MLM Blog – Network Marketing Blog

There is an interesting story over on the BusinessForHome.org site that shows a video (proof?) of former MonaVie Black Diamond, Joe Licciardi's business being moved under someone else once he left the company.

The story itself is interesting, but in today's world of instant news via blogging and social media, The Preseident of MonaVie has already responded along with another Black Diamond and Joe Licciardi himself.

Here's a few snips:

Original BusinessForHome Article:

The entire USA downline of former Black Diamond Joe Licciardi who left the company last month, is moved down the Genealogy and inserted into – Alexander Herr- Purple Diamond's organization in Germany.

In MLM moving downlines is controversial…. Free money for the new upline….. and considered not ethical.

MonaVie President, Randy Schroeder responds:

Recently a Mona Vie distributor (Joe Licciardi), who had gained the Black Diamond rank some years ago, but whose business had been in steady decline to the point of qualification well below his stated rank, made what I believe was a huge error in joining another company, cross recruiting and disparaging Mona Vie to the point of termination for violation of policies and procedures.

We then took the appropriate action of re-assigning sponsorships and repositioning what had become a very small lesser leg to create leadership to those who would suffer from the departure of their up-line. We took the appropriate measures, all within the stated policies and procedures of Mona Vie. This did not result in rank advancement for anyone.

Followed by this cryptic and cult-like response from MonaVie Royal Black Diamond, Todd Hartog (I especially enjoy the old "bathroom walls" statement...straight out of the Amway book of keeping the minions under tight mind control):

Facts are clear here. Its easy for someone to run with false truths. Monavie is a integrity based company that follows a strict Policy and moral code. The world wide web is like the bathroom walls of society where you can write just about anything. There is Law that prohibits the use of names and Company names on website and video content. Remember your computer and Modems give off IP unique address and its better then a fingerprint.

Then Joe Licciardi responds:

Ok, after seeing the many comments posted on the various articles, I never wanted to take the time or expend the energy to reply, except for this one by Randy S.

It is interesting that just a few months ago he was telling many that he considered Patrice and I to be one of his closest friends. Now, that we have taken another direction in life, he is saying that” Some people achieve ranks that where larger than themselves”. Really? How do you determine that? And to say that our business had declined to the point that we fell below our achieved rank? Well, why don’t we not just point the finger towards one person but to many, especially those who were helped by the moving of this leg. How was it determined where to move it this leg anyway? Were there not other active Blacks and others working the business who equally qualified? But the most dis-hearting comment is the accusation of us “Cross-recruiting and Disparaging the company”. We are still waiting for this documented proof. Of which there is none. In the end, it is what it is and we move on.

Someone once told me just a few weeks back that if I made such a move, I would find out very quickly who truly were my friends. And that he was so right, and I thank those of you who have openly poured out your support.

MLM company, Nature's Pearl has been slapped by the FDA about claims made on their web site.  This is a big red flag because usually it's the reps running around making crazy claims, but in this case, it is the company itself.

Here is a copy of the letter:

Public Health Service
Food and Drug Administration

Atlanta District Office
60 Eighth Street N.E,
Atlanta, GA 30309
Telephone: 404-253-1161

April 19, 2012

VIA UNITED PARCEL SERVICE

WARNING LETTER
(12-ATL-11)

Jerry W Smith, CEO
Nature's Pearl Corporation
3134 Cornatzer Road
Advance, NC 27006

Dear Mr. Smith:

This is to advise you that the U.S. Food and Drug Administration (FDA) reviewed your website at www.naturespearlproducts.com in December 2011 and has determined that your "Nature's Pearl™ Premium Muscadine Grape Seed Supplement" product is promoted for conditions that cause the product to be a drug under section 201(g)(1)(B) of the Federal Food, Drug, and Cosmetic Act (the Act) [21 U.S.C. § 321(g)(1)(B)]. The therapeutic claims on your website establish that this product is a drug because it is intended for use in the cure, mitigation, treatment, or prevention of disease. The marketing of this product with these claims violates the Act.

Examples of some of the claims observed on your website include:

Under the tab, "Science" and on the webpage titled, "Human Clinical Trials":

• "Inhibition of Cancer Cell Growth by Muscadine Grape Seed & Muscadine Grape Skin Extracts"

• "These results demonstrate that extracts from muscadine grape seeds and muscadine grape skins inhibit the growth of human lung, colon, prostate, breast, skin , brain and leukemia cells in vitro, suggesting that further studies are warranted to investigate their potential use in the prevention or treatment of cancer."

Under the tab, "Science" and on the webpage titled "News Articles":

• "The chemical· constituents of muscadine grapes ... have shown several antitumor effects."

Further, the "News Articles" webpage on your website lists research and articles about the usefulness of the ingredient grape seeds in treating or preventing diseases.

When scientific publications are used commercially by the seller of a product to promote the product to consumers, such publications may become evidence of the product's intended use. For example, under 21 CFR 101.93(g)(2)(iv)(C), a citation of a publication or reference in the labeling of a product is considered a claim about disease treatment or prevention if the citation refers to a disease use, and if, in the context of the labeling as a whole, the citation implies treatment or prevention of a disease.

The following are examples of reference citations used to market your Nature's Pearl™ Premium Muscadine Grape Seed Supplement for disease treatment and prevention on your website:

• "Unique Grape Seed Extract Inhibits Prostate Cancer Cell Growth in the Laboratory. U.S. National Institute of Health, September 1, 2007."

• "Grape Seed Extract Kills Laboratory Leukemia Cells. ScienceDaily, January 1, 2009."

• "Effect of Muscadine Grape Seed Supplementation on Vascular Function in Subjects with or at Risk for Cardiovascular Disease: A Randomized Crossover Trial. J Am Coli Nutr October 2010 vol. 29 no. 5 469-475"

• "Inhibition of cancer growth by muscadine grade (sic) seed and grape skin extracts. Wake Forest University Health Sciences' presentation at 2011 AACR Meeting, Orlando, Florida, April 5, 2011."

Your product is not generally recognized as safe and effective for the above referenced uses and, therefore, the product is a "new drug" under section 201(p) of the Act [21 U.S.C. § 321(p)]. New drugs may not be legally marketed in the U.S. without prior approval from FDA as described in section 505(a) of the Act [21 U.S. C. § 355(a)]. FDA approves a new drug on the basis of scientific data submitted by a drug sponsor to demonstrate that the drug is safe and effective.

Furthermore, your product is offered for conditions that are not amenable to self-diagnosis and treatment by individuals who are not medical practitioners; therefore, adequate directions for use cannot be written so that a layperson can use these drugs safely for their intended purposes. Thus, your product is misbranded within the meaning of section 502(f)(1) of the Act [21 U.S.C. § 352(f)(1)], in that the labeling fails to bear adequate directions for use.

Further, your website also makes the following statement: "Nature's Pearl™ has been certified by the FDA to be in Full Compliance under FDA 21 CFR 111." This statement is false and misleading under section 403(a)(1) of the Act [21 U.S.C. § 343(a)(1)) because FDA does not certify compliance with the dietary supplement current good manufacturing practices under 21 CFR Part 111.

The above violations are not meant to be an all-inclusive list of deficiencies in your products and their labeling. It is your responsibility to ensure that all of your products and labeling are in compliance with the laws and regulations enforced by FDA. You should take prompt action to correct the violations. Failure to promptly correct these violations may result in regulatory action without further notice, such as seizure and/or injunction.

Please notify this office in writing within fifteen (15) working days from your receipt of this letter as to the specific steps you have taken to correct the violations noted above and to assure that similar violations do not occur. Your response should include any documentation necessary to show that correction has been achieved. If you cannot complete all corrections before you respond, please explain the reason for the delay and state the date by which the corrections will be completed.

Please send your reply to the attention of Marie Mathews, Compliance Officer, Food and Drug Administration, at the address in the letterhead above. If you have any questions regarding any issue in this letter, please contact Ms. Mathews at 404-253-1279.

Sincerely,

/S/

John R. Gridley, Director
Atlanta District

Arbonne has launched 5 new products and the feedback I seem to be getting is mixed.  What do you think about the new product lines?

Press Release:

Arbonne International, LLC (Arbonne) today introduced five new products to its growing line of personal care and wellness products. Inspired by nature, botanically-based and vegan-certified, the new Arbonne® products preserve and enhance the skin, body and mind for a comprehensive approach to beauty. Arbonne’s latest products include a new anti-aging ultra-hydrating day crème, fruit and chocolate nutrition bars, an Omega-3 vegan supplement, energy promoting fizz sticks and a limited-edition rainforest inspired eye shadow palette set. The products, which were announced today at Arbonne’s premier Global Training Conference, are available at arbonne.com or through an extensive network of Arbonne Independent Consultants.

“Arbonne is committed to continuing our long-standing tradition of bringing to market incredible, effective and earth friendly solutions. We never compromise our principle of developing pure, safe and beneficial products and our product line incorporates more earth friendly packaging, resulting in a 50% material source reduction,” said Arbonne CEO Kay Napier. “Each of these new products adheres to our incredibly high safety standards, is inspired by nature while also integrating the latest in scientific innovation, and demonstrates exceptional performance. I am proud to welcome these five products that support daily needs … anti-aging skin care with SPF, an Omega-3 supplement, nutrition bars, energy fizz sticks and color cosmetics.”

Each new Arbonne® product is vegan-certified and formulated without animal products, animal by-products, gluten, parabens, formaldehyde-donating preservatives, PABA and the following petroleum-based ingredients: Benzene, Mineral Oil, Petrolatum, Phthalates and Toluene. Arbonne is cruelty free and does not test any product on animals.

Key Product Highlights:

The Arbonne® RE9 Advanced® Extra Moisture Restorative Day Crème Broad Spectrum SPF 20 Sunscreen is compliant with Broad Spectrum Testing, and contains both UVA and UVB sun protection.

The Arbonne Essentials® Nutrition Bars are made with pea and rice protein, which is more digestible than soy or whey.

The Arbonne Essentials® Omega-3 Plus supplement is completely vegan, using vegetarian DHA derived from algae.

The Arbonne Essentials® Energy Fizz Sticks not only provide a boost, but are also filled with antioxidants.

Developed in collaboration with a certified makeup artist, the Arbonne® Cosmetics Treasure of the Rainforest Cosmetic Set includes a tutorial featuring six different looks. 

No official word on the Miverva Wordwide main site but according to a company Facebook update, it looks like Minverva Worldwide is set to open their doors on Tuesday, April 17th at 9pm Pacific.

From the website:

Minerva Worldwide, Inc. is a corporation developing MinervaPlace.com, designed to become the "go to" site for those seeking rich content on weight loss and related health and beauty guidance.

While the heart of Minerva Place is to help members lose weight as well as look and feel better, the soul of the community is a commitment to overall wellness. Our visitors and members, both men and women across a broad demographic, will interact online and offline on topics about which they are passionate. 

It will be interesting to see how another weight loss/health and beauty company survives in today's marketplace.  The name attached to Minerva that I recognize the most is Jimmy Kossert, VP of Sales.  Jimmy reportedly built a team of 200,000 reps in Enrich.

Saw this in the Kansas City Star:

"Sunday, April 22 marks the 42nd anniversary of Earth Day, an occasion to think about ways to help our planet. One way to green your routine is by choosing green cleaning products. Here are 10 that are safe, effective, and eco-friendly for your home. Meaning, they're better for your health and that of the earth's, too!...

Shaklee is no trendy new start-up. Its been making natural products for half a century. Try the Dish Wash Automatic Concentrate ($11.20) for a chlorine- and fragrance-free way to get your dishes gleaming with no pre-rinsing required. Cool factoid: Shaklee brags that it's "the first company in the world to obtain Climate Neutral certification and totally offset our CO2 emissions, resulting in a net zero impact on the environment.""

Read more here. 

I subscribe to over one hundred news feeds on the subject of Network Marketing (yeah, so you don't have to) and a lot of the time I run across what I consider to be cookie cutter/fake reviews.

But once in a while I run across someone who has posted a real review.  When I find one, (good or bad) I try to make sure we cover it here at MLM Blog.

That said, here is one customers review about the travel rewards associated with Ambit Energy.  

Post your thoughts in the comments!

I am a customer of Ambits since 2007. The rate for electricity is average but their "Travel Rewards" are a joke. In 2007 they had gas cards and grocery vouchers that looked nice. Those were taken away and they only kept the air fare and vacation packages". I called my travel agent and got a 1 week trip, including airfare, to Cozumel for $710 a person at an all inclusive 5 star resort!. Ambits free airfare is only applicable if you stay at one of their selected hotels wich range upwards of $160 a night for a minimum of 7 days'. Their Cancun package, etc?. does not include airfare and is only at Grand Incentives hotels!. These are not all inclusive and by the time fees, deposits, etc are appplied you've spent the same amount or more than I have just using a travel agent|. Not to mention the dates are somewhere between September through February, you have to request 90 days ahead of time, etc'. What a joke! Just bring back the REAL incentives like gas cards and grcery vouchers with no strings attached.. I have 68,000 points with Ambit and they are good for nothing!

And some people thought the King was dead...

I only wish this guy would do a Sisel Compensation Plan Video as Elvis.  That would be cool.  I wonder if the corporate marketing people at Sisel threw up a little in their mouths when they saw this...

Enjoy!

So, do you think this will help Gerry sponsor more people and get more customers?

Google is a tricky little bugger.  When you publish something on your blog and then later think twice and delete it, sometimes Google decides to keep it around for a while in something called "cache".

The post is pretty interesting because it aludes to the lawsuits, but suggests that the lawsuits might have been worth it in order to snatch the Zrii people that came over.

Here you go, courtesy, Google Cache:

"The Zrii and LifeVantage Relationship

Despite some confusion on this topic, most distributors understand the history and relationship from listening first hand to the stories from those involved. Just prior to the LifeVantage launch from retail to network marketing, a company named Zrii saw a handful of top level distributors exit the company due to a disagreement between their ethical standard and the practice of its president. The nature of this is not disclosed publicly. It wasn’t however just these distributors but , but nearly the entire corporate staff who left all at once from the same reason, leaving Zrii to pick up the pieces, it is still in business. They simply couldn’t work and stay at a company they didn’t believe in, despite their jobs or income. To me that is integrity.

When LifeVantage CEO and President (David Brown) was looking for both an office staff to help manage the new network marketing company and a set of proficient and experience field leaders, he found both in the group of then ex-Zrii people. For me it said that they left on a principle of ethics, and created a tight family and culture of the same.

The president of Zrii was pretty angry (which is understandable). He sent lawsuits out, and LifeVantage (a company 5 million per year in the hole at the time) settled the suits for the distributors and office staff. The settlement prohibited the distributors from talking to those who didn’t leave Zrii, among other things.

LifeVantage received a core group of leaders with experience and integrity to match. It was a real blessing for the young LifeVantage company to receive this family.

Growth appears to have slowed at Avon and I'm not sure how a Johnson & Johnson executive with no Direct Sales experience will be able to right the ship.

Avon is hoping a new CEO can give it a much-needed makeover.

The struggling cosmetics seller on Monday tapped long-time Johnson & Johnson executive Sherilyn S. McCoy as its new chief executive. The announcement ended a four-month search to replace embattled CEO Andrea Jung, who had come under fire for failing to stem the company's declines and wrap up a bribery investigation.

Avon Products Inc. said Jung - the first female CEO of the 126-year-old company - will remain executive chairman after McCoy takes over later this month. Shares of the New York-based company fell more than 3 percent Monday.

McCoy's emergence at Avon comes less than two months after she was passed over for the top spot at Johnson & Johnson, which in February announced that Alex Gorsky would take over as CEO. Bill Weldon, who has served as J&J's chief executive for the past decade, plans to step down at the company's annual shareholder meeting April 26.

The announcement from Avon comes just a week after the company rejected a $10 billion takeover offer from the smaller beauty products maker Coty Inc.

Founded in 1886, Avon became a fixture in households across the country as its legions of "Avon ladies" went door to door selling makeup to family, friends and acquaintances. Its brands include Avon Color, Skin-So-Soft and mark.

The company markets its products in more than 100 countries through about 6.4 million independent sales representatives. Its annual revenue is more than $11 billion.

But North American sales have dropped off over the years and about 80 percent of Avon's $11 billion in annual revenue now comes from overseas. The company has frequently missed analysts' earnings expectations and posted weak sales in some of its largest markets.

 Friend of the blog, Troy Dooly interviewed the COO of Zeek Rewards in this video: