The multi-level marketing business model has seen both successes and failures in recent years.

Suntech has estimated quadrupling its profits to $8 million, with 50,000 merchants and 15 million users.

Avon and Tupperware, once successful in direct selling, have seen significant stock declines, with Avon's value falling to $3 from $30 and Tupperware's dropping over 90%.

LuLaRoe, which began as a maxi skirt company, is an MLM company that faced a 2019 lawsuit for allegedly being a pyramid scheme.

The company paid $4.75 million to settle a suit in 2021 and over $100 million in refunds to consultants who suffered significant losses.

Bravenly Global saw a 700% revenue increase in 2022 and offers its associates a 55% commission payout.

Optavia-Medifast generated $1.6 billion in 2022 revenue, but saw a 34.7% decline to $296 million in Q2.

The pandemic has significantly impacted the MLM industry, with some companies thriving and others struggling to adapt.

MLM companies attract potential workers with promises of freedom, low costs, unlimited income, and social networks for sales.

These factors help retain existing workers by offering autonomy, quality products, and minimal risks.

About half of MLM revenue goes to multi-level commissions, motivating workers to recruit.

Most MLM participants, around 90-99%, lose money despite the promise of unlimited income potential.

College graduates, young people during economic downturns, poor women, debt-ridden individuals, and those with unstable psyches are vulnerable to MLMs.

The COVID-19 pandemic boosted sales for some MLM companies, like Nu Skin, whose stock tripled from March 2020 to June 2021.

Matilda Jane Clothing Company is closing due to financial difficulties, terminating relationships with its trunk keepers.

Herbalife and Amway have closed their Russian operations due to economic circumstances.

The MLM business model is evolving to focus on online sales, sustainability, and eco-friendly products.

The multi-level marketing business model has seen both successes and failures in recent years.

Title:

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

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

Summary

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

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

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

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

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

No More Need to Knock on Doors

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

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

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

Walking Dinosaurs

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

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

Avon's Long Good-Bye

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

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

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

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

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

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

Tupperware on the Brink

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

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

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

This article was written by

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

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

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

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Suntech has estimated quadrupling its profits to $8 million, with 50,000 merchants and 15 million users.

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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Avon and Tupperware, once successful in direct selling, have seen significant stock declines, with Avon's value falling to $3 from $30 and Tupperware's dropping over 90%.

LuLaRoe, which began as a maxi skirt company, is an MLM company that faced a 2019 lawsuit for allegedly being a pyramid scheme.

Title:

Content: W TV CLUB

LuLaRich is Not Your Average Fashion Documentary

Cult allegations, manipulation, and debt—LuLaRich is not just a documentary about some basic leggings sold by an MLM company.

Courtesy of Amazon

Welcome to W TV Club, in which W magazine’s editors choose a television show they’d recommend you binge-watch. Our November picks will be a selection of docuseries. This week, culture editor Brooke Marine recommends Amazon Prime’s LuLaRich, which is more than just a documentary about leggings.

This year, it seems like there has been quite an uptick in the number of docuseries produced and distributed by the various streaming platforms that rule my life. Admittedly, I have slept on a few. One of those docuseries is LuLaRich, the four-part investigation into the legging brand LuLaRoe, and how its multilevel marketing business model wreaked havoc on the lives of its salespeople and customers.

LuLaRoe started as a maxi skirt company before dipping into leggings territory. I had never seen any of these skirts or leggings on my feed, though in the documentary—which includes interviews with the company’s founders DeAnne and Mark Stidham as well as former LuLaRoe retailers—it’s explained that the company became quite popular in the 2010s, particularly on Facebook and Instagram.

“We’re not in the clothing business,” co-founder Mark Stidham says, “We’re in the people business.” Sure—that becomes abundantly clear once the series outlines how his company’s MLM model not only scammed the company’s retailers into debt, but also how the founders were accused of starting a cult. Yes, a cult.

Multilevel marketing is technically legal, in case you were wondering. As explained in the documentary, the business model began decades ago with a company called Nutrilite (a food supplement) which paved the way for Amway, a company that made the salesperson into the customer. In the MLM model, a company generates revenue by multiplying the number of sales people, who buy into the company with fees. It doesn’t matter what the product is—it could be beauty products, “wellness” supplements, or even, as demonstrated in the HBO docuseries The Vow, which chronicled the explosion of the NXIVM cult in North America, a “self-help” seminar. In LuLaRich, it’s the leggings. You could sell a concept as part of an MLM, and as long as you have enough levels of loyal salespeople willing to be both customer and recruiter, the people or person at the top will have a stream of revenue.

That’s all explained in the first episode of the four-part series; LuLaRoe seemed to have legitimate origins. But then weird stuff started happening. The legging designs seemed to suggest sexual innuendos. The inventory wasn’t matching up with what was being sold. In the first episode alone—and I am not even joking, yet I truly wish I were—there are sound bites from former LuLaRoe retailers saying, “The whole house smelled like the dead-fart leggings.”

There are also a few strange anecdotes from the LuLa Roe founders, the Stidhams, who are proud members of the Church of Jesus Christ of Latter-day Saints (the Mormon church, in other words). A few of the LulaRoe founders’ 14 children are adopted, and one of those adopted kids is married to one of the founders’ biological daughters, though the parents ham-handedly assure the viewer they have zero blood relation and never grew up in the same house together. And what’s even wilder is that DeAnne Stidham’s maiden name was Startup. It’s stranger than fiction, really.

LuLaRich, directed by Jenner Furst and Julia Willoughby Nason, can at times feel like a parody of an MLM scheme, not a truthful report of actual events. While watching, I had to remind myself a couple of times that this is not a Search Party subplot. It really happened, and as outlined in the docuseries, legal action was later taken against the company. But I won’t spoil the ending for you—this series must be seen to be believed.

The company paid $4.75 million to settle a suit in 2021 and over $100 million in refunds to consultants who suffered significant losses.

Title:

Content: Living

How LuLaRoe cost some women their homes, cars, savings, and marriages

In 2015, Roberta Blevins was a busy hairstylist, traveling between San Diego and Los Angeles for work — and struggling to find balance between her career and co-parenting a four-year-old and nine-year-old.

Then she heard about LuLaRoe from a Facebook mom’s group. The California clothing company — known for its brightly patterned leggings and dresses — offered sales consultants a way to “earn full-time income for part-time work” from the comfort of their own homes.

For Blevins, it sounded like a dream come true.
 “I could sell leggings,” Blevins, now 40, remembers thinking. “It’s so easy. Everyone wears them.

“What I know now is that it was a scam,” she told The Post.

From 2014 to 2019, LuLaRoe leggings were pervasive on social media — slavishly peddled by women seeking the holy grail: setting their own hours and working from home, with the promise of big money. It was a classic multi-level marketing set-up — or, as the Washington State Attorney General’s Office claimed in a 2019 suit against the company, a “pyramid scheme.”

It’s now the subject of “LuLaRich,” a four-part docuseries streaming on Amazon Prime that offers a look inside the brand’s explosive growth and how it led to fraud accusations, lawsuits and, ultimately, consultants losing money, cars, homes and even their marriages.

Directors Jenner Furst and Julia Willoughby Nason also made “Fyre Fraud,” a Hulu documentary about the notorious 2017 musical festival, and say the subjects have a lot in common.

Both stories are filled with “delusions of grandeur — and this type of incessant entrepreneurship that is promoted from influencers to [strangers] on Facebook,” Nason told The Post.

By September  2017, just a little over a year after she signed on, Blevins — who hosts the podcast “Life After MLM” (as in multi-level marketing schemes) — had seen the light. LuLaRoe was a pyramid scheme selling empty girl-boss dreams. She quit.

“There were red flags from the beginning,” Blevins said.

LuLaRoe sprang from humble beginnings. Around 2012, DeAnn Stidham — who previously organized clothing parties for retailers — started selling homemade maxi-skirts from the trunk of her car.

Within five months, the vivacious Californian had moved 20,000 pieces, she says in the docuseries. In 2013, DeAnn met a woman in Utah who said she could unload a bunch of the skirts to her friends.

DeAnn called her husband, Mark. “[I] said, ‘What can I do to make it valuable to her?’” she says in the docu-series. His advice: “You sell them to her … and she gets to make double the money [selling them to her friends].

“It was instant cash and instant opportunity,” she added.

That woman became the first sales consultant for LuLaRoe, which is named for  the Stidhams’ granddaughters Lucy, Lola and Monroe.

While old-school multi-level marketing brands like Tupperware or Amway were all about women — often, stay-at-home moms — hosting parties to push product and recruit other women as sales people under them, recent counterparts such as the skincare line Rodan + Fields  rely on social media. Even the actress Ione Skye got into multi-level marketing a few years ago, selling Doterra essential oils with her singer husband Ben Lee and promoting them on Instagram and YouTube.

Consultants took to Facebook to advertise LuLaRoe leggings parties and flaunt the financial freedom, big homes and fancy cars their new gig provided.

The message spread like a wildfire. By 2016, LulaRoe had raked in more than $70 million.

It worked like this: Once a woman’s — or, sometimes, a husband-and-wife team’s — application was accepted, they paid the start-up costs (as much as $15,000) and started hustling the clothes. Typically, they marked the leggings up to $25, after having bought pairs for $10.50 each wholesale.

When Blevins joined in February 2016, buying in for an initial fee of $9,000, there was a leggings shortage — so she had to shell out more money to buy them off other consultants.

At the time, eager wannabe consultants were waiting anywhere from 90 to 100 days for approval because the company didn’t have enough manpower to keep up with demand.
LaShae Kimbrough, 43, was part of the onboarding team. She’d collect new consultants’ money — which desperate women raised by any means necessary, including taking out loans, opening zero-interest credit cards and even selling their breast milk.

Kimbrough 43, told The Post that her team was bringing in at least a $1 million dollars a day.

Consultants were compensated for recruiting new sales people to their teams. They received a cut of onboarding costs paid by their protégés who, then, brought in people under them.

In the docuseries, married couple Tiffany and Paul Ivanovsky said that, at one point, they had 1,100 people on their team and raked in anywhere from $22,000 to $42,000 a month in bonuses over the course of a year.

While the gospel of LuLaRoe spread coast to coast, the company at large was flying by the seat of its pants. The Stidhams, who have 14 children between them, installed their inexperienced offspring in executive roles.

“Did any of them have a clue how to run a company of this size? No,” former employee Derryl Trujillo says in the film.

Blevins grew skeptical when she started receiving shipments with damaged leggings — including wet pairs that she described smelling like “chlorine and death.” On Facebook, more customers were posting about how their LuLaRoe clothing was ripping on the first wear.

Sources in “LuLaRich” say it was emblematic of larger issues  — like inexperienced leadership and growing too big too fast, which led to shoddy production.

“It was like flying the plane while you’re still building the plane. And you don’t even know how all the pieces of the plane work. And you don’t even know how to fly the plane. You’re not a pilot,” said Sam Schultz, DeAnn’s nephew and former employee. He was hired to produce company cruises and retreats where acts like Katy Perry and Kelly Clarkson performed.

On one cruise for top sellers, Blevins complimented a fellow consultant on how good she looked in a swimsuit. “She said she had gotten ‘the weight loss surgery’ in Tijuana,” Blevins recalled. “She called over a mentor leader who told me all about it.”

According to former consultant Courtney Harwood who appears in “LulaRich,” DeAnn pressured top performers to travel to Tijuana and undergo gastric bypass surgery performed by her own doctor.

For Blevins, who was growing wary of a culture that was similar to religious fanaticism, it was another reason to defect. “I was like, ‘How do I get away from this conversation? Do you really think I need [the surgery]?’. That whole trip was very culty.”

Kimbrough believes DeAnn was feeding off other women’s money, hard work — and their adulation. “[DeAnn] was able to come up with a recipe to have people groveling at her feet. I give them credit for it because it happened for a long time, and they made damn good money.”

Eventually, there were more consultants than interested buyers. The market was too flooded  to turn a profit.

And the lawsuits had started pile up — numerous ones over copyright infringement, claiming LuLaRoe stole artwork to print on leggings. A 2017 class-action lawsuit challenged the company’s return policy, with customers alleging the leggings were poor quality. The brand was also sued by a former supplier  over unpaid bills

As morale started to wane, the brand implemented a policy where consultants could send back stock for a  refund of their wholesale costs. The change led to an exodus.  “I believe LulaRoe paid over a hundred million in refunds during that time,” Blevins said.

She added that the cancellation of that policy, in late 2017, led to her breaking point because she couldn’t handle people on her team saying they were going to lose their homes if they couldn’t get refunds.

In 2019, the attorney general of Washington state filed a suit against LuLaRoe saying it was a pyramid scheme that bilked thousands of people out of millions of dollars. The case was settled in 2021, with the brand paying $4.75 million.

When all was said and done, Blevins shelled out over $78,000 for inventory and sold about $83,000 — a $5,000 gross profit. She earned about $65,000 in bonuses for signing up other women, something she now regrets. But she also took out a loan to buy the clothes and still has credit-card debt.

Harwood, who was one of the top consultants, had purchased a new house and matching Chevy Tahoes for her and her husband — all to keep up appearances and look successful on the LuLaRoe food chain, and because she believed the money would keep rolling in. When she left in 2018, she had to file for bankruptcy, losing her home, vehicles and even her marriage.

“I thought I was better than everyone else,” she tearfully says in the series.
Consultant Ashleigh Lautaha, who left the company, says in the doc that she got so wrapped up in the LuLaRoe culture that she only had time for either her family or her job. Her marriage broke up.

“The company got bigger than [the Stidhams], and what they could keep up with,” co-director Willoughby Nason said of the couple. “They were putting out fires left and right.”

But she also sees how desperate women got caught up in the drive for success.
“There was a corrosive element of greed that was beyond them.”

Bravenly Global saw a 700% revenue increase in 2022 and offers its associates a 55% commission payout.

Title:

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

By Team Business For Home

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

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

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

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

Bravenly Global in Facts and Figures

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

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

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

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

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

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

Data provide by the proprietary Business for Home Intelligence Engine

(article continues below)

Recommended Distributors Bravenly Global

View “Ricky Durant”

Ricky Durant

View “Miranda Gauthier”

Miranda Gauthier

View “Jessika Durant”

Jessika Durant

View “Jennifer Hutto”

Jennifer Hutto

View “Shawn Gwin”

Shawn Gwin

View “Brittany Beck”

Brittany Beck

View “Sam van Born”

Sam van Born

View “Ashlie Sieg”

Ashlie Sieg

View “Rebeccah Rayfield”

Rebeccah Rayfield

View “Ranim Reda Aguilar”

Ranim Reda Aguilar

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

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

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

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

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

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

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

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

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

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

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

Bravenly Global Conclusion

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

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

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

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

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

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

Optavia-Medifast generated $1.6 billion in 2022 revenue, but saw a 34.7% decline to $296 million in Q2.

Title:

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

By Team Business For Home

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

According to the OPTAVIA website:

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

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

Optavia – Medifast in Facts and Figures

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

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

Data provide by the proprietary Business for Home Intelligence Engine

(article continues below)

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

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

Incomplete Information

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

Sparse Press Releases

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

Absence of Top Earners and Top Leaders visibility

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

Distributor Presence

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

How Optavia – Medifast could improve their visibility

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

Inspiration Motivation, Credibility and Trust

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

Social Proof and Differentiation:

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

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

Optavia – Medifast Conclusion

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

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

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

That seems not to work to well anymore.

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

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

The pandemic has significantly impacted the MLM industry, with some companies thriving and others struggling to adapt.

Title:

Content: Alert
Kaimi "completely unobstructed by the mountains" fan album: the perfect large typhoon textbook
Where is Typhoon Kimi now?
Thousands of people are afraid of exploding YouTube channel to watch the news
Nepal plane crash and fire! Black smoke on the scene, 19 people on board the plane are still unknown.
Seven figures a month?
Taipei City Councilor Receives "Wei-Shang Agent" Chen Fei, Can't Sell Products Like Direct Selling
Summer vacation to find a job, the Internet community has emerged "micro-business agent" industry, the main monthly collection of seven digits and other slogans to attract many young people to join, however, the Taipei City Council has found that the model is similar to "multi-level marketing", but also received a lot of disputes and complaints, calling on the North City Government to establish a relevant platform to provide correct and complete information.
The Department of Commerce said that it will ask the fair to conduct legal judgments on a case-by-case basis and provide the public with information on the channels of complaint and related relief.
Taipei City Councilor Chang Wen-chieh says that there is a "micro-business agency" industry that claims to be able to collect seven figures a month, high profits, and change lives.
Zhang Wenjie received pleas from the public, the children at home in order to increase their income into the industry, "the initial sales performance did not improve, in order to improve their agency qualifications, and called more goods, the result was not sold, the return was rejected upstream, the sale of reduced prices and violated the company's contract."
Not a single penny was earned, and a lot of unsold goods were stored.
Zhang Wenjie also said that there are even platforms to order a certain amount of goods can have a discount, the result of the public ordered three products, only received one item, the other two said to be placed on the company auction, "but who knows whether there is a so-called product?
She said that although there are many types of business models, if the use of young people's information is not equal and uninformed, causing them to repent and may be saddled with debts, the North City Government should clarify its authority and responsibilities, establish a platform and central coordination, protect the rights and interests of the public, and prevent victims from having no way to seek help.
According to the Department of Commerce, the competent authority of the "Multi-level Marketing Management Law" is the Fair Trading Commission, but the first procedure is to determine whether a similar business model involves multi-level marketing.
The Department of Commerce said that the city government assists the fair every year in the relevant statistical business, and also assists the investigation of various agencies to help the fair trade business, including statistics on multi-level marketing management cases.
The Department of Commerce reminds that if you encounter multi-level marketing suspicion, the public can directly consult, complain or report related cases through the service phone or service mailbox website of the Fair Association website.
North City Councilors
Extended reading
Drug recycling in Taipei City has reduced more than 1,500 kilograms in five years, and the health department may have collected "prohibited products".
Taipei City Police Investigate Fraud Squad
Typhoon Kaimi turns into a strong typhoon, and the people of Taipei City have umbrellas blooming.
KTV is full of Chiang Wan 'an exposure to judgment
Related News
Seven figures a month?
Taipei City Councilor Receives "Wei-Shang Agent" Chen Fei, Can't Sell Products Like Direct Selling
In the summer, looking for a job, the Internet community has sprung up the industry of "micro-business agency", which attracts many young people to join, but the Taipei City Council has found that the model and the "multi-level" business model are...
The North City government will implement the three-stage notice to avoid cross-communication.
The case of private children in Taipei City continued to burn, and people from all walks of life pointed out that the first report occurred in 2022, and there were flaws in the investigation process, and the werewolf was not immediately suspended, allowing more tragedies to occur.
The city has spoken out, and the case...
Eight Mile people hope that the sports center is not following the people's representative asked the swimming pool to be changed to parent-child facilities.
There are currently 16 national sports centers and 2 water sports centers in New North, and many sports centers are concentrated in urban areas. However, there are no sports centers in the Eight Mile District due to insufficient population.
The number of people killed in accidents last year has increased.
New Taipei Yonghe No. 4 Park was created as the first pedestrian-friendly environment demonstration area in New Taipei last year, and the number of deaths and injuries fell by 31.43%. This year, the second place was selected...
Protest against refuse disposal site near Yokogi Station on Sanying Line
New Taipei MRT Sanying Line is expected to be completed next year, but there are environmental protection companies next to Sanxia Hengxi Station to build two three-storey buildings. Residents are worried that this place will become a garbage disposal site, and the smell will affect the quality of life.
Advocate the value of cherishing things, clean team members repair and regenerate furniture to help the public welfare
The New Taipei City Environmental Protection Bureau has a carpentry base in Pali District. Huang Dade and Yang Weicheng, who have carpentry expertise, repair wooden tables, cabinets, and bed sets with their hands, giving new life to second-hand furniture.
Product recommendation
udn Forum

MLM companies attract potential workers with promises of freedom, low costs, unlimited income, and social networks for sales.

Title:

Content: Network marketing: build a business without risks!
Moderators: more, bot, translate
Network marketing: build a business without risks!
by sonnick84 » 12 Mar 2022, 12: 35
Network business is a great opportunity to leave an unloved job and organize your own business without significant cash investments.
But is this true in reality and what nuances should be aware of those who just decided to participate in some project?
In this article, we will discuss the main points, as well as write some important recommendations!
Own business is first of all freedom and network marketing, the shortest and easiest way to it.
Think for yourself, in order to sell services or goods, you do not have to open a physical store, hire workers.
Basically, there is no need to go anywhere and absolutely all workflows are made directly from the PC.
The initial costs are small, if we are talking about goods, you will have to buy the initial batch.
However, after a few sales, this is no longer a problem.
But there are also such MLM projects where investments are not needed at all.
We recommend you to read: on this site MLM reviews and not only.
Absolutely all routine business is handled by the company itself, and you should only sell the product!
Which is usually of high quality and at an attractive cost.
It is difficult to implement only at the first stage, after the buyers themselves call and make new orders.
It is no longer necessary to go to apartments, there are many sales channels on the network, for example, social networks.
Income is unlimited, the more effective you act, the higher the profit will be, everything is simple!
In words it looks beautiful, but not everyone will suit the MLM business.
In any case, you need to try, besides the risks are minimal.
The worst thing that can happen is that you will have the goods purchased for sale.
Of the shortcomings, we can distinguish the fact that sales directly, this is the ability to qualitatively submit goods and cause the desire to buy from the person who was not going to spend money on it.
Many people have a negative attitude to the network business, in this regard, you need to be stress-resistant.
Income is floating and it will depend on many factors.
In some cases, you will need to get an IP, and this is already taxes and some responsibility.
But again, you do not need to do this immediately only after you know that you are ready to make money!
sonnick84
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These factors help retain existing workers by offering autonomy, quality products, and minimal risks.

About half of MLM revenue goes to multi-level commissions, motivating workers to recruit.

Title:

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

Most MLM participants, around 90-99%, lose money despite the promise of unlimited income potential.

College graduates, young people during economic downturns, poor women, debt-ridden individuals, and those with unstable psyches are vulnerable to MLMs.

Title:

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

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

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

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

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

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

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

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

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

Title:

Content: Cambodia 's fraud "selling table crowd group" exposed!
Two men and one woman. It's only $60,000.
▲ Due to the impact of the epidemic, the work of the licensed craftsman has been severely reduced, and the monthly motorcycle loan payment of 2,850 yuan has become a burden. (Photo / Mirror Weekly, same below)
Graphic / Mirror Weekly
We interviewed several people who escaped from Cambodia, Dubai, or nearly cheated, and found that they were all more or less in debt and were marginalized in the job market.
The epidemic is the last straw, they still can not pay, and they have been plunged into a debt black hole.
They are reminiscent of the protagonists of the Korean drama "Squid Game", who are locked and invited, and can only risk a fight with their heads.
Social scholars warn that many vulnerable groups may have escaped the first wave of infection and economic shocks, but often fall into the second wave of risk caused by economic recession, resulting in hardship and family or other social problems.
There are more than 1,000 friends on Facebook, and he often expresses his feelings on it.
In July this year, he could not stand the heavy economic pressure, late at night posted a sigh: "Really tired, overtime for 3 consecutive days to midnight, salary because I was unable to claim at the beginning of the month, car loans, phone charges, debt together, I do not know what to do, really want to find the day meeting?" Day meeting, is popular in recent years of private usury.
Debt is hard to bear and can be used to entice people to cheat
Within a few days, he had known the Facebook group for more than 2 years, and had rescued a friend who had borrowed his 2,000 yuan in a post to mark him. The girls in the post put more sexy photos, and some of the recruitment content was probably: "I have been playing disc in Cambodia (referring to DJ work) for a while, friends who want to make money quickly contact me."
"As long as you have the ability, the basic salary of the waiter is $100 a day, and the salary is too much better than in Taiwan. Come here to earn dollars." "Please help share, maybe you will save the people who are in deep water." 」
Wu De saw the other side of the dynamic luxury and ostentatious wealth, private interrogating friends, only to find that the friend had not seen the post of the girl, only to see her live and online chat, he immediately refused.
But the friend did not give up, but also gave his personal account to the woman, and the two quarreled.
Friends scolded him: "You are stubborn, you can not get out of the predicament."
Taoyuan airport aviation police advertise fraudulent traps for high-paying jobs overseas.
Wu Te, 48, is single and lives in Taipei with his parents.
Young and playful, after graduating from the night department of high tech, he worked as a car paint, a manager, a drama prop group, a temporary job in a fast food shop, and a card presentation worker.
5 years ago, in order to receive more dispatch workers, he borrowed more than 20,000 yuan to buy a second-hand motorcycle. Before the epidemic, the motorcycle company encouraged him to buy a second-hand yellow brand heavy machine with an original price of 60,000 yuan.
The financially troubled Vude did not go to Cambodia, and he chose to work part-time in two gardening jobs.
He didn ’ t think about the epidemic, he was powerless.
After the third level of vigilance last year, everyone did not go out, he relied on the dispatch of workers from six days a week to two days a week, earning less than 10,000 yuan a month, 2,850 yuan of car loans, 1,200 yuan of mobile phone monthly rent, zero total fines and basic expenses, so that he can not breathe, but also let him even if he is too old, is still a high-paying scam in Cambodia's gray industry. Object.
According to the Police Administration, as of August 18, the number of people reported from March to July, plus 144 people who may be victims of household visits, currently about 373 people are trapped in Cambodia.
There are frequent cases of population resale and abuse, and warning signs are everywhere at airports, MRT and stations, but flights to Cambodia still maintain a high passenger load rate of nearly 70%.
A group of people selling to Taiwanese
Half way through the summer vacation, we arrived at the second terminal of Taoyuan International Airport early in the morning, and EVA Air flew to the lobby counter in Phnom Penh.
Ask a group of young people what to do in Phnom Penh. They say that it is not work, it is a friend to play, but where to play, they also do not know.
The air marshal holding a card on the side was painstakingly discouraged, and he couldn't help but sigh back: "Are we not watching the news now? Why did the news report come to this, but still pay attention."
▲ Telegram ’ s Southeast Asian manpower brokers and population reseller groups still see the message of reselling Taiwanese from time to time.
In fact, during the news wash, the encrypted communication software Telegram, a group of more than 240,000 users participating in the "dump" (human agency, population transfer) group, still see the human snake group selling Taiwanese people from time to time: "Just landed in Cambodia, two men and one woman, are 90, three people packed 60,000 yuan, no price, welcome to negotiate with kidnappers.
As long as the money is in place, there is no requirement for any park model treatment. "
In the first year of the epidemic, Nobel laureate Angus Deaton observed that the COVID-19 epidemic has exacerbated health and wealth inequality in the United States: people with higher education can be isolated from home and continue to work through the Internet, but workers risk contracting services and may face unemployment.
▲ Telegram ’ s Southeast Asian manpower brokers and population reseller groups still see the message of reselling Taiwanese from time to time.
As for Taiwan, the per capita income has risen rapidly in recent years, exceeding US $35,000, but the data of the main accounting department also shows that in the past decade, the average annual saving amount of the lowest 20% of households in Taiwan has been negative.
Although it is an average, it still shows that there are some families that do not make ends meet, including retirees, but also families with financial difficulties, such as Wu Te, who are financially strapped.
The debt of these people can quickly worsen once their incomes run out of steam.
The epidemic is like the last straw to crush them.
★ "Mirror Weekly" cares about you: if you or someone else has suffered physical abuse, mental abuse, sexual assault, sexual harassment, please call 110 immediately to report the case, and then seek 113 special line, help professional social workers.
More Mirror Weekly News
How did I set foot on this squid game Cambodia ’ s gold rush dream survivor ’ s confession
[Cambodia Squid Game 2] Lucky Draw Earn Fast Money, Texas Poker Debt Massage Master Wash His Heart and Step on the Overseas Job Trap
[Cambodia Squid Game 3] Car loan, door number for cash is still not enough for couples to work overseas to pay off debts once did not want to return to Taiwan
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Content: Usually, speaking about the financial pyramid, it is understood the involvement of people in business, where the basis of income is the attraction of new participants with a financial contribution, said Roman Sidorchuk, Professor of the Department of Marketing at Plekhanov Russian University of Economics, to the correspondent of IA REGNUM.
Pyramid
“For this kind of participation, mainly“ recruited ” people with a “disturbing ” psyche, who are dominated by an irrational type of thinking.
Given the fact that in these circumstances, behind the proposals of the organizers there is always a deception in the involvement of the participant, it is impossible to talk about marketing, which is usually guided by certain ethical standards (for example, the ethical code ESOMAR, the European Community of market researchers and public opinion).
Here we should talk about the methods of social engineering, when the goal is not to meet the needs of the consumer, as in marketing, but the psychological manipulation of people in order to commit certain actions.
In this regard, the methods of this kind of manipulation will constantly change, adapting to the interests of the potential audience.
The use of computer games is a convenient format for manipulation.
Moreover, people who are often fixated on computer games experience depressive and restless states, and become more malleable to the external influence of the gaming community, ” the expert believes.
As reported IA REGNUM, in Russia there is a new type of financial pyramids, said the head of the Department of combating unfair practices of the Central Bank of the Russian Federation Valery Lyakh.
See also: Bank of Russia warned about the emergence of gaming financial pyramids

The COVID-19 pandemic boosted sales for some MLM companies, like Nu Skin, whose stock tripled from March 2020 to June 2021.

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Content: We've detected you are on Internet Explorer. For the best Barrons.com experience, please update to a modern browser.GoogleFirefox

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...

Matilda Jane Clothing Company is closing due to financial difficulties, terminating relationships with its trunk keepers.

Title:

Content: Trunk keeper: Matilda Jane is closing

Published: Dec. 8, 2022 at 5:07 PM EST|Updated: 39 minutes ago

FORT WAYNE, Ind. (WPTA) - The Matilda Jane Clothing Company opened in Fort Wayne in 2005.

According to the company’s mission statement on its website, it opened with one goal in mind, to bring happiness into the lives of their customers.

Yesterday morning via email, sellers, known as trunk keepers were told some unhappy news.

The email said that as of 5pm Wednesday, the company would be terminating relationships with trunk keepers and winding down business.

Trunk keepers across the country took to social media to share the news. Many saying they were heartbroken and devastated.

Kait Galto from Illinois has been a trunk keeper since 2012. She says her job has helped her grow friendships, and has helped her family during difficult times.

Galto explained, “Within the first couple seasons, my husband actually had a period in his life where he was laid off and I was able to help float us during that short time while he was in between companies.”

In the email to trunk keepers, Matilda Jane’s CEO said the company has been experiencing financial difficulties and leaders had been negotiating a sale of substantially all of its assests to preserve jobs and the business, but that sale fell through.

The email also said owners of Matilda Jane will try to sell remaining assets.

The email didn’t say how many people the closure would impact or what their sellers should do.

21Alive reached out to Matilda Jane via phone and email. We also stopped by the Fort Wayne Warehouse and called the Fort Myers, Florida Chamber of Commerce tyring to reach their headquarters. We were unsuccessful in reaching company representatives.

So for now, several trunk keepers are left wondering what they’re going to do next.

“It’s not only are you missing an income, but you’re missing that monthly, weekly, daily connection with all of these people that you’ve gotten to experience for so many years. It’s just like an emptiness,” Galto said.

Herbalife and Amway have closed their Russian operations due to economic circumstances.

Title:

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

The MLM business model is evolving to focus on online sales, sustainability, and eco-friendly products.

Title:

Content: Attract customers at the lowest cost.
All you need to know about green marketing
Many sectors and business areas are undergoing a phase of redevelopment in light of global changes and increasing digitalization, as companies resort to different ways in order to reach a large audience, and green marketing is the most important emerging marketing trends today.
In a report, Tickimax says companies continue to develop marketing strategies for their products in order to adapt to changing global order and consumer behavior.
In recent years, many companies have introduced their products and services in an environmentally friendly marketing method called green marketing.
It is defined as the marketing of environmentally friendly products and services, and includes a number of different practices such as the creation of an environmentally friendly product, the use of environmentally friendly packaging, and the adoption of sustainable business practices, but when talking about green marketing, it is important to create environmental awareness among both consumers and companies.
Features of Green Marketing
The Tiki Max report shows that promoting environmentally safe products through green marketing has some salient features, including:
1.
Sustainability.
2.
Create consumer awareness through sustainable packaging design.
3.
Producing and distributing products that benefit the environment.
Green marketing strategies are also used with private nonprofits that focus on sustainability initiatives.
When marketing a product that exports issues such as climate change and carbon emissions, it also aims to raise environmental awareness as part of creating a perception that the brand is environmentally friendly.
What are the areas of green marketing?
Green marketing is part of a larger social movement towards more sustainable and ethical practices, the report said, prompting consumers to look to companies to contribute to these environmental practices in this sense.
To meet the needs of consumers, companies respond by introducing environmentally conscious brands that use green marketing methods to promote products.
Green marketing often shows consumers how socially responsible a company is and committed to investing in sustainable business, and it also puts companies that use green marketing strategies at risk of criticizing consumers if their sustainability claims are untrue or discredited.
What are the advantages of green marketing?
The Tiki Max report highlighted a number of advantages for businesses and consumers, with green marketing being:
Addressing a new market
Companies are able to create a new market through green marketing strategies, as they work to form a new environmental awareness in a society that is becoming more able to understand the impact of individuals and large companies on the environment, resulting in more consumers entering this market, where they can learn how products are manufactured and their impact on the world in which they live.
Increases profitability and brand loyalty
Companies that engage in green marketing succeed in attracting loyal customers, consumers who have this awareness do not dispense with companies that make promises of sustainability, but also recommend them, and green marketing gives companies an advantage over their competitors, thus enabling companies to increase their profitability and loyalty to their brand.
A lasting relationship with the consumer
There is a growing consumer demand for environmentally oriented goods and services, so companies that adopt green marketing have the opportunity to have a lasting business relationship with the consumer and connect with their target audience.
Lower marketing costs
The shift to environmentally friendly marketing and the use of sustainable materials reduces marketing and production costs, the use of sustainable materials in a product can reduce waste costs, and even environmentally friendly building materials can make companies more profitable.
Make significant contributions to the environment
Not only does green marketing make more profits and gain more loyal consumers, it contributes constructively to nature, helping significantly to slow climate change and protect the environment, not to mention building community awareness.
What are green marketing strategies?
Investopedia published a report by writer Jason Fernando outlining green marketing strategies, stressing that it includes strategies such as creating an environmentally friendly product, making the product sustainable, and taking into account the sensitivity of the environment while marketing the product.
Examples include the use of e-marketing instead of printed materials, or the use of environmentally friendly printed materials, as there are companies that have recycling programs, the use of environmentally friendly packaging, clean energy sources, and products that cause less harm to the environment.
Best Examples of Green Marketing
Starbucks is implementing sustainable marketing activities and adopting environmental programs such as recycling, developing renewable energy, and using disposable cups.
The famous Mavi brand has set a typical example of green marketing related to the development of environmentally friendly and sustainable products by producing blended fabric from recycled plastic bottles.
What to Consider During Green Marketing
Although companies that adopt green marketing reduce costs and go a long way in increasing customer satisfaction, green marketing methods can cause a backlash in some cases where green marketing strategies are not properly applied, which can lead to consumers rejecting the product.
The website concludes with the definition of false green marketing or "green washing" as companies finding an environmentally friendly perception of non-environmentally friendly products, where companies that do not already implement environmentally friendly practices risk completely destroying their reputation.
For this reason, it will be important to implement true proven green product practices in marketing applications.
Source: Turkish Press