MLM Blog – Network Marketing Blog

Pre-Paid Legal Services’ Largest Shareholder Dumps Stock?

Posted on 10. Mar, 2010 by Dan Mitchell.

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Pre-Paid Legal Services Inc. said its largest shareholder, Thomas W. Smith, resigned from the board and is considering whether to sell all his stock.

Smith’s departure wasn’t the result of disagreement over “operations, policies or practices,” the Ada-based company said in a separate filing. Smith holds about 2.58 million shares, or almost 26 percent of the outstanding stock, Pre-Paid Legal said.

The shares rose 20 cents to $41.86 in New York trading Thursday, valuing his stake at $108 million.

Pre-Paid also announced this week that founder Harland Stonecipher will step down as chief executive officer and president, effective April 2. Stonecipher, 71, will remain chairman. Chief Operating Officer Randy Harp, 54, was named president, and will share the CEO job with Mark Brown, 56, the chief marketing officer.

Source: Bloomberg News

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Numis MLM Gold Scam?

Posted on 09. Mar, 2010 by Ty Tribble.

How quickly we forget the last big Gold MLM Scam: Gold Unlimited

January 22, 1992, saw the incorporation of Gold Unlimited, Inc. ("Gold") as a Delaware corporation based in Madisonville. David Crowe served as the sole officer and director of the closely-held corporation. Martha Crowe acted as office manager for the corporation, which employed a total of 89 individuals over four years. Undaunted by past troubles, the Crowes offered the public the opportunity to participate in Gold's "Gold Earning Program"

("Gold I"). Participants paid $200 toward a $400 gold coin; by recruiting new investors, the original participant earned commissions toward the cost of the coin and could earn cash commissions. At trial, Gold's corporate attorney,

William Whitledge, admitted that this plan was "pretty much identical" to AGE's plan, and the South Dakota Division of Securities Enforcement agreed, calling it "almost identical" and enforcing against Gold the cease and desist order obtained against AGE. In April 1992, the Kentucky Attorney General sued Gold, and the Hopkins Circuit Court enjoined the Crowes from operating Gold.

In the opinion, Judge Charles W. Boteler found that Gold I emphasized recruitment of clients, not sales of products, and thus constituted an illegal pyramid scheme. In October 1993, the Crowes and Gold signed a settlement agreement with the state, agreeing to pay restitution to Gold I's participants and submitting to a permanent injunction against operating pyramid schemes and making unrealistic earnings claims. On October 18, 1993, David Crowe pled guilty in an unrelated criminal proceeding to a state charge of false advertising stemming from his activities with Gold I. He received a suspended sentence.

According to MLM Watch Dog and Expert, Rod Cook, MLM Gold programs have a 0% chance of survival...

"Gold based product = 0 out of 70- 80 gold MLMs survived in U.S. since 1990"

Not looking good for Numis.
 

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Goldquest Pyramid Scammers Arrested in Iran

Posted on 09. Mar, 2010 by Dan Mitchell.

The Iranian security forces have arrested 30 suspects in connection with Goldquest, a controversial network marketing company which has allegedly defrauded thousands of people worldwide.

The Iranian Intelligence Ministry announced that 30 key members of Goldquest have been arrested on charges of defrauding people "out of more than 5 trillion rials (about $500 million)," IRIB reported.

The Intelligence Ministry added that the suspects were handed over to judicial officials for further investigations and confessed to defrauding many Iranians, especially young people.

The criminals, who said they worked for an investment company called Quest International, served as the main go-betweens connecting members of the illegal Gold Quest pyramid investment company working in Iran and its leaders based in foreign countries.

Goldquest is a global network marketing company that claims to be engaged in selling coins and watches that are said to have numismatic value.

Network marketing companies like Goldquest work on the principle of the pyramid scheme, a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme.

Source: Press TV

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Nu Skin Snags Communitas Awards

Posted on 09. Mar, 2010 by Dan Mitchell.

Nu Skin Enterprises Inc was recognized for outstanding corporate social responsibility programs with the presentation of two Communitas Awards. The awards are given by the Association of Marketing and Communication Professionals (AMCP) for excellence in community service and for ethical and environmental responsibility. The Communitas Awards is an international effort to recognize the spirit of communitas, people helping people.

"This honor is particularly meaningful because it recognizes our mission to be a force for good in the world by empowering people to improve lives," said Truman Hunt, Nu Skin president and CEO. "It's our giving culture that unites our global family of distributors, customers and employees in innovative efforts that multiply our ability to help people around the world. These efforts are particularly evident in the work we do through the Nu Skin Force for Good Foundation and the company's Nourish the Children initiative."

Source: PR Web

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YTB Appoints State Senator Burt Saunders to Board of Directors

Posted on 09. Mar, 2010 by Dan Mitchell.

YTB International Inc.’s board of directors appointed Burt Saunders as a director, as well as to the board’s investment committee, the company said in a regulatory filing Monday.

The appointment was effective March 2. In addition to one-time and restricted stock awards, as a nonemployee director Saunders will receive annual compensation of $30,000 for his board service and $1,000 in cash for each board meeting or committee meeting he attends.

The multilevel marketer of travel agent Web sites also said that on March 2, the board approved an additional $12,000 in monthly pay for CEO Robert Van Patten for his duties as interim chief financial officer, according to the company’s filing Monday with the Securities and Exchange Commission.

Source: St. Louis Business Journal

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OxyFresh in Pre-Launch with 21Ten

Posted on 09. Mar, 2010 by Dan Mitchell.

OxyFresh is launching a new multi-level marketing company called 21Ten. The product is a super-juice vitamin powder that comes as a "nutrition stick."

This from their website:

21TEN is owned by Oxyfresh, a 25-year veteran of the MLM industry (Oxyfresh itself is launching a massive conversion to environmentally sound packaging in 2010). Oxyfresh has developed over 50 pure residual income products that are so good for repeat business that the average active Oxyfresh distributor orders three times the requirement. That's three times, or $300, every month.

Oxyfresh may not be the glitziest company out there, but you use its products every day, in every way. It's a rock-solid, profitable business that has been paying residual income royalties since 1984 — before some of you were even born, and before most of you got out of high school. Oxyfresh even pays residual income to the granddaughter of one of its founding distributors, and plans on continuing that trend.

They seem to be targeting the 18 to 35 market with their marketing efforts - everything from the cheeky copy on the website to the packaging tries way too hard to be cool. They even use the domain name socoolithurts.com on the packaging! What hurts way more than being cool is trying so hard to be cool.

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Amway Sales Grow In 2009 But No Mention Of U.S. Sales Growth

Posted on 09. Mar, 2010 by Ty Tribble.

If Amway doesn't mention U.S. numbers, you can be pretty sure that they are down.  Amway training systems like WWDB have shown declining numbers in meeting attendance and new diamonds....here is the press release from Amway:

ADA, Mich., March 9 /PRNewswire/ -- Amway's parent company, Alticor Inc., announced record sales of more than US$8.4 billion for the year ended Dec. 31, 2009, which was a 2.3 percent increase over 2008. Sales were negatively impacted by foreign currency fluctuations, which in local currency grew 5.9 percent.

"Our focus on using innovation to transform the Amway business is showing results," said chairman Steve Van Andel. "The global economy challenged every business in 2009. Our continuing investment in products, technology, and connecting with consumers helped us weather the storm."

Said president Doug DeVos: "Our distributors around the world deserve a lot of credit for persistence in a difficult economic climate. We put a lot of effort into improving our product offerings and building consumer awareness; the distributors put in the work to drive sales to our customers."

The company also made gains in another key measure. Said Van Andel: "In 2009, we increased our market share in the direct selling industry, and continued to drive improvements and adjustments to our business that will help us, and our distributors, succeed over the long term."

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Tahitian Noni International announces $250,000 Bioactive Beverage Challenge

Posted on 09. Mar, 2010 by Dan Mitchell.

Tahitian Noni International (TNI) announced a new $250,000 Bioactive Beverage Challenge to all makers of superfruit juices in the network marketing industry. TNI believes that their Tahitian Noni® Original Bioactive Beverage™ is so unique that no other product in the industry will measure up to it.

“Tahitian Noni Original not only meets the requirements, it exceeds them.”

Tahitian Noni® Original is the authentic bioactive beverage that has been used by millions of people around the world. Designed for adults, it’s packed with over 150 bioactive compounds—including 12 unique iridoids—that deliver a multiplicity of benefits to the human body.

Tahitian Noni International will pay $250,000 to any company in the network marketing industry that can prove its signature product has all of the following qualities:

* The product features at least 14 human clinical studies, and
* The plant ingredient has at least 52 scientifically validated patents, and
* The product has been validated as a world class adaptogen and contains 15mg of iridoids or more in each recommended serving, and
* The product contains bioactives from a validated medicinal plant that after processing and pasteurization remains stable for at least two years, and
* The company employs scientists who collectively have authored no fewer than 35 peer-reviewed publications about its signature products in scientific and medical journals, and
* The product adheres to the World Anti-Doping Code and has been approved and certified by an independent laboratory.

“We are supremely confident that no other network marketing product in the world comes close to the criteria listed above,” stated Kelly Olsen, founder and member of the Board of Directors of Tahitian Noni International. “Tahitian Noni Original not only meets the requirements, it exceeds them.”

The $250,000 Bioactive Beverage Challenge runs from March 1 – June 1, 2010. For a complete list of rules and conditions please go to www.tni.com/250K.

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Arbonne Emerges From Chapter 11 Bankruptcy

Posted on 08. Mar, 2010 by Ty Tribble.

Arbonne has emerged from Chapter 11 Bankrupcy...

Under the deal, lenders owed about $530 million took control of 85 percent of the stock in the reorganized company.

The case is In re Natural Products Group LLC, U.S. Bankruptcy Court, District of Delaware, No. 10-10239.

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Jusuru Keeps Up With Skyrocketing Sales?

Posted on 06. Mar, 2010 by Dan Mitchell.

When an MLM or Network Marketing company boasts about skyrocketing sales and the size of their upcoming national convention what's the one thing you look at to confirm their claims? Numbers, right?

Well, Jusuru has issued a press release claiming that to keep up with "skyrocketing sales" they've released "a series of announcements on its new, expanded, marketing program" that will allow them to accommodate more growth. No mention of what exactly are "skyrocketing sales." Also, the new expanded marketing program is mostly an addition of new marketing material that Jusuru reps can purchase - like Spanish language Starter Kits and Jusuru clothing and gear.

They also claim that the most telling new development at Jusuru is the "sheer size" of their upcoming convention in California. Once again, no numbers...

Sounds like hype to me...anyone have any real numbers?

You can read the whole press release over at PR Web.

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