Publicly traded MLM company LifeVantage has posted a record quarter in sales:

Douglas C. Robinson, President and Chief Executive Officer of LifeVantage, stated, “Our record second fiscal quarter revenue and operating income, combined with the doubling of our operating margins, underscore our ability to achieve leverage in our business while making strategic investments. We plan to continue to strengthen our infrastructure by adding headcount for all areas of our business and increasing our marketing investments as we build the necessary platform to continue our profitable organic growth.”

“As awareness and understanding about Protandim and LifeVantage TrueScience(R) Anti-Aging Cream continues to expand in consumer markets as well as among medical professionals, we believe that our business is positioned for continued long-term growth. We are seeing a growing number of distributors join our team, as evidenced by record attendance at our recent quarterly distributor convention. We look forward to building upon this positive momentum and delivering another record year for LifeVantage in fiscal 2012.”

I am always a little on edge about public companies because of the need to “serve two masters”.  Public companies must show profit and growth for the shareholders and sometimes that can come at the expense of hard working associates.

I didn’t immediately see what percentage of sales is actually paid back to the distributor force, but if you can find that number, it will be a good indicator of whether or not LifeVantage is a viable long term business.

I would look for 40 to 50% payout.  That number would typically be able to keep a company solvent and profitable while still offering a lucrative opportunity to the field.

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Ty Tribble
Founder, MLMBlog

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