MLM Blog – Network Marketing Blog

According to a new lawsuit, Waiora targeted "gravely ill" consumers and sold them product that contained only 10% of the minerals that were claimed on the label from 2004 to 2010.

In late 2010, an independent lab found that Waiora's NCD (Natural Cellular Defense) product was almost entirely made up of water.  Instead of the 2400 milligrams of zeolite as advertised on the label, the testing showed closer to 150 milligrams.

Here is a copy of the lawsuit:
Waiora Class Action Lawsuit

And if you want the "Cliff's Notes" version it's here:
Waiora Anti-aging Supplement Is Just Water: Lawsuit

There is a great quote by Ronald Reagan that I always think about in situations like this.

"Trust, but verify."

There is a lot of fake science being spouted about in the Network Marketing industry.  I was once told about a "Chief Science Officer" who used to give tours of the lab, (where he obviously spent no time) and once pointed to a copy machine and suggested that it had something to do with Genomics.

There is an old saying...

"You can't put lipstick on a pig."

Back in July of 2010, we  raised the red flag about the Trump Network.

My concern at the time was the fact that Trump's name was being added to an outdated compensation plan with ineffective products and poor management all the while Trump was speaking taking money to endorse another MLM (ACN).

Now, the Trump Network (which actually appears to have very little to do with Donald Trump as I suspected) looks to be in bad financial shape.

Tom Mower, the owner of Sisel and founder of Neways loaned The Trump Network (and it's owners with no mention of Donald Trump) $270,000 back in October of 2011 and it looks like The Trump Network is defaulting on paying the loan.

From the lawsuit:

BACKGROUND ALLEGATIONS

10. In the fall of 2011, Plaintiff became interested in the possibility of acquiring Ideal Health and/or TTN dba THE TRUMP NETWORK.

11. In exploring the possibility of acquiring Ideal Health and/or TTN dba THE TRUMP NETWORK, Plaintiff learned that Ideal Health/TTN was in need of financing to pay current commissions due to its distributors.

12. To assist Ideal Health/TTN and to further explore the possibility of acquiring Ideal Health and/or TTN dba THE TRUMP NETWORK, Plaintiff and Defendants entered into an Agreement on October 31, 2011, whereby Plaintiff agreed to lend Ideal Health/TTN $270,000 as “bridge financing” upon the following terms:

a. Ideal Health/TTN would only use the loaned funds to pay current commissions due to distributors based on Ideal Health/TTN’s commission plan;

b. Ideal Health/TTN would repay the $270,000 including 8% interest compounded annually from funds flowing through Ideal Health/TTN’s Discover and American Express accounts. These payments were to be immediately transferred to Plaintiff’s account upon receipt of funds in the Discover and American Express accounts (at least three times a week).

The lawsuit continues:

20. Ideal Health/TTN have nevertheless breached the Agreement by failing to pay Plaintiff the amounts due under the Agreement.

21. Upon information and belief, Ideal Health/TTN have further breached the Agreement by, without limitation, using the bridge financing for purposes other than to pay the current commissions due to distributors based on Ideal Health/TTN’s commission plan, by failing to establish a joint bank account with Plaintiff into which all of the funds from the Discover and American Express accounts would be deposited, by failing to provide Plaintiff a daily reconciliation through its CFO to account for the funds flowing into the business and the portion forwarded to Plaintiff pursuant to the terms of the Agreement, by failing to enter into good faith negotiations with Plaintiff for the potential purchase of Ideal Health/TTN by Plaintiff, and by promoting or discussing the sale of its business or stock in the business to other parties.

22. As a result, Plaintiff has been damaged in an amount to be determined at trial but not less than $260,476.75, plus interest accruing at the rate of 8% from November 1, 2011 until the entry of Judgment.

Ted Nuyten is reporting that over 20 Trump Diamonds left the company in January .  Ted also reported (then pulled the blog post) that Trump was late with payments to it's distributors. But it looks like Ted's original report is true as he is now saying that over 2/3 of the reported 21,000 reps have left since compensation stopped.

I got this news late last night from Ted Nuyten over at businessforhome.org.  Tiens North America will be closing it's operations effective January 31st, 2012.  According to Nuyten there are about 11,000 Tiens representatives in the U.S. and Canada.

 In Nuyten's article, he actually goes as far as listing the top 58 leaders in the company in an effort to take advantage of MLM vultures "level the playing field".  But you can only gain access to Nuyten's list of leaders if you pay the subscription price to his website.

Sad news for the Tiens team in the U.S. and Canada, many in my home state of Washington.

Now it's time for "I DID NOT KNOW THAT", a regular (or not) series on MLM Blog that contains useless information that you did not know about...

In addition to bringing us Ted Nuyten, the Netherlands also brought us early 90's hit machine, '2 Unlimited' which can be heard at nearly every sporting event on the planet. Yes, I'm being serious.

"Greetings from the Netherlands"

Neways kept itself out of bankruptcy, but at what expense?

This will be an interesting one to watch.  You can be sure that these private equity firms will be looking to get their money back and sometimes that can happen at the expense of the distributors associated with the company.

Let's hope this is a step in the right direction for the company and it's distributors.

SPRINGVILLE, Utah, Jan. 19, 2012 /PRNewswire via COMTEX/ -- Neways Enterprises, a worldwide leader in dietary supplements and personal care products, announced today that it has completed a comprehensive out-of-court restructuring, allowing the company to significantly reduce its debt. As a result of the transaction, private equity firm Z Capital Partners, L.L.C. and funds affiliated with S.A.C. Capital Advisors, L.P. will in the aggregate own a majority of Neways. Golden Gate Capital will maintain an equity stake in the Company.

Several sources are telling me that Robert Dean Jr. has joined Momentis, an MLM energy company. Momentis is likely Dean's 6th MLM company in under 3 years as he jumps from company to company, working deals to pay off his massive settlement with Tahitian Noni.

A quick update: In yesterday's mini-expose' on Robert Dean Jr.' deals we reported rumors that Dean may have been terminated from Limu.  But according to Troy Dooley, Dean has not actually been terminated, but possibly suspended.

My best guess is that Limu is getting their ducks in a row for a lawsuit and the fine line between suspension and termination is probably being toed for legal reasons.

I am willing to bet that our friend Troy Dooley will post an update for us in the comments once he is ready.  Troy has reported spoken with Limu directly.

If you are the wagering type, the MLM Blog (fictional) over/under on Dean leaving Momentis is set at 91 days.

Two sources are telling me that Robert Dean has been terminated from the Limu company.  This follows on the heals of his public split with Visalus and before that EvolvHealth and before that Monavie and before that Tahitian Noni. 

Update 1/25/2012: Troy Dooley reports that as of right now,  Robert Dean Jr. has not been terminated from Limu but rather suspended.  I suspect that this is a legal maneuver by Limu in preparation for a lawsuit.  It is pretty clear that Robert Dean Jr. has left Limu for Momentis.

All of this in the last 3 years.  Sometimes, there are really good reasons to move companies. Ethical reasons or corporate leadership issues that have a major adverse affect on your business might force a person to make the difficult choice to make a move.

However in the case of Robert Dean, it appears as though one word can sum up his reasons to move, "money".

Dean apparently owes so much money to Tahitian Noni, that he is jumping from deal to deal in order to meet his payment schedule.

Let's take a look at Nick Sarcola's letter to his team about the departure of Robert Dean from Visalus:

ViSalus Science Co-Founder Nick Sarnicola Breaks His Silence On The Robert Dean Deal

And here is Dean's deal with Visalus:

Robert Dean's Private Money Deal To Join ViSalus What About His Team? Now Limu!

Oh but there is more.  Apparently Robert Dean owes Tahitian Noni a huge amount of money and was making payments to them with his Limu deal money (series of emails):

---------- Forwarded message ----------
From: Robert Dean
Date: Tue, Mar 1, 2011 at 9:51 AM
Subject: Re: Wire
To: Mary Baxley <@thelimucompany.com>

Thanks so much!

"Stay focus"

On Mar 1, 2011, at 8:28 AM, "Mary Baxley" <@thelimucompany.com>
wrote:

Good morning Gentlemen,

The wire transfer to Robert’s account for $100,000 is complete. Have a
great day!

MARY BAXLEY, CPA
Vice President of Finance
LIMU, The Company

And more communication:

---------- Forwarded message ----------
From: Mike Drake <@morinda.com>
Date: Tue, Aug 30, 2011 at 6:53 PM
Subject: follow up
To: Robert Dean

Mr. Dean:
Following up on your email earlier this month, I still have not received the
two payments for July and August ($10,000 each, $20,000 total) which were promised by the end of the month. Please confirm that the $20,000 will be received by Wednesday, August 31, and let me know how the payment will be made (by check, charge or wire transfer).
Regards,
H. Michael Drake
Associate General Counsel
Tahitian Noni International, Inc.

And lastly:

---------- Forwarded message ----------
From: Mike Drake
Date: Tue, Mar 22, 2011 at 9:50 AM
Subject: RE: TNI settlement agreement
To: Robert Dean

Thank you. That will be fine.

Mike

*From:* Robert Dean
*Sent:* Monday, March 21, 2011 6:53 PM
*To:* Mike Drake
*Subject:* Re: TNI settlement agreement****

I will get the rest of that to you by April 3rd 2011

"Stay focus"

On Mar 21, 2011, at 6:21 PM, Mike Drake wrote:

Dear Robert:

I am sending this email to let you know about the status of you settlement
payments to TNI. The settlement agreement you signed will permit you to
satisfy the $1.5 million judgment by paying $600,000 in installment
payments. The payment schedule was originally as follows:

$10,000 owed by Dec 15

$40,000 owed by Dec 20

$10,000 per month beginning July 1, 2011

However, the foregoing payments were modified by a letter agreement dated December 20 (when we met in John’s office). The payment schedule now is as follows:

$10,000 owed on Dec 24--PAID
$20,000 owed on Jan 18--PAID
$20,000 owed on Jan 19—NOT PAID
$10,000 per month—to begin July 1, 2011

The $20,000 owed on Jan 18, at first, did not clear—only $2500 was
authorized on Jan 18. That left a balance of $17,500 owing for the Jan 18
payment. Days later I was able to talk to you about getting the remaining
$17,500 paid, and you kindly authorized TNI to again make credit card
charges (at the rate of $5000 per day) to cover the unpaid $20,000. So, on
Wed Feb 9 $5000 was charged to your card, then on Feb 10 another $5000 was charged, and on Feb 11 a third $5000 was charged. The remaining $2500 was charged on Mon Feb 14. With these five credit card payments ($2500 + $2500 + $5000 + $5000 +$5000), you satisfied the $20,000 obligation that was owed on Jan 18.

However, in our discussions about getting the Jan 18 payment taken care of, I failed to resolve your payment for $20,000 that was due on January 19. I now would like your permission to again make four charges of $5000 to your card to bring your settlement payments completely up to date—and keep you on track to resolving the judgment by paying the agreed amount of $600,000.

I will contact you tomorrow to get authorization for the remaining $20,000
payment through your credit card. Or you may simply respond to this email to authorize TNI to proceed with clearing the payment through four equal payments of $5000. Your assistance is appreciated.

Regards,

H. Michael Drake
Associate General Counsel
Tahitian Noni International, Inc.

It will be interesting to see what happens next with Robert Dean.  I have to imagine that companies will be leery about giving Dean a big deal, but you never know.
 

Trey White's Evolv Health has snatched up another Network Marketing company as cPRIME joins the EvolvHealth Corporation.

Previously Evolv merged with Xowii.

Evolv has also been in the news recently as several top leaders from Max International have left Max to join Evolv.

This growth strategy is interesting and could prove effective.  I always wondered why a cash rich company like Amway didn't spur their growth in the U.S. by purchasing smaller but growing MLM companies.

Evolv has come a long way since it's "Water Launch" a couple of years ago, but the cPRIME product might be a step backwards.  My guess is that Evolv is after the people associated with cPRIME and not so much the product line.  In a quick search of the Evolv website, the Xowii products are buried under "Evolv Energy".

Here is the press release:

January 23, 2012 – Dallas, TX – EvolvHealth Executives announced today that cPRIME will be joining the Evolv family of health products. cPRIME has made great strides in developing a cutting edge technology that supports health in a unique way, establishing powerful celebrity endorsements, and implementing innovative business tools to market this technology. In conjunction with the e84 Challenge products, Evolv Executives see this amazing technology as an incredible asset that may increase balance, strength, enduarance and flexibility—all important factors in a successful e84 Challenge.

“We are committed to making the latest health technologies available to our Members and Customers. We see cPRIME as a great partner for Evolv and the e84 Challenge,” said EvolvHealth CEO, Brent Hicks.

“Over the last few years, Evolv and cPRIME have been traveling on parallel paths. Now that those paths have converged, we are providing an unprecedented opportunity for all of our Members and our Customers to provide what is potentially the most complete Health Offering in the market under one roof,” said EvolvHealth Chairman, Trey White. “It is the complete package: Nutrition, Exercise, Energy and Support,” says Trey.

“Evolv’s patent-pending products have certainly gained attention in the industry and are widely known for their advanced, revolutionary nutritional benefits,” said cPRIME’s Chief Operating Officer, Kevin Keranen. “We are excited about the e84 Challenge and how it is aligning synergistically with cPRIME’s performance wear product line. We are 100% behind the health revolution and help 8.4 Million complete the e84 Challenge, now powered with the cPRIME band.”

About cPRIME

cPRIME develops fashion-forward performance wear that can change your life by working immediately to maximize your body’s performance. The cPRIME Bands may also help to increase your strength, balance, flexibility and endurance: Every cPRIME Bracelet and Band is equipped with a chip that alters the way your body interacts with the electromagnetic environment around you. cPRIME bracelets act as a bio-antenna for your body. A cPRIME Performance research study was conducted at Joel Scherr Physical Therapy Centers and California Medical Arts in Los Angeles and San Diego, California under the control of three principal investigators with over 65 years of collective clinical experience.

About EvolvHealth LLC

EvolvHealth is a consumer health products company helping people improve their family’s physical and financial well-being through science-driven products and entrepreneurial opportunities. Evolv recently released its newest product, Evolv Limitless™—an all-natural betalain supplement developed using a patent-pending technology developed at FutureCeuticals®. EvolvHealth offers a full spectrum of health supporting nutritionals geared to complement its health renewal program, the e84 Challenge. Evolv and the e84 Challenge are marketed through a network of independent business owners in the United States, Canada, Mexico, Chile, Colombia, and Peru. Visit http://www.evolvhealth.com for more information about EvolvHealth, its Mission, Executive Team, and business opportunity.

NOTE: cPRIME celebrity and other endorsements are directed only to the cPRIME Bands and Bracelets, and do not necessarily constitute endorsements of EvolvHealth or its products.

LOS ANGELES, Jan 17, 2012 (BUSINESS WIRE) -- A lawsuit alleging Isagenix International, a multi-level marketing company based in Chandler, Arizona, intentionally interfered in and destroyed a competing diet supplement business, has been set for trial on March 26, 2012 by the Ventura County Superior Court. The claims against Isagenix were filed by two affiliated Ventura, California based infomercial production and manufacturing companies, Nature's Pure Body Institute and Incubation, and their owner, Ken Wright. The lawsuit has been pending since May 2008.

Parties involved in the lawsuit include Bill Wheeler, Ph.D., former spokesperson for Wright's Gold Standard protein product; wife Linda Wheeler; their entity Peak Performance Nutrition, Ltd., a Nevada Corporation; Jim Coover, whose wife Kathy was a co-founder of Isagenix with John Anderson; as well as Ellen Bradley Ganus, one of Isagenix's top sales distributors. Dr. Bill Wheeler's Gold Standard Protein, a weight loss meal replacement formula, was formulated by Wright and successfully marketed on television and radio from 2003 through 2007.

Wright and his companies assert that they created a line of products bearing the brand name "Dr. Bill Wheeler's Gold Standard Protein," held the commercial rights, trained Wheeler to be the public face and spokesperson of the product line, and invested years of labor and funds building up the Dr. Wheeler line of diet products. The products included weight loss meal replacements such as shake mixes and cleansing products. Wright asserts that, despite knowing Wheeler was under contract with Wright's companies, Isagenix hired him away as its chief science spokesperson, then used its MLM muscle to force a termination of the contract and pressure Wright's companies to shut down their product line so that Wheeler could not be seen on infomercials endorsing competing products. Isagenix has denied the allegations and filed cross-claims alleging violation of its rights to the Dr. Bill Wheeler name.

MLM companies have been the subject of criticism as well as the target of lawsuits alleging they are similar to illegal "pyramid" schemes, and that they use improper or questionable tactics such as price fixing, high initial start-up costs, and emphasis on recruitment of lower-tiered salespeople over actual sales.

Isagenix is a multibillion-dollar company boasting 7 million customers and more than a billion USD in sales of product each year. It sells internal dietary cleansing products and weight loss meal replacement shakes.

Wright asserts that he and his companies relied on the success of the Dr. Bill Wheeler's Gold Standard Protein product, but have been forced out of that market by the loss of their brand name and spokesperson to the MLM giant Isagenix, which is now selling an IsaLean Shake Classic that Wright says copies the Gold Standard product that Wheeler had endorsed for Wright and used to personally lose over 80 pounds under Wright's guidance. Isagenix disputes the charges and has denied any liability.

SOURCE: Nature's Pure Body Institute and Incubation

Salt Lake City, UT (PRWEB) January 18, 2012

Health and wellness industry leader MonaVie is making history again as it launches the “next generation” of the company called MonaVie 2.0. The latest phase of the company’s long-term strategy was announced at a meeting for more than 3,000 MonaVie distributors in Dallas, Texas on January 13-14.

Headlining the innovations announced in Dallas are a new product platform called MonaVie Nutritional Chemistry™ that provides personalized, targeted product options to address an individual’s unique nutritional needs. A new, universal business training solution to guide distributor success called MVP (MonaVie Values People) was also launched and will be the centerpiece of MonaVie’s continued global expansion.

MonaVie Founder and CEO Dallin Larsen said the newly announced features of MonaVie 2.0 will provide a groundbreaking opportunity for millions of people around the world to improve their lives. “We invite everyone to join with us, as we position ourselves to make history once again during 2012,” he said.

MonaVie Nutritional Chemistry™ – Providing Personalized Nutritional Support through MonaVie Elements™

Today’s consumers are looking for ways to personalize everything they buy, says MonaVie Chief Marketing Officer Jeff Cohen, and there’s no more important area to offer customizable options than with products that provide optimal nutritional support. That’s the idea behind MonaVie’s revolutionary new product platform called MonaVie Nutritional Chemistry.

According to Cohen, MonaVie Nutritional Chemistry will make it easy for consumers to address their unique nutritional needs. Through its new proprietary online nutritional assessment tool, known as Health Match™, MonaVie helps individuals identify specific needs in three easy steps and then delivers personalized product recommendations.

In tandem with the introduction of MonaVie Nutritional Chemistry comes the launch of MonaVie Elements™...

The MLM Rumor Mill

I am kicking off today with the rumor mill.  First I heard that there was some type of merger talks between Trump Network and Tom Mower's (formerly of Neways) Sisel.

But now it appears to be an exodus of field leaders from Trump Network to Sisel, sources tell me.

Either way, it's not good news for Trump Network.  The company started out strong (on Trump's name) but as I predicted, (see the truth about Trump Network) the Trump sizzle wasn't enough.

MLM - Network Marketing Industry News and Links

Vemma signs Extreme Makeover's Chris Powell to endorse the company's new Vemma Bod-e weight loss solution.

Vemma founder and CEO, BK Boreyko commented:

“A great deal of research and science has been incorporated into the products, and we are thrilled to have Chris Powell’s endorsement.”

And To All Female MLM Blog Readers: your welcome for the pic. = ) 

In other MLM news, Tahitian Noni is changing their name (sort of).

"Tahitian Noni International will officially change its name in the US to Morinda, with the tagline, Bioactives. John Wadsworth, president of TNI stated, "The new name stays true to our noni roots (since Morinda citrifolia is the scientific name for noni), while broad enough to capture the new bioactives vision. The name Morinda symbolizes everything that this company represents–past, present, and future."

Morinda has always been the name of the parent company of Tahitian Noni so it's sort of a change of official branding.

Ted Nuyten of Business for Home (who would also like you to know that he is from the Netherlands) visited the Organo Gold convention in Las Vegas to "get first hand information and documented facts" about the company and income claims.

Some industry experts questioned Nuyten's published reports of these claims and I'm not sure these questions were really answered in Nuyten's latest article.

I didn't see any "documented facts" about the incomes.  Mostly hype about being on track to hit a million distributors and big cardboard checks.

By the way, I like Ted Nuyten, he is doing a great job with his site and his reporting on the industry, but I am wondering if he is being a little swayed to overlook the "documented facts" by charismatic executives in this case. I just don't see anything really documented in his article about Organo Gold.

Personal Development - Building A Better You

Seth Godin often (inadvertently) speaks directly to Network Marketers.  In this blog post he is talking about whether you sit and wait for a sale or whether you sell.

Here's a take on email autoresponders from outside of our industry. [from CopyBlogger]

Personal development consists of becoming a better person in all areas of our lives, right?  Here are 10 Reasons Why Your Kids Think You Are No Fun specifically for Dads.

The Ty Tribble Take (Commentary)

I am kind of surprised that it took Tahitian Noni so long to distance itself from the word "Noni".  If you've never tried noni juice, it pretty much tastes like melted tires mixed with prune juice. No, I'm not kidding.

The Trump vs. Sisel stuff is pretty interesting.  I suspect we will have more news from those two companies in the near future.

Lastly, let's talk about big cardboard checks for a second.  Personally, I love seeing people cross the stage with a big fat check in hand.  However, just because a number is written on the front of those big cardboard checks, doesn't mean that the person carrying the check has actually earned that money (yet).

Many companies pay out these large sums of money over time, yet it is also the habit of some companies (one in particular) to create a big fat cardboard check as soon as someone has qualified (month one or close to it) even though they pay out the money over a a year or more.

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You can read more from Ty Tribble on his personal blog TyTribble.com or if you would like to work with Ty, he is looking to slightly expand his inner circle.  Click here to request a personal and confidential call with Ty (he also has a little surprise for you when you click (totally unexpected).