The MLM industry has seen significant trends and financial changes in recent years, with some companies growing and others declining.

Optavia-Medifast's revenue fell 34.7% to $296 million in Q2 2022, from $1.6 billion annually.

India's direct selling industry, including MLM companies, grew 12% in 2022-23 with a Rs 21,282 crore turnover, driven mainly by wellness products.

Traditional direct selling companies like Avon and Tupperware have declined in recent years, with Avon's stock falling to $3 from $30 and Tupperware's dropping over 90%.

Mary Kay, a well-known MLM company, reported a decline in sales to $2.5 billion in 2022, with a business model reliant on recruiting new sellers.

The COVID-19 pandemic has impacted the MLM industry, with some companies adapting and others struggling.

Some MLM companies, like Educational Development Corp, benefited from the pandemic due to increased home-based learning.

Nu Skin's stock tripled in value from March 2020 to June 2021, partly due to the COVID-19 pandemic.

MLMs often target young women for recruitment, as seen with companies like LuLaRoe.

Women are targeted to join MLMs like Trades of Hope, where artisans can earn 3 to 6 times their normal regional income.

About 90-99% of MLM participants lose money, with the top 1% earning most of the commissions.

Avon and Tupperware, once successful direct sellers, have declined and left the Direct Selling Association over ethics concerns.

Some MLMs have been accused of being pyramid schemes and have been shut down.

To retain workers, MLM companies assess their reputation, offer competitive wages and benefits, and streamline hiring.

Changes in consumer behavior, like a shift to online shopping, have impacted the MLM industry by enabling subscription-based models.

The pandemic has driven growth in industries like the herb oil market, due to increased demand for organic and natural products.

The herb oil market is expected to grow due to increasing health consciousness, benefiting MLM companies.

The MLM industry has seen significant trends and financial changes in recent years, with some companies growing and others declining.

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/

Optavia-Medifast's revenue fell 34.7% to $296 million in Q2 2022, from $1.6 billion annually.

India's direct selling industry, including MLM companies, grew 12% in 2022-23 with a Rs 21,282 crore turnover, driven mainly by wellness products.

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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    ...more

    Stories you might be interested in

Traditional direct selling companies like Avon and Tupperware have declined in recent years, with Avon's stock falling to $3 from $30 and Tupperware's dropping over 90%.

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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Mary Kay, a well-known MLM company, reported a decline in sales to $2.5 billion in 2022, with a business model reliant on recruiting new sellers.

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These Women Are Selling Mary Kay Makeup From Bomb Shelters In War Torn Ukraine

Following

As the country’s war with Russia rages on, thousands of Ukrainian women have turned to the multi-level marketing company’s pink-packaged offerings to support their families.

By Lauren Debter, Forbes Staff

In the weeks following Russia’s invasion of Ukraine in February 2022, Marichka Lukyanova was inundated with messages from family and friends checking in to make sure she and her two children were safe from the air strikes in Lviv, where she lives. They were safe, luckily, but Lukyanova feared that her business selling Mary Kay cosmetics would be one of the casualties of war.

“I said to myself, Marichika, who will need your cosmetics if there is a war in your country?” recalled Lukyanova.

But one message surprised Lukyanova: Even in those early weeks of the war, one of her clients wanted to buy more Mary Kay facial cream before she ran out. “She did not want to age, even if rockets were flying overhead.”

American multi-level marketing company Mary Kay has shown surprising staying power during the war, with a growing Ukrainian salesforce of an estimated 70,000 women hawking its makeup, even if it means navigating frequent air siren alarms, shelling and blackouts. According to interviews with 16 people selling Mary Kay products on the ground, the cosmetics have become a lifeline for some looking to support their families or make extra money as Ukraine’s economy has suffered from the war.

“For many, it is the only source of income. Many now have husbands, brothers or children fighting,” said Elena Krivchenkova, 58, who has been selling Mary Kay products since the 90s when the company first launched in Ukraine. “It is a way to distract themselves from the horror of what is happening.”

But it’s been tough going, and the salespeople have been faced with a war-torn economy and double-digit inflation — skincare and cosmetics sales in Ukraine fell 13% to $189 million last year, according to GlobalData — along with the challenges inherent in Mary Kay’s business model.

Like other multi-level marketing companies, Mary Kay relies on individual people not just to sell its products to their relatives, friends or others in their social circle, but to recruit them to sell the products, too. There is often an intense pressure to recruit because of the pay model: Consultants, as Mary Kay calls them, make more money when they recruit new people, and their recruits recruit new people. Most people make little or no money working for a multi-level marketing company, warns the Federal Trade Commission.

"They are not helping,” said Robert FitzPatrick, a critic of multi-level marketing companies who has researched the industry for more than two decades. He noted that these types of companies can prey on people who are desperate, “selling themselves as the last best hope” but not delivering, he added.

Mary Kay itself has suffered from skepticism about its business model: Sales worldwide fell to $2.5 billion in 2022, down from $3.6 billion five years earlier, according to Forbes’ list of America’s largest private companies.

“We converted the shelter into a beauty salon.”

Tatiana Korniychuk

“Like the rest of the world, we continue to actively monitor the situation in Ukraine,” said Mary Kay spokesperson Crayton Webb. “Our leadership in Ukraine is actively engaging with employees and the independent sales force, doing everything they can to ensure their safety and supporting the viability of the business.”

Dallas-based Mary Kay, famous for giving out pink Cadillacs to its top salespeople, arrived in Ukraine three decades ago, where it found a burgeoning workforce of women eager for income. While it has a strong presence there, Russia remains an even bigger market — its fifth largest — with 180,000 consultants. But unlike major brands like Starbucks and McDonald’s and other prominent multi-level marketing companies like Herbalife and Amway that closed up shop in the country after the invasion, Mary Kay still operates there. It has had to traverse a tangle of sanctions by staying.

“We have many Independent Beauty Consultants in Russia who also rely on Mary Kay, in many cases, for their livelihood. Again, we remain committed to our mission,” Webb said, adding the company ensures “complete adherence to all laws and sanctions.”

Most of the Ukrainian consultants that Forbes spoke to say they oppose Mary Kay’s decision to remain in Russia, but seem resigned to it. “I try not to dwell on it because I cannot influence it,” said Krivchenkova. “In Russia, there are many women who have survived only thanks to their Mary Kay business. They did not want this war.”

The company’s operations ground to a halt in Ukraine after the war started because of the intense bombing in Kyiv, where Mary Kay’s main warehouse is located. In those first few months of war, consultants resorted to selling whatever products they had on hand to support themselves and their families. Some consultants have hosted charity beauty marathons where a portion of sales are donated to the war effort.

Tatiana Korniychuk, 50, began hauling her Mary Kay products into the bomb shelter during air alerts, letting women try new cosmetics while they waited for the time to pass. “We converted the shelter into a beauty salon,” said Korniychuk, who lives in Zhytomyr.

Maryna Chaikivska, 29, sold tubes of eye cream, cleanser and charcoal face masks she had stocked in her office after the war broke out. She said that netted her about $1,000 a month, paying the bills for six months. Her husband had lost his job at a pharmaceutical company after bombing in Kharkiv severely curtailed production capacity and was heading to the frontlines to put his medical degree to use treating injured soldiers.

“Mary Kay brought colors to a difficult period of life.”

Olga Boysyan

“There was no other way out,” said Chaikivska, who continued to pitch Springtime skincare regimens and bottled-up concoctions that could help combat stress-induced breakouts and wrinkles to her 1,500 Instagram followers.

Chaikivska, who lives in Lviv, used to keep some $15,000 worth of inventory on hand, but now she worries about something happening to it. She heard about another consultant who lost all her inventory after her house was hit by explosions and went up in flames. Now she keeps a third of that amount of inventory on hand.

Three months into the war, Mary Kay began delivering the cosmetics it had in its partially destroyed Kyiv warehouse. By late 2022, it was slowly beginning to ship new products as its consultants rebuilt their customer bases after millions fled the nation in search of safety. More than six million Ukrainians remain outside the country’s borders. (Mary Kay’s Webb says the company shipped products “as soon as possible.”)

That’s had a dramatic impact on businesses built on top of the multi-level marketing company. Because so many customers and consultants have left Ukraine, Elena Krivchenkova said that the incomes on her 2,000-person team have fallen by an average of 30% during the war.

Consultants have also been impacted by rolling blackouts, which make it difficult to get online to pitch products. Six months into the war, Natalia Sokratova, a 35-year-old former teacher, bought a generator so she could continue posting to Instagram, hosting online tutorials and checking in with her team. Others have bought SIM cards from different wireless providers, so that if one provider struggles to provide Wi-Fi they can try another provider.

Some have struggled to make much money from selling Mary Kay cosmetics. Natalia Marynets, a trained lawyer who began selling in 2023, spends two or three hours a day on Mary Kay and has recruited 16 consultants, but still only makes about $200 a month.

Mary Kay did not respond to questions about how much the average consultant makes in Ukraine. It does not release earnings figures except in Canada, where it says the average consultant makes $200 a year.

For many of the other women Forbes spoke to, the additional income, however incremental, wasn’t the only benefit of working as a Mary Kay consultant during the war.

“Mary Kay brought colors to a difficult period of life,” said Olga Boysyan, a former pharmacist who joined the company last year. She told Forbes selling cosmetics is a welcome distraction when she’s waiting to hear from her husband and son, who are serving in the army.

“I have an opportunity to distract our women from negativity and at the same time give them a good mood,” Marynets said. “Even during the Second World War, red lipstick was like an antidepressant for women.”

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The COVID-19 pandemic has impacted the MLM industry, with some companies adapting and others struggling.

Title:

Content: In the past year or two, Apple's "new privacy policy" has become an absolute hot word in the field of mobile marketing.
Since the official launch of the Apple ATT framework, whether it is the pattern order of the industry or the delivery strategy of marketers, a continuous and far-reaching change is taking place in the field of mobile marketing.
However, in addition to this industry internal factors, during the first half of this year, under the influence of a series of macro factors such as the economic downturn and the market cooling after the COVID-19 epidemic, the changes in this field also showed more performance.
AppsFlyer, the global marketing measurement and experience management platform, has released its 15th edition of the Advertising Platform Comprehensive Performance Report.
In terms of media communication, Dr. Wang Wei, General Manager of AppsFlyer Greater China, interpreted and looked forward to the current development of the mobile advertising industry based on the data performance recorded in the report in the first six months of this year.
Among them, "the market downturn, the future can be expected" has become the main thrust of this report.
Overall, as the most special change this year, Dr. Wang Wei said that compared with the first quarter of this year, the average budget of global mobile app marketing fell by 12% in the second quarter.
He further stressed that "in the past list, we have seen more internal factors, such as the impact of the ATT framework on iOS in the industry."
At this time, we noticed that a lot of the iOS budget was shifted to Android.
So more is iOS down, Android up.
But in Q2 this year, both sides showed a decline due to external economic factors.
Based on this change, it is not difficult to find that the mobile marketing field has experienced an "unprecedented half year" at this stage, and it is also bringing greater pressure to the industry practitioners and the platform side.
However, in his view, although advertisers have become tighter and the budget for advertising platforms will shrink, as a response to this shift, some new opportunities have emerged.
For example, “Advertisers will also pay more attention to their own media that does not spend a budget … Whether it is doing UA or remarketing, in this place, the importance of their own media is increasing in an average sense. ”
As a reflection, as pointed out in the report, compared with the second half of 2021, owned media brought an 18% increase in activation volume to Android in the first half of 2022 (the increase of paid media was 2%).
On the iOS side, affected by the new privacy policy and a sharp increase in media costs (up 30%), the situation of turning to own media is naturally more.
There is also a significant gap in the number of media accounts in general: while paid media has increased by 3%, owned media has climbed by 25%.
Turn your perspective to the level of the market.
As the mobile advertising platform market pattern further reflects the trend of change, during this year, the gap between the "two super" first echelon platforms represented by Google and Meta and the subsequent "multi-strong" second echelon players is also shrinking - compared with the second half of 2021, Google Ads lost a small proportion of the activation market share in the first half of 2022.
At the same time, Meta Ads ’ ranking in the global power and scale list has slipped one place behind, and its activation share has fallen even more.
Of course, "for how strong, we can also see that the growth trend is different in different lists."
For example, TTFB had a high growth rate last year, and Q2 growth momentum has slowed this year.
This corresponds to the significant growth in ironSource and Mintegral in the last six months. ”
It is worth mentioning that Dr. Wang Wei also added that in the first half of this year, the report also witnessed the trend of continuous strength of Chinese advertising platforms.
He said that in the past few issues of the list, you can see a lot of Chinese advertising platforms, especially TikTok has been a rapid upward trend in the past few years.
However, during this year, Mintegral took over the baton, which has been a trend of rapid growth for more than a year, and reached an overall new high this year.
At the same time, "like SHAREit, Chuanyin, Xiaomi, VIVO, has been a frequent visitor to our leaderboard, and this year as a whole has reached a relatively high position · · This fully proves that from a global perspective, generally speaking, the United States advertising platform dominates the market situation is changing."
With the tide of Chinese advertisers, I think the proportion of Chinese advertising platforms in the global mobile advertising market will gradually expand. "
Based on the above changes, in terms of coping strategies, Dr. Wang Wei also gave some simple suggestions.
He said that in a more volatile industry situation, at present, in the field of mobile marketing, iOS, Android and game applications, non-game applications four have formed four micro-ecosystems.
As a reflection, this will mean that mobile marketers will be a more complex, but also more likely to form a differentiated marketing strategy, which will be different from the previous marketing thinking.
Therefore, with the continuation of the trend of change in the industry, practitioners can no longer do a solidified way to put the distribution strategy of the channel, and need to have a more dynamic, based on their own optimization ideas to build the channel combination.
On the other hand, he believes that practitioners also need to rethink marketing goals.
"The current industry trend is that the growth of new users is slowing at a large level, or the cost of acquiring new users will certainly continue to rise."
Under this premise, the simple pursuit of only one user growth target is certainly somewhat anachronistic.
I see advertisers paying more attention to more core user behavior in a more rational way.
Even from the perspective of monetization, they will pursue a relatively long-term way of refining operations.
I think this trend of course will make the whole entry threshold rise, not a particularly simple starting point.
However, to look at it from another angle, it will also increase the probability of everyone's marketing success.
Because it ’ s operating in a more scientific way, and eventually it may also gradually expand from the UA level to the operational and product design side, we ’ ll be more data-driven overall.
That would be a more sustainable development model, "he said.
"In the end, there is more to look for new opportunities in the downside."
There are two ways to deal with a downside cycle.
One is to lie flat or hibernate, which is a relatively negative way to cope.
Another is to actively look for new opportunities.
Because in this downward cycle or relatively large change cycle, many new opportunities will be reflected in it.
For example, the previous optimization method has not worked, if I can have some new optimization ideas before others, and then can achieve some good results, then this may also be a certain time window based on the innovation of the dividend period · · These moves in the past may be too obvious because the cumulative effect of the head is not a very good period.
But now, I think there are some directions worth trying.
When the old pattern is overturned, it is an opportunity for the new pattern to emerge, and at present, we are in the process of switching from old to new, and there are a lot of opportunities that have already appeared or are about to appear.
At this time, for those who are prepared, it may be a place full of opportunities and can go to search for gold.

Some MLM companies, like Educational Development Corp, benefited from the pandemic due to increased home-based learning.

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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We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by deep diving into valuations, key business drivers, risk/reward, and different future scenarios.
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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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Nu Skin's stock tripled in value from March 2020 to June 2021, partly due to the COVID-19 pandemic.

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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...

MLMs often target young women for recruitment, as seen with companies like LuLaRoe.

Title:

Content: Cult Classics

You need to watch the most compelling cult docuseries on Amazon Prime ASAP

“Oh my god, I’m in a cult”

What do you think of when you think of cults? Drinking kool-aid, singing hymns, maybe some weird mind control?

Well, while those elements certainly are present in several cults, some of the largest active cults are much more difficult to identify. In fact, you may not see them as cults at all. That’s what makes them so dangerous.

This 2021 four-part docuseries, now streaming on Amazon Prime, breaks down what looks like a fantastic opportunity for women and reveals the terrifying control that lies within, all wrapped in the guise of comfortable leggings.

LuLaRich follows the unstoppable rise and inevitable fall of clothing multi-level marketing company (and alleged pyramid scheme) LuLaRoe. Begun as a well-intentioned way for young women to start their own businesses, LuLaRoe quickly spiraled into a web of manipulation, nepotism, and shady legal practices.

Mormon couple Mark and Deanne Stidham founded LuLaRoe, and from the get-go, the pair established their family as unlike any others. When Deanne married Mark, she had seven children, four biological and three adopted from Romania. Mark had four children of his own. Together Mark and Deanne adopted three other children, bringing the total up to 14. (While having 14 kids is unusual enough, what is even odder is that two of their adopted children eventually married each other.)

When their startup company, which sold comfortable and loud-patterned clothes, took off in a major way, they wanted to support their family. So, they hired their children and relatives in high-powered positions.

Altogether, this is all a recipe for catastrophic growth. What makes LuLaRoe a likely pyramid scheme is how they made money not by selling goods but by recruiting others to be distributors. The company grew exponentially, and the executives weren’t able to keep up with the growth.

But what makes LuLaRoe a cult? Well, those involved are working to please and seek the approval of Mark and Deanne, even if that means selling breast milk to afford the startup package or getting a risky weight loss surgery at Deanne’s urging.

Sure, there’s no religious element to LuLaRoe (aside from the Stidhams’ Mormon teachings leaking into their business model), but that doesn’t mean they’re not a cult. Just one look at the loud, clashing patterns and huge parties run by Deanne’s nephew, and it’s clear this is a group that has complete financial control over its followers.

And that’s not all. LuLaRoe leaders urge everyone to make their social media page entirely about their business, promoting a lavish lifestyle to prove how successful they are. Every part of their life had to revolve around the company to make any profit. So, not only was LuLaRoe controlling its followers' financials, but they also had complete lifestyle control.

It’s clear Mark and Deanne didn’t set out to start a cult. They had only the best intentions, as their participation in LuLaRich underlines. But sometimes cults aren’t created; they just happen. And the worst impulses in the leaders’ personalities are brought out, whether that’s something deadly like a mass suicide or just profiting off a false idea of success.

Sure, LuLaRoe may not be your classic cult, but in a way, that’s what makes it even more insidious. Not many of us know someone who has packed up and moved to a reclusive commune, but people in multi-level marketing companies are everywhere. The line between a company and a cult seems to get blurrier by the day.

LuLaRich is now streaming on Amazon Prime.

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Women are targeted to join MLMs like Trades of Hope, where artisans can earn 3 to 6 times their normal regional income.

Title:

Content: Multi-level Marketing scheme "disguised as an advocacy organization" draws criticism

Here's another multi-level-marketing scheme to be aware of. It's called "Trades of Hope" and Hannah Alonzo describes it as an MLM scheme "disguised as an advocacy organization." Here's how the Trades of Hope website pitches the business to potential "partners" and "advocates" (that's what they call folks who join the MLM to sell merchandise and recruiting additional sellers for their downline):

"Create job opportunities for women leading their families out of poverty and human trafficking by shopping ethically made home decor!"

The company works with "Artisan partners" across the globe, who create the products that are then sold by folks who sign up for the MLM. Trades of Hope describes their relationship with the artisans:

We pay our Artisan partners 100% of their asking price (they set the price!) for a product order before you even see that product on our website! We are in a business partnership with them. Not a charity. Our Artisans receive 3 to 6 times what they would normally make in their region. The Fair Trade communities that are helping them get their product to market follow guidelines of checks and balances to give back, not just to the Artisan, but to their community as a whole as well. This includes things like wells, children's schools, education for adults, land, and developing homes. It is life changing. Fair Trade is about providing a living wage for those in extreme poverty and giving them a chance for a better life.

If the business just worked with artisans to sell their products to the public, I'd have no problem with it, and would actually see it as a positive thing. However, Trades of Hope doesn't simply support artisans—its business model is based on recruiting sellers who then recruit other sellers, which makes it a typical MLM. The recruitment page of the Trades of Hope website clearly states: "Enjoy The Rewards and The Partner Does All The Work!" The problem is, though, that very few people are actually "enjoying the rewards," as it's been shown time and again that 99% of people who participate in MLMs lose money.

Over on Reddit, in the terrific subreddit r/antiMLM ("Stop MLM schemes from draining your friends dry. Multi Level Marketing (MLM) schemes are a drain on our society. Its participants either build the pyramid taller or get squashed by it.") I found some interesting discussions of Trades of Hope. Here's some insight from a former member:

I escaped from them. It's basically an MLM. You don't need to keep product on hand, you have a personal seller website and you pressure people to host parties. Their schtick is that they sell items made by people in developing countries so they use a lot of guilt and religious crap to pressure people into buying the items. We were told to post things on Facebook like "help this family out of poverty one bracelet at a time" etc. I finally noped out after realizing that their method is stupid and sustainable development can be found in ways that don't require me to guilt my friends and family into having stupid online parties. As MLMs go, the buy in is $150 so people don't lose their houses over this. The website is $12 or $13 a month. So not like lularoe requiring $4000+ buy ins but it's def an MLM, there's a lot of pressure to recruit and maintain a downline.

If you want to learn more about Trades of Hope, Hannah Alonzo recently posted a terrific deep dive into the company. Her analysis includes a critique of the company's recruitment structure, as well as critical commentary on how the entire operation oozes with "White savior complex."

About 90-99% of MLM participants lose money, with the top 1% earning most of the commissions.

Avon and Tupperware, once successful direct sellers, have declined and left the Direct Selling Association over ethics concerns.

Some MLMs have been accused of being pyramid schemes and have been shut down.

Title:

Content: Lobbying for sale of essential oil milk powder and red wine
The Democratic Party has received help from nearly 30 members of the public, who have reported to the Police that a distribution company and distributor were suspected of selling products through unscrupulous marketing methods and that the victims had lost about $6.6 million.
Yuan Haiwen, deputy spokesman for financial policy of the Democratic Party, said that about 30 members of the public sought help, alleging that they had been lobbied by a company to participate in the marketing of essential oils, milk powder and red wine, etc., and that the company had asked the victims to pay a franchise fee of $5,210, and lobbied them to become leaders who needed to bear high sales and buy at least nearly $400,000 of goods. The situation, and then encourage people who do not have enough savings to borrow from financial companies.
During the incident, the victims lost about $6.6 million and some of them have already reported to the Police.
Some complainants said that in the dating program to know the dealer, after the payment to join, was constantly extorted by the other party, encouraged to borrow money from the financial company to buy goods, and the company provided sales training, mainly taught how to use human weakness marketing.

To retain workers, MLM companies assess their reputation, offer competitive wages and benefits, and streamline hiring.

Title:

Content: Dig deep to find employees during Great Resignation

Employers need to adopt a number of tactics

I’m getting a great deal of questions regarding workforce shortages. The causes are multi-layered- from the Great Resignation to the child care crisis to the Silver Tsunami. HR professionals have been warning about impending shortages for years. What can be done to better attract, recruit and retain talent in a tight labor market?

Humans have an amazing ability to turn adversity into creativity. There are many strategies to improve the chances to attract good workers, who have multiple offers coming in. Companies should see workforce shortages as an opportunity to reinvent their hiring practices. There is visible proof that only the best companies are winning over talent.

First, employers need to stop and ask, “Would I work here?” What is the workforce saying about my company? What is my company’s reputation from employees’ perspective?

Realize that job seekers talk. A recent applicant refused a company’s offer after learning the best friend’s dad worked there and was being treated poorly. I remember a law firm that had a tough time adding attorneys because of the managing partner’s terrible reputation and unusually high turnover.

Yet some companies report getting lots of resumes. How? Word on the street is they are a great company to work for. One that comes to mind is a food service and retail operation- the same industry having some of the highest job vacancy rates. Applicants tell us, “I’ve been waiting for an opening there.”  Word is they treat people fairly and pay well. Employers can use the presentation they provided to banks and turn that same “sell” towards recruiting. In the same way a banker is convinced to invest in their company, the message can be used to convince applicants to invest in them too.

Happy employees are a business’ greatest marketing device. Plus, good companies make sure they pay competitive wages and benefits, sometimes above market. They also make sure their website looks and feels like life at work. If your company is promoting diversity, make sure the website reflects it. The job posts need to be intriguing and inviting. Use social and other forms of media ads.

In today’s world, be sure to add “remote,” “hybrid” or “onsite’ next to the job post title. Job seekers are looking for this! If your company’s employees work remotely, the good news is geography doesn’t matter.  Widen your net by placing postings in nationwide sites.

The hiring process needs to be examined to streamline, improve, and shorten it. Use of Applicant Track Software (ATS) can help greatly. The system helps filter candidates, takes notes, can grade the applicants, and maps out the next steps. If the process is too lengthy, there is a pretty good chance the candidate will be gone before your organization gets around to deciding.  And don’t ghost candidates.  That’s another reputation a business can mitigate.  Make sure there is a resume receipt letter and be sure to tell each candidate when a decision has been made.

Rotate and post jobs continually. Save all the runners-up and resumes in the ATS for future consideration in your company. Build your own applicant database.

To prevent candidates ghosting you, you’ll need to take nothing for granted.  Ask them if they are expecting any other offers. Tell them why they should stick to their decision. Stay in constant communication with the new hire while on their notice period. Ask them to contact you if anything changes. Remind them on Friday the start date is this Monday at 8 a.m.

This is the start of the hiring process, not the end. Every company needs to have a fabulous orientation program. Make the new hire feel welcomed. Take all measures to acclimate them into the company. HR people call this a “bonding moment” aiding retention. The new hire is evaluating you just as frequently as you are evaluating them.

Train your managers! I’ve seen the hiring or front-line manager totally blow up all the good work done to securing a new hire.  Then live up to your reputation. Job seekers tell me they stay because the job met expectations. The job was actually better than the job description.  Everyone is treated fairly and measured consistently. They have a chance to be heard and see how they fit in.

In a tight job market, employees have lots of choices. It’s always the talent that leaves, not the under performers.  Those people will stick with you until you do something about them. Implementing these tips will better your chances to secure workers that others are going after. Spell out why they should choose you. Be the Employer of Choice!

Rose Miller, local HR Thought Leader and Speaker can be reached at roseumbromiller@gmail.com

Changes in consumer behavior, like a shift to online shopping, have impacted the MLM industry by enabling subscription-based models.

Title:

Content: 01/6How subscription-based foods are changing the market

The surge in online shopping, coupled with its inherent ease, has empowered companies to harness the potential of subscription-based models, capitalising on evolving consumer preferences. In this article Deepak Agrawal, Co-founder and CBO of ProV Foods throws light on how the subscription model's enduring appeal lies in its trifecta of convenience, personalization, and sustainability. Regular product and service deliveries are a key selling point, offering customers the convenience of auto-renewals and fostering a deeper brand connection. Sustainability has emerged as a pivotal factor, with consumers actively seeking out environmentally and health-conscious food products. (Image: istock)

readmore

02/6The Change

The coronavirus pandemic has drastically changed people’s purchasing processes, augmenting the paradigm shift to online platforms in several ways. With the strict implementation of lockdowns, and the subsequent social distancing measures, many physical stores temporarily closed, forcing consumers to procure the desired commodities online. While e-commerce giants already thrived in this space before the pandemic, shopping for consumer edibles, traditionally done in physical stores, witnessed a substantial online shift, and as a result, revenues burgeoned. (Image: istock)

readmore

03/6Impact of online shopping

The growth and easiness of online shopping has enabled companies to leverage subscription-based models to capitalise on changing consumer behaviours and preferences. The model continues to thrive due to its convenience, personalization, and sustainability. The convenience of having products and services delivered regularly is a major USP for many subscription-based businesses. The customer benefits from convenient auto-renewals and a deeper connection with the brand (which learns more and more about what they want). Sustainability is also becoming a key factor as more consumers look to support environmentally conscious companies and reduce waste. (Image: istock)

readmore

04/6The study

A recent study by Nielsen posits that the Indian e-commerce market for groceries grew by 300% in 2022, with subscription-based models playing a significant role. Within this surge, the nuts and dry fruits segment has seen remarkable growth, with a reported increase of 45% in online sales compared to the previous year. The ability to have products or services delivered to your doorstep on a regular basis can be a major time-saver and has led to the explosion of popularity of subscription-based models, particularly in the food industry. Consumers appreciate the convenience of receiving a regular supply of premium nuts and dry fruits through subscription services just as other grocery items. Personalised subscription boxes, including a variety of nuts and dry fruits, have become increasingly popular among health-conscious consumers. (Image: istock)

readmore

05/6Subscription-based models

People are attracted to subscription-based models because it expands the scope of getting personalised products. New research from the Subscribed Institute shows that subscription businesses have consistently out performed sales revenue growth of non-subscription businesses. According to the study, subscription-based businesses have grown by over 437 percent post the pandemic. A lot of this growth can be attributed to personalization of products and services. Additionally, subscribers can be provided with exclusive access to new snack releases or limited-edition products. Offering discounts or promotions to subscribers can also incentivize sign-ups and loyalty. Companies can also offer a trial or sampling subscription to entice new customers. Providing a low-cost or free initial box can help potential subscribers experience the quality and variety of snacks offered. Considering the increasing awareness and consciousness of living a healthy lifestyle and the growing interest in health and wellness, emphasizing the nutritional value of snacks in your firm can highlight options that are low in sugar, high in protein, or meet specific dietary requirements. (Image: istock)

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06/6Challenges and opportunities

Like many things, the subscription-based model, while lucrative, poses some challenges and opportunities for the nuts and dry fruits segment. Ensuring a consistent supply of snacks to meet varying demands can be complex. Inventory management becomes critical to prevent overstocking or running out of popular snacks. Customer retention can be challenging as well, as subscribers may cancel their subscriptions after a short period. Snacking companies must continuously provide value and incentives for customers to stay subscribed. Aside from the aforementioned challenges, the subscription snack box market can be highly competitive. New entrants frequently emerge, and established players must work to differentiate themselves through unique offerings, quality, and marketing. (Image: istock)

Contributed by: Deepak Agrawal, Co-founder and CBO Proventus Agrocom, ProV Foods

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The pandemic has driven growth in industries like the herb oil market, due to increased demand for organic and natural products.

Title:

Content: Herb Oil Market is predicted to rise steadily | Symrise, Givaudan, Biolandes, DoTERRA, Enio Bonchev

Herb Oil Market

Herb Oil Market by Type, Application, and Extraction Method : Global Opportunity Analysis and Industry Forecast, 2021-2030

PORTLAND, OR, UNITED STATES, September 30, 2022 /EINPresswire.com/ -- Herbs can be obtained from the leaves of both herbaceous and non-woody plants. Essential oils, commonly known as herb oils or herbal oils are liquid extracts of hydrophobic plants. These oils are commonly used in complementary and alternative medicine, such as aromatherapy.Other applications for herb oils that contribute to the market's growth include the cosmetic and personal care sectors, where herb oils are used to make perfumes, soaps, and other products, as well as adding flavor to a variety of foods and beverages.These oils have the potential to act as natural insecticides, minimizing the need for synthetic pesticides. There has been an increase in demand for herbal goods and alternative treatments, indicating that these products are becoming more popular. As a result, in the future years, the herb oil market is predicted to rise steadily.

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Companies Covered

Young Living Essential Oils, Symrise, Givaudan, International Flavors & Fragrances, Biolandes, DoTERRA, The Lebermuth, China Flavors and Fragrances, Citrus and Allied Essences, and Enio Bonchev

COVID-19 Impact analysis

COVID-19 sickness began to spread over the world in the first half of 2020, infecting millions of people and causing major countries around the world to enforce foot prohibitions and work stoppage orders. With the exception of medical supplies and life support equipment, the majority of industries have been badly impacted. The herb oil sector has also been hit hard.
The pandemic has disrupted the supply chain, with businesses reporting significant delays in obtaining the raw materials they require. Inventory management has become particularly difficult for producers as a result of this.
COVID-19's lockdown restrictions, along with a manpower shortage, resulted in a drop in Herb Oil output and sales.
Top Impacting Factors.

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There are various reasons that contribute to the worldwide herb oil market's expansion. One of these aspects is the growing interest among consumers in organic and natural solutions to everyday problems.
One of the key driving causes behind the popularization of the herb oil market is the millennial generation, which accounts for a substantial portion of the global population.
The primary growth reasons for this industry will be increased health consciousness, the priority put on physical fitness, and expanding public knowledge of alternative health options.
Market Trends

Natural Product Demand is on the Rise

Because of changing consumer lifestyles, a plethora of factors, growing awareness of the benefits of natural products, consumer focus on health and wellbeing, and millennial trends, today's consumers are hyper-aware and conducting detailed comparisons of various product alternatives before making purchasing decisions. Consumers are primarily concerned with the ingredients used in products, the technology employed, and the manufacturing process.

With the increased use of digital media and constant online pop-ups, consumers' lifestyles have changed, and this has had a significant impact on their consumption habits. As a result, leading market players are focusing on providing additive-free and GMO-free products. As a result, businesses are looking for natural ingredients in the making of their products, such as herb oils. In the food industry, customer preference for natural products may help increase demand for herb oils.The global essential oil market is expected to increase steadily in the next years, boosting demand for herb oil.

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Increased Application in Aromatherapy and Pharmaceuticals

The herb oil and aromatherapy market is expected to grow at a faster rate globally due to widespread awareness of the medicinal qualities of herb oils and other essential oils used in aromatherapy. Herb oil and aromatherapy are becoming more widely used in the medical field, resulting in increased demand all around the world. Consumer experimenting for unusual health issues is on the rise. The market for herb oil and aromatherapy is growing thanks to helping therapies. In aromatherapy, herb oil is the most powerful antibacterial. It has the highest amount of phenol, the antibacterial component.

In response to a perceived consumer "green consciousness" movement in the 1990s, major "personal care" product companies interested in using natural bio-active oils in shampoos and other similar items sparked demand for medicinal grade oils.Herb oil, as a natural anti-allergic and anti-inflammatory agent, has a wide range of uses in the treatment of respiratory problems, infection prevention, digestion disorders, and so on. As a result, these traits may contribute to the pharmaceutical industry's need for herb oil.

Key Benefits of the Report

This study presents the analytical depiction of the Herb Oil industry along with the current trends and future estimations to determine the imminent investment pockets.
The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the Herb Oil Market share.
The current market is quantitatively analyzed from 2020 to 2028 to highlight the Herb Oil Market growth scenario.
Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
The report provides a detailed Herb Oil Market analysis based on competitive intensity and how the competition will take shape in coming years.

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David Correa
Allied Analytics LLP
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The herb oil market is expected to grow due to increasing health consciousness, benefiting MLM companies.