The global direct selling market is expected to reach $1,125.52 billion by 2027, with a compound annual growth rate of 11% and 10.2% from 2023 to 2027.

Key players in the direct selling market include Herbalife, Amway, and Mary Kay Inc., with Asia-Pacific leading the market in 2022, followed by North America.

The demand for additional income avenues is a major driver of the direct selling market, while e-commerce poses a challenge to direct-selling establishments.

Some multi-level marketing companies, such as Suntech, are estimated to quadruple their profits to $8 million, with net profits expected to reach $8 million on $1 billion sales.

The COVID-19 pandemic has had a significant impact on the multi-level marketing (MLM) business model, with some companies experiencing a surge in profits, while others have struggled to stay afloat.

The pandemic has forced businesses to adapt to a new normal environment, with a shift towards digital services and online shopping.

As a result, some MLM companies have seen an increase in sales, with Nu Skin's stock tripling in value from 2020 to 2021.

However, not all MLM companies have been successful, with 92% of businesses reporting difficulties due to the pandemic, and 8% closing permanently.

The pandemic has also led to a change in consumer behavior, with online grocery sales increasing by 40% year over year, and digital orders increasing by 134% for brands like Chipotle.

This shift towards online shopping has posed a challenge to direct selling establishments, which have had to adapt to a new digital landscape.

Some companies, such as Smoor, have successfully made the transition to online sales, with its online revenue increasing to 90% during the pandemic.

In contrast, some MLM companies have struggled to adapt to the changing market, with 63% of businesses seeing a fall in cash flow during the pandemic.

The pandemic has also led to an increase in the number of people joining MLM companies, with furloughed workers turning to these businesses to make ends meet.

However, this surge in popularity may be short-lived, as the pandemic's impact on the economy and consumer behavior continues to evolve.

The direct selling industry as a whole has grown, with India's direct selling industry growing 12% in 2022-23, and the global direct selling market expected to reach $1,125.52 billion by 2027.

The industry has also seen a shift towards wellness products, which contributed 73.5% to industry turnover in India.

Some MLM companies, such as Mannatech, have been successful in this space, with the company selling dietary supplements and personal care products, and offering a 180-day Money Back Satisfaction Guarantee.

The company has also invested in scientific research and secured 145 patents, and has earned over $5 billion in total sales.

Overall, the COVID-19 pandemic has had a significant impact on the MLM business model, with some companies experiencing a surge in profits, while others have struggled to stay afloat.

Several MLM companies have closed or are closing down, including Freedom Insurance, Hiro Brands, Jenny Craig, and SmileDirectClub.

Some companies, such as Avon and Herbalife, have exited certain markets, such as Russia, due to economic and operational issues.

Other companies, such as Tupperware, have restructured their debts and introduced their products into retail stores, moving away from the direct sales model.

The MLM industry has been criticized for its reliance on recruiting new sellers, with most people making little or no money working for these companies.

The industry has also been plagued by criticisms of being outdated, with some arguing that direct selling became obsolete generations ago, and that MLMs have shifted their main revenue source from customers to salespeople.

Regulatory bodies, such as the US Federal Trade Commission (FTC), have taken action against MLM companies that make unsubstantiated earnings claims, such as Vyvo Inc.

The FTC enforces laws related to false or misleading business opportunities, and the DSSRC monitors direct selling companies' income representations.

Some countries, such as China, have investigated MLM companies for potential pyramid scheme allegations, and have introduced regulations to increase regulatory density and introduce a licensing system.

The demographic characteristics of individuals who join MLM companies are diverse, but often include women and millennials seeking flexible work arrangements and financial independence.

These individuals are often vulnerable to emotional manipulation and recruitment tactics, which can lead to financial losses and exploitation.

The use of social media and online platforms by MLM companies has raised concerns about consumer protection and regulatory oversight, with some companies facing accusations of being pyramid schemes and exploiting members financially.

Overall, the MLM industry is facing significant regulatory challenges and public perception shifts, which are affecting the profitability and popularity of companies utilizing this business model.

The global direct selling market is expected to reach $1,125.52 billion by 2027, with a compound annual growth rate of 11% and 10.2% from 2023 to 2027.

Title:

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

(MENAFN- EIN Presswire)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Key players in the direct selling market include Herbalife, Amway, and Mary Kay Inc., with Asia-Pacific leading the market in 2022, followed by North America.

The demand for additional income avenues is a major driver of the direct selling market, while e-commerce poses a challenge to direct-selling establishments.

Some multi-level marketing companies, such as Suntech, are estimated to quadruple their profits to $8 million, with net profits expected to reach $8 million on $1 billion sales.

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 COVID-19 pandemic has had a significant impact on the multi-level marketing (MLM) business model, with some companies experiencing a surge in profits, while others have struggled to stay afloat.

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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 pandemic has forced businesses to adapt to a new normal environment, with a shift towards digital services and online shopping.

Title:

Content: Digital Transformation: Force For Positive Business Change

COVID-19 has left long term effect on everyone, be it corporate or small businesses, everyone one and every system had to adapt

By: Hassan Imtiazi:

COVID-19 has left long term effect on everyone, be it corporate or small businesses, everyone one and every system had to adapt. Working remotely, travel restrictions & physical distancing has created unforeseen challenges for employers.

While it is too early to predict the long term outcomes and trends prompted by the COVID-19 pandemic, but in the short term the most likely scenarios suggest organizations will be operating in the new normal environment for the foreseeable future. The change in external and internal stakeholder behaviour means that companies need to emerge stronger after the pandemic. This may include starting to map out their transition to a next generation operating model best suited for the future.
Impact on the key stakeholders

These changes in external environment will have effect on three key stakeholders i.e. customers, employees, venders & partners.

Customers have already shifted their purchasing preferences to avoid physical channels, adopting more digital services, and demand more from delivery services. We have seen growth in a number of home delivery food services in UK e.g. every big superstore has now an option to reserve & pick or buy & deliver online. Amazon has already spoiled everyone with the offers like Prime giving number of incentives.

Amazon Prime membership grew to 153 million members in the U.S. as of June 2021, up 25.4% from 122 million in June 2020 according to CIRP's estimates.

The ability to find anything on Amazon made it one of the most popular e-commerce platforms. In USA almost 153 million of Amazon customers already opted for Amazon prime and they probably have the same strategy for other markets like UK. Offerings like hello fresh passing the concept of eco-friendly buying and cost effective way to spending money are proven success stories. Price comparison sites like Uswitch, money supermarket and meerkat are already giving choices as an aggregator. Especially post Brexit when UK is facing some immediate shortage of fuel and price hike in energy sector. All these economic pressures have pushed the customers to look for best deals online.

One thing which came out definitely from COVID-19 is people making new and renewed commitments to their values and goals for example, balancing time spent at work and with family. At the same time, people are weighing the risks and values in everyday decisions about where they go, who they spend time with, what they do, and what they buy.

According to McKinsey research employees with a stable, secure work experience working remotely report an increase in positive work effectiveness and wellbeing. Also, vendors and partners might be considering scaling down activities and operations, focusing on the short term, delaying unnecessary investments, and attempting to cut costs. At the same time, vendors and partners could shift to digital channels, reducing the need to visit customers on-site.

According to Hassan Imtiazi, Digital Marketing Consultant, COVID-19 has forced businesses to take paradigm shift. Many industries like travel, hospitality, entertainment and outdoor re-creation like Disney had to lay off thousands of employees. The need to find out new ways of doing business in order to make it profitable in post COVID-19 world.

Sales channels: Shifting away from Point of Sales

To adapt to changing customer buying behaviour, companies have moved from large points of sales (POS) to a reduced number of small, human-less POS, and promote digital channels. This has started already and those who have not adopted already are in the process of changing in the near future.

For example: DHL launched contactless delivery and payment through automated pickup points.

A big telecommunications group optimized its marketing efforts by reallocating budget to digital channels.

Amazon is another good example of this trend, with its Amazon Go physical stores providing uniquely innovative customer experiences i.e. how digital and physical world interacts. In Amazon Go customers scan an Amazon app when they enter the store—the only point at which a phone is required and there is no check out till. One of the stores are due to open in Blue Water London.

Product: Keep it simple to drive digital sales

One way of meeting customers’ changing demands is to simplify products to spur digital sale. Prime example is Yaqoot which is a digital platform that aims to spread happiness through SIM cards by allowing customers to download an app and to send special gifts to loved ones. This digital product was launched in Saudi Arabia and become huge success with growing userbase of digital natives. It is simple & online product which give users seamless experience.

Due to online competition and high acquisition cost for customers companies are also looking at developing pricing models that encourage consumer loyalty, rather than short term promotions. Also, cash might carry virus we have seen many retailers asking to pay only through contactless and in future e-wallet and cashless systems will become normal.

Service and support: Moving to a remote digital service

Organisations also changing their after service and support models. The digital native Russian bank, Tinkoff was the first one in 2012 to launch cloud based remote call centers outside of Russia. The bank focused on remote servicing and now has more than 14,000 remote employees who work from home and take half a million calls every day. These are not even the bank’s permanent employees. This model has saved bank cost for offices, equipment and workplaces.

We see that chatbots are very common when it comes to reaching out service support. These automations help organisations to work with cost efficiencies.

Work place: Shift to digital remote office operations

Many organizations have already shifted to remote work and have begun conducting large scale meetings. Mix models like agile ways of working are also proving to be successful where some quarterly meeting are held in person and rest via online calls.

Many companies in UK now offering flexible working days e.g. employees can opt in to work from home for 2 days and 3 days from office. Some are giving 100% remote working options especially within digital media agencies where face to face meetings are not necessary. There are enough tools available to monitor employees’ performance keeping track record of day to day work. For example: Trello app is used for project management and similar solutions are seems to be successful.

Vendors and partnerships: Shift to collaborative lean partnerships

One of the biggest challenge for supply chain executives to make sure they have smooth supply of goods. Since consumers panic and piled up stock during peak time of COVID-19 there was no mechanism to fulfil that kind of demand. In UK big supermarkets like TESCO, ASDA and Sainsbury saw severe shortage of household essential and food items as people are scared and bought these items in bulk due to future uncertainty.

Companies are now actively looking to streamline supply chains right from suppliers to merchandising to distribution to logistics to final fulfilment. Most priority is given to food, drugs and essential items to make sure isles are filled coping customers demand.

As a result, some MLM companies have seen an increase in sales, with Nu Skin's stock tripling in value from 2020 to 2021.

However, not all MLM companies have been successful, with 92% of businesses reporting difficulties due to the pandemic, and 8% closing permanently.

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Content: Businesses in Ceredigion have yet to fully recover from the effects of the Covid-19 pandemic, a wide-ranging report by academics at Aberystwyth University has found, with “significant changes in business revenue and levels of external debt”.

The report, The Economic Impact of the Covid-19 Pandemic on Ceredigion Businesses and the Self-employed, draws on the experience of 77 businesses and self-employed individuals and identifies some of the main challenges they faced.

According to the study, 92 per cent of businesses reported difficulties, including falls in customer numbers and revenue, and disruptions to supply chains.

Despite the availability of various government-backed business support schemes at the time, the authors conclude that many businesses have still not returned to normal and have called for policy responses to address what they describe as “ongoing long-business Covid effects”.

Figures contained within the report show that a total of 3,965 businesses are operating in Ceredigion, with 92 per cent of those considered to be at the micro level – employing zero to nine people.

82%

of businesses reported a drop in number of customers

63%

of businesses saw a fall in cash flow during the pandemic

The Covid-19 pandemic “affected the economy and the livelihoods of the people behind” those small businesses, the report outlines.

While more businesses have opened than closed in Ceredigion since 2017, the pandemic “exacerbated” the decline, figures show.

“Our findings show significant changes in business revenue, levels of external debt, changes in demand and customer numbers and disruptions to supply chains since the onset of the Covid-19 pandemic,” the report said.

“Changing operations to comply with government restrictions e.g. social distancing, increased sanitisation and cleaning and staff with caring responsibilities working from home considerably changed the business environment.

“In addition, the necessity to operate online led to a marked increase in businesses having to provide computing devices, internet connectivity and digital accessibility for their operations.”

The report finds that the “impact of Covid-19 on the revenue of businesses surveyed was negative for over two thirds of the sample”.

The level of external business debt rose for 33 per cent of the businesses, and 15 per cent of businesses had to apply for a loan repayment holiday during the pandemic.

69%

of businesses closed temporarily due to the pandemic

40%

of businesses reduced staff working hours

Despite the initial closures and impacts on many businesses, no businesses surveyed in Ceredigion had applied for bankruptcy as a result of the pandemic at the time of the survey.

A total of 82 per cent of businesses reported a drop in the number of customers, with 63 per cent seeing a fall in cash flow.

The study found that three per cent of businesses closed permanently due to the pandemic, with 69 per cent closing temporarily.

“After the initial shutdown and closure of businesses the majority were able to function in some capacity,” the report adds.

“95 per cent of businesses in Ceredigion did not close permanently.

“Three per cent of self-employed closed permanently while 35 per cent closed temporarily.”

More than 40 per cent of businesses reduced staff hours, with 13 per cent laying off staff due to the pandemic.

Over half of the businesses surveyed registered for the UK Government furlough scheme, but the self-employed were not eligible for that scheme, with help only coming a few months later through a separate scheme.

“The delay in setting up the scheme contributed to the financial hardship for small businesses,” the report found.

“Lockdowns and other Covid-19 containment measures had a direct negative impact on business operations and supply chains, “ the report outlines.

“Staff were made redundant, some worked from home, self-isolated due to infection, took paid or unpaid sick leave, undertook home-schooling or other caring responsibilities.

“All these impacted negatively on businesses through changes in working hours, work patterns and employee responsibilities.”

The report’s authors are Dr Aloysius Igboekwu, senior lecturer in finance and director of postgraduate studies; Dr Maria Plotnikova, lecturer in economics; and Dr Sarah Lindop, senior lecturer in finance at Aberystwyth Business School.

Speaking at the launch of the report on Tuesday, 19 September, Dr Igboekwu said: “Although the short-term effects, such as supply chain disruptions and a fall in customer numbers were substantial, evidence from our survey responses suggests addressing the ongoing long-business Covid effects should be a priority for policymakers.”

The survey was made available to all businesses and self-employed in Ceredigion.

The survey period ran from April to June 2021.

The pandemic has also led to a change in consumer behavior, with online grocery sales increasing by 40% year over year, and digital orders increasing by 134% for brands like Chipotle.

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Content: Customer Loyalty Management Software Market Size is projected to reach USD 1.82 billion by 2030, growing at a CAGR of 8.9%: Straits Research

New York, United States, Sept. 26, 2022 (GLOBE NEWSWIRE) -- A customer loyalty program is an e-commerce marketing strategy that rewards customers those loyal to a brand and interacts with it regularly. Customer loyalty programs are designed to encourage repeat purchases by offering discounts, exclusive offers, VIP events, and other benefits to members. They work at customer retention and understanding and analyzing customer behaviours and preferences to further businesses. According to statistics, 80% of the British population is a member of a customer loyalty program.

Get a Free Sample Copy of This Report @ https://straitsresearch.com/report/customer-loyalty-management-software-market/request-sample

Customer-Centric Approaches Driving the Market

It is discovered that, in addition to a simple customer focus, creating customer value and putting customers first provides the longest-lasting business value, regardless of time. Because the goal of loyalty management is to reward a company's repeat customers, developing customer-centric strategies has become necessary to maintain a high customer retention rate, driving the demand for loyalty management programs.

Through loyalty platforms, key players have implemented personalization features. It helps to capture the attention of customers and improve their overall experience. Personalized recommendations and coupons from brands attract customers. Customer satisfaction rises because of these programs, which drives their adoption across industries. According to Annex Cloud, 33% of consumers abandon a brand that lacks personalization.

Technological Advancements Boost the Market

The rate of technological advancements, whether artificial intelligence (AI), the internet of things (IoT), or digital reality, is directly proportional to the growth of the global Loyalty management software market. Over 20 billion devices are expected to be connected to the internet in the next two years. With hundreds of devices connecting to the internet every second, the global digital transformation in various industries is expected to provide value-producing opportunities in the global Loyalty Management Software Market, which is expected to grow significantly over the forecast period.

Thanks to technological advancements, we can now use artificial intelligence (AI) and machine learning (ML) to analyze and analyze consumer behavior using improved algorithms. In loyalty programs, AI and machine learning improve the customer experience and influence purchasing habits. According to Bond, 95% of customers want to use emerging technology like chatbots, AI, VR, and smart devices to interact with their loyalty program.

Report Scope

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Cloud Sub-Segment Accounts for Large Market Share
The market is divided into two segments based on deployment: on-premise and cloud. Cloud-based customer loyalty management software provides a network-based solution accessible from any location with an active internet connection. Integrating with third-party solutions is usually easier. The cloud deployment model supports various devices that are simple to use, such as tablets, mobile phones, social media, and many others. The cloud-based software allows real-time updates on customer queries and response rates at reasonable prices. Furthermore, they help organizations with scalability and ease of access to organizational content, regardless of employee location, assisting with business continuity.

Market Growth due to Large Enterprises Funding for Increased Customer Retention
According to the enterprise size, the market is divided into two categories: small & medium (SMEs) and large. Large businesses are investing in customer loyalty solutions due to their large customer base and higher purchase frequency. It provides the brands with potential publicity and strengthens their market position.

Loyalty is more important than ever to businesses in various industries, particularly those that are heavily consumer-driven, such as retail, financial services, and hospitality. According to "Loyalty Big Picture," more than 71 % said they spend at least 2% of total revenues on loyalty and CRM to activate customers and leverage the data asset to create personalized offers and extensions, with the majority spending more than 4%.

Impact of Covid-19
When it comes to customer-brand interactions, COVID-19 has changed nearly everything. The pandemic has upended traditional strategies and tactics that brands have used to engage with customers, deliver an exceptional experience, and earn loyalty and repeat purchases. The retail world has majorly moved to the online space during the pandemic. Online grocery sales increased by 40% year over year, prompting retailers such as Wegmans to rethink their brick-and-mortar expansion plans. Customers' digital engagement exploded, while in-store foot traffic slowed significantly, with brands such as Chipotle seeing a 134% increase in digital orders and increased app-based engagement year over year. The need for customer loyalty software also rose significantly to understand and analyze the new online behaviors of customers and hence driving the market upward.

Presence of Key Players and Advanced Infrastructure Resulting in North America's Large Market Share
North America offers a wide range of opportunities for the global customer loyalty software market due to its technologically advanced infrastructure, widespread adoption of loyalty programmers, and strong presence of several established enterprises in developed countries such as the U.S. and Canada. In the United States, the majority of customers have loyalty cards. According to Accenture, there are 3.3 billion loyalty memberships in the United States.

The Asia-Pacific loyalty market is expected to grow exponentially during the forecast period. The Asia Pacific is home to some of the world's fastest-growing economies, including India and China. In Asia-Pacific developing countries, a whopping 92 % were in the favor of loyalty programs. Because maximum consumers in developing markets are middle-class, they are more price-conscious. They prefer incentives such as loyalty cards because they believe they will benefit them financially in the long run. They do not switch brands often, so loyalty programs are ideal for them, necessitating the customer loyalty management software.

Key Highlights

  • The global customer loyalty management software market size is expected to reach USD 1,820 million by 2030, growing at a CAGR of 8.9% over the forecast period. (2022–2030)
  • The customer loyalty software market is driven by Increased adoption of omnichannel and multi-channel programs, technological advancements, and a growing need for competitive differentiation.
  • Cloud-based deployment is the leading segment with a large market share attributed to better integration with other loyalty systems such as CRM and marketing resources and enabling cost-effective real-time content collaboration and analysis.
  • Over the forecast period, Large Enterprises are expected to have a dominant share owing to huge investments by organizations to increase customer retention and defend their position in the highly competitive environment.
  • North America holds the largest share, due to the presence of key players, technological advancements, and a large customer base. APAC is expected to have a large market share in the forecast period due to its large population, rising preference for mobile technologies, and increasing digitization.

Some of the key players in the global customer loyalty management software market are

  • Apex Loyalty
  • CitiXsys Americas Inc
  • Comarch
  • CityGro Inc.
  • Influitive Corporation
  • SiEBEN Yotpo Ltd.
  • Tango Card Inc.
  • Oto Analytics Inc.
  • Zoho Corporation Pvt. Ltd.
  • Loyverse

Get a Free Sample Copy of This Report @ https://straitsresearch.com/report/customer-loyalty-management-software-market/request-sample

Global Customer Loyalty Management Software Market: Segmentation
By Deployment:

  • On-premise
  • Cloud

By Enterprise:

  • Small and Medium Enterprise
  • Large Enterprise

By Applications:

  • Campaign Management
  • Reward Distribution
  • SMS Marketing
  • Others

By Regions:

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East and Africa

TABLE OF CONTENT
1          Introduction
1.1       Market Definition
1.2       Market Scope
2          Research Methodology
2.1       Primary Research
2.2       Research Methodology
2.3       Assumptions and Exclusions
2.4       Secondary Data Sources
3          Executive Summary
4          Market Overview
4.1       Report Segmentation and Scope
4.2       Key Market Trends
4.2.1   Drivers
4.2.2   Restraints
4.2.3   Opportunities
4.3       Porter's Five Forces Analysis
4.3.1   Bargaining Power of Suppliers
4.3.2   Bargaining Power of Buyers
4.3.3   Threat of Substitution
4.3.4   Threat of New Entrants
4.3.5   Competitive Rivalry
4.4       Environment and Regulatory Landscape
4.5       Forecast Factors and Relevance of Impact
4.6       Macro-Economic and Geopolitical Scenario
4.7       Parent Market Overview
4.8       Technology Landscape
4.9       Market Share Analysis
4.10    Potential Venture Analysis
5          Deployment Overview
5.1       Introduction
5.1.1   Market Size and Forecast (Value)
5.2       On-premise
5.2.1   Market Size and Forecast (Value)
5.3       Cloud
5.3.1   Market Size and Forecast (Value)
6          Enterprise Overview
6.1       Introduction
6.1.1   Market Size and Forecast (Value)
6.2       SMEs
6.2.1   Market Size and Forecast (Value)
6.3       Large Enterprises
6.3.1   Market Size and Forecast (Value)
7          Application Overview
7.1       Introduction
7.1.1   Market Size and Forecast (Value)
7.2       Campaign Management
7.2.1   Market Size and Forecast (Value)
7.3       Reward Distribution
7.3.1   Market Size and Forecast (Value)
7.4       SMS Marketing
7.4.1   Market Size and Forecast (Value)
7.5       Others
7.5.1   Market Size and Forecast (Value)
8          Regional Overview
8.1       Introduction
8.1.1   Market Size and Forecast (Value)
8.2       North America
8.2.1   Economic Overview
8.2.2   Market Scenario
8.2.3   The U.S.
8.2.3.1            By Deployment
8.2.3.2            By Enterprise
8.2.3.3            By Application
8.2.4   Canada
8.2.4.1            By Deployment
8.2.4.2            By Enterprise
8.2.4.3            By Application
8.3       Latin America (LATAM)
8.3.1   Economic Overview
8.3.2   Market Scenario
8.3.3   Mexico
8.3.3.1            By Deployment
8.3.3.2            By Enterprise
8.3.3.3            By Application
8.3.4   Brazil
8.3.4.1            By Deployment
8.3.4.2            By Enterprise
8.3.4.3            By Application
8.3.5   Argentina
8.3.5.1            By Deployment
8.3.5.2            By Enterprise
8.3.5.3            By Application
8.3.6   Rest of LATAM
8.3.6.1            By Deployment
8.3.6.2            By Enterprise
8.3.6.3            By Application
8.4       Europe
8.4.1   Economic Overview
8.4.2   Market Scenario
8.4.3   Germany
8.4.3.1            By Deployment
8.4.3.2            By Enterprise
8.4.3.3            By Application
8.4.4   France
8.4.4.1            By Deployment
8.4.4.2            By Enterprise
8.4.4.3            By Application
8.4.5   The U.K.
8.4.5.1            By Deployment
8.4.5.2            By Enterprise
8.4.5.3            By Application
8.4.6   Italy
8.4.6.1            By Deployment
8.4.6.2            By Enterprise
8.4.6.3            By Application
8.4.7   Spain
8.4.7.1            By Deployment
8.4.7.2            By Enterprise
8.4.7.3            By Application
8.4.8   The Rest of Europe
8.4.8.1            By Deployment
8.4.8.2            By Enterprise
8.4.8.3            By Application
8.5       Asia-Pacific (APAC)
8.5.1   Economic Overview
8.5.2   Market Scenario
8.5.3   China
8.5.3.1            By Deployment
8.5.3.2            By Enterprise
8.5.3.3            By Application
8.5.4   Japan
8.5.4.1            By Deployment
8.5.4.2            By Enterprise
8.5.4.3            By Application
8.5.5   India
8.5.5.1            By Deployment
8.5.5.2            By Enterprise
8.5.5.3            By Application
8.5.6   Australia
8.5.6.1            By Deployment
8.5.6.2            By Enterprise
8.5.6.3            By Application
8.5.7   South Korea
8.5.7.1            By Deployment
8.5.7.2            By Enterprise
8.5.7.3            By Application
8.5.8   Rest of APAC
8.5.8.1            By Deployment
8.5.8.2            By Enterprise
8.5.8.3            By Application
8.6       The Middle East and Africa
8.6.1   Economic Overview
8.6.2   Market Scenario
8.6.3   GCC
8.6.3.1            By Deployment
8.6.3.2            By Enterprise
8.6.3.3            By Application
8.6.4   South Africa
8.6.4.1            By Deployment
8.6.4.2            By Enterprise
8.6.4.3            By Application
8.6.5   The Rest of the Middle East
8.6.5.1            By Deployment
8.6.5.2            By Enterprise
8.6.5.3            By Application
9          Competitive Landscape — Manufacturers and Suppliers
9.1       Competition Dashboard
9.2       Industry Structure
9.3       Apex Loyalty
9.3.1   Business Overview
9.3.2   Financial Performance
9.3.3   Recent Developments
9.3.4   Product Portfolio
9.4       CitiXsys Americas Inc
9.4.1   Business Overview
9.4.2   Financial Performance
9.4.3   Recent Developments
9.4.4   Product Portfolio
9.5       Comarch
9.5.1   Business Overview
9.5.2   Financial Performance
9.5.3   Recent Developments
9.5.4   Product Portfolio
9.6       CityGro Inc.
9.6.1   Business Overview
9.6.2   Financial Performance
9.6.3   Recent Developments
9.6.4   Product Portfolio
9.7       Influitive Corporation
9.7.1   Business Overview
9.7.2   Financial Performance
9.7.3   Recent Developments
9.7.4   Product Portfolio
9.8       SiEBEN Yotpo Ltd.
9.8.1   Business Overview
9.8.2   Financial Performance
9.8.3   Recent Developments
9.8.4   Product Portfolio
9.9       Tango Card Inc.
9.9.1   Business Overview
9.9.2   Financial Performance
9.9.3   Recent Developments
9.9.4   Product Portfolio
9.10    Zoho Corporation Pvt Ltd.
9.10.1 Business Overview
9.10.2 Financial Performance
9.10.3 Recent Developments
9.10.4 Product Portfolio
9.11    Oto Analytics Inc.
9.11.1 Business Overview
9.11.2 Financial Performance
9.11.3 Recent Developments
9.11.4 Product Portfolio
9.12    Loyverse
9.12.1 Business Overview
9.12.2 Financial Performance
9.12.3 Recent Developments
9.12.4 Product Portfolio
10        Conclusion and Recommendation
11        Acronyms and Abbreviations

Table of Content and Figure @ https://straitsresearch.com/report/customer-loyalty-management-software-market/toc

Market News

  • May 2021- Salesforce introduced a new product of Loyalty management for the end-users such as retail, manufacturing, travel, and hospitality to boost engagement and trust. It is built on the Salesforce Consumer 360 platform to provide intelligent solutions for B2B and B2C customers.
  • June 2021- Comarch Launches New AI-Powered Loyalty Program Enrollment Security Service. The AI-powered Enrollment Security Service uses historical data to detect fraudulent new registrations and changes to personal information. It uses an ensemble of statistical and machine learning natural language processing models to analyze each new registration or change in personal data.

News Media

Rapid Increase in Unique Mobile Subscribers Offers an Array of Opportunities for the Customer Loyalty Management Software

E-Commerce Industries Battle to Deliver Essentials Amid the Pandemic

Have a Look at the Related Research Report

Customer Data Platform Market: Information by Type (Access, Analytics, Engagement), Applications (BFSI, Retail and e-Commerce, Media and Entertainment), and Region — Forecast till 2026

In-Store Analytics Market: Information by Component (Solutions, Services) Application (Customer Experience Management, Competitive Intelligence) Deployment Mode, Regional Forecast till 2026

Smart Retail Devices Market: Information by Technology (Digital Signage, Smart Labels, Smart Carts), Application (Smart Transportation, Inventory Management), and Region — Forecast till 2030

Retail Analytics Market: Information by Application (Merchandising Analysis, Customer Analysis), Business Function (Finance, Sales, Marketing) and Component — Forecast Till 2026.

About Straits Research Pvt. Ltd.
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Whether you are looking at business sectors in the next town or crosswise over continents, we understand the significance of being acquainted with the client's purchase. We overcome our clients' issues by recognizing and deciphering the target group and generating leads with utmost precision. We seek to collaborate with our clients to deliver a broad spectrum of results through a blend of market and business research approaches.

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Posted In: technical analysisNewsAnalyst RatingsPress Releases

This shift towards online shopping has posed a challenge to direct selling establishments, which have had to adapt to a new digital landscape.

Some companies, such as Smoor, have successfully made the transition to online sales, with its online revenue increasing to 90% during the pandemic.

Title:

Content: Smoor founder Vimal Sharma on how the chocolate brand scaled up during the pandemic to get 10K orders a month

Speaking at YourStory’s flagship event, TechSparks 2021, Vimal Sharma, Founder, Director, and CEO of Smoor, detailed on the survival lessons during the pandemic and how digital adoption was the key for growth.
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The COVID-19 pandemic has rewritten the script on the way businesses were run in India. For entrepreneurs, the pandemic was a reality check, which accelerated digital adoption to run their businesses.

“We had never thought we would move this fast,” said Vimal Sharma, Founder, Director, and CEO, SMOOR - a premium chocolate brand based out of Bengaluru.

At YourStory’s flagship startup-tech event, TechSparks 2021, Vimal spoke about how he crafted a luxury chocolate brand in India and survived the pandemic. He also gave some tips and tricks on the importance of digital adoption.

Making a shift: offline to online

Founded in 2015, Smoor had been primarily an offline brand serving customers through its dine in space. The brand has a small online presence through a marketplace

“We had 90 percent revenue coming from our offline business. It was just a few days before the COVID-19 hit India that we had launched our website to sell as a D2C brand, and now we are getting 90 percent of our business from online sales,” says Vimal.

For most businesses during the pandemic, shifting the business model to online was one of the biggest pivots, and D2C became the buzzword.

“Though we had our organic channel, we didn’t ignore the benefits of online presence as part of a marketplace like Amazon, Flipkart or Bigbasket. The marketplace presence has its own perks.”

In the toughest of times, a business should be ready to adapt to the changing environment and agile to hit each door. For Smoor, Vimal said that selling through its own website was more of giving an experience to customers through customisation, but the presence on the marketplace increased the number of sales.

“From cataloging to suit the average ticket-size demand to ensuring smooth delivery of perishable products through in-house partners and the marketplace, backend integration, and adopting digital tools for the same. The task was huge, but it was the need of the hour,” Vimal said.

There’s no ‘one’ thing that suits all

Entrepreneurs must understand there’s no one thing that would fit all the business requirements. There are multiple systems that need to fit in and it is the duty of the entrepreneur to bring those multiple systems into one dashboard, said Vimal.

“Ours is a business that needs monitoring right from quality checking, manufacturing, to the time it reaches customers. Hence, we implemented a software that integrates all the operations.”

Based on the nature of the business, requirements vary at each step, and hence, adopting software solutions saves a lot of hassle.

“Now, we are present as an offline store in Bengaluru, Delhi/NCR, Mumbai, and Chennai, but we are serving 11,000 pin codes via online. This happened amid the pandemic with automation in our business workings,” Vimal said.

Innovation at the crux

Not just digital adoption and automation in manufacturing, Vimal said they are also implementing IoT in their delivery services.

The innovation doesn’t happen in a jiffy, Vimal said, adding there needs to be a lot of research, understanding, working on customer feedback, and a critical approach on improving customer experience.

In Smoor’s factories and dine in spaces, Vimal has also installed data loggers to monitor the temperatures of chocolates. “The nature of the business is traditional, but as we are in an era of digitisation, we have to go with the pace to grow,” Vinay said.

Speaking about the future, Vimal said, he wants to further enhance digitisation and automation at Smoor.

“The journey has been challenging, but it is satisfying to see that so much innovation has happened, which we could never think of.”

To log in to our virtual events platform and experience TechSparks 2021 with thousands of other startup-tech enthusiasts from around the world, join here. Don't forget to tag #TechSparks2021 when you share your experience, learnings and favourite moments from TechSparks 2021.

For a line-up of all the action-packed sessions at YourStory's flagship startup-tech conference, check out TechSparks 2021 website.

Edited by Megha Reddy

Latest

Updates from around the world

In contrast, some MLM companies have struggled to adapt to the changing market, with 63% of businesses seeing a fall in cash flow during the pandemic.

The pandemic has also led to an increase in the number of people joining MLM companies, with furloughed workers turning to these businesses to make ends meet.

However, this surge in popularity may be short-lived, as the pandemic's impact on the economy and consumer behavior continues to evolve.

Title:

Content: There were 1,709 press releases posted in the last 24 hours and 381,828 in the last 365 days.

Flexibility and Agility are Key to Small Businesses Surviving Recessionary Times

TAP Financial Partners is a privately-held, boutique merchant bank providing advisory, restructuring, debt and equity fundraising services, fulfillment, and up-listing advice to a select group of small and mid-sized enterprises.

As founding partner at TAP Financial Partners, Bob's focus is on building capital structures for small and medium-sized businesses that enable growth and development while safeguarding the interests of ownership.

Small and medium-sized businesses are facing economic challenges, but opportunities still exist for entrepreneurs that can pivot in adverse circumstances.

The possibility of a recession requires vigilance to avoid the potential pitfalls that may be coming, especially for entrepreneurs facing challenges and COVID's impact still affecting the bottom line.”
— Bob Press, TAP Financial Partners founder
MIAMI, FLA., UNITED STATES, March 13, 2023 /EINPresswire.com/ -- Just when we thought the COVID-19 pandemic and its effects were waning, the impact of an economic slowdown is being punctuated by inflation and supply chain complexities. For early-stage companies or individuals that manage revenue responsibilities, being agile enough to make timely changes to strategy and even the business model itself is what will pay long(er)-term benefits.

The very real possibility of a recession requires vigilance to avoid the potential pitfalls that may be coming. This is especially true for entrepreneurs facing these complex economic challenges with the pandemic’s impact still wreaking havoc on their bottom line.

It helps to be somewhat of a ‘tea leaf’ reader as it relates to your own business, connecting pieces of information that portend trends in the face of contradictory economic indicators. Layoffs vs hiring . . . declining vehicle sales but higher used car prices . . . housing slowdowns while mortgage applications rebound. And that’s not even considering international trade relations or current and potential military conflicts.

Large companies, especially in the tech sector, are laying off employees, advertising is declining, and “belt tightening” is a favorite phrase of CFOs everywhere. We are trying to navigate uncharted waters.

Experienced hands that have seen multiple economic cycles advise to try and get in front of the different scenarios that could affect your industry, pivoting on strategy to not only survive, but to take advantage of opportunities that could arise. This includes reviewing the drivers of cost and revenues, with no item too small if it affects different channels.

For early-stage companies, cost management can increase longevity. Venture capitalists have been cutting valuations and telling management to do more with less, increase their own runways, and manage cash judiciously. Cash flow-positive companies need to be greedy with their cash flow and manage for 2024. Additionally, listening to your customers and their changing needs is always intel that can make a difference.

While it may seem daunting to review strategy and cash flow models, it’s important to know when to shift resources to areas that either produce or protect cash and cash flow. Small adjustments add up. TAP believes in a top to bottom (and bottom to top) analysis of the business that starts with a review of the plan and strategy. We then construct an objective SWOT model and analysis and utilize other tools that lead to adjustments that are rational and thoroughly thought out.

Additionally, while there is often a cost involved, seeking the advice of professionals or others that have been through many economic cycles may, in combination with the data produced by your analysis, unlock new or improved processes that lead to a stronger, more resilient business paradigm.

Lastly, while it’s important to get both internal and external input, synthesizing the data and formulating the road map to move forward is still the responsibility of a company’s senior management. Just be careful to avoid ‘paralysis by analysis,’ which can sometimes cause companies to delay in taking necessary action.

The foundation of the TAP Financial Partners business model is to work with growing businesses to help them navigate waters, both smooth and choppy, and to grow and prosper during all parts of the business cycle. Reach out to our team, which has hundreds of collective years of experience, to see how you can take advantage of our TAP-ONE set of solutions.

Stu Opperman
TAP Financial Partners
+1 954-815-2303
stu@impactplayers.com
Visit us on social media:
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The direct selling industry as a whole has grown, with India's direct selling industry growing 12% in 2022-23, and the global direct selling market expected to reach $1,125.52 billion by 2027.

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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    Stories you might be interested in

The industry has also seen a shift towards wellness products, which contributed 73.5% to industry turnover in India.

Some MLM companies, such as Mannatech, have been successful in this space, with the company selling dietary supplements and personal care products, and offering a 180-day Money Back Satisfaction Guarantee.

Title:

Content: There were 636 press releases posted in the last 24 hours and 185,738 in the last 365 days.

Mannatech offers opportunities for everyone to earn income while improving health and wellness.

Entrepreneurs Thrive in Sharing Health Supplements With Reputable Publicly Traded Company

/EIN News/ -- Las Vegas, NV, Nov. 24, 2021 (GLOBE NEWSWIRE) -- Mannatech, the world leader in Glyconutrient technology, offers opportunities for everyone to earn income while improving health and wellness.

Entrepreneurs Thrive in Sharing Health Supplements With Reputable Publicly Traded Company

Low startup costs, work from anywhere, no inventory to purchase or store, and all products come with a no-risk 180-day Money Back Satisfaction Guarantee. These are just some of the opportunities Mannatech offers to help anyone start their business and earn extra income while promoting health supplements manufactured by an internationally recognized and trusted brand.

Mannatech is calling the attention of everyone searching for a “side hustle” or those planning to get a new career to improve their financial situation to join them and become a part of a community whose members are committed to wellness and personal growth.

“You can begin with very low start-up costs and the time flexibility to work the hours you want, without requiring prior experience in business or sales,” Mannatech wrote on their website.

Aside from the already mentioned benefits, people who join the Mannatech Business can also get personal and professional development training from industry veterans.

“You’ll have access to tools, training, and a network to support you along the way,” Mannatech further wrote.

Mannatech guarantees that their wide variety of scientifically proven products have stood the test of time. And, unlike other health and wellness companies, they are publicly traded (NASDAQ: MTEX).

“We are a publicly-traded company (NASDAQ: MTEX) and are currently celebrating our 26th anniversary, earning more than $5 billion in total sales and millions of customers in 26 countries through the years!”

With all these milestones and a solid track record, Mannatech is confident that its turn-key global business platform can empower anyone to monetize its influence and improve physical and financial well-being.

About Mannatech

Mannatech is a multinational publicly traded multi-level marketing firm that sells dietary supplements and personal care products. As a company, they have invested tens of millions of dollars into scientific research, secured more than 145 patents since their inception, currently hold 93 patents in major markets, and have validated their products through human clinical studies.

Their Global Scientific Advisory Board is composed of top-tier, independent scientists who guide their science-backed products.

Official Website: https://us.mannatech.com/

LinkedIn

https://www.linkedin.com/company/mannatech/

Instagram

https://www.instagram.com/mannatechinc/?hl=en

Media Contact:

pr@mannatech.com

Publicist:

Tansocial

tansocial.com

There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this PR should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation.

Attachment

Mannatech is a publicly traded, multinational multi-level marketing firm that sells dietary supplements and personal care products.

Entrepreneurs Thrive in Sharing Health Supplements With Reputable Publicly Traded Company

The company has also invested in scientific research and secured 145 patents, and has earned over $5 billion in total sales.

Overall, the COVID-19 pandemic has had a significant impact on the MLM business model, with some companies experiencing a surge in profits, while others have struggled to stay afloat.

Several MLM companies have closed or are closing down, including Freedom Insurance, Hiro Brands, Jenny Craig, and SmileDirectClub.

Title:

Content: The latest issue of Financial Standard now available as an e-newspaper
READ NOW

ASIC response to Freedom Insurance saga continues

ASIC has so far secured more than $102 million in remediation for Freedom Insurance customers and is urging anyone else who purchased life cover through the now-defunct insurer to come forward.

Freedom Insurance went out of business after ASIC's review of the sale of direct life insurance and subsequent Royal Commission hearings uncovered the then-listed insurer's shocking and harmful sales tactics.

In September 2018, the Royal Commission heard how Freedom sold life insurance to an intellectually disabled man in 2016. The insurer then delayed cancelling the policy despite numerous requests from family members, took almost two years to respond to additional requests from the family, including for an apology, before issuing an apology weeks before fronting Commissioner Kenneth Hayne.

Three months later it ceased selling life insurance and flagged the likelihood of a liquidity crisis before suspending trading in February 2019 before committing to divest all its operations - including financial advice business Spectrum Wealth Advisers - and eventually appointing liquidators in February 2020.

The policies distributed by Freedom were issued by AIA Australia, NobleOak Life, Swiss Re Life and Health Australia and ClearView Life Assurance.

ASIC has been working on the Freedom case since, having implemented a ban on 'cold call' telephone sales of direct life insurance and consumer credit insurance in 2019 and suing both the company's former managing director and former quality assurance manager.

A remediation program was commenced by AIA Australia, NobleOak Life and Swiss Re Life and Health Australia in February 2020 for customers who were sold policies between October 2010 and October 2018. ClearView Life Assurance commenced a separate remediation program in June this year for those who were sold accidental death, accidental injury and life insurance policies between July 2011 and February 2014.

In total, $102 million has been paid or will soon be paid to about 83,600 customers who were impacted by Freedom's misconduct.

"Freedom Insurance used harmful sales practices to sell funeral, accidental death and life insurance policies to vulnerable customers. They also used unfair retention practices to keep customers in the policies when they tried to cancel," ASIC deputy chair Karen Chester said.

ASIC believes there are thousands of customers that likely remain entitled to a refund but haven't come forward to claim it.

"We encourage Freedom Insurance customers from between 2010 to 2018 who believe they were mis-sold a policy, or who tried to cancel their policy without success, to contact their insurers and be assessed for remediation. We have published information on ASIC's website about the steps customers can take to seek a refund, including the contact details for each insurer," Chester said.

ASIC's case against former Freedom managing director Keith Cohen and quality assurance manager Robert Oayda is ongoing with the next case management hearing scheduled for this Friday, August 19.

Read more: ASICFreedom InsuranceAIA AustraliaClearView Life AssuranceNobleOak LifeRoyal CommissionSwiss Re LifeKaren ChesterCommissioner Kenneth HayneKeith CohenRobert OaydaSpectrum Wealth Advisers

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Major Aussie home cleaning product manufacturer collapses

A leading manufacturer behind Australia's most popular household cleaning products, skincare and cosmetics has collapsed, resulting in the sacking of 120 staff.
Hiro Brands produces a range of products including Orange Power, Trix, Mud Beauty and Billie Goat skin care.
The company entered voluntary administration on January 2, with KPMG Australia's David Hardy, James Dampney and James Stewart appointed as administrators.
Administrators have now assumed day-to-day control of the operations of the Hiro Brands Group and have ceased operations after completing an urgent assessment of its financial position, KPMG confirmed in a statement.
Approximately 120 staff employed by Hiro brands have been terminated.
"Regrettably, following our appointment it became evident the financial position of the business would not allow the continuation of trading activities," Hardy said in the statement.
"As a result, we have terminated most employee's employment arrangements.
Brands so popular they became names for products
"We are urgently seeking buyers for the Hiro Brands Group's assets, including brands and intellectual property."
Hardy said the administrators would be working with all stakeholders, including employees, suppliers, and customers "to maximise the outcome" in the search for buyers.
Hiro Brands' sister companies, Laboratories Pty Limited, Doward International Pty Limited; Greencare Developments Pty Limited; Scental Pacific Pty Limited; The Heat Group Pty Limited and Aware Environmental Products Pty Limited, have also entered administration.
A creditors meeting for the Hiro Brands Group is scheduled for January 11.
CONTACT US

Send your stories to contact@9news.com.au

Property News: This waterfront property is just $375,000 but you can't sleep here.

Title:

Content: Weight loss company Jenny Craig goes under in Australia after US collapse

Eli GreenNCA NewsWire

Iconic weight loss company Jenny Craig will cease to exist in Australia after its administrators failed to find a buyer.

Voluntary administrators Vaughan Strawbridge, Kate Warwick and Joseph Hansell of FTI Consulting have recommended the company be placed into liquidation.

Administrators had tried to sell the business with the “intent of preserving as many jobs as possible and limiting the losses for creditors”, a statement from FTI read.

Despite a bidding and sales process resulting in 15 interested parties and four non-binding indicative offers, no buyers for the business were able to be secured.

“Despite best efforts, the Administrators were unable to find a buyer for the physical stores and employees of the Australian and New Zealand business,” the statement read.

“The Administrators have today advised all of the employees in Australia New Zealand that a sale of the business, with the stores continuing to trade and staff continuing their employment, hasn’t been achievable.”

Trading will cease immediately and employees will be made redundant, something the administrators described as “an unfortunate outcome”.

It is expected that creditors will not be repaid after the company is placed into liquidation, but employees will receive their entitlements either through assets sold or the government’s Fair Entitlements Guarantee.

In May, Jenny Craig’s US and Canadian branches were closed as the company filed for bankruptcy.

The online services the business provides will be sold to Eucalyptus, a healthcare technology company, which will continue to offer online weight loss solutions to customers.

Eucalyptus is currently advertising at least 48 job openings on its website including health coaches, mental health nurses, nutritionists and general practitioners for weight consults.

The company describes itself as a “diverse group of software engineers, creatives and operations experts who “who care deeply about patient experience, and simplifying the scary and complex world of healthcare”.

Featured prominently on Eucalyptus’ website is that it is “one of Australia’s fastest-growing start-ups”.

More to come.

Originally published as Weight loss company Jenny Craig goes under in Australia after US collapse

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Title:

Content: (NEXSTAR) – After a bid to resurrect SmileDirectClub – the mail-based orthodontics services company – failed to find willing investors, the company announced Friday it was winding down its global operations “effective immediately.”

It’s likely unwelcome news for many customers, especially those who will still have to make payments despite no longer being able to receive aligners or customer care.

“For new customers interested in SmileDirectClub services, thank you for your interest, but aligner treatment is no longer available through our telehealth platform,” the company said in a statement on its website. “For existing customers, we apologize for the inconvenience, but customer care support is no longer available.”

The company referred anyone seeking care to consult with a local doctor or dentist.

SmileDirectClub said it has cancelled it’s lifetime guarantee, along with all outstanding orders for aligners, but anyone on the company’s SmileyPay Plan is still expected to “make all monthly payments until payment has been made in full per the terms of our SmilePay program.”

Nexstar reached out to SmileDirectClub for comment on the payments, but did not immediately receive a reply.

For customers seeking refunds, the company said that there will be more information to come “once the bankruptcy process determines next steps and additional measures customers can take.”

In 2019, the Nashville, Tennessee-based company went public with a market cap of nearly $9 billion.

The company attracted customers hoping to straighten their teeth for less than it costs to get braces from a traditional dentist office, but dentists, orthodontists and even the American Dental Association spoke out against the company’s practices, which they said endangered patients. Skipping dentist checkups, they said, could result in serious dental disease and even lost teeth.

The do-it-yourself orthodontics company responded by filing multiple lawsuits.

As a publicly traded company, SmileDirectClub never turned a profit and racked up almost $900 million of debt by the time it filed for bankruptcy.

SmileDirectClub encouraged customers with questions to call HFD at 1-877-874-3877 or email support@gohfd.com.

Some companies, such as Avon and Herbalife, have exited certain markets, such as Russia, due to economic and operational issues.

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.

Other companies, such as Tupperware, have restructured their debts and introduced their products into retail stores, moving away from the direct sales model.

Title:

Content: Skip to Content

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

By Alex Leeds Matthews, CNN

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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The MLM industry has been criticized for its reliance on recruiting new sellers, with most people making little or no money working for these companies.

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

Following

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

By Lauren Debter, Forbes Staff

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

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

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

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

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

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

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

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

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

“We converted the shelter into a beauty salon.”

Tatiana Korniychuk

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

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

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

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

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

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

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

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

Olga Boysyan

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

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

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

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

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

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

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

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

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

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

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The industry has also been plagued by criticisms of being outdated, with some arguing that direct selling became obsolete generations ago, and that MLMs have shifted their main revenue source from customers to salespeople.

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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Regulatory bodies, such as the US Federal Trade Commission (FTC), have taken action against MLM companies that make unsubstantiated earnings claims, such as Vyvo Inc.

Title:

Content:
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01.09.2022 15:00:00

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

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

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

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

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

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

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

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

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

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

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

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SOURCE BBB National Programs

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The FTC enforces laws related to false or misleading business opportunities, and the DSSRC monitors direct selling companies' income representations.

Some countries, such as China, have investigated MLM companies for potential pyramid scheme allegations, and have introduced regulations to increase regulatory density and introduce a licensing system.

Title:

Content: Movie star's cosmetics firm TST investigated as potential pyramid scheme

Tracy Li
Tin's Secret, a self-owned skincare cosmetics brand founded by movie star Lin Ruiyang and Chang Ting, refuted allegations that it is a multi-level marketing "pyramid" scheme.
Tracy Li
SHINE

TST, or Tin's Secret, a self-owned skincare cosmetics brand founded by movie stars Lin Ruiyang and Chang Ting, responded early Wednesday morning to a market investigation of suspicious pyramid-style marketing and sales, saying it is a company that "operates in accordance with Chinese laws."

The brand's parent company, Shanghai Dowell Trading Co, has been investigated for allegedly using the Internet to engage in pyramid schemes, according to the Yuhua District Market Supervision Administration of Shijiazhuang, the capital city of Hebei Province.

"The firm began pyramid sales in 2013, and many people in our district are involved," the Yuhua market supervision bureau was cited as saying by JIMU News.

At present, the case has entered the financial auditing stage, the administration noted.

As Shanghai Dowell Trading Co has transferred or concealed funds obtained via pyramid schemes through financial institutions, the bureau has applied to the court to take preservation measures according to the law, said the Yuhua market supervision administration.

"I am very grateful to the administration for guiding us to investigate operational risks," said Chang Ting, reposting TST's response on her official Weibo account, almost seven hours after the brand's declaration.

"At present, the company is operating normally, and we will actively cooperate with investigating departments," added the Taiwan actress.

The topic has been trending on Weibo since Tuesday night with over 78 million views.

With skincare cosmetics its main product line, TST said it opened a factory in France in 2018 and established affiliate companies in China's Taiwan and Malaysia the same year.

It also set up online sales platforms and physical stores and other business models to promote its brand's products and create a platform "for everyone to start a business at zero cost", according to its official website.

"Tin's Secret, Bringing you the dream of starting a business," the website promotes.

TST said it has actively responded to the national policy of "Entrepreneurship for All" by building a shared economic platform for freelancers, full-time mothers, and disabled people, a search on Baidu showed.

It claimed to have helped 12.46 million people, including nearly 30,000 hearing-disabled, land jobs in more than seven years and boasts around 100 million consumers.

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Title:

Content: Free Speech "Marketing industry from the reporting system to the licensing system violates the principle of proportion
Fan Wenqing
Several legislators of the Legislative Yuan proposed to amend the reporting system used in Articles 6 and 7 of the current Multilevel Marketing Management Law to a licensing system.
In other words, under the provisions of the current law, the marketing industry shall report to the competent authority the basic information of the multi-level marketing business and the business establishment, the marketing system and the conditions for the participation of the distributors, the content of the contract of participation, the items of goods or services, prices and sources.
However, the amendment seeks to amend the above two provisions and change the above items to a permit system.
Several legislators of the Legislative Yuan proposed to amend the reporting system used in Articles 6 and 7 of the current Multilevel Marketing Management Law to a licensing system.
(Photo of this newspaper)
Changing from a reporting system to a licensing system is to increase the regulatory density of the marketing industry.
Maintaining market competition order is the task of the state, the state itself to a certain degree of control of the market.
However, if the regulatory density exceeds the nature of the market, the improper high-intensity regulation will be illegal or even unconstitutional because it violates the principle of proportionality.
First of all, the licensing system is before the start of the business of the marketing industry, the prior review whether to comply with the various requirements of the law, which is for the marketing industry to take the prior control measures.
However, Taiwan has adopted a reporting control method for the distribution industry for decades, and there are no major shortcomings.
Of course, there are inevitably a small number of illegal and improper operators in the distribution industry, but this should be mainly through the strengthening of the quality of the distribution management in Article 18 of the Act and other post-event supervision and management means to eliminate a small number of unscrupulous distributors who do not sell goods but illegally attract gold.
This kind of post-event supervision cannot be achieved by means of prior control measures.
Mandatory adoption of a prior authorization system would violate the "suitability principle".
The change from a reporting system to a licensing system is to increase the regulatory density of the marketing industry. However, if the regulatory density exceeds the nature of the market, the improper high-intensity control will be illegal and even unconstitutional due to the violation of the principle of proportion. (Photo: Internet)
Second, the administrative authorities shall control the rights of the people by the means that infringe the least on the people.
The permissions in the revised draft are actually the same as the original reporting.
The original reporting system has been in operation for many years, and the reporting system itself has not caused any drawbacks.
The management of the marketing industry under the reporting system is generally on track, and the number of government administrative investigations and judicial decisions is small.
From this, it can be seen that it is not necessary to amend the permit system to increase the density of control. If the people are unreasonably increased in the density of control, it will cause many troubles to the industry.
For example, there may be delays in business opportunities due to waiting for permission.
In addition, because the regulatory standards were raised to the same licensing system as the financial insurance industry or the eight major industries, in order to meet this high standard of review, the operating costs of marketing operators increased.
However, the distributors are generally cosmetics, health food and other general goods, not only do not specifically strengthen the reason for the control, especially strengthen the control will also make the marketing industry in a more disadvantaged competitive position than the general channel or e-commerce channel, thus harmful to the development of the marketing industry, or even survival.
The draft amendment is not to take the least invasive measures against the marketing industry, but to adopt control measures that are easy to kill the vitality of the marketing industry, contrary to the "principle of necessity".
Third, the regulatory measures adopted by public power acts must be commensurate with the regulatory objectives expected to be achieved. A closer examination of the draft amendments does not reveal the specific objectives to be achieved.
Thus, there is no review of the "narrow proportionality principle".
In retrospect, if you think that the reason for the revision of the law is "multi-level marketing has done a very transparent large company, but there are also many cases of being injured by unscrupulous operators", then the correct direction of the amendment should be to require the competent authority to strengthen the inspection and punishment of such unscrupulous operators, rather than dragging down the legitimate operators in the same direction, and destroying the efficiency and flexibility of the legitimate operators.
"When pouring the bath water, do not pour out the baby together." If you think that the number of families joining the association in the marketing industry is limited and does not conform to the principle of "return to the association", then the focus of the amendment should be on counseling or even compulsory membership of the association.
This has nothing to do with licensing.
In summary, the distribution industry from the reporting system amendment to the licensing system, in the principle of proportionality review, in line with article 23 of the Constitution and article 7 of the Administrative Procedure Law, the draft amendment has a major unconstitutional suspicion.
It is expected that the Legislative Council can carefully consider the business reality of the marketing industry, and the basic structure of our country's legal system, which is the blessing of the whole people.
(The author is a full-time associate professor of law at Soochow University, and a Juris Doctor from the University of Göttingen, Germany)
Free Speech is an electronic forum that provides public dialogue. Whether it is political, economic, social, cultural and other news issues, you are welcome to express your opinions and express your opinions.
Please do not submit more than one manuscript, the length of the text is 700 words, please attach the real name (must be written).
Please note that you have a pen name, occupation, contact number, e-mail account.
This report has the right to accept and delete the right, no remuneration for the draft; the acceptance or non-acceptance will be without notice.
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The demographic characteristics of individuals who join MLM companies are diverse, but often include women and millennials seeking flexible work arrangements and financial independence.

Title:

Content: QNet Promotes Entrepreneurship Opportunities among UAE Youth
T + T - normal size
QNet, the leading e-commerce direct selling company, is celebrating World Youth Skills Day by organizing workshops to upgrade young people ’ s skills and boost their entrepreneurial competency levels.
The company provides comprehensive training programs for those looking to become QNet ’ s independent representatives in order to support them in choosing a sustainable source of income away from a traditional, less flexible career path.
The United Nations General Assembly adopted World Youth Skills Day in 2014 to celebrate the strategic importance of equipping young people with the skills needed for employment, decent work and entrepreneurship.
Commenting on the importance of World Youth Skills Day, Malo Kaluza, Executive Director at QNet, said: “This day is an important occasion in which we focus on empowering the current generation of young people to achieve a future that ensures stability, happiness and contentment.
“Compared to their predecessors, millennials don ’ t expect stable jobs throughout their lives; they look for jobs that they consider meaningful and that can complement their values and lifestyle choices. ”
“At QNET, we aim to empower millennials to leverage their technological skills, social engagement and strong sense of social responsibility to generate a sustainable source of income away from other traditional and less flexible career paths through direct selling. ”
Direct selling is a practice in which distributors sell goods directly to consumers outside of traditional stores, as opposed to retailers who buy products, add an added profit margin, and sell them to the end consumer.
According to a research study conducted by QNet in cooperation with Marmara University in Turkey and Moscow State University in Russia, millennials find the direct selling business model attractive to them because it provides them with the ability to control their operations and gives them flexibility in their careers.
Explaining why millennials prefer the direct selling business model, Kaluza said: “The decline in interest in job stability in favor of personal development and business flexibility has led to the flourishing of many independent start-ups within the independent business economy.
Not surprisingly, direct selling has seen an influx of millennials over the past few years, who see the business as the ideal lifestyle choice.
Direct selling can be an additional source of income for those pursuing their passion, or even a full-time job for entrepreneurial minds. ”
Surveys have shown that millennials view entrepreneurship as a business opportunity and lifestyle that enables them to turn their passion, whether for art, personal health or fashion, into an income-generating business.
They also value a healthy work-life balance and are looking to adopt flexible work schedules that allow them time to explore other interests such as travel or volunteering, which is the main reason why the flexibility of work and the extra income that a direct sales distributor provides is an attractive option for them. ”
It is worth mentioning that QNET allows young people to fulfill their wishes to enter the direct selling industry and become independent brand representatives, as well as the freedom to manage their business digitally through QNET ’ s e-commerce platform and mobile application.
QNet provides users with the tools they need to run their businesses flexibly from anywhere.
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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.”

These individuals are often vulnerable to emotional manipulation and recruitment tactics, which can lead to financial losses and exploitation.

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: Spread the word, scammers use the Internet to find food, lure the poor man to borrow 400,000, and falsely claim that he committed suicide.
August 17, 2021 14: 19
Eastern Network Television
More News Clips
Yuen Hay-man (middle) received a complaint that a member of the public was involved in a marketing scam. (Courtesy of Lai)
There are also people who are suspected of cheating.
Sham Shui Po District Councillor Yuen Hay-man received help from the public, alleging that a marketing company in Ho Man Tin sold products with people close to the victim, paid a HK $5,210 franchise fee, and then asked the victim to borrow money or invest in savings. Many people bought HK $400,000 worth of goods.
Since June this year, Yuan has received help from the victims. The independent distributors of the company “Francine Holding Limited ” began to promote Francine ’ s“ health care business ” to the students and colleagues around the victim.
They sell essential oils, milk powder, red wine and skincare products.
The victim will be asked to join the company at HK $5,210 first, and then use different excuses to emphasize the "short time, high return" for the helpers to borrow money or buy large bills with savings.
The victim, Miss B, is between 30 and 39 years old and has a master ’ s degree.
She met Mr. S from the dating software in 2018, Mr. S often shouts cold and warm to her, cares about her work situation, worries about the pressure of her work, and often implies that she has a car and a house, creating a rich image, so that Miss B thinks that two people are developing a relationship.
S often stressed her hard work, wanted her to transfer to its company "clap on", once asked her to eat, but took her to the company in Ho Man Tin, lobbying Miss B to pay the joining fee, but B did not. Miss B admitted to the company's methods of disgusted, but S began to emotional blackmail.
S refers to her disappointment, but also said that if she can't make money, "there will be no happy future", "too busy to take care of the future children."
Miss B thought that she had cut off contact with Mr. S, but S in March last year borrowed her to the company, B was soft to pay the franchise fee, S in the middle of the year to bury her, successfully persuaded her to pay and borrow from the finance company, involving more than 400 thousand Hong Kong dollars, became the company's "challenger".
As S failed to convince B to make enough HK $1 million in performance within three months, S kicked her out of the relevant chat group, S himself even played missing, and even called B through his own family, saying that S had committed suicide, and B learned from other bitter masters that S was not dead.
Since then, B has obtained 6 “buy ” receipts, but all of them are not her name, and the names involved are not known to her, so it is more difficult to recover them. B now pays about HK $15,000 a month and is divided into 60 installments. A letter was also sent to the Commissioner of Police early last month and no reply has yet been received.

The use of social media and online platforms by MLM companies has raised concerns about consumer protection and regulatory oversight, with some companies facing accusations of being pyramid schemes and exploiting members financially.

Overall, the MLM industry is facing significant regulatory challenges and public perception shifts, which are affecting the profitability and popularity of companies utilizing this business model.

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/