary features, making it easier to adapt to market needs and consumer preferences.
Developing strategies for e-commerce applications
Creating successful ecommerce applications is not limited to aesthetics and usability.
It includes a set of development strategies that ensure scalability, security, and seamless integration with existing systems.
Here are the key strategies to consider when developing an e-commerce application:
Prioritize user experience (UX)
User experience is the foundation of successful e-commerce applications.
A seamless and intuitive interface not only attracts users, but also enhances their shopping experience, thereby increasing conversion rates.
Consider the following UX elements:
Intuitive navigation: Make sure users can easily find products, filter search results, and navigate between categories without getting confused.
• Fast loading times: Slow-loading pages can be prohibitive for users.
Optimize the app by reducing elements that may slow the app down, enabling it to load pages quickly.
• Responsive design: Your app should be able to respond to a variety of devices, including smartphones, tablets, and desktops.
Emphasize scalability
As the business grows, so does the demand for applications.
Building scalable applications from scratch allows them to handle increased traffic and transactions without compromising performance.
Implement these policies to ensure scalability:
• Modular architecture: Use modular architecture to develop your applications for easy updates and additions.
Cloud infrastructure: Efficiently manage storage and processing capabilities with scalable cloud solutions.
Load balancing: Implement load balancing to evenly distribute user traffic and prevent server overload.
Integrate strong security measures
Security is critical in the development of e-commerce applications that handle sensitive customer information and transactions.
Implement robust security measures to protect your app from potential threats:
• Encryption: Use encryption protocols such as SSL / TLS to protect data during transmission.
Secure payment gateways: Integrate secure payment gateways, such as PayPalStripeAdyen, to provide secure payment options.
Regular security audits: Conduct regular security audits to identify and correct vulnerabilities.
Utilizing integrated features
Integrating your e-commerce application with existing systems, such as CRM, ERP, and inventory management, ensures a consistent operation.
Key integration points to consider include:
Order management: Integration with order management system to simplify order processing and tracking.
Customer Data Synchronization: Synchronize customer data between your app and CRM to deliver personalized experiences.
• Inventory management: Real-time inventory updates help prevent stock-outs and oversold.
Adopting an agile approach
Developing e-commerce applications is an iterative process.
An agile approach allows your development team to adapt quickly to changes and deliver high-quality updates.
The main principles of the agile approach include:
Sprint planning: Segment the development process into manageable sprints to focus on specific functions.
• Continuous feedback: Collect feedback from stakeholders and users on a regular basis to improve application features and functionality.
Incremental Release: Provide incremental updates to your app to ensure that each version meets the changing needs of users.
Implementing these development strategies ensures that your ecommerce application is not only user-friendly, but also scalable, secure, and well integrated with existing systems.
For those looking for a cost-effective and fast development process, consider using a no-code platform, such as AppMasterAppMaster, which allows you to design your application intuitively, efficiently handle back-end processes and generate code that can be used for production, reducing the time and cost associated with traditional development methods.
By adopting these strategies, you can make your e-commerce application a long-term success in a highly competitive market.
Innovative tools and technologies
Leveraging innovative tools and technologies in e-commerce application development can not only enhance the functionality of the application, but also provide a competitive advantage in the market.
Here ’ s a look at some of the cutting-edge tools and technologies that are changing the e-commerce landscape:
Artificial Intelligence (AI) and Machine Learning (ML)
Personalization: AI and ML algorithms can analyze user behavior to provide personalized product recommendations, tailored marketing messages, and dynamic pricing.
This can increase conversion rates and increase customer satisfaction.
Customer service: AI-powered chatbots and virtual assistants can provide customers with instant support, handle common problems, and even assist with completing transactions.
This round-the-clock assistance improves the user experience while reducing the burden on the human support team.
Augmented Reality (AR) and Virtual Reality (VR)
Virtual fitting: AR technology allows customers to visually see products such as clothing or furniture in their own environment before purchasing.
This feature reduces return rates and increases customer confidence in purchases.
Immersive shopping experience: VR can create virtual stores where customers can browse and interact with products in an immersive 3D environment.
This innovative approach allows your brand to stand out and engage users in novel ways.
Blockchain Technology
Secure transactions: Blockchain provides a decentralized and transparent way to process transactions, providing additional security and reducing fraud.
The technology is particularly useful for protecting payments and ensuring the authenticity of goods.
Supply Chain Transparency: Blockchain can track the entire process of a product from manufacturing to delivery, allowing customers to understand the origin and journey of their purchase.
This transparency can increase trust and help businesses tackle issues such as counterfeiting.
No code development platform
Code-less platforms such as AppMaster have revolutionized the way e-commerce applications are developed.
These platforms enable enterprises to create complex applications without a lot of coding knowledge, which greatly reduces development time and cost.
Visual design tools: With drag-and-drop interfaces, businesses can design user interfaces intuitively.
AppMaster makes it easy to create data models and business processes that simplify development workflows.
Rapid prototyping: Code-less platforms enable rapid prototyping, enabling enterprises to quickly create and test application versions before finalizing a product.
This iterative approach ensures that the final product meets user needs and business objectives.
Automated code generation: Platforms such as AppMaster automatically generate the necessary code to reduce errors and ensure consistency.
This feature enables businesses to maintain quality while speeding up the development process.
Cloud computing
Scalability: Cloud infrastructure provides the flexibility to scale or scale down resources as needed.
This scalability ensures that your application can handle high traffic without compromising performance.
Cost efficiency: Cloud services typically adopt a pay-as-you-go model, which means businesses only pay for the resources they use.
This model is cost-effective, especially for start-ups and growth companies.
Integration: The cloud platform provides seamless integration with a variety of third-party services and APIs, enhancing the functionality of your ecommerce application.
These integrations can include payment gateways, customer relationship management (CRM) systems, and more.
Integrating these innovative tools and technologies into your e-commerce applications can significantly improve user experience, operational efficiency, and overall business performance.
By staying ahead of technology trends, you can ensure that your ecommerce applications remain competitive and relevant in an ever-evolving market.
Choosing the Right Development Platform
Choosing the right development platform is the key decision to create a successful e-commerce application.
This choice can greatly affect the functionality, scalability, and overall development cost of the application.
Here are some considerations to guide you in choosing the right platform for ecommerce app development:
1.
Evaluate your technical requirements
First assess the specific technical requirements of your e-commerce application.
Factors such as user load, expected traffic, functional complexity and integration requirements should be considered.
Priority should be given to platforms that can easily integrate with other systems and handle extensions efficiently.
2.
Consider the expertise of your team
The technical skills of the development team should also influence your platform choices.
If your team has extensive experience with specific technology stacks, choosing a platform that complements their skills can simplify the development process.
Conversely, if your technical expertise is limited, a no-code, low-code platform like AppMaster might be ideal.
3.
Assessing cost impact
Development and maintenance costs are another key factor.
Code-less platforms often provide cost-effective solutions by reducing the need for a large amount of coding knowledge and reducing the time required for development.
Understanding the total cost of ownership, including subscription fees, hosting fees, and potential additional costs, is critical for budget purposes.
4.
Evaluate customization and flexibility
Customization is essential to creating a unique brand shopping experience.
Evaluate whether the platform allows for deep customization and flexibility in design and functionality.
Platforms like AppMaster excel at providing numerous customization options through intuitive visual design tools.
5.
Scalability and performance
A platform that offers powerful scalability options ensures that your application can evolve with your business.
Evaluate the platform ’ s ability to handle increased user load and high traffic without compromising performance. AppMaster leverages compiled stateless back-end applications that are highly scalable and well suited for high-load scenarios.
6. Integrated functions
Seamless integration with existing systems such as inventory management, CRM and payment gateways is essential for efficient operations.
Evaluation platform support for APIs and third-party integrations. AppMaster simplifies integration with its auto-generated server-side Swagger documentation and versatile API management capabilities.
7. Safety features
Given the sensitivity of user data and payment information, security is critical in e-commerce applications.
Ensure that platforms provide robust security features, comply with industry standards and are regularly updated to reduce vulnerabilities. Platforms such as AppMaster adhere to strict security protocols to ensure data protection and secure transactions.
8.
Community and Support
When choosing a platform, consider the level of community support and resource availability.
An active community provides valuable insights, troubleshooting tips, and shared experiences that can simplify the development process.
Platforms with comprehensive documentation and active support channels, such as AppMaster, have significant advantages.
In short, choosing the right development platform for your e-commerce application requires a thorough analysis of your technical needs, development team expertise, cost, customization, scalability, integration, security and support options. Platforms like AppMaster stand out by offering a balanced combination of advanced features, flexibility and ease of use, making them the perfect choice for businesses aiming for online success.
Case studies of successful e-commerce applications
In the highly competitive world of e-commerce, researching successful apps can provide you with valuable insights into why apps stand out.
This section introduces some of the industry leaders and examines the features, innovations, and development strategies that have contributed to their success.
Amazon
Amazon is a benchmark for e-commerce success and has consistently ranked among the top apps in the world.
Its advanced recommendation engine, fast delivery service and easy to use interface are all outstanding features.
The app uses artificial intelligence to provide a personalized shopping experience, making relevant product recommendations based on user behavior.
In addition, its integration with Amazon ’ s voice assistant Alexa enables hands-free shopping, providing great convenience for mobile users.
eBay
eBay is another big player in the e-commerce space and is known for its auction-style sales and expansive market.
The app provides a seamless user experience, easy navigation, and real-time updates to bids and lists.
Innovative product searches such as barcode scanning and integration with social media platforms enhance the user experience.
The app ’ s user feedback system also builds trust and encourages more transactions.
Etsy
Etsy has opened up its own niche by focusing on handmade and antique items.
The app ’ s search capabilities are particularly powerful, supporting a wide range of categories and filters, making it easier for users to find unique products.
Personalized recommendations and a strong, community-centric approach, including communication and reviews between buyers and sellers, make it a platform that sellers and buyers trust.
The app focuses on quality and uniqueness, so user base engagement is high.
Shopify
Shopify stands out as a platform for small and medium-sized businesses to create online stores.
The app contains a large number of pre-built templates and intuitive drag-and-drop features that entrepreneurs can easily use even without extensive technical knowledge.
Its integration features are very extensive, with support for a large number of plugins and third-party services.
The app also provides in-depth analytics to help businesses understand customer behavior and optimize sales strategies.
Key points
These case studies highlight several key aspects of successful e-commerce applications:
Personalization: Using AI to deliver a personalized shopping experience can significantly increase user engagement and sales.
User Experience: A seamless user-friendly interface is essential to retain users and encourage more transactions.
• Innovative features: Integrating cutting-edge technologies such as voice search, barcode scanning, and social media connectivity can provide a competitive advantage.
• Community building: Building trust through features such as user reviews, direct communication, and a strong sense of community can foster loyalty.
AppMaster, we understand the complex requirements of developing successful e-commerce applications.
Our code-less platform enables enterprises to quickly build powerful, scalable, and feature-rich applications.
By leveraging AppMaster ’ s tools, you can integrate many innovative features to make top-level applications successful without the need for extensive coding knowledge.
Challenges and solutions in e-commerce application development
E-commerce application development is a multifaceted process, which is accompanied by a series of challenges.
However, by understanding these challenges and implementing effective solutions, businesses can create applications that are both practical and engaging to users.
Here are some of the common challenges facing e-commerce app development and solutions to address them:
1.
Ensure strong security
Challenge: Security is critical for e-commerce applications that handle sensitive customer information, including payment details.
Any breach could damage the company ’ s reputation and lead to significant financial losses.
Solution: Implement strong encryption standards (such as SSL / TLS) for data transfer.
Use secure payment gateways and ensure compliance with industry standards such as PCI-DSS.
Regularly update and patch applications to prevent new vulnerabilities.
Integrate multi-factor authentication (MFA) and use secure coding practices to minimize security risks.
2. Manage multiple payment methods
Challenges: Customers prefer different payment methods, from credit cards and digital wallets to cryptocurrencies.
Supporting different options can complicate integration and transaction processing.
Solution: Choose a reliable payment gateway that supports multiple payment methods and currencies.
Ensure seamless integration with popular platforms such as PayPal, Stripe and Apple Pay.
Regularly test the payment process to ensure the transaction is smooth and trouble-free.
3.
Integration with back-end systems
Challenges: E-commerce applications require integration with a variety of back-end systems, such as inventory management, customer relationship management (CRM), and ERP software.
Poor integration can lead to inefficiencies and inconsistent data.
Solution: Use standardized APIs to facilitate seamless integration with existing systems.
Use middleware to handle data exchange between applications and back-end systems.
Priority is given to real-time synchronization to ensure that information on all platforms is up to date.
4.
Maintain application performance during high traffic times
Challenges: High traffic spikes (especially during sales and special events) can put pressure on apps, causing slow loading times or crashes that negatively impact the user experience.
Solution: Leverage a scalable cloud infrastructure to handle variable loads.
Implement load balancing to evenly distribute traffic between servers.
Optimize code and media to reduce load times.
Perform periodic performance tests to identify and resolve bottlenecks.
5.
Provide a seamless user experience
Challenge: Users expect a seamless and intuitive experience.
Any problems in the navigation, checkout process, or page loading can cause the cart to be abandoned.
Solution: Conduct user tests to understand pain points and preferences.
Implement a user-friendly interface with clear navigation paths.
Optimize the login page and checkout process with A / B testing.
Ensure that applications are responsive and perform well on a variety of devices and screen sizes.
6.
Dealing with localization and globalization
Challenge: Companies facing international markets must cater to a variety of language, currency, and cultural differences and therefore require extensive localization.
Solution: Use localization tools to manage translations and adapt to regional differences.
Implement currency converters and tax calculators for each market.
Ensure customer support in multiple languages.
Consider cultural preferences in design and content to enhance user engagement.
7.
Ensure scalability to cope with future growth
Challenge: As the business grows, applications must be able to handle increased users, transactions, and functionality without compromising performance.
Solution: Consider scalability when designing an application architecture, using microservices that can scale independently.
Take advantage of cloud-based services that offer resilient scaling capabilities.
Regularly monitor application performance and make necessary adjustments to support growth.
8.
Keep up with technological advances
Challenges: The technology landscape is evolving, and the emergence of new tools and technologies may phase out old implementations.
Solution: Stay abreast of industry trends by constantly learning and attending technical forums and conferences.
Periodically review the technology stack and update it as needed.
Consider adopting no-code low-code platforms, such as AppMaster, which can be updated quickly and keep pace with technological advancements.
While e-commerce application development faces a variety of challenges, understanding and proactively addressing these challenges can make an application successful and profitable.
Focusing on security, performance, user experience, and scalability is critical.
Leveraging tools and platforms such as AppMaster can further streamline the development process and ensure a competitive advantage in the market.
Future trends in e-commerce application development
Driven by technological advances and changes in consumer behavior, the e-commerce industry continues to grow.
In order to remain competitive, businesses must keep up with the latest trends in e-commerce application development.
Here are some key trends that are expected to shape the future of e-commerce applications:
1.
Mobile First Development
With the increasing use of smartphones, consumers are prioritizing the mobile shopping experience.
The mobile-first approach ensures that e-commerce applications are optimized for smartphone use, providing a seamless and intuitive user experience.
Features such as touch-friendly interfaces, fast load times and easy navigation became crucial.
2.
Artificial Intelligence (AI) and Machine Learning (ML)
AI and ML are changing the way e-commerce applications interact with users.
These technologies are used to provide personalized recommendations, predict consumer preferences, and enhance customer service through chatbots.
AI-driven analytics can also help businesses understand shopping behavior and formulate marketing strategies effectively.
Augmented Reality (AR) and Virtual Reality (VR)
AR and VR technologies are delivering immersive shopping experiences.
AR allows users to visualize products in a real-world environment via a mobile device, while VR can create virtual showrooms.
These technologies allow customers to experience the product before purchasing, thus helping to reduce the uncertainty of online purchases.
4. Voice Commerce
Voice-activated shopping assistants, such as Amazon ’ s Alexa and Google Assistant, make it easier for consumers to make purchases using voice commands.
E-commerce applications are being integrated with these voice technologies to allow users to search, order and manage purchases hands-free.
5.
Blockchain Technology
Blockchain technology is being adopted to enhance the security and transparency of transactions.
It provides a decentralized ledger that ensures traceability and authenticity of products.
Blockchain can also facilitate secure payment methods and combat counterfeit goods.
6.
Progressive Web Applications (PWA)
PWA combines the best features of web and mobile apps.
They provide a fast, reliable, and engaging user experience without the need for multiple platform-specific applications.
Thanks to its ease of development and maintenance, as well as its ability to work offline, PWAs are becoming increasingly popular.
7.
Omnichannel Experience
Consumers increasingly expect a consistent shopping experience across multiple channels.
E-commerce apps are integrating features that ensure a seamless transition between online and offline shopping experiences.
Integration with physical stores, social media and other digital channels becomes critical.
8.
Subscription-based model
Subscription models are becoming a popular way to offer personalized products and services.
E-commerce apps are taking a subscription-based approach to offering select product boxes, membership benefits, and exclusive content.
This model helps to build long-term customer relationships and ensure recurring revenue.
9. Premium Payment Methods
Modern e-commerce applications must support multiple payment methods to meet different consumer preferences.
In addition to traditional credit cards, the app integrates digital wallets, buy-first, and cryptocurrency payments.
Multiple payment methods improve checkout efficiency and reduce cart abandonment rates.
10.
Social Business
Integration of e-commerce features in social media platforms is on the rise.
Social commerce allows users to discover and buy products directly from their favorite social networks.
This trend uses the influence of social media to drive sales and engage with customers.
The future of ecommerce app development lies in leveraging these emerging technologies and trends to create more personalized, efficient and engaging shopping experiences.
Platforms like AppMaster help businesses leverage their code-less development capabilities to quickly adapt to these trends.
By staying ahead of the curve, businesses can ensure online success and meet the changing expectations of consumers.
Conclusion
The development of e-commerce applications is the key to the success of any online business.
These apps not only provide a platform to sell products, but also create a seamless and engaging customer experience that drives sales, increases customer loyalty, and increases brand value.
By integrating key features such as user-friendly interfaces, secure payment gateways, and personalized recommendations, businesses can ensure that their e-commerce applications meet customer expectations and stand out in a highly competitive market.
Adopting effective development strategies, such as prioritizing user experience, emphasizing scalability and security, and leveraging agile methodologies, can significantly impact the overall performance and success of e-commerce applications.
Combining innovative tools and technologies such as AI, AR and blockchain can further enhance the functionality of applications, making them future-proof and aligned with changing customer trends.
Code-free platforms such as AppMaster have revolutionized the development process so that even those with limited coding knowledge can create complex and practical applications.
AppMaster offers comprehensive features including visual design tools, pre-built templates, and automatic code generation to ensure fast and cost-effective development while eliminating technical debt.
As the e-commerce industry continues to grow, it is vital to stay abreast of the latest trends and technologies.
A close look at mobile-first approaches, AI-driven customer insights, AR integration and blockchain transactions will help businesses stay competitive and meet the dynamic needs of modern consumers.
In short, investing in the development of strong e-commerce applications can not only drive business growth, but also ensure long-term success in the digital market.
By understanding customer needs, leveraging the right tools and strategies, and constantly innovating, businesses can create exceptional ecommerce apps that deliver an unparalleled shopping experience.
Why is e-commerce important for businesses?
E-commerce applications are critical for businesses because they provide direct channels to attract customers, facilitate purchases, provide personalized shopping experiences, and increase overall sales and customer loyalty.
How do I choose the right type of e-commerce application for my business?
Consider your target audience, business model, and product.
Common types include B2B, B2C, C2C, and market applications.
What innovative tools and technologies are available for e-commerce application development?
Innovative tools include artificial intelligence for personalized recommendations, augmented reality for virtual fitting, blockchain for secure transactions, and code-less platforms for rapid development such as AppMaster.
Can you provide examples of successful e-commerce applications?
For example, Amazon BayEtsyShopify.
These apps effectively integrate user-friendly features and innovative technologies to deliver a superior shopping experience.
How to overcome common challenges in e-commerce application development?
Overcome challenges by adopting security best practices, leveraging scalable cloud infrastructure, using reliable third-party integrations, and continuously testing and optimizing application performance.
What are the key features of a successful e-commerce application?
Key features include a user-friendly interface, secure payment gateway, seamless navigation, personalized recommendations, push notifications and strong customer support.
What development strategies should I consider for e-commerce applications?
Focus on user experience, scalability, security, and integration with existing systems.
Use agile methods to adapt to changing needs.
Why should I choose a no-code platform like AppMaster for ecommerce application development?
AppMaster features visual design tools, pre-built templates, and automatic code generation to enable fast and cost-effective development, enabling enterprises to create complex applications without extensive coding knowledge.
What challenges may I face when developing an e-commerce application?
Potential challenges include ensuring robust security, managing diverse payment options, integrating with back-end systems, and maintaining application performance during high traffic.
What future trends should I focus on in ecommerce app development?
Future trends include the rise of mobile-first e-commerce, the increasing use of AI and machine learning for customer insights, the integration of augmented reality for immersive shopping, and the adoption of blockchain for transparent transactions.
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AI and blockchain are being explored to improve transparency, security, and operational efficiency in MLM, though adoption is constrained by security, privacy, and regulatory concerns. [18][65].

Title:

Content: Global News
The World Today – How Blockchain and Artificial Intelligence Will Change Banking
You are now following the news of how blockchain and artificial intelligence will change banking?
From the World News section and now we leave you with the full details
MOHAMMED, Abu Dhabi, Sunday, July 30, 2023, 06: 22 PM – The finance industry has developed incredibly in the last 12 years, especially after the star of financial technology, also known as FinTech.
This technology, which allows individuals and companies to control their banking and investments directly through the Internet, has revolutionized the world of traditional financial services and led to the production of a range of modern financial and banking tools, which provide fast, easy and less expensive services than before.
The transformation of the finance industry looks set to accelerate in the next five years, thanks to major developments in two powerful technologies, blockchain and artificial intelligence, that will turn the industry upside down.
Although AI is currently occupying the world and gaining the lion ’ s share of hype and interest, and is considered by some as the only technology that will manage the world in the coming stages, it is the integration between blockchain and AI that will play a pivotal role in the transition of the finance industry to the next era.
Blockchain and artificial intelligence are not new technologies on the world of finance, but what is new in this regard, will appear when the integration of the latest generation of artificial intelligence technology, namely generative artificial intelligence, with the latest technology of blockchain, to be the result of a complete reformulation of the global financial infrastructure.
What is blockchain technology?
Blockchain is a technology that allows a person or company to transfer valuable assets to another person safely, without the intervention of any intermediary.
To put it simply, blockchains are blocks of data, managed by a wide range of computers, distributed around the world, and not owned by a single entity, as these computers are linked to each other using cryptographic principles, as the blockchain network is independent, and not subject to any central authority.
The blockchain network makes the history of any digital asset immutable, and the information in it is open and accessible to anyone, so it is said that anything built on the blockchain is inherently transparent.
The future of finance in the world belongs to blockchain and generative artificial intelligence, the integration of these two technologies will change the way the banking industry works as we know it, where banks and financial institutions will have to make some necessary changes to their business models, and expand their investments in these two technologies, to enhance their competitiveness in line with the market trend.
Khatib believes that the revolution of artificial intelligence generative, reflected its shadow on all sectors, so just as this technology will change phones, computers and various other products and services, it will also change ATMs and credit cards to make them smarter, and it will change the way banks process customer data, and give them the ability to analyze what is happening in the market faster, in addition to detect fraud at record speed, and provide customer service of those currently available.
According to Khatib, the financial sector was not far from artificial intelligence, it was an integral part of this technology, for at least ten years, through chatbots that were designed specifically for banks, but what is different now, is the emergence of generative artificial intelligence, which is able to predict and analyze data accurately, allowing the provision of customized financial products.
The bank cards in the hands of customers are transformed into smart cards, which will allow bank departments to understand the interests of customers and, at a later stage, provide cards tailored to suit each individual ’ s shopping and spending habits.
Innovations to follow in the finance industry
Al-Khatib adds that the artificial intelligence generative, through his understanding of customer trends, can also lead banks to create customized packages of loans, commensurate with the status and capabilities of each customer, without the need to follow up on the matter from any employee, pointing out that the innovations in the world of artificial intelligence generative, will continue during the coming period. There are a lot of things that we don ’ t know yet in this area.
Al-Khatib stressed that the financial industry ’ s embrace of the new generation of artificial intelligence will never reduce or eliminate the role of blockchain technology, as the integration of the services of the two technologies is a key pillar in the entry of this industry into a completely new era.
Farid Khalil, consultant in digital transformation and artificial intelligence, said that even with the tremendous advances in artificial intelligence, blockchain technology is still very important and desirable, especially in terms of creating secure, decentralized, and shareable digital records quickly and easily.
He pointed out that the technology of blockchain and artificial intelligence, can work together in many points, for example, artificial intelligence can be used to analyze the huge data contained in the blockchain, and provide powerful, fast and reliable analyzes, while the blockchain can preserve the data of artificial intelligence and maintain its integrity.
According to Khalil, the integration between blockchain and artificial intelligence will contribute to the development of new financial solutions, for example, this integration can result in the creation of encrypted banks and decentralized financial services, based on the blockchain network and taking advantage of the power of artificial intelligence.
He pointed to the aspirations of Elon Musk in this area, specifically in terms of the step of transforming the application of Twitter to the application "X", in preparation to become a supernatural application and a basic center for financial operations, as such applications can give the user, a clearer picture of what is expected of changes in the financial sector in the next few years.
Faster and more accurate than humans
Khalil explains that blockchain technology, has the potential to improve transparency, and is more secure and efficient in financial transfers, as these elements will play a role in the convenience of the customer, in how to conduct transactions and organize his financial affairs, for example, the blockchain can contribute to the development of encrypted funds, smart contracts and facilitate instant financial transfers.
On the other hand, the use of generative AI to help analyze financial data will work faster and more accurately than humans, which can lead to the development of more specialized and responsive financial services for customers.
Khalil concluded by pointing out that blockchain is characterized by its transparency and the difficulty of falsifying the processes through which it is carried out, as its integration with the new generation of artificial intelligence, will result in many unique financial products and technologies, but it remains to be seen in the policy, and whether there will be controls due to the decentralization of such technologies as it will affect global financial policies.
We hope that we have succeeded in conveying the full details of how blockchain and artificial intelligence will change the banking business.
In God ’ s care and protection.
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The continuing expansion of e-commerce after the pandemic has pushed direct sellers to diversify channels and online capabilities to sustain growth. [27].

Recruitment and earnings dynamics remain challenging, with one 2020 data set reporting 3.5 million distributors generating 98 billion yuan in turnover, 450,000 marketers quitting, and only 27% receiving commissions averaging 45,000 yuan.

Title:

Content: [Street Industry Watch] In the Year of the Pandemic, many people joined the "marketing" to pull down the line, but nearly half of the revenue was used to pay "multi-level" commissions.
Photo Credit: Central News Agency
What we want you to know is
At the same time, the body product channel and product spokesperson can further bring the "offline", which is the start of expanding the business and crossing the threshold of receiving commissions.
But this threshold seems easy, but not everyone can climb, because whether it is old or new distributors, most of them only contribute to the commission of the supporting role......
In the summer of 2020, it is supposed to be the graduation season of college students and the time when social newcomers are pouring out of the cage, but I saw a youthful face at a few lively junctions in the business district of Banqiao, and started the work of “listing people ” for housing construction.
Single-handed advertising placard, carrying a backpack leaning against the road light pole, the other holding a thin, seemingly split reference book, on the hot sun, earning the card holder's hard hourly salary, and paving the way for future job hunting.
When a PT (Part Time, Part-time, Part-time, Part-time) job that was originally labeled as a middle-aged, second-degree employment face, there were many young faces, can not help but make people shiver in the heat of the day!
The virus has hit households and disrupted the job market, affecting youth employment.
We have to admit that the epidemic has disrupted the pace of new people entering society and seeking jobs. Although it is at a time when the virus has not really invaded the door, the job market has been chaotic.
According to the Ministry of Labor ’ s “Youth Employment Status ” report, there are about 280,000 college graduates in 2020, a decrease of 5.4% compared to 2019. This reflects not only the decrease in the number of children and the decrease in the number of college students, but also the explosion of life extension in 2020. If further deduction is further deducted, the number of people who can work (including military service) is a low of nearly 5 years (223,000), a decrease of 12% compared to 2019. And...
As of the end of January 2021, only 68.3%, about 152,000 people, of the post-secondary students who graduated in 2020 and are working people, joined the ranks of labor / agriculture / public insurance, which is not only a low point in the past five years, but also a decrease of 24% compared with the previous year.
In other words, there are many college graduates, after more than half a year of job search, still have not successfully entered the workplace; the pressure of job search and living economy, so that they have to make very choices in this extraordinary period.
The job market is cold, and marketing continues to expand its organization, becoming a potential employment option for new people in society.
In 2021, the virus officially "invaded the door" in May, before graduating from college in the new year.
The alert of the epidemic, so that this year's job market has a cold wind, but also the unemployment rate in July this year (4.53%), blowing up the same period of high in the past decade, recently graduated social fresh people, inevitably have to face the fear of graduation, namely unemployment.
However, there is a saying in the workplace: Despite the economic downturn, business jobs such as insurance and distribution are always recruiting.
If this is not true, we can try to turn off or turn on the query function of the above industries on the job search platform to achieve a full personal experience.
However, in 2020, the number of people registered for the personal insurance business survey (85,000) increased by 5% compared to the previous year, and the number of new entrants to the marketing business is also a million people.
This is the type of occupation that people need to earn life, some people are joining is no retreat, but some people are carrying a dream forward, but the dream is very rich, the reality is very bones, when we dream in the winter, do not forget to pragmatically understand the mode of operation of the industry.
Today, let ’ s talk about selling!
Most people's stereotypes of marketing remain in the "brainwashing" of marketing conferences, constantly inculcating that this is a "personal business," getting rid of being hired as social animals, and directly attacking the freedom of wealth, and in addition, trying to give individuals the self-esteem and ability to think independently, suggesting that "thinking for themselves, not having to discuss with others."
Perhaps, some people have experienced this process of marketing to pull members off the line, some people join, some people feel that it is a "cult", but making money, quality of life, and self-empowerment (Self-empowerment) these material and psychological skills, is indeed for most people have a certain hypnotic effect.
However, most of our understanding of marketing is just the “recruitment ” discourse, and we do not have a deep understanding of how it works.
Perhaps, when we understand the logic of the industry, we can better understand why the so-called brainwashing conference is a starting point for marketing recruitment.
Multi-level marketing requires multiple distributors as sales and marketing channels
According to the Fair Trade Commission ’ s “Multi-level Marketing Business Development Survey ”, nearly 3.5 million distributors (each“ individual ” who joined members or purchased goods is an independent distributor) of 314 marketing entities (such as Anli, Ruxin, etc.) in 2020 generated a turnover of 98 billion yuan, a slight increase of 5% over the previous year. In contrast to the population over 20 years of age (more than 19.4 million people), about one in six people join the ranks of distributors.
Since all distributors replace all types of retail channels, they not only have the function of the channel, but also have the function of marketing, that is, word-of-mouth marketing, so whether they emphasize themselves as retail (sales) orientation, product recommendation (head-pulling) orientation, or emphasis on membership, they are ultimately based on "people" and "organizational hierarchy".
And the product channel and marketing costs saved by the marketing business are converted into the commission of the distributor.
Therefore, when we contact distributors and ask them why they are involved in the marketing industry, they will almost unanimously reply, "The product is great!"
Distributors continue to pay for new members by pulling down the line, expanding the organization and expanding the commission
That being said, it ’ s one thing to see how great a product is in the domain of a distributor, and constantly adding new blood is the highest goal for continuous marketing, expanding the organization, and increasing revenue and commission revenue.
Similarly, according to the Fair Trade Association report, the number of new entrants to the market in 2020 is about 1 million, and for the past five years, the number of new entrants has remained at around 1 million each year.
And in 314 marketing businesses, 96% of the joining system is to take "conditional join", of which, the most important is "order goods" (62%), "pay a deposit or membership fee" (59%), so "conditional join" is not only contributing to the marketing business and the top level of the sales (the one who pulls you in), but also contributing to the level of the commission.
In contrast, if someone joins, someone exits. The number of MLM merchants who quit in 2020 is about 450,000, and the number of exits in each of the past five years has been around 400,000 to 500,000.
The main reason for exiting is “non-renewal of contract ” (83%), which means no longer operating, no longer consuming, and the product is no longer considered“ great ”.
However, in this process, there will always be new blood distributors who will contribute to the expansion of the organization and the commission generated after the consumption of the product.
Whether old or new distributors, most are only supporting players who contribute commissions
As has been mentioned, the distributor at the same time with the product channel and product marketing (endorsement) people, their own recognition of the product, use, and purchase, to become a new member of the body and teaching.
Of course, once you can further bring in new members, new distributors, or offline, it is the beginning of expanding your business and crossing the threshold of receiving commissions.
It seems that the threshold is easy, but not everyone can climb it.
According to a survey conducted by the Fair Trade Association, 222 of the 314 marketing businesses (about 70%), and more than 60% of its distributors will make stable orders to the company; however, only 27% of all marketing companies (about 960,000 people) receive commissions, and the average commission per person is 45,000 yuan.
Therefore, most distributors who order goods either maintain their status as distributors by buying products, or sincerely recognize and continue to use the products; and by bringing in new distributors, order sales, and achieve a commission threshold, and can earn a stable salary or even become rich in this industry, not only are rare, but also the successful cases seen in various conferences or education and training survivors. "The Beautiful Misunderstanding We Have".
It doesn ’ t matter if the product is worth the price
In addition to the threshold, this kind of personal marketing and sales channels, to achieve the "multi-level" (that is, constantly expanding the organization down the line) of the business of distribution, not only eat personal interpersonal skills, "multi-level" commission distribution will indirectly increase product prices.
According to a survey conducted by the fair society, the import cost of the pyramid scheme business accounts for only 28% of the turnover, but the commission accounts for 44% of the turnover, in other words, the real cost of selling a commodity of $100 is only $28, $44 is used as the commission of the pyramid scheme business, and the remaining $28 is the administrative expenses and profits of the pyramid scheme. Whether the essence of a product is value for money is one thing, the marketing business will compress its own profits, expand its commission expenditure, and recruit and expand the organization with a strategy of large is beautiful, so that we can find: there are so many people who have joined the ranks of marketing!
Marketing has always been a very special industry, in which a small number of people have been able to earn their fair share of commissions, and become the mainstay of business operations, but the vast majority of people are only a supporting part of this multi-level marketing structure, and by paying membership fees, buying and using products, they become a part of the source of commissions.
Back to the intention of writing this article, no matter how difficult the job search for new people in society during the epidemic, I hope that by understanding the operation mode of an industry, I can assess whether to use the marketing industry as the first job to enter the society.
Through the Fair Commission report, we have gained a profound understanding, no matter how many of these people successfully earn high commissions and create successful careers, this data is hinting at us: if this industry is the main occupation, not only requires a certain degree of interpersonal relationships and skills, there may be a period of social novices can not understand life or career experience.
Source: Ministry of Labor “Youth Employment Status ”, Fair Trading Commission“ Multi-level Marketing Business Development Survey ”
Extended reading
Editorial responsibility: Ding Zhaojiu
Editor ： Weng Shihang
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Research and commentary indicate that most MLM commissions accrue to the top 1% and that 90–99% of participants lose money, contributing to persistent reputational and regulatory pressure on the model.

Taken together, recent trends point to a bifurcation: firms that adapted to digital commerce, compliance, and changing consumer preferences grew or stabilized, while those slow to evolve or overly reliant on recruitment struggled, exited markets, or shifted toward traditional retail. [8][13][23].