In September 2019, astronauts on the International Space Station (ISS) noticed a slight but persistent drop in air pressure—a warning sign that the station was leaking air.

Careful monitoring and testing over the following year narrowed the likely location to the Russian Zvezda service module, one of the oldest sections of the ISS.

By October 2020, a small crack was found in Zvezda’s intermediate chamber, confirming that this area was the source of the main leak.

Around the same time, the leak rate increased fivefold, raising concerns and leading to increased efforts to locate and repair the problem.

The cracks were tiny, making them very hard to find and fix, but by March 2021 astronauts and cosmonauts had managed to patch some of them.

There were several possible reasons for the leaks.

The main cause was thought to be the age and metal fatigue of the ISS, with the Zvezda and Zarya modules especially vulnerable after decades in orbit.

Over time, the hull and seals can weaken, forming cracks too small to spot until they cause trouble.

Another possible cause was a collision with space debris or micrometeorites, which constantly move through space and can strike the station’s outer walls.

While sabotage or manufacturing errors were considered in separate incidents, they were not found to be responsible here.

Overall, both NASA and Russian officials agreed that ongoing wear and tear was the main reason for these persistent leaks.

To manage the leaks, astronauts used several steps.

First, they isolated sections of the station to trace the source by seeing which compartment kept losing air.

Once the leaks in Zvezda were found, the crew tried quick fixes like covering cracks with tape and applying special sealants.

These solutions slowed the leak but did not stop it completely, so the station remained under close watch.

For stronger, lasting repairs, the ISS crew had to wait until tools and materials could be delivered by Progress cargo ships.

Once those arrived, cosmonauts started more permanent work to restore the module’s airtight seal.

If they could not fully fix the problem, closing off the leaky area entirely was considered as a last resort.

By early 2021, repairs had helped reduce the air escaping, though small leaks continued—and today, careful monitoring and occasional repairs remain necessary.

In summary, the ISS air leak was first noticed in September 2019 when falling air pressure raised alarms.

The likely reasons were the natural aging and metal fatigue of old station modules, possibly made worse by impacts from space debris.

The astronauts and cosmonauts were able to find the biggest cracks in the Zvezda module, patch them temporarily with tape and sealant, and later start more permanent repairs as new tools and materials arrived.

Still, the station’s crew must keep watching for leaks, showing that teamwork, problem-solving, and regular maintenance are crucial when living and working in space.

In September 2019, astronauts on the International Space Station (ISS) noticed a slight but persistent drop in air pressure—a warning sign that the station was leaking air.

Title:

Content: How did a bag of tea help astronauts save $150 billion?
How did a bag of tea help astronauts save $150 billion?
A few years ago, a torn bag helped save the ISS
The International Space Station was built in 1998 for $150 billion.
Every year, another 3-4 billion dollars are spent to maintain its operability, but the design is already very old and needs repair more and more often.
For example, in August 2020, a pressure drop was recorded aboard the space station, which is a sign of an air leak.
All astronauts and cosmonauts on board were isolated in the Russian Zvezda module.
After some time, it was found out that the air-permeable crack was in the module in which the entire crew temporarily settled.
One of the Russian cosmonauts was able to quickly find the place of leakage with the help of a usual tea bag.
Oxygen on the ISS
According to the India Times, the space station loses about 250 grams of oxygen every day and this is normal - it is difficult to achieve complete tightness.
In the event of an acute shortage of oxygen, it is delivered by cargo ships, but is most often produced directly at the station.
In the second case, members of the ISS use electrolysis - an electric current is passed through the water, as a result of which oxygen appears.
To do this, on board there is a life support system ECLSS, which not only monitors the operation of the station, but also provides people with access to water, protects against fires and so on.
ECLSS technical director Robyn Carrasquillo once praised Russia for using a way to extract moisture from the air, even in the old Salyut and Mir spacecraft.
ECLSS system
Oxygen leakage to the ISS
In August 2020, the space station began to lose about a kilogram of air per day.
The situation was serious, but the lives of the ISS crew were not threatened.
Astronauts from different countries temporarily began to live in the Russian module “Zvezda ” and for four days searched for a leak in other parts of the station.
The search did not give any results, so it became clear that the gap is in the Zvezda module launched more than 20 years ago.
The leak could have occurred for various reasons, for example, due to the collision of the ISS with space debris, which is a lot in near-Earth space.
Also, it was not excluded that seals simply peeled off from the walls of the station, which just do not allow oxygen to leak.
ISS module "Zvezda"
Search for the place of oxygen leakage
An unusual way to find the leak was found by cosmonaut Anatoly Ivanishin.
He installed several cameras in the module and opened the tea bag.
After some time, the ISS members noticed that the tea leaves began to move slowly towards one of the metal walls of the module.
After studying the trajectory of the leaves, the space crew quickly found the crack formed on the ISS.
First, they taped this place with tape, and then got permission to use a drill and sealant.
It is known that thanks to the trick with a package of tea, the astronauts managed to save about 150 billion dollars.
Russian cosmonaut Anatoly Ivanishin
The International Space Station is aging and will one day become completely unusable – that ’ s a fact.
New cracks were discovered even in 2021.
Especially there are many of them in the Russian module “Zarya ”, which was launched into space in 1998 and today is the oldest part of the station.
More recently, Vladimir Solovyov, General Designer of the Energia Rocket and Space Corporation, announced his concerns about the safety of the station.
It is especially frightening that the station is planned to be used even after 2025.
In theory, the use of the old station could cause a terrible disaster.
ISS module "Zarya"
Finally, I note that to replace the old module "Dawn" it was planned to send the module "Science".
But it became an independent module and docked to the ISS in July 2021.
The docking was far from perfect - the module deployed the station at 45 degrees.
19 october 2021 /
• 0
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And all
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The International Space Station was launched into orbit around our planet in 1998.
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On the ISS found a place of air leakage.
What's next?
Inside the International Space Station live astronauts from different countries and they all need oxygen.
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Space debris nearly damaged the ISS.
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the brain, like the heart, is one of the main organs of the human body.
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Careful monitoring and testing over the following year narrowed the likely location to the Russian Zvezda service module, one of the oldest sections of the ISS.

Title:

Content: On the ISS found a place of possible air leakage in the module “Star ”
On the International Space Station, a place of possible air leakage in the Zvezda module was discovered.
The discovery of a "suspicious" place in the module compartment was reported by cosmonaut Pyotr Dubrov during negotiations with the Flight Control Center.
“There was a suspicious place.
I was engaged in photographing it under a microscope with magnifying glasses, ” the cosmonaut quoted Interfax as saying.
Recall that in August 2020, air leakage to the ISS was detected in the transition chamber of the Zvezda module.
In October last year, cosmonauts managed to find the crack and repair it with temporary means.
In August 2021, the media reported the detection of non-through cracks in the Russian module of the ISS "Zarya".
Executive Director of Roscosmos for manned programs Sergei Krikalev said then that he had no information about new cracks at the station.
At the same time, the representative of the state corporation noted that even in the presence of non-through cracks, the ISS can be operated for another 20 years.
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Is the ISS going to be a space hotel?

By October 2020, a small crack was found in Zvezda’s intermediate chamber, confirming that this area was the source of the main leak.

Title:

Content: Links for simplified access
ISS crew reports smoke and smell of burnt plastic
In the Russian module “Zvezda ” on the International space station (ISS) last night worked fire alarm, reports RIA“ Novosti ” with reference to the negotiations of the crew with the Earth, which broadcasts NASA.
Around five in the morning Moscow time, cosmonaut Oleg Novitsky told the Mission Control Center about the smoke and smell of burnt plastic.
After that, the devices showed the presence of harmful substances in the area of the medical cabinet in the Zvezda module.
French astronaut Tom Pesquet said that the smell of burnt plastic or electronics also penetrated the American segment of the ISS due to the working ventilation.
The source of the smoke and smell has not yet been identified.
The ISS included a system for removing harmful impurities.
Later, Roscosmos said that the smoke sensor and alarm system worked on the ISS “during automatic recharging of batteries. ”
Currently, all systems of the station are working normally, the department notes.
The Russian service module Zvezda docked to the ISS in July 2000.
Its main frame was built in the 1980s as the core of the Mir-2 space station, which was to replace the Mir station, but then it was decided to use it in the ISS program.
Zvezda allows a crew of three cosmonauts to stay in space, and the module can also dock with the Progress cargo ship, which once every three months delivers the necessary supplies to the station and adjusts its orbit.
In the fall of 2019, an air leak was recorded on the ISS.
A year later, the leakage rate increased fivefold.
Sequential sealing of the station compartments allowed us to establish that the cause of the leak was a crack in the Russian segment of the ISS - Zvezda.
The astronauts sealed it with a sealant, but the air leak continued.
Recently, during the survey of the International Space Station, cosmonauts found non-through cracks on the oldest module - "Dawn".
At the end of July, a meeting of the Presidium of the Scientific and Technical Council of Roscosmos took place, where it was noted that the station is breathing on incense.
The International Space Station will expire in 2024.
Earlier, Vladimir Solovyov, General Designer of the Energia Rocket and Space Corporation, predicted an avalanche of failure of numerous elements at the station after 2025.
This mainly concerns the tightness of the housing and complex computing facilities that have developed their resource, Solovyov noted.
XS
SM
MD
LG

Around the same time, the leak rate increased fivefold, raising concerns and leading to increased efforts to locate and repair the problem.

The cracks were tiny, making them very hard to find and fix, but by March 2021 astronauts and cosmonauts had managed to patch some of them.

Title:

Content: Astronauts discover cracks in another module of the International Space Station
Space
International Space Station
Copy Link https: / / en.rt.com / r64g
Vladimir Solovyov, chief designer at Energia, announced that astronauts have discovered new blind cracks in the Zaria module, the first and oldest module of the International Space Station.
Solovyov, in an interview with the Russian news agency Novosti, pointed out that the astronauts, during their examination of the units of the Russian sector on the International Space Station, discovered the presence of blind cracks in the old unit "Zaria".
According to him, this does not appeal to him, because the discovery of holes in the former Zvezda unit, indicates that the cracks discovered in the Zaria unit over time will inevitably expand.
In September 2019, astronauts detected a slight air leak from the International Space Station, in October 2020 they discovered cracks in the middle chamber of the Russian Zvezda unit, and in March 2021 they were able to repair them.
In January 2021, Solovyov announced that due to air leakage, the pressure inside the ISS drops by 0.4 mm Hg, which is compensated by pumping oxygen and nitrogen as well as transporting them from Earth.
Source: Novosti
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There were several possible reasons for the leaks.

The main cause was thought to be the age and metal fatigue of the ISS, with the Zvezda and Zarya modules especially vulnerable after decades in orbit.

Title:

Content: The Russian module of the ISS “Zvezda ” can be completely isolated due to air leakage
reads: 670
23.01.2022 23: 30
The Russian Zvezda module, which is one of the modules of the Russian segment of the International Space Station, could be permanently isolated due to air leakage.
This was reported by NASA Director for the ISS Robin Gatens, reports “Interfax ”.
She said that the situation with the module does not yet pose a serious threat to the ISS, but in the worst case, is considering the option of complete isolation of the “Star ”.
According to Gatens, NASA and Roscosmos are working together to eliminate air leakage in the module, but due to the small size of the crack, it is difficult to detect detectors and ultrasonic diagnostic tools.
In turn, Roscosmos said that the concern of their colleagues on the ISS “is not justified and is surprising. ”
According to the Russian Ministry, the cosmonauts found the site of the leak at the end of last month.
They promise to fix the problem when the Progress cargo ship delivers materials to the ISS.
Note that in the Russian segment of the space station repeatedly there were problems and other problems.
For the first time, an air leak in one of the modules was detected in September 2019, in October 2020, a crack was detected in the camera of the Zvezda module.
Recall that earlier it was reported that at the end of July 2021, after docking the Russian module “Science ” to the International space station, it turned on the engines, because of which the station began to move chaotically and for a time lost control over the orientation of the ISS.
Wikipedia: The International Space Station, Inc.
International Space Station (ISS).
ISS) is a manned orbital station used as a multi-purpose space research complex; it is operated from the end of 1998 to the present (the countries agreed to operate through 2024 inclusive, the extension of the period of operation to 2028, 2030 is being considered).
The ISS is a joint international project involving 14 countries: Russia, the United States, Japan, Canada and members of the European Space Agency Belgium, Germany, Denmark, Spain, Italy, the Netherlands, Norway, France, Switzerland, Sweden (originally the participants were Brazil and the United Kingdom).
The ISS is controlled by the Russian segment from the Space Flight Control Center in Korolev, the American segment from the Lyndon Johnson Flight Control Center in Houston.
The European Columbus and Japanese Kibo modules are controlled by the European Space Agency (Oberpfaffenhofen, Germany) and the Japan Aerospace Exploration Agency (Tsukuba).
There is a constant exchange of information between the centers.
Photofact

Over time, the hull and seals can weaken, forming cracks too small to spot until they cause trouble.

Another possible cause was a collision with space debris or micrometeorites, which constantly move through space and can strike the station’s outer walls.

While sabotage or manufacturing errors were considered in separate incidents, they were not found to be responsible here.

Title:

Content: Recently, during a spacewalk outside the International Space Station (ISS), an astronaut ’ s mask was hit by a contaminated rope, triggering an accident.
The spacewalk was broadcast live on NASA television, with the participation of two astronauts, Oleg Kononenko and Nikolai Chub.
While their mission includes a variety of targets, the focus of this mission is to investigate a radiator leak on the Nauka module that occurred earlier this month.
Checking for coolant leaks proved to be a challenge, as the astronauts initially found no signs of leaks on the takeover line.
However, upon closer inspection, they found traces near the radiator panel joints.
Further into the spacewalk, a large amount of cooling liquid was observed on a pipe at a radiator junction.
The astronauts tried to clean up the mess with towels, but apparently they didn ’ t have enough towels.
Unfortunately, one end of the tie is immersed in the coolant and touches the astronaut ’ s mask.
The incident prompted the two men to leave the area and continue on other missions, but the mission did not proceed as planned.
The deployment of the nanosatellite for the solar sail technology test failed and a synthetic radar communication system was installed, but one of the panels suffered a problem.
After the spacewalk, the astronauts checked the spacesuit for contamination and followed the usual decontamination procedures.
In order to ensure the safety of crew members, additional filtration systems will be used inside the ISS to eliminate traces of coolant left in the air.
The leak was initially detected by cameras aboard the International Space Station, and the crew confirmed this by visually inspecting the spare radiator on the Nauka module.
The radiator was delivered on the last Space Shuttle mission in 2010, but was only installed during the Russian spacewalk this year.
Next steps to fix leaks have not yet been determined by task managers.
Clearly, both Kononenko and Chub succeeded in identifying and isolating the leak, but the scope of further work required remains uncertain.
Fortunately, the main coolant loop was not affected, ensuring the safety of the crew in this accident.
Frequently Asked Questions:
Q: How did the event happen during the spacewalk?
A: The astronaut ’ s tether was immersed in cooling fluid and accidentally hit one of the astronauts ’ masks.
Q: What missions did the astronauts perform during the spacewalk?
A: The first task is to investigate and isolate the coolant leak on the Nauka module radiator.
They also attempted to deploy a nanosatellite to test the solar sail and install a synthetic radar communication system.
Q: Are the crew in danger?
A: The main coolant circuit is not affected, and the crew is not exposed to any direct danger.
Follow safety protocols to mitigate any potential risks associated with refrigerant leaks.

Overall, both NASA and Russian officials agreed that ongoing wear and tear was the main reason for these persistent leaks.

Title:

Content: Soyuz manufacturing defect causes air leak at International Space Station
Kazakhstan News Agency / Astana / September 3 - According to the Russian satellite network reported on the 3rd, Russian rocket space sources said that the manufacturing defect is the cause of the "Soyuz MS-09" spacecraft leak.
There was an air leak on the International Space Station on August 30.
The astronauts examined all the compartments and found tiny cracks in the Soyuz MS-09 spacecraft.
It is located in the living module, not in the return module, so it will not affect the return of the spacecraft to Earth.
It was previously thought that the fissure was the result of a miniature meteorite hitting the spacecraft.
The next night, Russian cosmonauts used special sealant to fill the hole.
The source said: "The cause of the crack in the inner shell of the living module has been identified and it has appeared on Earth.
The person responsible for the fault was identified. "
According to another source, the crew likely sealed the leak with special glue after realizing the mistake, so it was not detected during the pre-launch check and the spacecraft ’ s first two months of orbital flight.
"However, the glue later dried out and was squeezed out, revealing cracks," he said.
The Russian space agency said a special committee would investigate and determine the cause of the accident.
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To manage the leaks, astronauts used several steps.

First, they isolated sections of the station to trace the source by seeing which compartment kept losing air.

Title:

Content: NASA reported on the possible isolation of the module “Star ” on the ISS
The module of the International Space Station (ISS) “Star ” can be isolated forever if it is not possible to eliminate air leakage, reports“ Interfax ” with reference to NASA Director for the ISS program Robin Gatens.
“In the worst case scenario, we can permanently isolate this module, ” she said at a meeting of the committee on space exploration and manned flights of the Advisory Board of NASA.
At the same time, Gatens stressed that the situation with the Zvezda module does not pose a serious threat, there is a sufficient supply of air at the station.
The head of the press service of Roscosmos Dmitry Strugovets recalled that Russian cosmonauts Peter Dubrov and Anton Shkaplerov in late December found a possible last place of air leakage in the intermediate chamber of the service module “Star ”.
Necessary to eliminate leakage means are planned to be delivered on the nearest cargo ship "Progress".
“The concern of our partners is unreasonable and surprising, ” he said (quoted by TASS).
The first crack in the intermediate chamber of the “Star ” cosmonauts discovered in October 2020.
It was sealed in March of this year, but the leakage of oxygen did not stop, although it decreased.
In total, three locations were found, including in the Zvezda intermediate chamber, where cracks could potentially form.
On February 24, 2021, the crew made a temporary isolation of all potential cracks to find out exactly whether there was a leak in these places.
At the end of April, the search was temporarily stopped, and the hatch in the compartment was closed.
In July, the ISS crew resumed the search for the site of air leakage in the Zvezda module.
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Once the leaks in Zvezda were found, the crew tried quick fixes like covering cracks with tape and applying special sealants.

Title:

Content: 22: 04, 31 December 2021
The Russian crew found the alleged site of air leakage on the International space station
It is located in the module “Star ”, said in“ Roscosmos ”.
The cosmonauts will begin repair work after the nearest Progress cargo ship will deliver the necessary funds to them, the state corporation said.
Today, during the congratulations of the Russian participants of the expedition to the ISS, the head of Roscosmos, Dmitry Rogozin, spoke about the problems faced by the astronauts.
Air leakage at the station was recorded more than two years ago.
Since then, crew members have found several cracks and reported that they were able to seal them.
However, the pressure on the station continued to fall.
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These solutions slowed the leak but did not stop it completely, so the station remained under close watch.

For stronger, lasting repairs, the ISS crew had to wait until tools and materials could be delivered by Progress cargo ships.

Once those arrived, cosmonauts started more permanent work to restore the module’s airtight seal.

If they could not fully fix the problem, closing off the leaky area entirely was considered as a last resort.

By early 2021, repairs had helped reduce the air escaping, though small leaks continued—and today, careful monitoring and occasional repairs remain necessary.

In summary, the ISS air leak was first noticed in September 2019 when falling air pressure raised alarms.

The likely reasons were the natural aging and metal fatigue of old station modules, possibly made worse by impacts from space debris.

The astronauts and cosmonauts were able to find the biggest cracks in the Zvezda module, patch them temporarily with tape and sealant, and later start more permanent repairs as new tools and materials arrived.

Still, the station’s crew must keep watching for leaks, showing that teamwork, problem-solving, and regular maintenance are crucial when living and working in space.

Title:

Content: NEWS
NEWS
February 28, 20: 41
Science
Roscosmos reported air leakage on the Russian segment of the ISS
Photo: telegram channel "State Corporation" Roscosmos "
Air leakage occurred on the Russian segment of the ISS, the crew and the station itself is not threatened.
This writes TASS with reference to the press service of Roscosmos.
“Indeed, experts fix the leakage of air on board the ISS.
The crew regularly carries out work to find and eliminate possible leakage sites, and the data coming from the station are transmitted for analysis to specialists in the normal mode, ” the state corporation said.
According to "Interfax" with reference to the head of the NASA program on the ISS Joel Montalbano, the leak is observed in the tail part of the ISS.
“We saw that the leak increased about a week before the last launch of Progress and its docking with the station, ” he said.
The head of the NASA program on the ISS said that the air in the transition chamber of the Zvezda module began to leave twice as fast.
According to Montalbano, experts are in contact with Russian colleagues on the next steps.
However, this situation does not affect the safety of the crew, he said.
Last year, Russian cosmonauts Oleg Kononenko and Nikolai Chub in outer space disconnected the faulty circuit of the additional radiator on the module "Science" from the main circuit of the module.
Before that, they went into outer space, opening the exit hatch of the module "Search" of the International Space Station.
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In recent years, the multi-level marketing (MLM) industry has undergone significant decline, with major companies experiencing falling revenues and market contraction.

LifeVantage Corporation exemplifies this trend: in Q2 2024, its revenue decreased 3.8% year-over-year to $51.6 million and regional revenues in Asia Pacific and Europe dropped 10%, reflecting challenges after closing operations in China.

Despite a 289% increase in adjusted EBITDA, LifeVantage continues to see declines in active accounts .

Several leading MLMs have reported sharp losses: from 2019 to 2024, Herbalife’s stock declined by 64%, Nu Skin by 31%, USANA Health Sciences by 49%, and Medifast by 45% .

Avon shifted toward recruitment incentives but still saw its stock plummet from above $30 to $3, eventually leading to business splits and acquisition by Natura, which itself lost over 60% in value in 2022.

Tupperware, moving from party-plan sales to retail and experimenting with MLM-like products, experienced a stock decline of over 90% and recent bankruptcy warnings .

Contributing factors include initial pandemic-era surges in recruitment followed by post-pandemic declines in new sign-ups and revenues.

Market saturation, changing consumer habits, regulatory scrutiny, and negative perceptions of pyramid-scheme structures have diminished MLMs’ appeal .

Most profits accrue to the top recruiters, while the majority of participants lose money or earn little.

In response, some firms have rebranded away from MLM, emphasizing direct sales and reducing recruitment to avoid regulatory risk and social backlash.

While specific company names shifting to pure direct sales without recruitment since 2019 were not detailed in sources, this trend is reported as especially notable among companies facing legal or reputational pressure .

Industry-wide, iconic names like Avon and Tupperware, labeled as “walking dinosaurs” by 2022, capture the overall decline and adaptation struggles of both the MLM and direct sales models .

In recent years, the multi-level marketing (MLM) industry has undergone significant decline, with major companies experiencing falling revenues and market contraction.

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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LifeVantage Corporation exemplifies this trend: in Q2 2024, its revenue decreased 3.8% year-over-year to $51.6 million and regional revenues in Asia Pacific and Europe dropped 10%, reflecting challenges after closing operations in China.

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WPP records £3.4 billion revenue; 6.6 percent growth in India for Q1 2024

Mark Read, Chief Executive Officer of WPP, said, “The first quarter of 2024 was very much in line with our expectations with performance reflecting the toughest comparator of the year."

By  Storyboard18Apr 26, 2024 2:56 PM
Growth in India of 6.6 percent, reflecting last year’s strong new business momentum, was offset by a 15.4 percent decline in China, due to a challenging macro and client environment. (Image Source: Facebook)

WPP has reported revenue of £3.4 billion in Q1 2024, down 1.4 percent from £3.5 billion in Q1 2023, and up 2.1 percent like-for-like. Revenue less pass-through costs was £2.7 billion, down 5.0 percent from £2.8 billion in Q1 2023, and down 1.6 percent like-for-like.

Q1 LFL revenue less pass-through costs were at -1.6 percent (Q1 2023: +2.9 percent), with growth in the UK and Western Continental Europe offset by declines in North America and Asia Pacific, which saw strong growth in India offset by a decline in China. Growth in India of 6.6 percent, reflecting last year’s strong new business momentum, was offset by a 15.4 percent decline in China, due to a challenging macro and client environment.

Mark Read, Chief Executive Officer of WPP, said, “The first quarter of 2024 was very much in line with our expectations with performance reflecting the toughest comparator of the year. Strategically, we have progressed well on the priorities set out at our Capital Markets Day at the end of January. We’ve rolled out multiple AI tools through our intelligent marketing operating system WPP Open, including the latest foundation models from Bria, Google and OpenAI, and at Google Cloud Next we launched our Performance Brain to predict the best-performing content ahead of campaigns going live. These products are being deployed at scale, together with investment in training for our people. WPP Open was also at the heart of our most recent new business successes, including major media wins with Nestlé.

“Structurally, VML is now well established and is on track to deliver savings. GroupM is progressing well with its simplification and Burson will be operational in July. I’m very pleased with the progress we are making and we are already seeing the benefits of a simpler and more agile structure for our clients. “Our outlook for the full year is reiterated. We remain on track to return to growth in the balance of the year, supported by an encouraging new business pipeline and the strength of our business creatively and in media, both powered by new AI capabilities, while our simpler structure will drive organisational flexibility and stronger cash conversion.”

GroupM saw growth in revenue less pass-through costs of 2.4 percent in Q1 (Q1 2023: +6.1%), with continued growth in client investment in media, partially offset by the impact of US client assignment losses from prior years and lower spending by technology clients.

BCW and Hill & Knowlton, which together will merge to form Burson in July, saw a combined decline due to the loss of Pfizer assignments and the impact of macroeconomic uncertainty on client spending. FGS Global grew against a tough comparison.

Specialist Agencies like Landor, Design Bridge and Partners, and a number of smaller specialist agencies continued to be affected by delays in project-based spending. CMI Media Group, our specialist healthcare media planning and buying agency, continued to grow well, building on strong prior year performance.

First Published on Apr 26, 2024 2:47 PM

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Despite a 289% increase in adjusted EBITDA, LifeVantage continues to see declines in active accounts .

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LifeVantage Corporation (NASDAQ:LFVN) Q2 2024 Earnings Call Transcript

LifeVantage Corporation (NASDAQ:LFVN) Q2 2024 Earnings Call Transcript January 30, 2024

LifeVantage Corporation isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Good day, ladies and gentlemen. Thank you for standing by. Welcome to today's Conference Call to Discuss LifeVantage's Second Quarter of Fiscal 2024 Results. [Operator Instructions] Hosting today's conference will be Reed Anderson with ICR. As a reminder, today's conference is being recorded. And now I'd like to turn the conference over to Mr. Anderson. Please go ahead, sir.

Reed Anderson : Thank you. Good afternoon, and welcome to LifeVantage Corporation's conference call to discuss results for the second quarter of fiscal 2024. On the call today from LifeVantage with prepared remarks are Steve Fife, President and Chief Executive Officer; and Carl Aure, Chief Financial Officer. By now, everyone should have access to the earnings release, which went out this afternoon at approximately 4:05 p.m. Eastern Time. If you have not received the release, it is available on the Investor Relations portion of Life Image's website at www.lifevantage.com. This call is being webcast, and a replay will be available on the company's website as well. Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements and management may make additional forward-looking statements in response to your questions.

These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of LifeVantage's most recently filed Forms 10-K and 10-Q. Please note that during today's call, we will discuss non-GAAP financial measures, including results on an adjusted basis. Management believes these financial measures can facilitate a more complete analysis and greater transparency into LifeVantage's ongoing results of operations, particularly when comparing underlying operating metrics from period to period. We've included a reconciliation of these non-GAAP measures with today's release.

This call also contains time-sensitive information that is accurate only as of the date of the live broadcast, January 30, 2024. The LifeVantage assumes no obligation to update any forward-looking projections that may be made in today's release or call. Now I will turn the call over to Steve Fife, the President and Chief Executive Officer of LifeVantage.

Steve Fife : Thanks, Reed, and good afternoon, everyone. Thank you for joining us today. During our second quarter, we continued to advance our strategic transformation and execute well against the core elements of LV360. I significantly improving profitability was a key takeaway from our latest results. Adjusted EBITDA increased 289% year-over-year to $3.1 million. In the second quarter, and our adjusted EBITDA margin was up 450 basis points to 6%, reflecting ongoing efforts to strengthen our core business and drive productivity. We are very pleased with the trends we are seeing in revenue for consultants. In each of the last 4 quarters, which coincides with the introduction and implementation of several key LV360 initiatives, our revenue per consultant has grown at a solid double-digit rate.

For example, in the second quarter, revenue per consultant increased over 13% year-over-year. While total revenue in the second quarter were down slightly versus last year, robust demand for TrueScience, liquid collagen, coupled with the positive trends we are seeing in consultant productivity and our performance in markets like Japan, where Q2 revenues were up 3.9% on a currency-neutral basis, give us a high degree of confidence in our long-term growth outlook. Revenue attributable to liquid collagen, including the Healthy Glow Essential Stack, which bundles liquid collagen with Protandim Nrf2 Synergizer exceeded $13 million in the second quarter, an increase of over 44% versus a year ago. In the Americas region, where the product was first introduced in June 2022, we continue to experience strong growth with sales up approximately 13% on a year-over-year basis.

In the U.S., consultant penetration of liquid collagen rose to 31.6% in the quarter up from 27.2% in Q1 with a continued focus on Healthy Glow Essential Stacks. Customer penetration was 27.2% in the U.S. during this Q2 compared to 28.1% in Q1 and 26.9% in Q4 of fiscal '23. International sales of liquid Collagen accounted for approximately 22% of Q2 liquid collagen revenue, mostly reflecting results from Australia, New Zealand and Japan, where the product was first introduced in March 2023. In late September 2023, we expanded the international launch of liquid collagen with the initial rollout into Mexico, and this was followed by introduction to the Philippines and Canadian markets in November. We are also pleased with the recent progress on other new innovative products.

For example, early in the second quarter, we introduced TrueScience True Renew daily firming complex, a clean cosmetic retinal alternative that is proven to tackle 11 visible signs of aging. Importantly, this unique product is a perfect complement to Protandim Nrf2 Synergizer and TrueScience liquid collagen, further building on the power of our core positioning around being the activation company, along with creating momentum for our TrueScience activated skin care line. A couple of weeks ago, we held our annual global kickoff event where we unveiled the launch date for the next phase of LV360 along with new sales incentives and additional consultant tools. Rise era was announced as a theme for the year with a strong call to action to consultants to rise and build on the strong foundation LV360 has laid for the future.

We've streamlined and simplified the message for consultants to drive growth and success by focusing on 3 basic behaviors of network marketing, enrolling, retaining and rank advancing for [ERA] era. This focus is supported by a new Rise Eera incentive that enables consultants to earn enticing lifestyle and business prices including shareable items like luggage and travel vouchers based on achievement in enrolling, retaining and advancing. Cape Town, South Africa, including an African safari was revealed as the first-ever executive destination trip under the new Evolve compensation plan. Qualification criteria for this once-in-a-lifetime trip is based on era behavior and achievements through the year with travel scheduled for February 2025. New consultant tools were also launched at our global kickoff event, including the new Evolve Possibilities pathway, which emphasizes 4 pivotal consultant ranks within the Evolve compensation plan and what is unlocked at each stage to inspire and motivate rank advancements.

Our major events continue to be an important element driving consultant behavior and capitalizing on the strength of our broader LifeVantage community. The global kickoff in January, set the tone for calendar 2024, and we will build on this excitement with our upcoming in-person Momentum academies in March. The next phase of our LV360 transformation will commence in a few days at the start of February, Evolve our contemporary compensation plan and reward circle our unique customer loyalty program, we'll be launching in Mexico, Canada and Europe. Recall, we first launched these programs in the U.S., Japan, Australia, New Zealand and March of 2023, as part of LV360 and they have been key elements of our success over the past year. In addition to our Rise Era initiatives in our Phase II launch, we've established an optimization team to lead ongoing strategic efforts to build our active account base.

The team is focused on 3 areas: first, ensuring our enrollers, the group of consultants actively enrolling consultants and customers each month is increasing, arming our enrollers with a strong dollar per hour earnings potential message, so the business is seen as an enticing business opportunity for those looking for a side hustle. Second, that there is a clear replicable path to enrolling someone in your first 30 days as a consultant. And finally, that we are making it easy for our rating product fans to share their incredible results and our unique product story in new, innovative and compelling ways. We will be updating you on the progress of these optimization efforts in coming quarters. In summary, we are pleased with progress on our strategic transformation, LV360.

Our improved outlook for profitability in fiscal 2024 despite a still challenging top line environment underscores our confidence in the trajectory of key initiatives as well as the strength of our competitive position. Engagement levels remain high across the entire organization. And we look forward to our business momentum continuing to build as we expand our efforts across all our international markets over the next several quarters. We remain focused on executing our plan while remaining agile to ensure we are optimizing the key elements of LV360 to drive sustainable, profitable growth and value for shareholders. Capital allocation continues to be a key area of focus. And during the second quarter, we remain steadfast in our balanced approach of returning excess capital to shareholders through dividends and share repurchase.

Carl will cover this in more detail in his section. Now let me turn the call over to Carl Aure, our Chief Financial Officer, to review our second quarter financial results. Carl?

Carl Aure : Thank you, Steve, and good afternoon, everyone. Let me walk you through our second quarter financial results. Please note that I will be discussing our non-GAAP adjusted results. You can refer to the GAAP to non-GAAP reconciliations in today's press release for additional details. Second quarter revenue was $51.6 million, down 3.8% on a year-over-year basis and foreign currency negatively impacted revenue by $0.2 million. Excluding the negative impact of foreign currency fluctuations, second quarter revenue was down by $1.8 million or 3.4% as compared to the prior year period. Revenue in the Americas region decreased 1.6% to $39.1 million in the quarter, primarily driven by a 9.5% decrease in total active accounts, partially offset by higher average revenue per account, resulting from changes in product mix due to continued penetration of our TrueScience Liquid Collagen product.

Revenue in our Asia Pacific and Europe region decreased 10% to $12.6 million in the quarter, driven by an 18.2% decrease in total active accounts the closure of our e-commerce business in China and the negative impacts from foreign currency exchange rate fluctuations. Excluding the negative impact from foreign currency fluctuations, second quarter revenue in our Asia Pacific and Europe region was down 8% as compared to the prior year period. The foreign currency impact continues to be driven by fluctuations in Japan, accounting for $300,000 of the impact. Adjusting for this impact, revenue in Japan increased 3.9% on a constant currency basis in the quarter as compared to the prior year period. Gross margin was 78.6% for the second quarter compared to 78.1% in the prior year period.

The increase in gross margin was primarily due to changes in sales mix along with lower shipping related expenses in the quarter, resulting from changes in shipping methods. Commissions and incentive expense in the second quarter decreased $1.8 million year-over-year. As a percentage of revenue, commissions and incentive expense decreased 180 basis points to 42.1% versus 1 year ago levels, which was primarily driven by changes in sales mix, impacts from our Evolved compensation plan as well as the timing and magnitude of promotional and incentive programs. Non-GAAP adjusted SG&A expense was $17.4 million compared with $19.4 million in the prior year quarter and was down 230 basis points as a percentage of revenue to 33.8%. Adjusted non-GAAP operating income was $1.4 million, compared with a loss of $0.9 million in the prior year period.

Adjusted non-GAAP net income was $1.4 million or $0.10 per fully diluted share in the second quarter, compared to adjusted net loss of $0.8 million or $0.07 per fully diluted share in the comparable period last year. We recorded a tax benefit of $0.5 million in the second quarter of 2024 compared to $17,000 in the prior year period. The increase in tax benefit was primarily due to changes in taxable income and the favorable impact of discrete items. We expect that our effective tax rate will fluctuate slightly during the remainder of fiscal 2024 as the impact of discrete items and other permanent differences are recognized. Adjusted EBITDA for the second quarter was $3.1 million or 6% of revenues compared to $0.8 million and 1.5% in the same period a year ago.

Please note that all of the adjustments from GAAP to non-GAAP that I discuss today are reconciled in our earnings press release issued this afternoon. We ended the second quarter in a strong financial position, with $17.3 million of cash and no debt. We also continue to maintain $5 million of availability under our revolving line of credit. Capital expenditures totaled $0.5 million in the second quarter. We anticipate total capital expenditures for fiscal 2024 to be approximately $2.5 million. In addition to maintaining a strong balance sheet, we continue to focus on our capital allocation priorities to drive value for stockholders. During the second quarter, we used approximately $1.9 million in cash to repurchase approximately 288,000 common shares under our share repurchase authorization.

And through the first 6 months of fiscal 2024, we have used approximately $2.7 million to repurchase approximately 433,000 shares. As of December 31, 2023, there is $24.2 million remaining under our stock repurchase authorization. We also announced a quarterly cash dividend of $0.035 per common share of stock or approximately $450,000 in the aggregate. This dividend will be paid on March 15, 2024, to stockholders of record on March 1. Since the beginning of fiscal 2024, including this latest dividend announcement, we will have paid cash dividends of $0.505 per share or approximately $6.4 million in the aggregate. So far this fiscal year, we will have returned over $9 million in total value to our stockholders through share repurchases and dividends.

Turning to our fiscal 2024 outlook. We anticipate our fiscal 2024 revenue will be in the range of $207 million to $213 million, from the previous range of $216 million to $226 million. Additionally, we continue to anticipate adjusted non-GAAP EBITDA in the range of $16 million to $18 million with adjusted non-GAAP earnings per share in the range of $0.57 to $0.67 per share, increasing from the previous range of $0.52 to $0.62 per share. For fiscal year 2024, we expect our annual effective tax rate to be approximately 22% to 24%. Included in our fiscal 2024 guidance is over $2 million of nonrecurring expenses related to an expiring sponsorship agreement and costs associated with the rollout of LV360 to our remaining markets. We remain committed to improving our adjusted EBITDA margins, and we believe we are on track to reach our long-term target of low double digits.

And with that, let me turn the call back over to the operator for questions. Operator?

See also Jim Cramer is Bullish on These 10 Stocks and 15 Cheapest Countries to Get Second Citizenship.

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Several leading MLMs have reported sharp losses: from 2019 to 2024, Herbalife’s stock declined by 64%, Nu Skin by 31%, USANA Health Sciences by 49%, and Medifast by 45% .

Avon shifted toward recruitment incentives but still saw its stock plummet from above $30 to $3, eventually leading to business splits and acquisition by Natura, which itself lost over 60% in value in 2022.

Tupperware, moving from party-plan sales to retail and experimenting with MLM-like products, experienced a stock decline of over 90% and recent bankruptcy warnings .

Contributing factors include initial pandemic-era surges in recruitment followed by post-pandemic declines in new sign-ups and revenues.

Market saturation, changing consumer habits, regulatory scrutiny, and negative perceptions of pyramid-scheme structures have diminished MLMs’ appeal .

Most profits accrue to the top recruiters, while the majority of participants lose money or earn little.

In response, some firms have rebranded away from MLM, emphasizing direct sales and reducing recruitment to avoid regulatory risk and social backlash.

While specific company names shifting to pure direct sales without recruitment since 2019 were not detailed in sources, this trend is reported as especially notable among companies facing legal or reputational pressure .

Industry-wide, iconic names like Avon and Tupperware, labeled as “walking dinosaurs” by 2022, capture the overall decline and adaptation struggles of both the MLM and direct sales models .