MLM Blog – Network Marketing Blog

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?

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My concern at the time was the fact that Trump's name was being added to an outdated compensation plan with ineffective products and poor management all the while Trump was speaking taking money to endorse another MLM (ACN).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