The global direct selling market is expected to reach $1,125.52 billion by 2027, with a compound annual growth rate of 11%.

The market size was $688.45 billion in 2022, indicating a significant growth potential for the industry.

Suntech, a company that utilizes the MLM business model, estimates $8 million profits in 2022, and expects a four-fold increase in net profits.

The company has over 50,000 merchants and 15 million users, demonstrating the scalability of the MLM business model.

PM-International is ranked 10th in 2021 direct sales, showcasing the success of MLM companies in the industry.

However, not all MLM companies have experienced success, as Luckin Coffee expanded rapidly but failed to record a profit.

The direct selling industry in India grew 12% in 2022-23, with a turnover of Rs 21,282 crore, and is expected to continue growing.

Wellness products contributed 73.5% to the industry turnover, while cosmetics and personal care accounted for 11.3%.

The use of MLM software and cloud platforms can facilitate online profits and provide scalable solutions for MLM businesses.

The integration of artificial intelligence and other technologies can also enhance the efficiency and profitability of MLM companies.

Some MLM companies have been fined for violating regulations, such as Dongsen Global, which was fined 800,000 yuan for violating the Multilevel Marketing Management Law.

The pandemic has had a significant impact on the MLM business model, with many companies experiencing a surge in online sales and growth during this period.

Nu Skin, a multi-level marketing company, saw its stock triple in value during the pandemic, with sales increasing as furloughed workers joined the company.

The company gets over 20% of its revenue from China, which is its largest customer base.

To adapt to the changing market conditions, MLM companies have upgraded their technologies, expanded their online offerings, and sought new customers and lines of business.

However, not all MLM companies have been successful in adapting to the changing market conditions, with some facing challenges such as supply chain disruptions and intense competition.

The pandemic has accelerated digital transformation for many businesses, including MLM companies, which has helped them survive and thrive.

Low socio-economic status individuals are vulnerable to exploitation by MLMs, particularly older females with low socioeconomic status.

Young women are susceptible to MLMs like LuLaRoe for business opportunities, which exploit financial desperation and desire for success.

MLMs target people with limited savings, encouraging borrowing, and often require leaders to buy large amounts of goods, leading to significant financial losses.

The majority of people who participate in multi-level marketing businesses lose money, with estimates suggesting that 99% of participants experience financial losses.

Most people who join legitimate MLMs make little or no money, and the business model often relies on recruiting new members rather than selling products to end-users.

Some MLM companies have closed or are closing down, or have switched to a simple direct sales model without a recruitment component, although specific examples are not available in the search results.

Overall, the MLM industry has experienced significant fluctuations during and after the pandemic, with some companies experiencing surges in profits while others face significant declines.

The global direct selling market is expected to reach $1,125.52 billion by 2027, with a compound annual growth rate of 11%.

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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The market size was $688.45 billion in 2022, indicating a significant growth potential for the industry.

Suntech, a company that utilizes the MLM business model, estimates $8 million profits in 2022, and expects a four-fold increase in net profits.

Title:

Content: SUIC, Midas's Partner Suntech Has Successfully Introduced Customized Products and Services To Its VIP Multiple Level Marketing Companies. Suntech Estimates To Quadruple Profits to $8 Million. SUIC Midas Will Partner With 20 Global PSP Partners in 2022 To

Autor: Accesswire
21.09.2021, 12:00  |   |   |

NEW YORK, NY / ACCESSWIRE / September 21, 2021 / Sino United Worldwide Consolidated Ltd. (OTC PINK:SUIC) and Midas Touch's PSP partner in Taiwan, Suntech, has successfully introduced the four products and services to its existing VIP MLM customers. …

NEW YORK, NY / ACCESSWIRE / September 21, 2021 / Sino United Worldwide Consolidated Ltd. (OTC PINK:SUIC) and Midas Touch's PSP partner in Taiwan, Suntech, has successfully introduced the four products and services to its existing VIP MLM customers. Suntech estimates To quadruple profits to $8 Million. SUIC Midas Touch will partner with 20 global PSP partners in 2022 to promote these products and services.

Suntech Taiwan is the largest Taiwan O2O Company, with over 50,000 Merchants and 15 Million users. Suntech Taiwan is going to lead these VIP MLM companies' enterprise-wide business transformation and design exclusive product and service packages. These MLM companies include: PM-International, Taiwan, which is a branch of PM-International AG, Luxembourg. It has more than 30 subsidiaries in more than 40 countries. It provides high-quality nutritious and fitness foods and beauty care products carried through its own brands. PM-International has been recognized as one the Top 100 Direct Sales companies worldwide and is currently ranked 10th in 2021; and the Tsingshan Group of Companies has ten major business groups with a global scope covering more than 30 countries around the world. The holding group has captured the focus of major international media. Among the accolades it has gathered over the decades, its biotechnology company has received high recognition and won, among others, the Taiwan Biotechnology Award, the Taiwan's No. 1 Brand Award, and the Taiwan Golden Quality Award.

"Thanks to the breakthrough innovations and products of SUIC, Midas Touch, Suntech is estimating an increase in net profits to four-fold, expected to reach $8 million on its $1 billion sales turnover. Midas Touch products and services provide instant, emergency funds for our partner merchants and customers. This has been a big success especially during this critical period of pandemic. We are set to increase customer lifetime value with our advanced DeFi business models and strategies," says Joa Chen, Suntech's General Manager.

SUIC Midas is now finalizing and identifying additional 20 PSP partners this year through 2022, with over two million merchants that will bring an aggregate sales turnover of $20 billion, generating $8 million profits for each of the PSP partners as a result. SUIC Midas Touch will fully support these 20 PSP's to earn a total of $160 million in net profits and achieve a total $20 billion in aggregate sales turnover.

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SUIC, Midas's Partner Suntech Has Successfully Introduced Customized Products and Services To Its VIP Multiple Level Marketing Companies. Suntech Estimates To Quadruple Profits to $8 Million. SUIC Midas Will Partner With 20 Global PSP Partners in 2022 To NEW YORK, NY / ACCESSWIRE / September 21, 2021 / Sino United Worldwide Consolidated Ltd. (OTC PINK:SUIC) and Midas Touch's PSP partner in Taiwan, Suntech, has successfully introduced the four products and services to its existing VIP MLM customers. …

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The company has over 50,000 merchants and 15 million users, demonstrating the scalability of the MLM business model.

PM-International is ranked 10th in 2021 direct sales, showcasing the success of MLM companies in the industry.

However, not all MLM companies have experienced success, as Luckin Coffee expanded rapidly but failed to record a profit.

Title:

Content: Too big to fail!
Post Date: November 25, 2021 18: 22
In the 1980s and 1990s, the older generation who have gone to the north to work hard, talking about the mainland market, always love to say this: "The mainland's population is only 1.2 billion, even if one person is given a mosquito, there are 1.2 billion, the market is so large, the prospects are good!" 」
The rapid development of the mainland economy in the past 30 years has made Hong Kong people who were brave enough to set up factories in the north and start a business as a cattle farmer. Over the years, they have made a lot of profits and generally have landed. However, the times have changed, and the people and scenery have changed, and the market of 1.2 billion people is indeed large.
Don ’ t think that only factory workers are familiar with the Mainland, and the industries of wealthier cities have long been transformed. How many Central elites in the financial sector and the legal profession went north almost every month, or even every week, before the epidemic, to serve the businessmen and celebrities in various provinces and cities, and the degree of familiarity of Central people with the state of the country is even higher than many legislators who “love the country and Hong Kong ”.
The financial industry that has dealt with mainland businessmen may have seen them and other different business models: Hong Kong people do business, usually from small to large, but the mainland people love to go the other way, prefer to borrow to raise funds, but also to maximize the business from the beginning, take market share and income sources, and slowly think about how to turn losses into profits. People 1 yuan also has 1.2 billion "dogma, as long as the market is large enough, accounting for enough, sooner or later will also make money.
Do you remember Luckin Coffee?
Known as the "Starbucks of China" at that time, in the very short time of its establishment, it has opened thousands of stores and expanded by means of promotion.
Their strategy is very simple, is to try to grab market share, hoping that when the competition is defeated, the winner will have a chance to eat.
However, the entrepreneur ’ s ideal may not be able to come true, and “strategic loss ” is just empty talk most of the time ----- fighting a price reduction war is equivalent to“ burning money ”, how much ammunition must be burned to reach Turning Point? Even if corporate planning is very popular with investors, save enough ammunition through the ABC round of financing, but wait until the turnaround time can be short. Still not landed, will investors continue to be willing to "pour money into the sea"? Just like Luckin, the money burned a little, but still not until the realization of the "1.2 billion people 1 person 1 yuan also 1.2 billion" vision, still did not succeed in recording a profit, it broke out a fraud scandal, and finally can only fade out of the market.
The sudden mention of Luckin, only because of the observation of the performance of mainland technology stocks in the past two weeks, it is felt that many technology stocks are still in the stage of "strategic losses", although it will not end like Luckin, but to achieve profitability, it seems that it is still far away.
Dramatic point said that the performance of technology stocks in this quarter is a bit like before the examination, and a bit like a turning point.
In the past two quarters and the past six months, there has been no epidemic as a pretext for poor performance, but it has encountered a regulatory storm, and a more stable economic environment and a more stringent regulatory environment have emerged at the same time.
Recently, many people said that "Hong Kong stocks are dead", perhaps the Chinese technology stocks have long been uninterested in war, but for the few old scattered people who still pay attention to the trend of science and technology companies, this quarter's performance is considered to be qualified technology stocks, only the larger e-commerce or online gaming stocks.
The growth of e-commerce stock earnings slowed down, but it is still called profit, any industry has done for a long time, even if the turnover rose, it is still difficult to escape the fate of gross profit decline, which is when the market began to saturate it will appear.
Just like the double 11 in the past, although the voice is not as strong as before, sales are still high.
If you believe that the trend of online shopping is irreversible, the outlook for e-commerce stocks is not too pessimistic, at least there is sustainable profitability, and the biggest enemy may just be the ever-changing, unpredictable regulatory laws.
The situation of online gaming stocks is roughly the same. Even if growth slows down, there has always been a profit, and the biggest unpredictable factor is still approval and supervision.
Video shares, the situation is very different, video shares revenue source is only two ---- user fees and advertising revenue, but this is a bit of a complementary relationship, to keep users, so that they upgrade to a higher level of users, you can collect more premium costs; at the same time, as long as the user, advertisers calculate the amount of content browsing, will naturally increase the advertising budget.
However, the mainland tightened the supervision of various industries, but did not intend to drag down the advertising revenue of video stocks.
The tutorial agency has always been a big advertiser, but the education industry was destroyed, and the advertising rice road was cut off; the advertising budget of medical beauty companies is also quite a lot, but it is also reduced to the target of supervision, and it is also imperative to reduce advertising expenditure.
Of course, limiting the playing time of minors is also a fatal blow to video stocks, in addition to online games often selling advertisements, many short video content is also a strategy to beat the machine, limiting the amount of browsing of related short films is bound to reduce, thus affecting the intention of merchants to put advertisements.
Perhaps some people say that buying high valuations of technology stocks, many times is also Buy A Dream, dream that it has a strong day, as long as it successfully recorded a profit, there is a chance to be revalued, then "revenge to the sun", but the problem is, some high market capitalization of science and technology enterprises that still do not make money, they are already the industry leaders, but have been in a loss for a short period of time, That is, there are many users, but still do not think of the way to turn users into profits, did not find a business model to make money.
Luckin mentioned above, some analysts have pointed out that when it sold more than 1 cup of coffee, it would lose more than 1 cent, which is obviously not the problem of market share, but the problem of profit model.
There is a beautiful picture (1357), but also a representative of the number of users but can not be realized, the mobile phone business is broken, the social business is not enough to grab, Turning Point is where? Who knows!
Video shares seem to be taking this old road, although there are more users, but there are too many competitors, it is more and more difficult to lock the user's eyes on the screen, advertising revenue continues to face challenges, still unable to find a profitable business model.
Yes, like Kuaishou (1024) and Station B (9626), the investment community gave them a very high valuation when they went public, and they bought the future growth potential; but when the loss situation did not improve for years, the “strategic loss ” this ugly cloth can not last long.
Ironically, even though the market capitalization of the two major video stocks has evaporated by more than half from high levels, it is still very large, but too Big does not mean that it can not fail. How much patience do investors have for them?
One day can not solve the problem of turning a large number of users into a profitable way, and it is difficult to get rid of the "Fail" label.
In the early stage of the listing, the number of technology stocks listed since the beginning of the year is still in the majority of retail investors who are still "on the boat".
"It is not important to take a boat, the most important thing is to have someone to accompany, and the big family will lose all together!" This is the true dialogue of a friend who entered the scene after the quick hand cut more than half, but the cruel reality is that the big family has not lost with you.
Don ’ t forget that when they entered the market with the ABC round of financing, the valuation was extremely low. After the company went public, the principal invested in the company has risen in geometric multiple, and there is a significant profit in selling at any time.
Frankly speaking, if there are no retail customers to "pick up" in the secondary market, how can large customers have leeks to harvest?
Lo Shih-yung
Other points of view

The direct selling industry in India grew 12% in 2022-23, with a turnover of Rs 21,282 crore, and is expected to continue growing.

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'.

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Wellness products contributed 73.5% to the industry turnover, while cosmetics and personal care accounted for 11.3%.

The use of MLM software and cloud platforms can facilitate online profits and provide scalable solutions for MLM businesses.

Title:

Content: Multi-level marketing tasks can be done with careful analysis and proceeding with through reliable sources of action plans. MLM Software is designed for multi-level marketing and boosts up the ranking and profits online. Grow your business with an authentic and reliable source of action plans and approaches from smart choices according to the priorities and interest levels. Financial and investment issues can also be done careful analysis and to proceed with careful steps and according to the priorities and the inspirational levels to follow the useful guidelines. There are varieties of ideas and useful strategies that can be assistive and fast result printed to find the best and perfect possible solutions according to the needs and inspirational levels.

MLM software has become one of the ideal choices to get benefits and explore unique ideas for small-scale and large-scale business setups. People who are interested in multilevel marketing have the best option to contact a flexible cloud platform for MLM companies that have Atlantic and genuine resources regarding your business needs. Cloud platforms always facilitate the people through their MLM software that can be assistive and helpful for business communities to get instant benefits according to their desired goals there are different package plans regarding monthly subscriptions customers on regular basis success stories successful projects and regarding business concerns.

There is no doubt that Cloud Platform has a great future and great aspects that have some values and that can be chosen according to the needs and priorities levels of the people. To provide scalable and flexible cloud solution is the main priority to use the best opportunity to proceed with a simple and reliable source of action plans. To manage their network relationship, there are different strategies and useful inspirations that have some values and that can be considered important to get instant benefits with easy and quick accessibility resources through genuine resources.

MLM business scenarios are of different types that can be assistive and have versatile feature plans to get ideas and useful inspirations to approach from easy and smart choices. Proceed with careful steps and make sure which type of strategies and the parameters are the best to approach from easy and smart choices. Your MLM enterprise and landscape can be set according to the priorities and the interests levels of the people. Show your best confidence and interest levels to precede with easy and simple accessibility resources according to the needs and priorities levels.

Get the best chance and useful ideas that have some values and can be approached easily with smart choices according to the needs and inspirational values. There is an opportunity to use the most modern and flexible cloud platform through easy and simple accessibility plans with genuine resources according to the needs and inspirational levels. Show your best competencies and the skills that have some values and that can be helpful to approach from instant responding resources through fast and quick accessibility plans. Find the best and perfect possible solution according to the needs and priorities levels of the people.

Enjoy multitasking and multimode Marketing software that can be helpful to enable the business communities to achieve their objectives start. There are different types of Strategies and useful in inspirations that can be helpful for business communities to set their targets and to market their plans with the help of a can take and reliable sources proceeding through simple and online accessibility resources regarding business sales and volume can be helpful to take right time decisions and to implement strategies that can be helpful to get instant benefits.

Approach your network marketing sources through easy and simple accessibility of MLM software that has a user-friendly interface. Powerful cloud platforms have real-time value and have the ability to grow your business as per your needs. There are no hard and fast rules applied to assess the software because it's user-friendly and has an easy setup to quickly start configuration regarding your business needs. There is a payment integration plan which is easy and has an open architecture Concept for others.

MLM Software features explore the ideas and useful inspirations that have some values to access from easy and smart choices. Powerful management platforms have user-friendly platforms to get benefits from easy and simple accessibility resources with the easy and simple sources of acknowledgment. Grow your business and set your targets that can be helpful for you to proceed through genuine sources and that can be helpful to take full initiatives regarding online accessibility source of action plans.

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The integration of artificial intelligence and other technologies can also enhance the efficiency and profitability of MLM companies.

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GPT-5 will not really break through, 24 years of AGI will not be realized!
New Zhiyuan 2024 / 1 / 1 21: 35: 51 Editor ： Ocean
New Zhiyuan Report
Edited by: Aeneas Peach
After 23 years of generative AI, what new breakthroughs will there be in 24 years of AI? The big guy predicts that even if GPT-5 is released, LLM is still limited in nature, and in 24 years, the basic AGI is not enough to achieve.
23 years is a well-deserved “year of generative AI. ”
In 24 years, what will be the breakthrough of AI technology?
Nvidia senior scientist Jim Fan says 2024 will be the year of video.
Although robots and embodied agents are just getting started, I think video AI will usher in a breakthrough moment in the next 12 months.
OpenAI co-founder Greg Brockman predicts that 2024 will be a breakthrough year for AI ’ s capabilities, security, and potential impact.
Of course, in the longer term, it ’ s just another exponential year that makes everyone ’ s life better than it is today.
In the new year, will artificial intelligence be as brilliant as in 2023?
AI Big Man 2024 Predictions
Meta researcher Martin Signoux made eight predictions for AI in 2024, which even LeCun agreed with.
First of all, artificial intelligence smart glasses are becoming popular.
With the rise of multi-modal technologies, leading AI companies will redouble their efforts to develop AI wearables.
What is more suitable for carrying artificial intelligence assistants than glasses?
ChatGPT is to AI assistants just as Google is to search. In 2023, ChatGPT will shine with Bard, Claude, Llama, Mistral and thousands of derivatives.
As productization continues, ChatGPT will no longer be the only reference in this space, and its valuation will face revision.
Bye, big model. Hello, multimodal model.
LMM will continue to emerge and replace LLM in the multi-modal assessment, multi-modal safety, multi-modal this, multi-modal that.
In addition, LMM is a stepping stone towards a truly general-purpose AI assistant.
There have been no major breakthroughs, but improvements have been made in all areas.
The new model will not lead to a real breakthrough (GPT-5), and LLM is still limited in nature and prone to hallucinations.
We won ’ t see any leaps to make them reliable enough to “solve basic AGI ” in 2024.
Improvements in RAG, data collation, better fine-tuning, quantification, and more will make LLM powerful / useful enough in many use cases to drive adoption of various services across industries.
Small models (SLMs) have emerged, but cost-effectiveness and sustainability considerations will accelerate this trend.
Quantitative technology will also be greatly improved, thus driving the wave of device integration for consumer services.
The open source model defeated GPT-4, and the battle between open source and closed gradually subsided.
Looking back at the vitality and progress of the open source community over the past 12 months, it is clear that the open source model will soon close the performance gap.
Benchmarks remain a conundrum.
No set of benchmarks, leaderboards or evaluation tools can be a one-stop shop for model evaluation.
Instead, we will see a range of improvements (such as HELM) and new initiatives (such as GAIA), especially in terms of multimodal.
Compared to existing risks, the existing risks do not generate much discussion.
While X Risk makes headlines in 2023, the public discussion will focus more on existing risks and controversies related to bias, fake news, user security, election integrity, and more.
William Falcon, founder of Lightning AI, predicts that in 2024:
The -1B model will perform better than the 70B.
Deploying models on CPUs is almost free, not API services.
Data quality will increase performance by 10 times.
A combination of open source models will beat the best private models.
The compiler will increase the speed of the model (training and inference) by at least 80%.
The legislation will support content creators, not model developers.
Jerry Liu, founder of LlamaIndex, an open source tool platform, says:
RAG will continue to be a big focus.
Every AI engineer still needs a strong software engineering foundation.
- Vector database started to develop SQL-like interfaces and support multi-modal
- Multimodal models are more used in document processing (but first, computational costs / latency need to be reduced)
- Full capabilities like GPT-4 become open source, and faster / cheaper.
If this is the case, the development of agents will flourish again.
- Tips are as important as ever, but tips for engineering will decline in importance
In 2023, ChatGPT visits ranked first in the world
Over the past year, AI has become ubiquitous and even redefined the entire industry.
Online content writing company Writerbuddy AI used SEMrush, a well-known tool in the SEO industry, to research 3,000 + AI tools by crawling AI tool data.
From September 2022 to August 2023, the top 50 AI tools generated a staggering 24 billion visits, an average monthly increase of 236.3 million.
Among them, ChatGPT alone accounted for 14 billion traffic, accounting for 60% of the analysis traffic.
Here are the key findings in the report:
The AI industry grew by an average of 236.3 million visits per month.
The 50 AI tools analyzed experienced a growth rate of 10.7 times, with an average monthly increase of 236.3 million visits.
Over the past 12 months, AI applications have reached an average of 2 billion visits per month.
Over the past six months, average monthly visits have surged to 3.3 billion.
ChatGPT, Character AI, and Google Bard saw a net increase of 1.8 billion, 463.4 million, and 68 million visits, respectively.
- The most visited AI chatbot: ChatGPT leads the way, accounting for 76.31% of total visits in the AI chatbot category.
It was followed by Character AI, which came in second with 19.86% of visits.
Craiyon, Midjourney and Quillbot faced the biggest traffic declines.
The United States contributed 5.5 billion visits, or 22.62% of the total, while European countries combined contributed 3.9 billion visits.
AI chatbot tools were the most popular, with 19.1 billion visits.
More than 63% of AI tool users access it via mobile devices.
There is a gender difference, 69.5 per cent male users and 30.5 per cent female users
In addition to the world-famous ChatGPT, these 23 years of technology is also amazing.
After 23 years, the key word of this year is undoubtedly “generative AI. ”
The introduction of ChatGPT at the end of 22, and the release of GPT-4 in March 23, gave the world a glimpse into the wide availability of big language models, turning 23 into a year of text, audio, and video generative AI.
In addition to this year ’ s “darling ” ChatGPT, other companies should not be overlooked, such as the company that released the first open source language model, and several new AI startups, including Mistral, which released the best open source language model currently available at the end of the year, Mixtral 8x7B.
In addition, there are the following impressive technologies.
Stamford Town and Robot Cat
"Stamford Town" showcases the application of impressive textual and coding tasks.
The team created a sandbox environment inspired by the Sims, in which 25 AI agents, each with their own profession and personality, can interact autonomously.
These agents showed credible personal and emergency social behavior, including making plans and attending Valentine ’ s Day parties.
This work demonstrates how LLM-based agents interact with each other and produce interesting results.
This idea has been adopted by other research and open source projects, such as Auto-GPT and BabyAGI, while OpenAI greatly simplifies it through the Assistant API.
Basic models such as GPT-4, which have also been used in robotics, have made some progress, such as Google's robots RT-2 and RoboCat.
RT-2 is an AI model for robot control that can be learned from robot and network data.
The model can handle text and image input and leverage its extensive network knowledge to perform tasks that have not yet been explicitly trained.
In more than 6,000 robotic tests, the RT-2 has nearly twice the success rate of its predecessor in untrained missions.
RoboCat, on the other hand, is an AI that generates training data to improve robot control.
Other companies ’ technologies, such as Nvidia ’ s multimodal VIMA model, also use foundational models in robotics.
DreamerV3 and FunSearch
In the field of reinforcement learning, researchers have also achieved many important results.
One example is DreamerV3, which can handle completely different issues without any tweaks.
Without a human model, DreamerV3 learns how to mine diamonds in Minecraft.
Earlier this year, DeepMind also demonstrated AdA (Adaptive Agent), a fundamental reinforcement learning model for DeepMind.
AdA follows the classic formula of the underlying model and is trained on tasks with large amounts of data. AdA is significant because it shows that extensions in reinforcement learning can make models perform better on other tasks.
In various fields of science, deep learning is showing an increasing role.
DeepMind developed AlphaTensor, a new algorithm for rapid matrix multiplication.
Meanwhile, DeepMind ’ s latest version of the AlphaFold protein structure prediction system overcomes many of the weaknesses of previous versions, opening up new possibilities for computational structure prediction.
Google DeepMind also showcased FunSearch, the first time that a code-generated language model has been combined with an evolutionary search algorithm to find previously unknown solutions to mathematical problems.
OthelloGPT, Q-Star and the AI Act
2023 is also the year of AI regulation and the year of warnings about the risks of AI existentialism.
This trend will undoubtedly stimulate industry research to better understand the inner workings of LLM.
There were some interesting papers during this period, such as Othello GPT, Microsoft ’ s GPT-4 embodying the AGI spark, and Google ’ s paper on the big model “epiphany. ”
The field of tip engineering provides insights into LLM.
François Chollet interprets cue engineering as finding the right vector program and Promptbreeder, suggesting that cues may become more automated in the future.
At the end of the year, rumors about Q-Star were spread, along with people's AI fears, AGI hype, and the OpenAI palace fighting farce that reversed many times in just a few days.
In 2024, perhaps we will see less speculation and more negotiation.
In which categories is the data used for AI training justified? The recent New York Times lawsuit against OpenAI has caused extensive discussion in the whole society.
A similar debate will be staged in the European Union, where by the end of the year, EU countries have agreed on the EU Artificial Intelligence Act.
The details of this bill will be decided next year and will have a significant impact on the European artificial intelligence market.
2024 AI Outlook
After an explosive 2023, what progress will be made in the field of artificial intelligence in 2024?
Needless to say, in this new year, we will still see leading AI being applied in many new creative ways, driving progress across the industry.
Copilot AI on stage: the era of the intelligent body
OpenAI released GPTs, Assitants and other tools at the first developer conference, Microsoft products renamed Copilot, etc., and the intelligent body ushered in a big explosion this year.
These tools have begun to make an impact in one industry after another, but what we have seen so far is negligible compared to what is coming.
Earlier this year, a ReAct paper published by a team from Princeton and Google demonstrated how large models can effectively learn how to use tools, and has driven a lot of research in this area.
Companies like OpenAI and Anthropic have spent a year tweaking their models to make better use of the technology.
For example, OpenAI ’ s function calls, and Anthropic ’ s Claude XML support.
Project address: https: / / react-lm.github.io /
There are also research institutes that specialize in training large models, such as Berkeley ’ s Gorilla LLM.
In addition, open source libraries such as Langchain, Rivet, etc. make agents much easier.
AI agents are easier to develop and cheaper than ever before.
While harnessing human ingenuity, they also connect deeply to the data that matters most to users and companies.
In 2024, we will see the arrival of the “agent era ”, the beginning of a whole new direction of meeting needs and interacting with technology through software.
Multi-modal large model breaks through visual barriers
ChatGPT ’ s ability to understand and express human natural language is a breakthrough feature that appeals to both users and developers.
However, 2024 will see AI vision likely to be even more important and more far-reaching.
Words are powerful, but images, video, and audio can convey information and emotions in a more focused way.
The spatial expression of ideas is a very powerful tool that can simply convey complex concepts.
LLM can train not only text data, but also visual data, and multi-modal capabilities are more obvious.
We ’ ve seen the development of wearables like the Ai Pin and Apple Vision, which promise to help us in our daily lives.
For example, they can provide background information about people they interact with, visual cues about work, or real-time suggestions for completing tasks.
Where will innovation go?
It ’ s hard to say right now, but being able to decipher images and videos and react instantly to physical changes in the environment adds an extremely important dimension to how intelligent AI can only help humans.
Manipulated to a dangerous level.
While the AI outbreak has brought tremendous and earth-shaking changes to various fields, it also allows us to see that AI generates false information to bring troubles to life.
In human history, large-scale impact and manipulation of AI has never been more powerful and pervasive.
Artificial intelligence has made it almost impossible to discern “real ” social interactions and content because images, even videos, can be easily generated.
In the coming year, AI manipulation is likely to become widespread, ranging from automatic extortion and fraud to the spread of conspiracy theories.
All in all, in 2024, AI will bring a lot of incredible things to the world, but it will also challenge us in new ways.
Friends Predictions
The idea of this topic is also on the hot list.
Knowledge friend "lead small white" predicts that in 24 years, the model effect will further breakthrough, perhaps as long as the 7B model reasoning resources, can be the same as the current GPT-4.
With the deployment costs falling sharply, 24 years may become the first year of the AI Agent, and there will be an explosion.
Multiple modes into multiple modes out of a unified model, it is possible to appear.
The first AI film is also expected to appear in 24 years.
Tsinghua Automation Department in the reading of Dr., "the multi-modal large model has made further breakthroughs, and the ability to generate pictures and videos has been further improved."
More human work, especially work that requires some creativity, has been replaced.
In some areas, the emergent capabilities of large models have become more prominent, showing some more creative behaviors, "he said.
AI architect "Chunyang CYang" estimates that 2024 should be the first year for the application of AI models.
Throughout 2023, although the big model is hot, there are very few products that can really land, only focusing on shallow applications such as rewriting copywriting.
But now, there are many creative products in the field of large models on the ground, you can expect a wave.
The author of The Fifth Commandment predicts —
The big language model will run inference on the phone; the agent will do more practical things in place of people; and most happily, the humanoid robot will probably help us wash, mop, cook, and clean up the room!
References:
• https: / / writerbuddy.ai / blog / ai-industry-analysis
• https: / / x.com / gdb / status / 1741529664856764556? s = 20
• 2023 / https: / / www.zhihu.com / question / 635190738
• https: / / www.zhihu.com / question / 635190738 / answer / 3327969527
• https: / / www.zhihu.com / question / 635190738 / answer / 3334551780
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Some MLM companies have been fined for violating regulations, such as Dongsen Global, which was fined 800,000 yuan for violating the Multilevel Marketing Management Law.

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The desire of men to want a sports car is related to the size of the GG, a British research team has confirmed.
What does the distributor say about the smallpox?
East Mori Dragon and East Mori Global Punished by Fair Society
The Fairness Association said that the “Dragon Team ”, a distributor of Dongsen Global, engaged in recruitment activities with improper words. However, in addition to the fines imposed by Dongsen Global, several distributors of the Dragon Team continued to solicit improper words. The company is liable for violating the provisions of Article 15, Paragraph 2 of the Multilevel Marketing Management Law and is fined 800,000 yuan.
Fairness will also directly punish Fang Xuan International Enterprise Co., Ltd. and Fang Xuan Industrial Co., Ltd., the leader of the Dragon Team, a global distributor of Dongsen.
The reason is that on March 11 and May 21, 110, it held a briefing to buy the "online shop package" supplemented by "join" and other terms, and said that the purchase of the "online shop package" can receive a gift box of the same value of goods, so that people mistakenly recognized to join Toshen and received a gift, and different from the distributors reported by Toshen Global Company to the fair. Violating Paragraph 2 of Article 10 of the Multilevel Distribution Management Law, Fangxuan International Enterprise was fined 400,000 yuan and Fangxuan Industrial Co., Ltd. 100,000 yuan respectively.
In order to prevent distributors from using improper methods to promote or sell goods or services to harm the rights and interests of offline distributors, the Multi-level Marketing Management Law Office regulates the responsibility of distributors.
Fang Xuan International Business and Fang Xuan Industrial Co., Ltd., a global distributor of Fang Xuan International Business and Fang Xuan Industrial Co., Ltd., announced that it had not been informed at the beginning of the recruitment process, but it was not until September 24, 110 that Fang Xuan International Business and Fang Xuan Industrial Co., Ltd. had been warned in accordance with the Internet policy on July 19, 110. A fine of $10,000 was imposed.
In the 110 years since then, many distributors under the Dragon Team have continued to solicit improper words, which shows that the original handling was unable to stop the breach of contract by the distributors.
The Fair will consider that because its distributors have not improved, it shows that the company did not comply with the correct handling of the violations of the distributors, and therefore found that the company violated Article 15 (2) of the Multilevel Marketing Management Act.
In addition, the fair will also target 11 Dongsen global company distributors such as Qianhe Co., Ltd., Yinxin International Co., Ltd., Huifeng Enterprise, Xu Jun, etc., claiming that "return", "preservation", "equivalent gifts", "non-direct sales", "franchise", and did not indicate multi-level marketing.
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The pandemic has had a significant impact on the MLM business model, with many companies experiencing a surge in online sales and growth during this period.

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Online business is booming for N.B. entrepreneurs who joined forces amid the pandemic

Two New Brunswick “mompreneurs” have joined forces by combining their production space to keep up with a boom in online business since the start of the COVID-19 pandemic.

“Both of our businesses exploded during the pandemic,” said Sylvie Roy who is the owner of Eclair Lips. She makes and sells a line of hand-made lip balm.

Erica Steeves sells a line of all-natural soaps through her business called Rosemary Wellness Soap Company. Steeves is not related to the author of this story.

Both moms started their businesses in their homes

“We have had to pivot to new ways to sell our product,” said Steeves.

Read more: Canada on track for record online shopping year due to coronavirus pandemic

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Both companies are now filling orders now solely online.

“We got to the point where we were both at the challenge of needing to move our businesses out of our homes because we had outgrown our space,” said Roy.

The business boom could be partially linked to the fact that so many people are washing their hands more often and wearing masks amid the pandemic. But feedback on both of their products has been overwhelming, said Steeves.

“It keeps your hands moisturized so people are experiencing really dry hands right now,” she said.

Roy says that people have been drawn to her line of lip balms as well, and her consumer and retail business has grown by at least 50 per cent since the start of the pandemic.

“People are saying, ‘Oh, this is so nice under my mask, it makes my mask smell good,’ because all of our lip balms are scented in desert flavours,” she said.

Read more: In a post-pandemic world, will Canadians ever go back to shopping malls?

Even the products she produces with a direct reference to the pandemic are hard to keep in stock.

“Our first one was a lip balm that said, ‘Kiss 2020 Goodbye’ and it really performed really well and people were loving it, and this year we have one that says, ‘Kiss Me I am Vaccinated,'” said Roy.

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Both women are selling their locally-made products solely online direct to customers and retail stores across Canada and the United States.

They have no storefront, relying instead on clicks, not bricks, and what Steeves says is a growing trend toward supporting small business.

“People are realizing it is the families that need support instead of the big box stores,” she said.

“We found that a lot of people were sending our products to loved ones as gifts to encourage them or to just send a little treat in the mail,” said Roy.

The women plan to ramp up production in their new larger space in the coming months.

“In this space we have the capacity to produce a whole lot more and we are actually hiring for a production position,” said Roy.

Both women said they are feeling an overwhelming sense of gratitude that, while other businesses continue to struggle, they have found a way to thrive side by side.

Moncton teen uses social media to encourage more youth to read Atlantic Canadian books

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Nu Skin, a multi-level marketing company, saw its stock triple in value during the pandemic, with sales increasing as furloughed workers joined the company.

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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...

The company gets over 20% of its revenue from China, which is its largest customer base.

To adapt to the changing market conditions, MLM companies have upgraded their technologies, expanded their online offerings, and sought new customers and lines of business.

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For some Mass. businesses, the COVID-19 pandemic pushed changes for the better

When disaster strikes, sometimes, innovation follows.

At Titcomb’s Bookshop in East Sandwich, it all started with the PPP loan. The store, attached to the Titcomb family’s 17th-century home, had been operating on the Cape for five decades when the pandemic swept in.

Demand for books soared as residents rallied around local businesses, but the shop’s mostly part-time staff — working from home during lockdown — was overwhelmed. So owner Vicky Titcomb took a chance, using some of the store’s federal Payroll Protection Program funds to bring on more full-time employees when the store reopened. Titcomb promoted a part-timer to take over from her as manager, and she has been a dynamo, coordinating virtual events and reaching out to local artisans to expand the store’s gift selection. She also oversaw new hires, one focused on expanding the toy selection, another on rare and antique books, and a third on social media.

In 2020, the shop had its best year ever. And 2021 was even better.

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“COVID changed everything at our store,” Titcomb said. “It made us a better business by far.”

The pandemic crushed many small companies, as health concerns, supply chain issues, and labor shortages converged. But some were able to adapt — and thrive. They upgraded technologies and expanded online offerings. They sought out new customers and jump-started new lines of business. Others, like Titcomb, saw an opportunity and ran with it.

The pandemic didn’t kill them, it made them stronger.

For nearly two years, there has been a “global scrambling” as companies try to stay afloat, said Sridhar Tayur, professor of operations management at Carnegie Mellon University. And this crisis mindset has sparked changes that could have a lasting impact. Businesses are tracking customers’ online orders in ways they never did for in-person sales, he said. Operations are being automated and simplified.

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“Necessity is the mother of invention,” he said. “I don’t think they’ve had this amount of necessity at least in the last 20 or 30 years.”

Lightyear Strategies, a marketing firm in Boston, witnessed the shift in its clients. At first, the mindset seemed to be, “the world’s ending ... let’s get rid of the marketing,” said chief executive Nima Olumi. But a few months later, clients realized they needed help adapting to a changed and largely virtual world.

A New York property management firm asked Lightyear to figure out how to e-mail thousands of residents about new sanitization measures. Boston hospitals wanted videos educating patients about safety protocols.

At the same time, Olumi realized he needed to narrow his focus rather than trying to be a jack-of-all-trades “yes man.” Today, his recurring monthly revenue is more than 10 times what it was in 2019.

“If you make hot dogs,” he said, “stick to making hot dogs.”

For other business owners, though, the pandemic was the right time to branch out. Runamok Maple in Fairfax, Vt., saw its online syrup sales skyrocket, while restaurant and hotel sales slumped. So the company decided to launch Sparkle Syrup, infused with edible pearlescent mica, to “bring a little bit of joy,” said co-owner Eric Sorkin. And it’s been a huge hit. “All the working dads out there were now at home, and what does a working dad know how to make?” he said. “They make breakfast.”

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At Copper Dog Books in Beverly, mastering online orders when nobody wanted to shop in person opened the door to shipping gift boxes, including a monthly subscription with two sci-fi novellas, a snack, and a small item such as a journal or key chain. Scenic Roots Garden Center in Sandwich launched a virtual landscape design business and started selling produce from a nearby farm. Both businesses have had record-breaking sales for the past two years.

Adopting new technologies has been a game-changer for many companies. In response to COVID restrictions, the owner of a nautical jewelry business in Washington state put scannable QR codes next to each necklace and bracelet in her window display, directing shoppers who couldn’t come inside to the items on her website. A business consultancy in Utah started digitizing operations when the world went online, including using artificial intelligence to help predict employee turnover, a major challenge during the pandemic. Financial services firms have turned to facial recognition technology from Bedford biometric software provider Aware to give mobile customers a more secure way to check their accounts.

Many companies have embarked on a “digital transformation” during the pandemic, said Mark Tina, vice president of sales for Verizon Business in the eastern US. New high-speed Internet-based services not only have more capabilities than older technologies, they are less expensive, he said, which is key for businesses struggling to survive.

When workers stopped going into their offices, Dependable Cleaners, based in Quincy, saw its business drop to a fraction of what it used to be, driving the dry cleaner to look for ways to become more efficient, said director of operations Carlyn Parker. It switched to a Verizon service that assigns one business number to ring on multiple mobile devices and desk phones, and it added a texting feature to its biweekly pickup-and-delivery service.

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Now, instead of visiting every home-delivery customer twice a week, the drivers only go where requested, allowing the company to add more customers without more drivers. Before Omicron drove companies to push back office reopening dates, Dependable Cleaners had climbed back to 80 percent of pre-pandemic levels.

“We’re in the fourth generation,” said Parker, whose grandparents started the company. “We’re here to stay.”

Finding new customers has also been a life-saver. When travel came to a halt in March of 2020, revenues dropped to “nearly zero” for LugLess, a Boston company that ships luggage for travelers. But it quickly started playing up the fact that using its services meant less human contact, said chief executive Aaron Kirley. No more waiting in line at the airport to check bags, no more gathering with the masses at the baggage carousel. The company also partnered with moving companies to reach the surge of digital nomads who could suddenly work wherever they wanted —and likely didn’t have room in their cars for all their stuff. And when people complained they could no longer print out shipping labels because they weren’t at work, LugLess developed digital labels.

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By the fall of 2020, business had tripled from its pre-pandemic high, then tripled again last year.

“It kind of forced us to open our eyes and look at new opportunities,” Kirley said.

Some of the new opportunities revealed during the pandemic aren’t just boosting revenues. They’re also saving lives.

Groups Recover Together, an addiction therapy provider based in Burlington, has almost doubled the number of people it serves around the country since it started offering virtual sessions. Before COVID, people battling opioid abuse had to attend group therapy in person due to the medication being provided, said chief executive Colleen Nicewicz.

But when that requirement was rescinded during the shutdown, Groups Recover Together started holding sessions over Zoom, and then through a new app. The organization now reaches more than 10,000 people a week, nearly a third of whom live in counties with no physical site. Opioid addiction is rampant in rural areas, Nicewicz said; in one Indiana county with a population of just 10,000, Groups Recover is serving one out of every 200 residents, even without a clinic.

Crucially, data show that virtual group therapy is just as effective at keeping people off drugs as in-person sessions, she said. At a time when the opioid epidemic is worse than ever — overdose deaths rose nearly 29 percent in the 12 months ending in April 2021 compared to the year before — reaching more people is critical, said Nicewicz, who is hopeful virtual therapy will become a permanent offering.

“We really met an unmet need,” she said.

Katie Johnston can be reached at katie.johnston@globe.com. Follow her on Twitter @ktkjohnston.

However, not all MLM companies have been successful in adapting to the changing market conditions, with some facing challenges such as supply chain disruptions and intense competition.

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What traits will help SME leaders manage external threats?

Three years ago when the pandemic hit the economy, the biggest losers were the SMEs.

August 09, 2023 / 06:37 AM IST

Leaders with high EI can effectively communicate with their teams during times of uncertainty, instilling confidence and motivation.

Just as we have seen post-demonetisation, small and medium enterprise (SME) leaders face various external threats that can significantly impact their success and sustainability. Three years ago when the pandemic hit the economy, the biggest losers were the SMEs.

What are some of the common external threats facing leaders, and how can they navigate them?

The first and foremost is economic uncertainties such as recessions, inflation and currency fluctuations. For example, after the ill-conceived demonetisation exercise in 2016, most SMEs were faced with reduced consumer spending, limited access to credit, and accumulated losses. Leaders should maintain financial flexibility by building cash reserves, diversifying revenue streams and exploring cost-saving measures during periods of economic instability. Further, build strong relationships with financial institutions and industry bodies to get lines of credit.

Second: The rapid advancements in technology pose both opportunities and threats. The rise of digital transformation, automation, and artificial intelligence can lead to increased efficiency and productivity, but those who fail to keep pace risk becoming obsolete. As we have seen in recent times, traditional brick-and-mortar retailers faced immense challenges when online e-commerce platforms disrupted the retail business model. Leaders must embrace technology as an enabler rather than a hindrance. Invest in upskilling employees, adopt relevant digital tools, and stay informed about industry trends to stay competitive and seize new opportunities.

Third: Is intense and unexpected competition.  SMEs operate in saturated markets with fierce competition from larger enterprises and new entrants. This eats into market share and profit margins. Look how the highly competitive food delivery industry has been inundated with multiple startups and established players who all vie for customers' attention and loyalty. Leaders should focus on differentiation by identifying unique value propositions, developing niche markets, and building strong customer relationships. Maintaining excellent customer service and consistently delivering quality offerings can also help to stay ahead of the curve.

Fourth: Regulatory changes such as environmental regulation or tax-related compliance such as the goods and services tax. Complying with evolving regulations and industry standards can be daunting, especially in sectors with strict compliance requirements. Failure to meet compliance standards can result in fines, penalties and reputational damage. This will also encourage corrupt practices at compliance authorities. In the last couple of years, most SMEs faced such pressures from authorities. Leaders should stay updated on relevant regulations, seek legal advice when needed, and establish robust internal controls to ensure compliance. Regular audits can help mitigate compliance risks.

A fifth threat is related to supply chain disruptions such as the one faced during the onset of COVID in 2020. Disruptions such as natural disasters, geopolitical events, or raw material shortages can impact production and distribution capabilities. The Russia-Ukraine war highlighted the vulnerability of global supply chains and disrupted operations across industries. Leaders should diversify suppliers, maintain buffer stocks of critical inputs, and establish contingency plans to mitigate supply chain disruptions.

Leadership qualities

Effective leadership becomes a critical factor in addressing and overcoming these threats. The following traits in leadership could go a long way in navigating through external threats:

·         Resilience: This is the ability to bounce back from setbacks and adapt to changing circumstances. Resilient leaders remain composed under pressure, learn from failures, and quickly regroup to develop innovative solutions. During COVID, those leaders who demonstrated resilience adapted their business models to embrace digital platforms, offering online services to remain operational.

·         Strategic vision: Effective leaders possess a strategic vision that enables them to foresee potential external threats and opportunities. They analyse market trends, competition, and emerging technologies to proactively plan for the future. For instance, a leader with a strategic vision may anticipate shifts in consumer preferences and pivot their offerings accordingly.

·         Flexibility and adaptability: External threats often require leaders to be flexible and adaptable in their approach. The ability to adjust strategies, reallocate resources, and make quick decisions is crucial. An adaptable leader embraces change and encourages employees to embrace it as well.

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·         Emotional intelligence (EI): It is the capacity to understand and manage emotions, both in oneself and in others. Leaders with high EI can effectively communicate with their teams during times of uncertainty, instilling confidence and motivation. They also foster a positive work culture, enhance team collaboration, and resolve conflicts constructively.

·         Innovative mindset: Innovation is crucial in addressing external threats and seizing opportunities. Leaders who embrace this encourage creative thinking and experimentation within their organisations. They are open to trying new approaches, technologies, and business models to stay ahead of the competition.

·         Risk management skills: Addressing external threats involves assessing and managing risks effectively. Skilled leaders understand the balance between taking calculated risks and mitigating potential downsides. For instance, a leader may diversify the company's customer base to reduce dependence on a single market segment.

·         Collaborative leadership: This involves involving team members in decision-making processes and leveraging their diverse perspectives and expertise. Such leaders can build stronger teams and create a sense of ownership among employees. They encourage open communication and value each team member's contribution.

M Muneer is the managing director of CustomerLab Solutions, a consulting firm.
first published: Aug 9, 2023 06:37 am

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The pandemic has accelerated digital transformation for many businesses, including MLM companies, which has helped them survive and thrive.

Low socio-economic status individuals are vulnerable to exploitation by MLMs, particularly older females with low socioeconomic status.

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Content: The world population is ageing rapidly. According to recent United Nations estimates (1), one of every four people will be aged over 65 years in Europe and North America by 2050. The response to this demographic challenge will largely determine the possibilities for human and socio-economic development over the medium and long term.

Frailty is defined as a state of vulnerability resulting from a decline in reserve and physiologic function associated with ageing (2), which increases the risk of adverse health events, including loss of quality of life, hospitalization, institutionalization and death. Frailty is an early and potentially reversible state of the disability process . Several risk factors of frailty and impaired physical function have been identified, which can be grouped into socio-demographic (e.g. age, female and low socio-economic status), biological (e.g. endocrine deficiencies), lifestyle (e.g. poor diet, tobacco, alcohol, overweight and sedentariness) and psychosocial. Sleep disturbances are common among older adults, mainly due to physiological changes that affect sleep architecture, as well as increased frequency of morbidity or drug consumption.

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Reference link-https://academic.oup.com/fampra/article/38/2/146/5895228

Young women are susceptible to MLMs like LuLaRoe for business opportunities, which exploit financial desperation and desire for success.

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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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MLMs target people with limited savings, encouraging borrowing, and often require leaders to buy large amounts of goods, leading to significant financial losses.

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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.

The majority of people who participate in multi-level marketing businesses lose money, with estimates suggesting that 99% of participants experience financial losses.

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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."

Most people who join legitimate MLMs make little or no money, and the business model often relies on recruiting new members rather than selling products to end-users.

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Content: Terrible Things People Do For Money: What You NEED To Learn

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You can laugh if you want. But, growing up, I was into professional wrestling. It was something that my dad was a fan of. So, naturally, this is what we did to bond.

Anyway, there was this wrestler named Ted DiBiase whose gimmick was “The Million Dollar” man. And, he had an amazing catchphrase; “Everybody’s got a price.”

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Q4 2021 hedge fund letters, conferences and more

This Hedge Fund Thinks Nintendo Is The Next Apple

Apple's influence over the stock market and tech world appears to be waning, at least in terms of mindshare. While it's true that Apple stock has soared alongside other tech favorites over the last couple of years, tech news sites are no longer overflowing with daily headlines about the iPhone. Apple Stock Is Surging, And Read More

For some of us. That actually might be true.

Questionable Acts People Would Do For Money

A survey of 1,000 conducted by OnePoll.com found that 6% of people would commit murder for $1 billion. Treason, armed robbery, mugging with a weapon, or assisting in suicide are some of the crimes committed by one in ten people.

What about a million bucks? In addition to credit card fraud, one in ten would smuggle drugs over the border or even star in an amateur pornographic video. In exchange for $100,000,000, a quarter of people would steal a bike, forge a signature, lie to police and donate sperm or eggs without their partner’s knowledge. Meanwhile, a demented one in ten would kick a kitten or puppy. And, that same figure would take performance-enhancing drugs to win a sporting event or beat up a stranger.

For $100,000? 25% of people would steal a street sign. It’s also enough for one in five people to forge a signature or take from a restaurant or hotel. One in ten say they would enter into a sham marriage, perform a sexual act on a stranger, falsify tax returns, or snatch a purse for the same amount.

In exchange for $10,000, one in five will steal a street sign, shoplift or flash a stranger. On the other hand, one out of ten people would lie under oath, steal a bike or spend counterfeit cash for the same price.

What would people do for a thousand bucks? 15% of people were willing to shoplift or bet on a fixed sporting event.

Why Do Good People Do Bad Things?

Some people may not have much in terms of a moral compass. I would actually think that most of us are the opposite. Committing a heinous crime not only cheapens life. What’s more, there are additional costs that far outweigh the monetary value.

For serious crimes, you have legal expenses, as well as the probability of going to prison. Also, even if you aren’t charged with a crime, that money can be seized.

And, let’s be real here. Would really trust someone to offer you a large sum of money to commit a crime? There’s a good chance it’s a scam or set it up, such as the fake website Rent-A-Hitman. Even if the offer was real, that’s definitely someone you do not want to associate with.

Still, even decent and law-abiding citizens may do bad things.

Researchers from the University of Utah and Harvard found that even the prospect of money encourages unethical behavior.

“Were were interested in why good people would do bad behavior,” Kristin Smith-Crowe, a management professor and co-author of the study told CNBC.

“We certainly found that the love of money is corrupting and just the mere exposure to it makes people do bad things,” Smith-Crowe said.

“The study didn’t ask people to do horrible acts, there were more mundane like stealing office supplies,” Smith-Crowe added. For example, taking home a ream of paper from work when your printer at home is empty.

The Worst Ways to Make Money

So, with all that being said, that got me thinking. What are the worst ways to make money? And, no. I’m not talking about unspeakable acts like murder or hurting an animal. My focus is on seemingly legit, yet risky, illegal, dangerous, and unprofitable ways to make some extra cash.

Taking online surveys.

There is no shortage of online surveys. With some surveys, you’re asked your opinion on current events or to perform an act of kindness. Most often, however, surveys want your feedback on a product or service.

However, whenever you see a survey that promises decent money in hardly any time, buyer beware. While these surveys do pay, the cost is minimal. I’m taking from a couple of cents to a couple of dollars. Is it really worth your time to make that little amount of money?

A better option would be picking up a second job, even if it’s a minimum wage job you do on the weekend. If that’s not an option, consider a focus group or qualitative research study if you want a well-paying survey.

I should also add that online surveys aren’t the worst idea for certain demographics. For example, a stay-at-parent could do these surveys while their kid(s) are napping.

Medical testing and selling bodily fluids.

“Paid medical testing is neither a scam nor a low-reward opportunity; it’s possible to make actual money if you devote yourself to being a full-time pincushion for science,” writes Jon Skindzier for Ask Men. “No, this idea comes with its own unique set of drawbacks like vomiting, chills, seizure, death — stuff like that.”

“Six subjects in London, for example, suffered organ damage and life-threatening complications while testing an arthritis treatment in 2006,” he adds. “The real question isn’t whether or not you can make money this way; it’s how much bodily harm you’re willing to risk in the process.”

Stying in the “ick” zone, this is also true of selling bodily fluids. Processes are long, complex, and time-consuming, but the pay is low.

It’s possible for women to sell their eggs too. In addition to taking up time, this procedure can also be rather painful since fertility shots are often necessary. It is true that donations are not a dependable way of making money, and very often they are restricted by time constraints.

Multilevel marketing companies (MLMs).

If you haven’t personally been invited, I guarantee someone you know has been. Invited to what? Those “parties” where a friend or acquaintance is selling essential oils, pet care products, jewelry, children’s books, etc.

It turns out, that this is a MLM program.

As the FTC notes, “Most people who join legitimate MLMs make little or no money. Some of them lose money. In some cases, people believe they’ve joined a legitimate MLM, but it turns out to be an illegal pyramid scheme that steals everything they invest and leaves them deeply in debt.”

The FTC has also reported that 99% of people who take part in multiple-level marketing lose money. Why? Because MLM companies require their members to purchase products in advance with the hope of reselling them at a profit.

While there are some legit MLMs, Avon springs to mind, if you aren’t a salesperson or have the upfront costs you might want to consider alternatives. Freelancing, affiliate marketing, or drop shipping might be some viable options that are better suited to your budget and/or skills.

Using click-bait to sell links.

The majority of bloggers earn their living from advertising, affiliate sales, and more. Click-bait links, those that lead nowhere, to the wrong site, or make your browser a mess, aren’t sold or bought by them. Overall, there is little money to be made from these bottom-feeding methods.

How can you make money from a blog then? Partner with trusted affiliate programs such as ClickBank, ShareASale, or Commission. From there, you can set up ads with Google AdSense.

Those fake links will eventually get noticed by your readers, and they will stop reading your articles.

Sign spinning.

We’ve all seen them on the sidewalks holding signs advertising particular businesses. No matter the weather, at least one is always trying to attract customers. Because you are required to stand all day long, the job is extremely tiring as well.

Additionally, the pay is usually low. And, the practice has been criticized for causing distractions among drivers.

If you’re looking for part-time or a side hustle, you might want to explore more fulfilling options. If you’re a dog person, then consider dog walking or sitting. Do you like cruising around town? Maybe deliver food or rideshare.

Day trading.

Unless you have a lot of experience in investing, day trading in the stock market is highly risky. As a new investor, you should stick with mutual funds until you gain more experience.

While it isn’t as exciting or profitable, at least you’ll be able to make money as you learn the ropes.

Selling pirated materials.

Many pirated electronic books or digital copies of Hollywood blockbusters can be found and downloaded online either for free or for a small fee. Sound appealing, right? After all, it’s cheaper than going to the theater or buying an original copy. And, these are major corporations that can take the hit.

Well, it’s not as harmless you may have assumed. In 2022, it’s expected that the movie and TV industry will lose $51.6 billion to online piracy. Additionally, piracy can land you in trouble with local, state, and national authorities as well as your Internet provider.

Online gambling.

I know a couple of people who boast about the money they made gambling — either in-person or online. My first question? “Yeah, but how much did you lose to win that money?”

Trying to make money with gambling of any kind is always a bad move. In addition, online gambling is more accessible 24/7, making it easier to become addicted to it than in-person gambling. If not treated, you can literally lose everything.

If you have a gambling addiction, please got professional help. And, even if you don’t, look for other alternatives to make money where the societal and financial cost isn’t as high.

Work-from-home scams.

Online money-making offers that seem too good to be true probably are. The scammer capitalizes on your desperation to obtain your personal information so that they can steal your identity or use the money to set up a job for you. In cases where something seems fishy, such as poor spelling or grammar in an advertisement or on a website or a request for you to send money, you should be cautious.

That’s not to say that there aren’t legit work-from-home opportunities. In fact, here are 12 work-from-home jobs that will help you earn a million dollars in less than 10 years.

Recycling.

Once again, we are seeing an extremely time-consuming effort for very little result. In addition, lots of recycling must be done before profits can be made. It is usually necessary to obtain recyclables from others before profits can be made. It simply does not make sense to move and clean substantial quantities of items unless you have the storage space and means to accomplish this.

I can personally attest to this. I thought years ago that instead of just recycling my cans, why not make some money off of them. For months I crushed and stored cans until I had several big bags. I took them to the scrap yard and got like $20. It wasn’t even worth the gas going back and forth.

Final Words of Advice

You have to know which opportunities are worthwhile and which ones aren’t if you’re looking to start a new side hustle or just make money online. You can find better alternatives to all these bad ideas on our list of 101 passive business and income ideas.

Article by John Rampton, Due

About the Author

John Rampton is an entrepreneur and connector. When he was 23 years old while attending the University of Utah he was hurt in a construction accident. His leg was snapped in half. He was told by 13 doctors he would never walk again. Over the next 12 months he had several surgeries, stem cell injections and learned how to walk again. During this time he studied and mastered how to make money work for you, not against you. He has since taught thousands through books, courses and written over 5000 articles online about finance, entrepreneurship and productivity. He has been recognized as the Top Online Influencers in the World by Entrepreneur Magazine, Finance Expert by Time and Annuity Expert by Nasdaq. He is the Founder and CEO of Due.

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Some MLM companies have closed or are closing down, or have switched to a simple direct sales model without a recruitment component, although specific examples are not available in the search results.

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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

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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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Overall, the MLM industry has experienced significant fluctuations during and after the pandemic, with some companies experiencing surges in profits while others face significant declines.

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layoffs, losses, plunging stock prices, the winners of the epidemic are mired in the mud
layoffs, losses, plunging stock prices, the winners of the epidemic are mired in the mud
Peloton
In the heat of the COVID-19 economy, there are few companies like Peloton.
Because people are unable or unwilling to go out to the gym, consumers are scrambling to buy their fitness equipment for use at home.
More importantly, sign up for its online courses. Peloton achieved its first single-quarter profit in 2020, with a 139% increase in revenue and a 434% jump in stock price.
But the boost was short-lived. With gyms reopening, course subscriptions and equipment sales plummeting, the company ’ s prospects have also shrunk.
Peloton posted a worse-than-expected fourth-quarter loss at the end of August, with CEO Barry McCarthy writing in an earnings statement to shareholders: “Sellers will focus on our fourth-quarter financial performance, resulting in lower revenue, negative gross margin and deeper operating losses overall. ”
They will say that this is a threat to the viability of the business. "
Even in trouble, however, McCarthy sees the company ’ s prospects as good, claiming that Peloton has made significant progress in turning losses into profits and curbing the pace of cash burn.
But investors don ’ t share his belief.
Shares have fallen more than 90% since the end of 2020 and are now worth less than half of what they were at the start of the year.
Peloton is not the only representative of how big winners of the pandemic economy have become losers in the aftermath of the pandemic.
Many companies have convinced themselves and their shareholders that they will be able to continue to grow once the pandemic subsides, but this has proven to be wrong.
Here are some of the other big table players in 2020 that are now losing in 2022.
Wayfair
The pandemic forced people to stay at home and has allowed millions of people to start working from home ever since.
Many people choose not to commute or go on vacation to save their money in order to buy furniture and other items to beautify their homes.
But the rush to buy household goods has stopped.
Consumers have changed their purchasing priorities, especially as the price of essentials such as food and gasoline hit record highs, forcing many households to cut back on purchases of non-essentials.
Now, any such purchase is more likely to be for something like a long-delayed trip plan than for more home needs.
The shift in spending has affected most retailers, including giants like Walmart and Target.
But for companies that are hobbled by this shift, perhaps online homeware retailer Wayfair is more typical.
The company announced that it would lay off 5% of its staff.
The CEO also acknowledged that the company is optimistic about its continued growth potential.
In an open letter to employees announcing the layoffs, CEO Niraj Shah said, “We have significantly grown our business to keep pace with e-commerce growth in the household category.
The tailwinds of the pandemic have accelerated the adoption of e-commerce, and I personally have worked hard to hire a strong team to support this growth. “But this growth has not materialized as expected this year.
Our team is too big for the environment we ’ re in right now, and unfortunately we need to adjust. ”
It ’ s not just that the company isn ’ t growing as fast as Peloton. Wayfair ’ s business has turned into a recession and turned into a loss.
Revenue fell 14% in the first six months of this year, with a loss of $697 million, compared with a profit of $149 million in the same period in 2021.
Wayfair ’ s stock surged 482% between the end of March 2020 and March 2021, and is now largely fully recovered.
Shopify
The Canadian software company that helps retailers sell online is also on the rise as businesses are forced to switch to e-commerce due to the pandemic.
But last month, its founder and CEO announced that it would lay off 10% of its workforce because its “bet on continued growth is not paying off. ”
In a memo announcing the layoffs, CEO Tobi Lutke said, “Shopify has always been a company that has placed a big strategic bet on ourselves that merchants need, and that ’ s how we succeeded. ”
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He said the company ’ s e-commerce growth had been steady and predictable before the outbreak, but the initial outbreak led to an unanticipated spike in sales.
He said, “Is this surge a temporary effect or a new normal? ”
So, in line with our expectations, we decided to bet more: we believed that the volume of transactions in the e-commerce channel would jump permanently over the physical channel for five or even 10 years. “At the time, we couldn ’ t be sure, but we knew that if there was a chance of that happening, we would have to scale up the company to match it. ”
The good times don ’ t go away as quickly as some of the other winners.
But they have certainly begun to retreat.
While revenue in the first six months of this year was up 18% from last year, Shopify ’ s costs, including research and development, have nearly doubled.
The company also suffered a $1 billion book loss on its equity investments in the second quarter, resulting in a $2.7 billion loss from a $2.1 billion annual net profit during the period.
The company ’ s share price will remain at its current level in 2021, but has fallen 75% this year.
Zoom
The challenges facing this online conferencing platform are different from some of the other past pandemic winners.
There are still millions of people working remotely, at least for the short term, and Zoom remains profitable.
But profits plunged 71% in the first half of the year due to higher costs.
The company ’ s earnings have been better than expected and its stock price remains slightly above pre-pandemic levels.
Zoom reported weaker-than-expected earnings at the end of August and gave investors disappointing financial results, causing the company ’ s share price to fall 17% on the day of its results.
Zoom ’ s stock has fallen 56% this year and 86% since its peak in late October 2020.
Some of the blame for the stock price decline can be attributed to investors, who were ahead of schedule, driving the stock price up 765% from its peak at the end of 2019 to 10 months later.
In addition, every profit on the fight against the coronavirus is seen as a positive for Zoom: after Pfizer announced a successful clinical trial of the coronavirus vaccine in November 2020, Zoom ’ s share price plunged 25% in two days.
Netflix
Netflix has had a lot of success long before the coronavirus outbreak.
Even in the face of increasing streaming competition, the platform performed well in 2019, with two original films, Martin Scorsese ’ s The Irishman and Noah Baumbach ’ s Marriage Story, attracting audiences and Academy Award Best Picture nominations.
Season 3 of The Crown returns with a new cast member.
With these lineups, Netflix ’ s stock rose 21% during 2019 and its revenue grew 28%.
Worldwide subscribers to the service increased by 27 million that year.
But as the pandemic shut down, business took off. Netflix netted 16 million subscribers in the first three months of 2020 and surpassed 200 million subscribers for the first time at the end of the year.
Netflix ’ s share price has also soared, more than doubling its market value from early 2020 to a record high of $691.69 in November 2021.
But the competition intensified.
The company lost 200,000 users worldwide in the first quarter of this year, the first decline in users in 10 years and a far cry from the 2.5 million increase previously forecast.
In the second quarter, it lost another 970,000 subscribers.
The company has also been losing investor support. Netflix ’ s share price has fallen by nearly two-thirds so far this year, even as it bounced back from a 12-month low in May, when investors expected more serious subscriber losses.
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