MLM Blog was first to report on August 24th that Efusjon was going to either go out of business (that remains to be seen and in my opinion very possible) or cut ties to it's MLM compensation plan.

As of today, Efusjon is done with MLM.

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Most interesting to me is the statement about how the business has been declining for over a year now, all the while CEO Robert Towles has been saying how wonderful the growth has been.  Sad.

Here is the letter that Efusjon sent out to it's reps:

Dear eFusjon Distributors:

It is with great sadness that we announce today that we must cease the direct sales multi-level marketing business of eFusjon, Inc. as of September 1, 2010.

The independent contractor distributor agreements will terminate as of this date. See Distributor Agreement, Section 7 (“The Agreement shall continue in effect between the parties hereto until either party terminates the Agreement…”). Qualified distributors will receive their last compensation check for the month of August, less offsets against any amounts that are owed to the Company, on September 10th. Any commissions due will be available in your “Hyperwallet” account until October 31, 2010, after which date you will need to contact the corporate office (to access your “Hyperwallet” account please go to www.efusjonpay.com, or contact customer service for assistance). The Company will send refunds of the $30 membership fee to those distributors who became members in August 2010.

This was a very difficult decision for the Company and not one we had hoped to make. When the owners started eFusjon in 2008, we envisioned a unique and successful MLM business with healthy and unparalleled beverage products. The goal was to market these products through independent distributors via the MLM direct sales business model. Distributor performance, however, has been steadily declining for over a year now, and as a result, so has the Company’s revenues. The Company can no longer maintain a marketing model that is not generating the funds needed to grow a viable business. In short, the Company’s MLM business model is no longer a sustainable marketing strategy.

With a certain level of optimism, we also announce today our decision to explore other opportunities for the eFusjon product many of you have come to love. For some period of time, you may continue to enjoy eFusjon products through purchases (without compensation) on the eFusjon website www.efusjon.com.

Lastly, we extend a sincere and heartfelt thank you to all of you for your dedication to eFusjon over the years and for standing by our product and the Company during the height of our success as well as through more recent challenging times. We share your disappointment about the recent turn of events, but are cautiously optimistic about the future of eFusjon and eFusjon’s unparalleled, healthy beverages.

With gratitude,
The eFusjon Corporate Officers

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USANA Health Sciences (NSDQ: USNA), a leader in nutritional supplement manufacturing, today announced that it will be one of the first companies in the industry to utilize Nutritional Hybrid Technology. This cutting-edge manufacturing method was unveiled to thousands of USANA independent Associates in attendance at the company's international convention.

"USANA is proud to be a leader in the evolution of nutrition technology," said Dr. Tim Wood, USANA Executive Vice President of Research and Development. "USANA's Nutritional Hybrid Technology illustrates our commitment to innovative manufacturing practices and production of high-quality nutritional products."

Source: BusinessWire

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How would you like to go to prison for two years for building MonaVie in Germany?

This is pretty wild because Germany is a huge market for MLM with several large companies headquartered in the country.

Source (translated):

By its decision of 24.08.2010 (Az: 3-12 O 98/10) the district court of Frankfurt am Main elemtare has forbidden parts of the compensation plan MonaVie LLC. Accordingly, contrary parts of the plan to the prohibition of canvassing progressive gem. § 16 para 2 UWG. This was done by our firm for our client acted in accordance with request made in full.

Already dated 13.08.2010 (AZ: 3-11 O 94/10) adopted the Regional Court of Frankfurt am Main, a decision against two identical MonaVie distributor. It is therefore clear that not only the organizing company agent can be in the spirit of the rule, but each distributor, the new sales recruits or for advertising does.

It is worth noting in this connection that it is justified to § 16 para 2 UWG not just a competition rule that injunctive relief and damages claims, but is also a penal provision, sanction to the infringements by imprisonment up to two years.

MonaVie's web site is denying the allegations as rumor, saying that they have not been notified, even though the information sites a court case and regional court. So we will continue to follow this story.

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