MLM Network Marketing News

MLM News Summary

2010-10-12T09:51:00.000-05:00

YOLI Featured as the MLM Company of the Month
PR Web (press release)
... people who want to work at home with home-based business opportunities,
selected Utah-based Yoli for this month's MLM of the Month feature story.
...

See all stories on this topic:

MLM Software | comners
By admin
MLM software - software for multi-level marketing mlm describes the tools
for the management and organization accounts. Typically, to web-based and
easy to.

comners

Tahitian Noni International MLM Business Examination | Home Based ...
By WoleLawrence
This is a Tahitian Noni International MLM Business Examination and how to
become a top income earner with the MLM Enterprise.

InetList.com - Article Directory

MLM Success: Start With The Basics
By Lawrence Talent
In MLM, you get to earn from the commission of selling a product or a
service of a parent company. The parent company would be rewarding you with
pay checks based on the volume and amount of products or services you were
able to sell. ...

Media CN

A Decisive Evaluation Of MLM Leads System Pro | Niche Volumes
By WoleLawrence
This is an A Decisive Discussion Of My Leads System Pro and how to become a
multi 6 Count income earner.

Niche Volumes

Training For MLM - How To Build Your Business With Solo Ads
You probably see a lot of tips and training for MLM businesses online (and
elsewhere), and have probably noticed that the advice that is given is
often very similar. Not that a lot of the advice is BAD, but sometimes the
best training ...

RSS for EzineMark Articles

MLM Training- The Key to Your Network Marketing Success
Jeremiah CarstarphenThe Cartoon Coach Get FREE MLM Training and Learn how
to generate more leads and earn an additional stream of income in your
network ...

MLM Prospecting By Networking With Your Twitter Followers
With effective MLM Prospecting people are looking for people that can show
them how to be successful. This is when MLM Prospecting on Twitter can lead
to ...

mlm prospecting - Jumptags from dil6332
List of dil6332's resources on Jumptags.com related to mlm%20prospecting ,
mlm prospecting,mlm prospecting methods,mlm prospecting secrets,mlm
recruiting ...

Mlm Business Opportunities Generate Wealth
Being self employed is a dream many people have. By selling MLM products it
is possible to gain an income that supports the lifestyle many wish for.

Magnetic Sponsoring™

Build your dowline with psychoacoustic subliminal audio CD's

2010-09-21T13:18:00.001-05:00

Another unique item on ebay! Not sure if anyone is using this technique!

SUBLIMINAL MULTI LEVEL MARKETING MLM CD-NETWORK SUCCESS - eBay (item 200519783297 end time Sep-21-10 16:28:16 PDT): "psychoacoustic

Also found a nice set of 200 Phone Surveyed leads:

00 Phone Surveyed MLM \ Business Leads 9/6/10 - eBay (item 260667532393 end time Sep-26-10 08:37:40 PDT):

Magnetic Sponsoring™

Paul Orberson Collectible?

2010-09-20T19:20:00.001-05:00

I saw a few items on ebay related to Network Marketing and thought this one was quite interesting. How collectible it is I'm not sure.

EXCEL COMMUNICATIONS MLM Ticket Stub 6/24/1998 Pyramid - eBay (item 110585978581 end time Sep-20-10 18:38:26 PDT): "- Sent using Google Toolbar"

is fantaz a scam ??

2010-09-06T01:34:00.002-05:00

Fantaz ( Fantaz.com)

A new Network Marketing company in pre launch that will apparently be distributing online games, tournament games and fantasy sports via their propriety network.

On the surface it seems like a legitimate business model. Fantaz states there are
217 million gamers world wide, and that $4 billion is spent annually on fantasy sports.
Fantaz claims their model will push dollars that normally go to the big gaming companies into your pocket.

I have been able to determine the following:

The Sept 1 launch has been delayed due to technical issues with the integration of
some of software components.
A new launch date has not been given.
They will soon start inviting ZBO's to a private beta to get a more real time / real world testing of the system. They will remedy any problems and invite a much larger group of ZBO's in and repeat the process until they feel they are ready to go for a real public beta and then for a full blown launch.
In less than three weeks there have been almost 7,300 pre-registrations.

All in all it looks like Fantaz a great opportunity for anyone looking to strike it rich in online gaming. The company has signed on a big list of celebrities and according to the last company email has spent 4 yrs and millions of dollars to bring it to where it is today. Unlike a lot of pre-launch MLMs whose domain names are registered for 1 yrm fantaz.com does not expire until 2014. It would be nice if the company would add a privacy statement and earnings disclaimer to Fantaz.com. Also I can find nothing on the people backing and financing Fantaz, can't some of the founders put a bio up on the site?

eFusjon Closes M.L.M. Operation

2010-09-01T17:50:00.000-05:00

eFusjon Closes M.L.M. Operation

eFusjon, which launched in September of 2008, has notified their distributors that as of September 1st, 2010 they are discontinuing their M.L.M. operation and all independent distributor agreements will be terminated.

See the email notice here:

http://tinyurl.com/eFusjonNotice

Commentary:

There are two comments within the eFusjon notice that are particularly interesting.

First, note the reference to Section 7 of their Distributor Agreement: "The Agreement shall continue in effect between the parties hereto until either party terminates the Agreement..." (emphasis added). This means that all along eFusjon has had the ability to terminate a distributor, group of distributors, or all distributors, at any time, for any reason. Most new distributors assume this means they can terminate their distributorship any time they want, for any reason (this assumes, of course, they have even read their Distributor Agreement). This clause, which is actually quite common within Distributor Agreements, is rarely used to dump a distributor without cause, but rather is added specifically to cover this very situation - the company abandoning the M.L.M. compensation model, or going out of business all together.

But here's the comment that was surely the most offensive to eFusjon reps:

"The goal was to market these products through independent distributors via the M.L.M. direct sales business model. Distributor performance, however, has been steadily declining for over a year now, and as a result, so has the Company's revenues. The Company can no longer maintain a marketing model that is not generating the funds needed to grow a viable business. In short, the Company's M.L.M. business model is no longer a sustainable marketing strategy."

So, eFusjon's decline has nothing to do with their experimental compensation plan that required several revisions, including at one point a significant payout reduction? Or the fact they based their plan on a forced matrix, which historically has had an almost 100% failure rate? Or the fact they entered the already saturated "exotic fruit beverage" and energy drink segments of the M.L.M. market on the downside of the curve? Or the fact that eFusjon management openly promoted the program as one that required "no training" and little effort? I was present on a conference call when eFusjon's CEO exclaimed "Don't sell it, don't pitch it... We get calls everyday from people who think they were overpaid because they didn't do anything. But that's how this company works." They promote a plan that requires little effort, then blame the distributors when they apply little effort?

It was also disturbing to peruse the net today and see all the still active eFusjon distributor websites with claims such as:

"Destined for Greatness!... Efusjon is completely self-sufficient and 100% debt-free. In its first year, Efusjon was one of the fastest growing network marketing companies, exceeding $30 million in sales, and we're still beating sales projections!"

They were clearly blindsided by this decision.

It's also odd that eFusjon management didn't attempt to merge the remaining distributor base into another company, which is a distributor income saving, if not face saving, measure that failing M.L.M. companies often take. This is only speculation, but the way this was handled would suggest they pulled the plug too late and there was no significant distributor base left to merge.

Len Clements
Founder & CEO

Magnetic Sponsoring™

Fantaz Launch coming up

2010-09-01T00:23:00.002-05:00

Online games have gone MLM. Fantaz is set to launch sometime later this year. They have signed up numerous celebs including:

Football:

* Terrell Owens (Bengals)
* Larry Fitzgerald (Cardinals)
* Matthew Hatchette (Vikings/Jets/Jaguars)
* Darren Sharper (Saints)
* Chad "Ocho Cinco" Johnson (Bengals)
* Takeo Spikes (49ers)
* Robert Griffith (Vikings/Browns/Cardinals)
* Hines Ward (Steelers)
* Troy Polamalu (Steelers)
* Deshea Townsend (Colts)
* Carlos Emmons (Eagles)
* Ryan Clark (Steelers)
* Reggie Wayne (Colts)
* Willis McGahee (Ravens)
* Willie McGinest (Patriots/Browns)
* Patrick Willis (49ers)
* Harold Morrow (Vikings/Ravens/Cardinals)
* Will Blackwell (Steelers)
* J.R. Redmond (Patriots)
* Kyle Turley (Saints)
* David Dunn (Bengals/Steelers/Brown/Raiders)
* Kevin Henry (Steelers)
* Marcus Stroud (Bills)

Baseball

* Tim Lincecum (San Francisco Giants)
* Mike Leake (Cincinnati Reds)
* Hunter Pence (Houston Astros)

Basketball

* Bryon Russell (Jazz)
* Mitch Richmond (Warriors/Kings/Wizards/Lakers)
* Cuttino Mobley (Clippers/Nicks)
* Cedric Ceballos (Lakers/Pistons/Heat/Buzz)

Music

* Soulja Boy
* Uncle Luke
* Fab 5 Freddy
* Raekwon
* DJ E-Feezy
* Hitt Squad
* Miss Paris (singer/rapper/poet/painter)

Movies/TV/Comedy

* Claudia Jordan (model/actress)
* Tamala Jones (actress)
* Chico Benymon (actor/musician)
* Kevin Hart (actor/comedian)
* Alton Glass (writer/director/filmmaker)
* Speedy Caldwell (actor/comedian)
* Tammy Torres (model/actress)
* Tiffany Upshaw (model/actress)
* Velicia Misher (model)
* Jackie Long (actor)

Brands/Companies

* Title Sports Drink
* Moves Magazine
* Dawn Dickson
* Dawn Marbury (celebrity blogger)

With all those names this must be worth taking a look at.

Fantaz Signup

Michael Cooper Flies the Coop - Now Cooped Up

2010-07-08T07:06:00.002-05:00

Magnetic Sponsoring™

LEGAL VICTORY FOR DISTRIBUTORS
Not All Cause for Celebration
Also, Tax People Founder Finally Imprisoned

Michael Cooper Flies the Coop - Now Cooped Up

For those of you who remember Renaissance, a.k.a. The Tax People, you might also recall that its founder, Michael Cooper, was found guilty by a federal jury of about half of the 148 counts against him, including mail fraud, wire fraud, money laundering and conspiracy - back in February of 2008, almost four years after his indictment. Much of that delay had to do with Cooper's extended stay (on the lam) in Mexico.

The relevant MarketWave Alert is HERE.

Now, over two years later, Cooper has finally been sentenced. He received 20 years in prison, restitution of $10 million to the IRS, and a forfeiture judgment of $75 million.

A local news report can be found HERE.

A comprehensive recap of past local news reports can be found HERE.

Although TTP was initially hit by the Kansas AG in 2001 for, among other things, being an illegal pyramid scheme, which is what got them shut down, it is interesting to note that what ultimately got Cooper and his cohorts sent to sit in the corner for big people was the fraudulent tax advise they were teaching. For example, start a business teaching people how to take business deductions by starting a business teaching people how to take business deductions. So no, it wasn't Cooper's illegal pyramid scheme that eventually did him in. It was tax evasion. As Tom Cruise's character said in "The Firm", it isn't sexy, but it has teeth.

Victory in Legal Battle for Reps - In a War We Don't Want to Win!

A recent decision (HERE) by the 9th Circuit Court in the case of POKORNY V. QUIXTAR (3:07-CV-00201-SC) ruled Amway's (called Quixtar when the case was filed) policy that forced distributors to resolve disputes by private arbitration to be "unconscionable" and unenforceable. So now this class action can go forward through the legal system and eventually, if not settled, before a jury.

There is one rather remarkable comment made within the Circuit Court's decision. The court, referencing a previous case, stated an agreement, or any portion thereof, is procedurally unconscionable if "the weaker party is presented the clause and told to 'take it or leave it' without the opportunity for meaningful negotiations... Thus, we have said that a contract is procedurally unconscionable under California law if it is 'a standardized contract, drafted by the party of superior bargaining strength, that relegates to the subscribing party the opportunity to adhere to the contract or reject it." In other words, practically every M.L.M. distributor agreement is "procedurally unconscionable" and unenforceable under California law!

This decision is certainly a legal victory for distributors, and creates legal precedent that will very likely cause a more rep favorable rewriting of P&Ps throughout the industry at least related to our dispute settlement options. What's more, it demonstrates that even if we, as distributors, sign our Distributor Agreements and thus declare our agreement to all parts of it, that doesn't mean all parts can be legally enforced. Companies are now on notice that you can't make your P&Ps ridiculously one-sided and grossly unfair just because you know most reps won't even read them, and will hardly ever object to them even if they do.

Having said that, we all really should read the Policies & Procedures before we join an opportunity, and if they are ridiculously one-sided and grossly unfair, don't agree to it! Many companies are counting on us all just rubber stamping this step. If enough don't join because of "unconscionable" P&Ps, and make it known that's why they are not joining, these companies will soften their policies all on their own.

So yes, let's celebrate the rep's victory in this particular battle, but before we get too excited, let's consider why this war is even being fought.

In Pokorny v. Quixtar (Amway), the plaintiff is alleging that Amway is committing fraud and guilty of RICO violations because they are operating an illegal pyramid scheme. The basis for this pyramid claim is that in Amway the large majority of distributors lose money, and that most of the commissionable products are being purchased by distributors, not sold to non-participant retail customers. Of course, they are citing the infamous "Webster v. Omnitrition" decision (1994) where the - guess who? - 9th Circuit Court of Appeals opined that M.L.M. companies should only pay commissions on products retailed to non-participants in the business opportunity. This decision overturned a lower court's summary judgment in favor of Omnitrition and remanded the case back to the court for trial (it was eventually settled privately). Fortunately, at least up until now, this was just an opinion and did not create any significant legal precedent. This case, however, absolutely could! In fact, the "expert" hired by Amway's opposition is Robert Fitzpatrick, an über-anti-MLM-zealot who founded the Pyramid Scheme Alert organization. This is the same Robert FitzPatrick that Barry Minkow hires every time he shorts the stock of a public M.L.M. company then needs to publish a negative report to cause their share price to drop.

If someone incidentally creates a cure for cancer while trying to formulate a poison to destroy all life on Earth, should we be celebrating the cure, or raging against the poison? Or both? All I'm saying is, let's be careful about who and what we're rooting for here.

Len Clements

Founder & CEO

MarketWave, Inc.

THE M.L.M. SKY IS FALLING!

2010-07-08T07:05:00.002-05:00

THE M.L.M. SKY IS FALLING!
Chicken Littles are Crying Wolf - Again

First it was CODEX alimentarius which, if proposed standards were adopted, was going to destroy the dietary supplement industry in the United States by classifying all our nutritional products as drugs. It passed, and it didn't.

Then there was the FTC's New Business Opportunity Rule which proposed that all business opportunities, no matter what the initial costs were, would be subject to the same level of disclosure as are franchises (currently any required purchases of less than $500 exempts the program from such disclosure). One prominent constitutional attorney spoke frequently on radio shows, conference calls and before live audiences where he matter-of-factly exclaimed that the FTC was enacting this new biz opp rules solely and specifically to "destroy the network marketing industry" and it was being "fast tracked" to expedite our industry's demise - by the Summer of 2007. Instead, the proposed new rule, which was introduced in April of 2006, languished for another year before the FTC eventually exempted all network marketing companies.

More recently it was Senator John McCain's (R-Arizona) "Dietary Supplement Safety Act". Supposedly, this act would have given the FDA authority to unilaterally ban any dietary supplement, or all dietary supplements. A month later, after objections from the supplement industry and discussions with others, such as Senator Orrin Hatch (R-Utah), Senator McCain withdrew his support of the act.

Now we have Congressman Henry Waxman (D-CA) allegedly embedding language in "The Wall Street Reform and Consumer Protection Act of 2009" (H.R. 4173) that will give unchecked power to the FTC (not FDA) to ban any, or taken to its illogical extreme, all dietary supplements. According to the same two or three articles that have went viral throughout cyberspace (creating the illusion there are thousands of opposing commentaries) Waxman added this last minute language, after the bill had already passed the House and was about to go before the Senate, to "terrorize nutritional supplement companies by greatly expanding the power of the FTC to make its own laws that target dietary supplement companies". Here's the problem with this one: It doesn't.

I've searched the original version of this bill (all 1,279 pages) as well as the bill currently before the Senate (all 1,705 pages). You can find both HERE. There is not one word related to dietary supplements, nutritional products, DSHEA, or the word "Health" in any context (other than where Federal Employee Health Benefits is mentioned). Here's what's going on...

Waxman did add language to the already House approved bill, but the language is designed to give the FTC more power by essentially allowing it to write its own laws without Congressional approval. Presumably this is to allow the FTC to act more swiftly when they find evidence of corporate malfeasance (related to "Wall Street"). It appears that only two or three bloggers and op-ed authors within the dietary supplement arena have extrapolated from this that the FTC could use this new found power to regulate without oversight the dietary supplement industry as well. They even go so far as to claim that Waxman's motive for this added language is specifically to that end. Most commentary is titled "Health freedom alert: Congressman Waxman sneaks anti-vitamin amendment into Wall Street reform bill", or words to that effect.

I forgot to mention, the word "vitamin" also doesn't appear anywhere in the revised bill.

So yes, technically, the power to enact law without Congressional approval would give the FTC the power to ban any or all dietary supplements, because it allegedly gives the FTC the power to ban or or all of practically anything! But, in fact, there is not one word anywhere in the bill that even remotely has to do with specifically dietary supplements, or the health and nutrition industry in general. It appears that paranoid conspiracy theorists are assuming this is the real reason Waxman added this language. Their evidence? In the past Waxman has called for additional oversight of dietary supplements by the FDA (see HERE). Along with dozens of other politicians over the past several years.

There's one other thing to consider here... The FTC already has the power to essentially create law without Congressional approval! That's precisely what the New Business Opportunity Rule will do (as far as to whomever it eventually applies to). Right now the FTC requires dietary supplement marketers to "scientifically substantiate" their claims. They can change their standards to meet this requirement at any time, and without congressional approval (although still a lengthy process).

Having said all of that, the practice of sneaking in last minute language to enact a law that has nothing what-so-ever to do with the bill being considered is an abhorrent and not uncommon practice. The ability for the FTC to enact regulations that are, for all intents and purposes, the creation of law, without Congressional approval, is also worthy of our concern and distain. But we all should already be objecting to this, because its already happening, and has been for decades! So when you see all of those email pleas and blooger links sending you to petitions, or informing you how to protest to your representative, absolutely do it. But protest the right thing, for the right reason. The FTC already has enough unilateral power, and no significant revisions, under any circumstance, should be made to a bill that's already passed the House and is now before the Senate. That's what we should be protesting.

Network marketing, and our health and nutrition products, are going to be around for a long, long time. The sky is going to stay right where it is.

Len Clements

Founder & CEO

MarketWave, Inc.

Magnetic Sponsoring™

Master Business Coach, Thomas Sarno

2010-07-07T23:41:00.000-05:00

Talk Less-Say More
A Unique Approach to Prospect Generation

I know I've been sending more training announcements lately than Alerts about industry news, and that's going to change soon (as soon as I unveil my new website, which you're going to love). But like all those links in the Resources section of my website, I only recommend to you things that I sincerely believe are of value to you and your business. No one pays me anything for these endorsements. And based on the feedback I received from my recent "Lead Generation" call I did for the ANMP, there's no question that this is the topic you need, and want, the most help with. So, please consider this:

Most people simply talk themselves right out of the business...

They talk too much when approaching prospects, making appointments, showing products
and presenting the business opportunity.

Then, they fail to attract and keep good business partners because they talk too much, say the
wrong things and train folks the wrong way.

Stop doing that.

Attend the upcoming teleconference call with Master Business Coach, Thomas Sarno, who
will (in less than an hour) teach you a refreshing new way to get prospects to look at and be
attracted to your business.

http://www.globalteleclass.com/special855

You'll learn a simple and delightful five-step way to approach people, make appointments,
give presentations and train your business partners with this subtle yet powerful new language
strategy.

This teleconference class called, "Talk Less-Say More" is will take place on:

Tuesday, July 13th at 3:00 pm ET (noon PT).

To register, click on the link below or copy and paste in into your web browser.

http://www.globalteleclass.com/special855

(Bridgeline information will be sent to you via email after registering)

If you have team members who need help with their business, feel free to forward this email
to them as well!

Thanks for all your support.

Len Clements
Founder & CEO
MarketWave, Inc.

Magnetic Sponsoring™

THE M.L.M. SKY IS FALLING! Chicken Littles are Crying Wolf - Again

2010-05-02T06:27:00.000-05:00

I forgot to mention, the word "vitamin" also doesn't appear anywhere in the revised bill.

Network marketing, and our health and nutrition products, are going to be around for a long, long time. The sky is going to stay right where it is.

Len Clements

Founder & CEO

MarketWave, Inc.

Magnetic Sponsoring™

MLM Forums attacked by Chinese spam bots!

2010-03-30T23:21:00.002-05:00

HOME BASED BUSINESS FORUMS Moderator FreeFireMike is reporting repeated and vicious phishing attacks. He's had it with these foreign spammers, and he's kicking some tires and lighting some fires over it!

It amazes me that folks ignore rules .... post the crap they do .... see the warnings ... get deleted and banned ... and still come back to do it again.

And it's not only the spammers who are feeling the heat:

It would help if the Moderators of individual boards would police their areas more diligently. But that isn't happening. I'm doing it all.

And all you spammers , phishers , and spam bot operators take note of a few other things..... Mike is reminding members of:

I will make you disappear.

I can see all your details

I'm really pissed

Read the damn rules Got it?????!!!!!

I myself have never served as a forum administrator. I'm sure there have to be some benefits that exceed the headaches presented by the spammers. Heck - anyone with an e-mail account or blog has to deal with spam on a regular basis...just hit the delete key and move on.

Also, if you're looking for a good forum to join or you're a Chinese spammer, here is the link:

MLM Forum or 传销论坛

9 Outstanding Network Marketing Books

2010-03-28T08:30:00.004-05:00

New books on Network Marketing are published almost every month. Here's a list of some of the most read:

1. Your First Year In Network Marketing - Mark & Rene Yarnell (270 pages) One of the STAPLES of the industry.

2. Network Marketing For Dummies - Zig Ziglar (376 pages) Another STAPLE of the industry.

3. Guerilla Multilevel Marketing - Jay Conrad Levinson (269 pages)

4. Wave 3 - The New Era In Network Marketing - Richard Poe (253 pages) -

5. How To Make Big Money In Multi-Level Marketing - David Roller (183 pages)

6. Successful Network Marketing For The 21st Century - Rod Nichols (182 pages)

7. Inside Network Marketing - - Leonard W. Clements (177 pages)

8. The Greatest Networker In The World - John Milton Fogg - (150 pages) - Should be required reading.

9. The Ultimate Guide To Network Marketing - Dr. Joe Rubino (311 pages) - Fanstastic Book.

Numis Network

2010-03-19T21:54:00.001-05:00

If I ever kept a record book on such matters, the number of requests for my "opinion" on Numis Network might be a contender for the #1 spot, at least this year for sure. So, even though I've had to take my "watchdog" hat off the last few months (in lieu of my "distributor hat"), and after spending the last few weeks actually trying to get my facts straight before commenting publicly (I hate the taste of foot), for what it's worth, here's my take on Numis...

I participated in a public, but not well publicized, debate call with the Numis leadership a couple of weeks ago. You can hear the call HERE. Also on the call were Shannon Denniston, Troy Dooley and attorneys Spencer Reese and Kevin Thompson. I think Numis cofounder Jake Kevorkian and his team won some major credibility points by just agreeing to this call. They represented themselves and their company admirably. They also made a great case for why the coins themselves are a legitimate, viable product. As an avid baseball card collector I can vouch for the fact that, although they are arguably an "investment" (I could have made a nice living buying and selling cards in the early 90s, before the bubblegum bubble burst around '95), I collect them simply because a Nolan Ryan rookie card, or a 1957 Hank Aaron error card, are just cool to own. I can easily see how folks might feel the same way about silver coins.

So no, Numis is not the same thing as all the gold & silver deals that have been shut down in the past (American Gold Eagle, Gold Unlimited, etc.). They are not simply selling an alternative form of American currency (like selling a Susan B. Anthony dollar for $1.00), nor are they selling vouchers in lieu of coins.

Having said that, I still don't understand why anyone would buy them from Numis when just a few minutes of shopping online can almost always find you a lower price. I surveyed several of the coins offered by Numis and found there to be a very narrow channel of pricing with Numis being on the high side of, but almost always within, that channel. And yes Numis-folk, I did consider the grading service. For example, the average price of a 2010 MS70, which Numis sells for $99.00 was $92.44 (9 dealers and 20 closed eBay listings). The average price of the 5 ANACS rated coins (2 dealers, 3 eBay), the service that Numis uses, was $80.98. Numis's own Mike Mezack was on HSN selling the identical coin for $99.95. I'm not saying Numis isn't competitive. They are. They're just selling something that has very little margin that can be purchased at the same or lower price from numerous other sources.

So, since there is no significant margin on these coins the M.L.M. pay plan has to be based on something else. The only other thing that is commissionable, and indeed is where the large majority of distributor income is derived, is the "Fast Track Collector's Kit". I'm not at all convinced that this kit is a viable, stand alone product of any real value to a non-participant. I'd still like to know how many of the kits have been sold to someone who is not a Numis distributor. This kit contains:

1) "A beautiful, Graded Coin Attaché Case to safeguard, carry, and display your growing collection with pride."

Such cases can be purchased retail for about $60.00 and are offered separately by Numis for $59.95.

2) "Your first MS70 Silver American Eagle to start your collection."

This is the 2010 MS70, Its market value is between $80-$100.

3) "Access to the 'Coins Are Cool' video training series. This training system will teach you about numismatic coins and the industry."

Although I've heard this is a great training series, there is an overwhelming amount of numismatic training and educational material available online for free.

4) "Membership in the Silver Coin Of The Month Club, which automatically delivers to you a perfectly graded, certified silver coin from one of the world's leading mints each month."

These coins can be purchased individually, so although a nice convenience, it's just a convenience.

The coin collecting part of Numis I actually like. The M.L.M. part, though, is almost entirely based on selling these overpriced $325 Fast Track Kits (which over $200 in bonuses are paid out from). The legality of Numis ultimately rests on the motive for buying these kits. Are thousands of people buying it right now because they actually want it, and would have purchased it anyway even if there were no income opportunity, or are they buying these kits because they are part of the $495 package to be an Executive distributor?

Here's a question that was never asked on the call, which I'd still love to get some feedback on: When the Executive package went up from $299 to $495 last month, and bonuses were also raised, what was added to the Exec. package to account for this supposed 66% increase in value? Was the Fast Track Collector's Kit included in the $299 Exec. package?

There's also been a lot of chatter online about the fact that over 30 million 2009 Silver Eagles were minted, almost 7 million 2010s have already been minted (and will likely end the year at around 20 million), thus something can't be of great collector value if it is not rare. But in Numis's defense, it's the highest possible MS70 rating¹, meaning the coin is virtually flawless, even under a microscope, that causes a coin to go from it's silver content value (in this case around $20) to the $99 value, or what ever it is for that particular coin. There's also such things to consider as whether or not it is a "first strike", meaning one of the first coins for a new mintage to come off the line (supposedly the die that's used by the mint wares down over time), and which grading service came up with the MS70 grade (there are several such services with varying degrees of credibility). After having read up on this pretty extensively I've come to the conclusion Numis is not at all being misleading in anything they're presenting. The numismatic grading industry is! For example, this "first strike" or "early release" BS. Besides the fact the dies are often changed throughout the year, a coin is either MS70 or it isn't. It's either flawless, or it's not (perhaps due to a worn die). Nonetheless, Numis is using ANACS, widely considered to be one of only four "A" rated grading services. I think that's grading them on a curve.

Numis is also extremely vulnerable to SEC ire when it comes to claims of "increasing value" or anything that would suggest their product (gold and silver coins) are a good "investment". This has contributed to the demise of gold & silver coin deals in the past. Numis corporate did a great job of defending the corporate position on this, and they do appear to be proactively trying to educate their reps in this area. But it's not what comes out of corporate that they need to be concerned about. State and federal regulators go by what's actually happening in the field, not what is suppose to happen. And so far, it doesn't look good. The "investment" angle is being employed by numerous Numis reps. Just Google Numis plus "[great, good, best] investment". There are many websites already in gross violation of this policy. Numis is going to have to have one of the largest and most active Distributor Compliance offices in the industry. But let's give them the benefit of the doubt for now and see what they do. A great test will be to check in 90 days from now and see how many of those hundreds of websites are still making the same claims.

Numis's response to this was that they were in no different a position that any dietary supplement company who is prohibited from making disease treatment claims. I disagree. Precious metals, especially bullion coins, are commonly marketed as investments and as a great hedge against inflation. I understand that Numis is selling numismatic (collector) coins, not just bullion coins, but the collectible is still composed of something well known, and well marketed, as a great investment. So the analogy with supplements is flawed in that supplements don't contain, for example, penicillin or Acetaminophen (Tylenol). If they did they would have a substantially greater challenge keeping their reps from making antibiotic and anti-pain claims. The product Numis is selling is composed of gold and silver, which is by its very nature considered an "investment".

As a collector (trading cards now, coins and stamps in the past) I like the overall concept of Numis. However, some products and services, no matter how valuable, just don't lend themselves well to an MLM opportunity. Travel, for example. There's simply no money from the actual travel left to create any real income opportunity in the comp plan (around 3-5% of the actual cost of travel goes into the plan), so such deals compensate by adding a several hundred dollar "training package", or "travel booking website". Both of which are entirely distributor-centric, and thus ultimately gets the company in legal trouble. Same with the old long distance service MLMs. The service itself injected literally pennies into the pay plan (typically you got less than 1% of an average $25 monthly phone bill). So, they added several hundred dollar "training" packages, and paid $100-$250 "coding bonuses" from those packages. Numis now has the same challenge. The coins themselves have very little margin, and add little to the plan. So to compensate they came up with a $325 "Fast Track Collector's Kit" that appears to have a net cost of around $120 (assuming Numis is getting the best coin prices and quantity discounts on the cases). That's how they can afford the total payout of around $200 (on average, it could be more).

All legal issues aside, when the primary source of income in the MLM plan is a one time occurrence (the $325 kit) this also does not lend itself well to long term residual income. That usually involves making a sale once and that sale generating income for months, years, or for life. Like selling a "potion" or a "lotion", using it up, and then reordering it. For these Collector Kit related bonuses to continue there must be an ongoing, never ending flow of new, first time customers (distributors?). It's kind of like selling a water purifier or any other type of non-consumable hard goods - which is why virtually all MLM companies that have sold such products have migrated to the ol' "pills and potions" (NSA, Nikken, etc.). Yes, I know $6.00 from each monthly coin sale is paid from the binary plan. But again, that can only be because Numis is buying them at the low end of that price channel and selling them on the high end (giving them every benefit of the doubt in that none of that ongoing six bucks is also coming from the one time Collector Kit purchase, or worse, the high margin $75 distributor entry fee or the higher margin $119 annual web access fee). But, again, you can also access the low end of that pricing channel (just check eBay) right now, without having to pay anything to Numis.

On a completely different front, there's also the issue of non-exclusivity. Unlike "potions" that have their unique nanopolyxanphytosaccharides (or what ever), or "lotions" that have their proprietary puppy placenta proteins (or what ever), a 2010 MS70 Silver Eagle is a 2010 MS70 Silver Eagle. That is, if Numis does make this work there's inevitably going to be numerous Numis knockoffs. What's going to happen when there are several M.L.M. companies all competing for the same limited supply of Numismatic coins? My guess? The coins will become even more deemphasized within the pay plan in lieu of the high margin "collector kits", membership fees and training. And as more and more companies compete on that level - and more and more of them overprice their kits, fees and training to support an even higher pay out - they'll all start popping up on regulatory radar screens again. But I'm prophesying. It's just a theory.

Will Numis reign in their numerous renegade reps who inevitably will and are making investment claims? Will anyone of any actual legal authority ever question the value of the $325 Collector's Kit to a non-participant in the income opportunity, and the motive for purchasing it among those who are participants? What will be their conclusion?

These are subjective questions. For now, they are a matter of opinion. You've got mine. Now we'll have to wait until someone who's opinion actually counts decides to buzz in.

Time will tell. It always does. It just takes its time.

Len Clements
Founder & CEO
MarketWave, Inc.

Magnetic Sponsoring™

Come Back Jack

2010-03-18T20:39:00.000-05:00

Wow, I could not believe my eyes. Jack Weinzierl, a top earner and great leader is calling it quits! Well here it is in his own words:

Jack Weinzierl is No Longer Building a Network Marketing Business
Posted by Jack Weinzierl in EIRO Research

From the subject of this post, you may have thought I was going to go on a long rant about broken promises and all sorts of issues that critics focus on in the network marketing industry.

Actually, I have a great deal of respect for the leaders, companies and products in this industry. In fact, you would be hard pressed to find a better company than EIRO Research.

Are there companies that do not reflect excellence in the industry?

Of course, as there are in every industry quite frankly, but the industry provides opportunity to millions of families and product innovation around the world. I will be forever thankful for the friends that I have developed through this industry, over the past 10 years as well.

Here is what it comes down to for me. I stink at network marketing!

It is not the company’s fault, not my upline’s fault and not the products’ fault. I am good on the marketing, SEO and lead generation side, but not very good on the networking side of the equation.

It is called “network marketing” for a reason and quite frankly, it is a relief for me to finally come to have this revelation. I am closing the door to this chapter in my life. I am not a victim. In fact, I have learned more about people and business than I ever did getting my MBA through this industry.

After almost 10 years in this industry, I was thrilled to find a company called EIRO Research where all the components are in place. The one ingredient not in place, however, was my passion to truly do whatever it takes to build a successful network.

I have been praying over this and really seeking His plan for my life. I also realized that anything that was not aligned with that plan was a distraction for me. Maybe you can relate?

I will be focused on SEO, lead generation and iphone/mobile apps for traditional business owners, ministries and Christian authors, as well as for leaders in the network marketing industry for 2010. That is what I am passionate about and where I can have the most impact. It is also what keeps me up until 2 am many mornings.

If you have a business or ministry where you need an SEO optimized blog, a comprehensive SEO and social media plan executed for you generating highly targeted leads, send me an email and let me know about your company. I will be more than happy to give you a F’ree consultation, after I review your business.

I am taking 6 new clients for January, so let me know over the next 48 hours so we can review your business and reserve one of the spots for you. After I review your business for no charge, I will demonstrate how I can put you on page 1 of Google in the ORGANIC search results and I will do so at no charge. Once you see this in action, you will want to engage us to dominate many key words for your business and in your market.

I have few regrets from my years in this industry. I am so thankful and grateful for the friends that have come into my life through this great industry and I am thankful for the skills that I have developed through these businesses that my clients can now benefit from. Every experience, good and bad, was a building block for me.

My one piece of advice for every subscriber and blog reader is find your passion and His plan for your life and remove any distractions. Don’t do anything 1/2 way. I am 42 years young and I have to ask every day if I did everything I could to help others, serve and glorify Him.

If you are looking for a stellar network marketing company, EIRO Research has all 5 key essentials in place. Email me and I can direct you to an excellent representative.

In Service,

Jack Weinzierl, MBA

Were gonna miss you Jack!

2010-03-17T19:56:00.000-05:00

Fortune High Tech Marketing has been ordered to cease and desist operating in the State of Montana according to a report from the AP:

HELENA, Mont. (AP) - Montana has ordered a Lexington, Ky.-based company to cease operations in the state, accusing it of running a pyramid scheme.
Monica J. Lindeen, the state Commissioner of Securities and Insurance, says Fortune Hi-Tech Marketing took nearly $1.9 million from at least 1,295 Montana participants between July 2006 and June 2009.
Lindeen says the company lures new members with income opportunities with companies such as Dish Network and General Electric. But, she says, members only benefit if they recruit others to join in the alleged scam.

This action comes on the heals of North Dakota taking similar action back in December where the

Attorney General Wayne Stenehjem has issued a Cease & Desist Order against Fortune Hi-Tech Marketing of Lexington, KY and its principals Paul C. Oberson, Jeff Oberson, and Thomas A. Mills for violations of North Dakota transient merchant, consumer fraud, and home solicitation sales laws. The Order was filed late yesterday, December 10, 2009.

2010-03-14T10:34:00.000-05:00

Brig Hart's 10 Steps to Success

Wow almost 5 yrs since Brig Hart brought his Road to Blue Diamond Tour to Dallas. Brig spoke to over 200 attendes which was a big crowd for Monavie. As everyone knows Brig has had a long and successful career in Network Marketing starting with Amway / Quixtar in the late 1970's and most recently with Monavie. At the meeting in Dallas Brig shared his 10 steps to success that can be used for whatever business you are promoting. It appears that the 10 steps are still working for Brig and Lita as they are now Monavie's highest earning couple.

Show The Plan- You can do all the other steps, but unless you Show The Plan (STP), your business won't grow. Set and Make a goal to be a Go-Getter by showing the plan a minimum of 3-5 times a week.
Personal Use- Your organization duplicates you. You should be your own best customer. Set and achieve a goal of $200-$300 of personal volume- 2 cases.
Retail Customers- Sharing your products and resources with clients and customers is a key element to your personal profit. Set and achieve a goal to develop and regularly service 3 to 6 customers.
Listen to CDs- Distributors who want their businesses to grow will listen to CD's everyday. These are for both husband and wives. Set and achieve a goal to be together and participate in the word of the week program, (WOW). Remember, a positive CD a day keeps the negative away!
Begin Reading- Reading is vital to your personal growth. In renewing your mind, you will find yourself being transformed. Read the books, The Magic of Thinking Big, How To Win Friends and Influence People, The Go-Getter, and Think and Grow Rich. Make it your goal to read one new book every month. You will become what you read!
Meeting and Conferences-Association, knowledge, motivation and inspiration are the keys to your growth. Set and a achieve a goal of attending every business meeting and conference possible, from home and open meetings to local and regional conferences to major weekend business conferences.
Counsel- Be teachable: set and achieve a goal to counsel once a month with your active, growing upline. Counsel with the wise, and become wise. This will help you keep your business on track.
Total accountability and Integrity- Let your work be your bond. Be dependable to both your upline and your downline. Remember, your personal integrity is the key to your team, and your the team is the key to your success.
Relationships- Relationships are the glue of the business. No one will care how much you know until they know how much you care. Become a friend, and you will have friends. Build a friendship, and the people will build the business. Friends do what friends do!
Have faith- Faith is the substance of things hoped for, the evidence of things not yet seen. Faith will move mountains and create large organizations

Free 10 Day Sponsoring Boot Camp
Sponsor More Monavie Reps

Generate More Traffic And Cash Flow
MLM Traffic Formul1a

MLM Traffic Formula Review part 3

2009-09-09T16:33:00.001-05:00

Module 5: Paid Traffic Strategies

Webinar 1: Pay Per Click Marketing Basics

How to use these FREE and inexpensive tools to quickly uncover profitable keywords that your prospects are currently searching for online.
The pay per click marketing blueprint, that if used (Correctly), can create a stampede of instant and extremely high quality traffic to your website nerve center.
How to avoid the Google “stupid tax” and never pay more for a lead than you should!
Should you kill the campaign or do you have a winner on your hands? Here's how to analyze your results.

Webinar 2: Banner Advertising

Get 7x more quality traffic with banners than pay per click and search engine traffic combined? Find out how our guest is doing it!
Find out how this internet multi-millionaire gets huge results with a tactic, once thought outdated and ineffective, and why according to him, it’s easier than ever before to get targeted leads and traffic.
The _____ __ or _____ ___ rule you MUST obey if you want to make banner ads work for you.
How and why visitors that click on banners will behave differently than any of your other traffic and what you must do to convert them into leads.
Why banner advertising is a more reliable traffic source than Google.
Webinar 2: Other Paid Advertising
Advertising co-ops: How to use them to explode your personal business with $10,000 to $50,000 in free paid advertising without spending a dime.
More to be announced!
Bonuses & Resources:

The PPC Campaign Blueprint
How To Uncover Profitable PPC Keywords
Scientific Marketing Report
BONUS REPORT!
Summary:

In Chapter 5, we’re going to focus on producing paid traffic. This is the quickest way to start generating a lot of traffic to your website to begin testing your offer.

This is where the rubber meets the road and you begin to really pay attention to what you learned in Chapters 3 and 4, namely copywriting, tracking and split-testing.

And just to give you an idea of how powerful this chapter will be, consider this…

We’ve produced up to 600 leads per day, from 1 single source of traffic. And that doesn’t include traffic from affiliates, or social networking sites.

Chapter 6: Social Media Traffic

Webinar 1: Leveraging The 7 Largest Social Media Websites

Find out how and when to use “The Big 7” to quickly gain a massive following and create a steady stream of traffic.
Social media marketing best practices. Break these rules at your own risk! Why 99% of the marketers out there have this all wrong.
The exact formula used by some of the top social media mavens to quickly expand their networks and reach thousands of people daily.
The inner working of Twitter and how micro-blogging is fast becoming the most popular social media traffic source.
How to use Facebook to get exposure, gain credibility and engage your network to interact with you and drive targeted traffic to your “Nerve Center.”
And much more!
Webinar 2: How Social Media Fits In With Your Marketing Strategy

MLM Traffic Formula 2.0 blueprint and how social media fits in with the big picture.
Your questions answered
Bonuses & Resources:

The Social Media Marketing Blueprint
Directory of Top Social Media Websites
Summary:

Social media, if used properly, can get you a steady flow of quality traffic.

A LOT of traffic.

In fact, we’re going to cover several different ways to produce traffic for your websites with social media. As we go through this chapter, you’ll learn how to use websites like FaceBook, Twitter, LinkedIn, Digg, and many more social media websites to drive hoards of targeted traffic to your “Nerve Center.”

By the time you complete this chapter, you will have a social media strategy that clearly lays out how and where social media fits into the big picture of your business.

Chapter 7: Video And Other Multi-Media Traffic

Webinar 1: Everything You Need To Start Creating Kick-Butt Video

Here’s a very short list of equipment you can pick up for under $300 that will allow you to create and publish high-quality videos in just minutes!
How to quickly create simple VIDEO REPORTS that you can give away or even sell to grow your list!
How to get over your fear of being “taped” and why you’re NEVER too ugly, old or dumb to be on video. And no, it doesn’t matter if you’re shy, English is your second language, you have an obnoxious lisp, or any other “reason” you might think you shouldn’t be on video.
5 easy things you can do to make your video quality look ten times better.
A comparison of the different types of video you can create, the pros and cons of each and in what situations you want to use each.
Webinar 2: How To Turn Your Videos Into Massive Traffic, Leads And Cash

How to get your “video podcasts” listed in the iTunes directory, accessed by millions of people every day!
How to use video sharing websites to quickly shoot up to the first page of major search engines for just about any keyword or phrase. (This is an extremely effective way to drive search engine traffic to your Traffic Formula Nerve Center.)
How to use edu-tainment (educational entertainment) to create value, build credibility and make your videos go VIRAL!
How to “respond” to other people’s videos and instantly access traffic from the most popular videos.
Bonuses & Resources:

The Video Marketing Blueprint
My Top Video Recommendations
Quick-Start Checklist
Summary:

Video marketing is one of the simplest ways you can use to start driving massive targeted traffic to your Traffic Formula Nerve Center.

Not only can you attract new prospects, but it’s an extremely effective method for building credibility and trust because it get’s people engaged in ways other media just can’t.

I have several close friends who all have built multi-million dollar businesses by creating and marketing video, and they are going to show you how video gets people engaged and interested in ways other media just can’t.

If you use it the way we show you in this Module, you’ll be well on your way to generating leads.

Chapter 8: Search Engine Optimization For Non-Geeks

Webinar 1: How And Where To Find Targeted Traffic On The Search Engines

Discover the 3 simple things you MUST do to get Google to send you FREE targeted & ongoing traffic to your MLM Traffic Formula Nerve Center.
Learn the ONE simple technique we use to find “money keywords”, which will convert to cash, leads and distributors. GUARANTEED!
How to avoid wasting time on the 90% of keywords, which will NEVER convert and will only result in dead beat leads and loads of wasted time.
The secret to exploiting social media to blanket the top 10 search results on Google for your target keywords, even if you don’t have a website!
Revealed! The SEO 2.0 formula we’ve used to passively drive traffic, create leads and distributors WITHOUT actually having to do SEO.
The right way to use social media to get Google to automatically push your rankings way past your competition, even if their SEO is better than yours.
Bonus! Get the inside scoop on some astonishing SEO results and see REAL evidence that Google is launching a hostile takeover of social media, and how you can profit from this.
A comparison of the different types of video you can create, the pros and cons of each and in what situations you want to use each.
Webinar 2: How SEO Fits In Your Business Model

A “big picture” look at how and where SEO fits in your business.
Your questions answered
Bonuses & Resources:

The SEO Blueprint
My Top FREE SEO Resources
Quick-Start Checklist
Summary:

The beautiful thing about search engines, is everything you’ve done up to this point with social media and video marketing, has already given you some beneficial search engine attention.

Now in this section, it’s time to kick it up a notch and begin implementing some very simple search engine strategies that will really start helping you increase your visibility and rankings.

This chapter really takes the technical stuff out of SEO and teaches you the simple steps to grow your traffic naturally, organically and for the long haul.

Chapter 9: How To Harvest Money From Your List

Webinar 1: How To Automate Your Follow Up And Maximize Your Results

My proven step-by-step formula for creating autoresponder emails guaranteed to get the most opens and clicks.
How to combine an autoresponder with social media marketing to set up your own distribution channel.
Mike Dillard’s top 10 secrets to creating long term and profitable relationships with his list.
The “pipeline” marketing method, and how your marketing system will work on your behalf to sort, qualify and convert your leads into distributors and customers.
Bonuses & Resources:

Mike’s autoresponder template
The Pipeline Marketing Blueprint
Quick-Start Checklist
Summary:

At this point, you’ve got your own nerve center in place that’s producing leads for you, and you have 14 different sources of traffic sending prospects your way each and every day.

Well now I’m going to show you how to combine an email autoresponder, and your social media presence, to set up your very own distribution channel.

Now things are going to get very exciting, because this is where you’re going to learn how to set up a virtual selling machine, that builds a relationship with your prospects for you, and then turns them into paying customers and distributors automatically.

To give you an idea of the power this Lesson contains, I wrote a series of emails that goes out to my prospects each day automatically about 2 years ago.

And every single day, those emails produce $10,000 to $20,000 in income, without any direct involvement on my part. I literally set it up once, and it’s been working on auto-pilot ever since.

This is exactly what I’m going to show you how to do in this module.

So at this point, you have a state-of-the-art marketing machine in place that’s based on our nerve system strategy.

Traffic’s coming in. Leads are being produced, and those leads are being turned into cash producing customers of your products or business opportunity, 24/7 automatically.

Everything’s getting better and better everyday thanks to the optimization strategies you learned in Section II.

Things are good.

And now that you have so many leads coming in, I’d like to spend our next lesson together, revealing everything I know about turning those leads into new distributors.

Chapter 10: How To Sponsor More Reps

Webinar 1: Getting Prospects To Chase You

How to minimize your time and maximize your sponsoring results with my simple 3-step prospect to team member or customer conversion method.
Fearless Sponsoring Tips, Techniques and Tactics: why being shy or afraid to talk to people on the phone isn't an issue.
How to instantly get credibility and respect when talking to a prospect on the phone.
Bonuses & Resources:

BONUS #1
Quick-Start Checklist
Summary:

In this lesson, we’re going to solve your biggest challenges when it comes to sponsoring. I don’t care if you’re shy on the phone, or if you just don’t have a lot of extra time yet thanks to a day job, I’m going to show you exactly how I managed to build the 2nd largest downline in my primary opportunity, sponsoring 4 out of the top 5 income earners.

Using my techniques, sponsoring will become effortless because your prospects are going to be seeking you out. They’re going to be calling you, and you’re going to be in control of the entire process.

You’ll never have to feel like an awkward sales person again, or make another unwanted cold call to strangers.

This is the culmination of everything we’ve been building up to.

You’ve learned how to produce a ton of traffic using multiple different sources. You’ve learned how to turn that traffic into leads using your nerve center. You’ve learned how to monetize your leads and produce customers using automated technology, and now you’ve learned how to sponsor distributors and build a team.

By the time you finish this module, you’ll having everything you need, and then some in order to build a successful, profitable business from home, using the exact same techniques and strategies I have.

MLM Traffic Formula 2.0

MLM Traffic Formula 2 - Review Part 2

2009-09-09T16:30:00.002-05:00

Module 3: Copywriting Mastery Formula

Webinar 1: Mike’s 7-Million Dollar Copywriting Secrets

How to write killer Google Ads that cream the competition, and pull the hottest leads directly to YOUR website like hypnotized zombies. (And then you'll want to use these 2 copywriting secrets to magnetically attract them to you and your organization effortlessly).
The simple short-cut methods for writing headlines that are almost certain to hook your readers by the eyeballs and suck them in.
Check out my multi-million dollar copywriting "swipe file". This little known resource is top secret, not for sale, and isn't published anywhere. The only place you'll find its location is in this course.
12 simple steps to writing sales letters that convert readers into customers and distributors.
What to do if you absolutely suck at writing copy and don’t want to do it yourself.
And much more!
Bonuses & Resources:

Quick-Start Checklist
My Multi-Million Dollar Swipe File
Summary:

Once we create your nerve center together, I’m going to teach you the one skill that’s allowed me to make over $7,000,000 in the last 3 years which is something you’ve already been doing your entire life, which is writing.

But now I’m going to teach you how to write letters and emails that sell for you, 24 hours a day, 7 days a week, at no cost.

Once you learn my secrets to writing persuasive sales letters and emails, you’ll be able to sit down, write a letter, and make money any time you want with the push of a button.

If you think that sounds too good to be true, then consider this… I’ve built the 2nd largest downline in my primary opportunity and made over $5 million dollars in the last 15 months alone, without making a single prospecting or sales call.

All of those results came from simply writing letters and emails that do all of the telling and selling for me. I’m going to share all of my best secrets and strategies, including a simple series of emails that produced over $554,000 in income in less than 5 days.

That means these emails produced over $100,000 per day in income, and I’m actually going to give these emails to you in Chapter 3, so you can study them and use them in your business.

Module 4: How To Make More Money With The Same Traffic

Webinar 1: Scientific Marketing Simplified

How to set up basic tracking for all your ads and sales letter on your “Nerve Center.” This is easier than you might think, takes 2 minutes to set up and you only have to do it one time… ever!
The bulletproof tracking methods that work like a crystal ball, so you know for certain which ads are bringing you the most money and which ads are sucking wind.
Where and how to find the 3 most important performance metrics you MUST know and improve in order to annihilate your competition.

Webinar 2: Simple Split-Testing Tactics

Learn why this, ladies and gentlemen, is THE #1 secret to paying less for traffic and leads, leaving your competition in the dust, and making more money for each and every visitor to your website!
How we improved the profitability of one campaign by 400% with one simple tweak on our website. It took less than 2-minutes, and will make us hundreds of thousands of dollars this year!
Here’s what factors to test first, second and third on each advertisement, your capture pages and sales letters! AND follow along step-by-step as we set up a split-test before your eyes in less than 30 seconds!
Bonuses & Resources:

Quick-Start Checklist
Scientific Marketing Report
Sample split-test charts
Summary:

I’m going to teach you how to get more results from the exact same amount of traffic, for less money and less time.

This technique is commonly known as split-testing.

And I know that might sound a little technical or intimidating, but it’s not.

In fact, I’ll be showing you how to set up your very own split-test within minutes, and to give you a massive advantage over the competition, I’m going to give you 10 of our winning split-test results during your training which you can use on your sites immediately to increase the number of leads and sales they generate.

MLM Traffic Formula 2

2009-09-08T19:51:00.004-05:00

Module 1: The MLM Traffic Formula 2.0 Revealed

Webinar #1: The MLM Traffic Formula Master plan

Discover the simple formula that will help you eliminate information overload, so you know EXACTLY how all the marketing pieces of the puzzle fit together.
How to instantly immunize your business against attrition and competition forever.
The one and only guaranteed way to create a real, long term residual income in network marketing. (This has nothing to do with your opportunity, downline, or products which are never guaranteed).
You, Inc: Your step-by-step process for creating a totally unique and magnetic online presence.
And much more!

Webinar 2: The Market Discovery Formula

How to quickly find and tap into the most profitable markets on the internet using these 5 simple and free internet market research tools.
How to get inside the mind of your market! Discover their hidden most desires, fears, pain, problems and challenges and find out what and why they buy!
How to uncover and exploit gaps in your market place and use this intelligence to outwit your competition.
Bonuses & Resources:

MLM Traffic Formula Picture Blueprint
Quick-Start Checklist
Summary:

In this section, I’ll be giving you the step-by-step blueprint you’ve always wanted for your business.

If you’ve been experiencing information overload… Like there are just too many pieces and things to learn and think about, that you want to just throw your hands up in frustration, I understand how you feel, which is why I’m going to give you my personal blue print that will finally solve this problem for you once and for all.

By the time I’m done going over it with you in your first chapter, you’re going to feel this weight lifted off your shoulders because you’ll know exactly how to combine all of the most powerful marketing sites and services in the world together like YouTube, Facebook, Twitter, Blogs, PPC, and more, into a systematic machine that sucks in traffic, converts that traffic into leads, and then turns those leads into new distributors and instant cash.

Module 2: Your MLM Traffic Formula Nerve Center

Webinar 1: The Automatic Prospecting System “Nerve Center”

How we generate 400+ leads every single day with the “Traffic Formula Nerve Center” strategy.
Watch as we pull back the curtain and reveal our entire business model for the first time so you can see how a 7-figure marketing company looks from the inside.
And much more!
Webinar 2: How To Set Up And Automate Your Marketing Nerve Center

Get your website up and ready to start capturing leads for you in just a few hours totally free and no experience necessary.
How to put your marketing system on complete autopilot to sort, qualify and pre-sell your leads for you so you can focus on generating traffic.
How to create specific landing pages for different types of leads like product customers, other network marketers, or people looking specifically for your opportunity by name.
Bonuses & Resources:

Bonus Webinar: Fast Start Leads & Cash
Quick-Start Checklist
Mystery Bonus #1
Mystery Bonus #2
Summary:

I’m going to show you how to create the heart of Traffic Formula 2… which is what I call your nerve center.

I wasn’t going to get into a lot of detail about our nerve centers, because this is cutting-edge stuff, and Tim Erway and I honestly debated whether or not we wanted to show everyone how to do this, but in the end, you won, which means we are going to reveal this incredible strategy to you.

All I’ll say is this…

Think about your nerve center as a next generation capture page, that’s also an automated traffic magnet that grows in power over time. The more you use your nerve center, the more free traffic, leads, and cash you’re going to produce.

And the best part, is that creating your nerve center is extremely easy, and that it’s going to simplify your online marketing duties in a very big way.

MLM Traffic Formula 2.0

Mike Dillard's PPC Domination

2009-07-18T11:57:00.000-05:00

If you’re not producing at least 50 new leads per day, in less than 30 days using our techniques, you can contact my office here, and request a full refund. No questions asked.

If you don’t get the results you want, you don’t pay a dime.

It’s that simple. Fair enough?

I thought so…

Now let me give you a taste of what you'll learn when you watch these videos:

How to "glide" through setting up your first AdWords account in 13 minutes or less—even if you've never used the Internet before.
A simple "short cut" that makes learning and profiting from AdWords twice as fast.
The easiest way to make money with Google AdWords when starting out.
How to make your AdWords advertising 100% FREE. (And, in fact, actually make you money every time you run your ads!)
A sneaky way to use AdWords to get dozens of MLM leaders to eagerly send traffic to your websites. (And without having to speak with them, make any special deals with them, or pay them anything.)
A neat little way of using your computer's spell check function to make your Google ads draw twice as many clicks. (And no... this has nothing to do with actually checking your ad's spelling.)

PPC Domination

MLM Bootcamp

2009-03-21T07:41:00.005-05:00

In just 7 days you will learn:

To discover the tactics and strategies of Magnetic Sponsoring™ which enabled me to build a $250,000 business within 4 months.

How to become the hunted instead of the hunter, and have customers and prospects literally calling you, ready to join.

The ABC's of network marketing cash flow and learn how to make more money than you spend.

How to advertise to your target market endlessly for free, and create endless leads for your opportunity in the process!

Why I REFUSE to pitch networkers on my opportunity, yet why they CALL ME to join my organization.

How to automatically build a rolodex of THOUSANDS of network marketers and customers.

And Much More!

If you're ready to learn the secrets behind Magnetic Sponsoring™ and how to use them to take your business to a whole new level, then subscribe below for instant access and then hold onto your hat, soldier!

Magnetic Sponsoring™ Boot Camp

Review

2009-03-20T21:40:00.003-05:00

I thought I would give my readers a more comprehensive look at the Magnetic Sponsoring™ program from Mike Dillard. What inspired me to do this was a recent search query on my blog traffic report. A reader came to my blog via a search on Google for "what is magnetic sponsoring." So, just exactly what is Magnetic Sponsoring?

Simply put, Magnetic Sponsoring™ is a lead generation and cash flow system designed for Network Marketers from all companies. We all need leads, and we all need cash flow. Cash flow is especially important when you're trying to get your business off the ground. Generating your own fresh leads is much more rewarding than purchasing leads. The MS system also teaches you how to Sponsor. Hey, you can generate leads all day, but if you can't sponsor anyone...!

I could go into the history of Magnetic Sponsoring™,
and if you are really interested in the history, Mike talks about it in the book. For example, Mike was waiting tables and struggling with his network-marketing business. But now, when he sees a sports car he likes, they deliver it to his front door three weeks later!

Recently, the MS system also got a complete makeover and was relaunched as MS 3.0. There are some great new tools, such as a completely new state-of-the-art back office that allows you to track your traffic, leads, and commissions in real time.

This is one of the lead-capture pages that comes free with the affiliate system. The commission on this product is around $200!!

The new back office for MS 3.0 is created so that you can get started immediately in utilizing the system. The affiliate links page lists all the capture pages now available. More are coming! Including the much-anticipated Black Belt Sponsoring Course!

In addition to the Magnetic Sponsoring™ book that you receive by mail, your back office in packed full with other goodies! The MLM Domain Secret e-book itself is worth the cost of the entire Magnetic Sponsoring™ system!

The is the lead capture page I currently use - it works great:

In summary:

Magnetic Sponsoring™ is a lead generation and cash flow system for Network Marketers.
The system retails for less than $40.
You get a whole bunch of things you need for just $40: a book in the mail, several e-books, the closed door audios, lead capture pages, and complete and comprehensive instructions for making it work.
You also are given access to a state-of-the-art back office system that allows you to track your leads, traffic, and commissions in real time.
Also, Mike pays you $20 commission whenever someone purchases the course from your affiliate site and around $200 if they pick up a copy of the MLM Traffic Formula.

Pick up a copy of Magnetic Sponsoring™

Mannatech Settles with Texas AG

2009-02-26T22:53:00.001-06:00

Mannatech Settles with Texas AG
Company will pay $6 million, Bench Caster Back in July of 2007 the Texas Attorney General filed a civil complaint related primarily to product claims and sales practices that took place mostly from 2002 to 2006. Under the proposed settlement, which is still pending court approval, Mannatech will pay $4 million to consumers as restitution and $2 million to cover the expenses related to the AG's investigation. The settlement does not include any fine or penalty.

Also, former CEO and founder Sam Caster did receive a civil penalty of $1 million and is prevented from serving as an officer, director, or employee of Mannatech for the next five years.

The TX AG notice can be viewed here...
http://www.oag.state.tx.us/oagNews/release.php?id=2858

Mannatech's Press Release can be viewed here...
http://finance.yahoo.com/news/Mannatech-Reaches-Settlement-bw-14482794.html

Commentary:

This action by the TX AG, which originally sought to shut the company down, was entirely due to medical claims made about Mannatech products, not their multilevel business model.

Note in the FTC's press release (not Mannatech's with the sharp edges smoothed off) it notes "the state's enforcement action also cited Mannatech for encouraging product 'testimonials' that exaggerated its products' healing effects." So once again, personal testimonials are not safe haven. It is (right or wrong) not one's "first amendment right" to make a medical claim, even if it's an honest portrayal of what you believe the product did for you.

The FTC notice goes on to state, "Mannatech agreed not to advertise or otherwise claim that its dietary supplements can cure, treat, mitigate, or prevent disease."

Until someone changes the rules, we should all agree to this!

Len Clements
Founder & CEO
MarketWave, Inc.

Matol Aligning with Univera

2009-01-27T19:59:00.001-06:00

Matol Aligning with Univera

Oldest Canadian Multilevel Company
Will Merge Network, Products

January 14th, 2009
In a press release published today Univera announced their acquisition of the Matol Botanical International brand, as well as their distributor network and product line. The release stated that Univera had "...entered into a binding agreement to acquire specific assets and the distributor network..." of Matol. The "strategic alliance" involves the merging of the Matol distributor organization into the Univera network and compensation plan, as well as the combining of the two product lines.

The full press release can be found here:

http://www.prweb.com/releases/2009/01/prweb1846004.htm

Commentary:

I've always been a big fan of Matol and considered them to be one of the good guys in the network marketing industry. I've also enjoyed their Km product, practically to the point of addiction back in the mid-90s. It would seem to go without saying that Km would be adopted by any acquirer of Matol's product line, but when the acquirer has their own liquid botanical product (Univera's is called Xtra), and such an assurance to present Matol distributors was curiously absent from the press release, it does require saying. Based on my conversation with Matol Chairman and CEO Robert Bolduc, Km will certainly remain as one of the key flagship products in the combined line. Also, Univera is only acquiring the distributor network and product line. All other aspects of Matol Botanical International will still exist (R&D, medical division, etc.). In fact, Matol still intends to celebrate their 25th anniversary this summer.

Matol launched in 1984 and experienced strong momentum from the late '80s to mid '90s. Corporate conflicts resulted in the departure of Sam Kalenuik and Anthony Jurak, both members of senior management who subsequently launched their own competing companies. This was soon followed by the departure of the Boreyko family from atop their distributor ranks, who went on to found New Vision (Vemma). By the late 90s, when the entire industry's growth was slowing, Matol had also slumped considerably. Matol's opportunity for a resurgence in the new century was likely hampered by the onslaught of competitive "jungle juices" that now pervade this industry. This is in spite of the fact that Matol's Km was actually the pioneer of the "nutritional beverage" product category (this was almost two decades before the Noni juice craze began).

Univera was launched in 1999 as Oasis Wellness Network, which changed their name to Oasis LifeSciences in 2004, and in early 2006 changed their name again to Univera LifeSciences. In 2001 their was a cyber-net cast into the internet, jointly conducted by the FTC and FDA, called "Operation Cure.all" which snagged a couple of network marketing companies for making medical claims. Oasis was one of them. Today both Univera's and Matol's web sites and marketing materials appear to be clean of any such claims.

Len Clements
Founder & CEO
MarketWave, Inc.

Shaklee Loses Major Endorser

2008-12-30T22:59:00.000-06:00

Shaklee Loses Major Endorser

Harvard Anti-Aging Researcher Quits Board

December 30th, 2008
A prominent Harvard Medical School scientist quit the scientific advisory board of Shaklee last week claiming they misused his name to promote one of their anti-aging drink products.

David Sinclair, a geneticist who conducts longevity research, joined Shaklee's advisory board last August and has spoken at a Shaklee convention about the antioxidant resveratrol, which is an ingredient in Shaklee's Vivix drink product. When The Wall Street Journal contacted Sinclair and questioned his apparent endorsement of this product he resigned from his position with Shaklee. Sinclair told the WSJ, "This decision was prompted in significant part by my recent realization as to how my association with Shaklee and my research have been used contrary to the intents and purposes of my agreement... To my dismay I have found numerous uses of my name and reputation on the Web and in other media that implies endorsement by me of Shaklee's Vivix product". Although no legal action has yet been taken, Sinclair is quoted in The WSJ as stating, "I have engaged counsel to deal with this matter and have demanded that Shaklee cease using my name."

In a statement to The WSJ, Shaklee disagreed with Sinclair saying, "every implied product endorsement was in Dr. Sinclair's own words, and every Shaklee use of his name - whether in print or video - was preapproved by him in keeping with our agreement."

A Harvard spokesman said the agreement between Sinclair and Shaklee was reviewed by Harvard, and confirmed that "The Harvard name is not allowed to be used to endorse products, and faculty and researchers are not allowed to use their affiliation as a means to endorse a product."

The Wall Street Journal article can be viewed here:

http://online.wsj.com/article/SB123025446150734561.html

Commentary:

Did Shaklee corporate overstep the boundaries of their agreement with Dr. Sinclair? Did Dr. Sinclair "endorse" Shaklee's Vivix product?

Well, thanks to the advent of cell phone video we don't have to wonder. Just watch HERE.

Although Dr. Sinclair never specifically mentions the Vivix brand, he does pretty clearly imply that he's talking about a specific Shaklee product, or products. Dr. Sinclair will likely have to answer to Harvard as to whether there was a conflict of interest here, and the fact Sinclair was paid to be on Shaklee's board probably won't help his case.

But here's the bottom line: They're both right. I can find zero evidence that Shaklee, the company, has in any way imbued more credibility to their Vivix product than Dr. Sinclair already has in his own words. But then, when I went online and reviewed what's out there regarding Dr. Sinclair and Vivix I surely saw the same thing he's referring to when he said "To my dismay I have found numerous uses of my name and reputation on the Web... that implies endorsement by me of Shaklee's Vivix product."

In other words, it's the fault of Shaklee distributors for assuming Dr. Sinclair's clearly implied endorsement, as seen on the video, was legitimate and sincere.

Len Clements
Founder & CEO
MarketWave, Inc.

Update On BurnLounge From Len Clements

2008-12-10T20:06:00.001-06:00

Trial Begins for BurnLounge Top Rep

October 17, 2008
Former USC football star Rob DeBoer will go on trial Tuesday (12/9/08) to defend his position as the top distributor for BurnLounge, which was declared an illegal pyramid scheme by the FTC and shut down in 2007. DeBoer, who was not part of BurnLounge corporate, is accused of deceptively promoting the BurnLounge program. Other top promoters and corporate members have also been sued by the FTC.

BurnLounge sold music downloads via an internet website. However, the large majority of revenue to the company and commissions paid to distributors came from the $430 fee charged for the website itself, which was referred to as an "online music store". The FTC declared it a scheme where most of the income was derived from recruiting new people into the business of selling music downloads, not from the sale of the actual music.

A local news story can be read here:

http://www.thestate.com/local/story/612167.html

The FTC docket related to this case can be found here:

http://www.ftc.gov/os/caselist/0623201/index.shtm

Commentary:

There are two interesting aspects to this case: First, that a high level distributor is being named in the FTC action and individually tried. This always begs the question, How many levels down from the apex of the national distributor hierarchy do you stop becoming the perpetrator and become the victim? Is it one level? Ten levels? The top 5% of earners? What?

This reminds me of a case back in the early '90s. I was contacted by the D.A. in Fresno, CA to serve as their expert witness in an action against an elderly couple, let's call them Bob and Betty, who had just held a hotel meeting (about 50 attended) promoting a scheme called Marathon. They found me from an exposé of Marathon I had just published, which was indeed an illegal pyramid. But Bob and Betty didn't know that! In fact, they were simply following the lead of their upline sponsors, who likely did what their sponsor told them to do. When I asked the D.A. where Bob and Betty fell in the chain, he didn't even know. I asked him if any of the existing reps who attended with their prospects would also be prosecuted, he responded no because they were Bob and Betty's "victims"! I was now even more confused. So, the reps in the audience could have been much more experienced, with larger downlines and be even higher in the chain that Bob and Betty, but now the criteria between perp and victim seemed to be who happened to be hosting the meeting that night. I didn't take that case.

I'm not saying Mr. DeBoer isn't a perp. My point is that being a distributor for a company doesn't exempt you from being declared one, and what defines you as such seems to be a very wide, grey line. All the more reason to have a clear understanding of what defines a legal direct sales business as opposed to an illegal pyramid scheme.

Which leads us to interesting aspect #2: This is yet another in a long line of cases that seems to clearly define the act of making a profit from, and/or paying downline commissions on, the sale of the business, or more specifically the business's website, as being indicative of an illegal recruitment based pyramid scheme. Selling, profiting from, and/or paying commissions on lotions, vitamins, drinks, travel, telecom services and yes, even music downloads, is all perfectly fine. But you could carpet the entire surface of the Los Angeles Memorial Coliseum with the legal red flag created by profiting from and/or paying commissions on the website, or any sales and marketing tool, that only those pursuing the income opportunity would purchase.

Len Clements
Founder & CEO
MarketWave, Inc.

The Great Google Adsense Side Effect

2008-12-03T00:14:00.000-06:00

The Internet is now built for Adsense

If the Internet consisted of real brick and mortar buildings there would be a construction boom going on right now like the world has never seen. The Internet is not in a recession or on the road to a depression, rather it is experiencing an economic and social explosion of activity.

The reason ... Google Adsense.

Most people think of Google Adsense as being a game-changer for advertising, but what Google Adsense has also done is to create a huge incentive to build sites around topics to place Google Adwords on. Where this seems to work best is with gadgets. There is no topic left untouched by the Adsense content builders, but gadgets are at the heart of this new Internet construction boom.

The Great Google Adsense Side Effect | WebProNews

Texas Tough Riders Bicycle Team

2008-11-22T13:52:00.002-06:00

A good friend of mine, and his wife have just started a new Bicycle Team in Dallas.

Texas Tough Riders is a group of friends who combine -our passion for cycling (some call it an "addiction") with fun social activities and charitable fundraising. We get together for training and exercise rides, participate in several local rallies throughout the year and ride in charity events.

If your looking for a great team that's growing fast click on over and get in touch with them. They ride for fun, and they raise money for some great causes, including The Children's Medical Center of Dallas.

TexasToughRiders

Will video games surge as recession deepens? - TechFlash: Seattle's Technology News Source

2008-11-22T02:10:00.002-06:00

We have blogged quite a bit here about Big Fish Games and the great affiliate program they offer. Here's a great piece from TechFlash. To get in on the action get yourself signed up as a Big Fish Affiliate. For more information on the affiliate program go here. They report in this article a 23 percent increase in sales in Sept, and the company is hiring!

“Charlie Chaplin made a small fortune during the Great Depression selling inexpensive escapism entertainment,” said Big Fish CEO Jeremy Lewis. “I believe in many ways Big Fish Games is the modern day equivalent of Chaplin.”

Will video games surge as recession deepens? - TechFlash: Seattle's Technology News Source

Big Fish Affiliate Program

Stream Energy and Ignite Win Award From SMU

2008-11-22T01:58:00.004-06:00

For those readers not familiar with Stream Energy/Ignite Inc, they are an Electric Utility provider in Texas that uses Network Marketing/MLM distributors to sign up new customers. I am not a distributor, but did sign up for service with them several years ago after a friend introduced me to them. The following announcement comes from their monthly newsletter..

The Stream Energy / Ignite team has been selected as winners of a major award from the Southern Methodist University Caruth Institute for Entrepreneurship.

Jerry F. White, Director of the Dallas 100 Entrepreneur Awards, said the company was chosen because it is among Dallas' fastest growing, most dynamic privately held companies.

The honor from the Cox School of Business at Southern Methodist University is the latest recognition of Stream Energy and Ignite's phenomenal record of success during the past four years.

Stream Energy / Ignite received the entrepreneur award from SMU during special ceremonies and a formal dinner at the Morton Meyerson Symphony Center yesterday evening.

Kevin Trudeau Banned From TV?

2008-10-18T05:59:00.003-05:00

The Infomercial Ban Kevin Trudeau
Doesn't Want You to Know About

October 17, 2008
Infomercial mavin Kevin Trudeau has been found in contempt of a federal court order for the second time in the past four years. Previously he was banned for life from ever producing another infomercial, except for "information" products. This time he is facing a $5 million fine and 3-year ban from producing any type of infomercial.

This latest action by the FTC is due to Trudeau's book "The Wate Loss Cure 'They' Don't Want You to Know About" (I have to spell this wrong intentionally since "Wate Loss" spelled correctly is a huge red flag for spam catchers). In his infomercials Trudeau claimed that the system described in his book was very easy to do and allows users to eat whatever they want. The FTC ruled that his plan was actually very complicated that not only required intensive and restrictive lifelong dieting, but also involved regular colonics and daily injections of a certain hormone (which I also can't name lest your spam catcher will most certainly flag this email - this really sucks that I have to do this, doesn't it?), a prescription drug that costs about $300 per injection.

In 2004 the FTC charged that he had falsely claimed that his Coral Calcium product could cure cancer and other diseases. According to the FTC, the resulting order "broadly bans him from appearing in, producing, or disseminating future infomercials that advertise any type of product, service, or program to the public, except for truthful infomercials for informational publications."

The "truthful" part was what tripped him up this time.

In November 2007, the court found that Trudeau was in violation of this previous order and was found in contempt of court.

Trudeau is appealing the original 2007 order and most recent contempt ruling.

To view the original 2004 charge, go here:

http://www.ftc.gov/opa/2004/01/barefoot.shtm

To view the 2004 FTC order, go here:

http://www.ftc.gov/opa/2004/09/trudeaucoral.shtm

To view the original 2007 charge, go here:

http://www.ftc.gov/opa/2007/09/trudeau.shtm

To view the most recent ban order, go here:

http://www.ftc.gov/opa/2008/10/trudeau.shtm

In the past Trudeau has been charged with several legal actions, one involving jail time for credit card fraud, and has been cited by the FTC for several other deceptive infomercials. He was also investigated on a state level for actions related to his involvement with the now defunct network marketing company Nutrition for Life.

Len Clements
Founder & CEO
MarketWave, Inc.

Short Sale Vs Foreclosure and Your Fico®

2008-10-16T21:37:00.004-05:00

Ok, the verdict is finally in on this and it comes from one of the few remaining major lenders. Much discussion and many blog post have been dedicated to the discussion of how the various types of foreclosures (Short Sale, Deed in Lieu, and Foreclosure) impact a consumer's credit score.

Sources tell me that all 3 major Credit Bureaus have given the same response: Credit Scores do not distinguish between the 3 types of foreclosure.

I post this because there are lots of post out there that say the Short Sale will have less of an impact on the score and it just ain't so. You also can't raise your credit score by opting out of the bureaus marketing machine. You should opt out anyway to get rid of all the junk mail though...

MonaVie On The Move - Black Diamond Documentaries

2008-10-12T06:19:00.003-05:00

MonaVie On The Move features a great collection of professionally shot documentaries of all Crown, Imperial, Presidential, and Royal Black Diamond distributors.

Here's a partial list:

Lita & Brig Hart

Gina & Steve Merritt

Corbin & Holly Roush

Mick & Vick Karshner

Grayson Maule

Orrin Woodward

My favorite by far is Grayson Maule. Grayson has done some great things with the time and money he has earned as a Monavie Distributor. You will also like some of the locations his documentary is shot in.

Cyberwize Income Disclosure Statment

2008-10-10T22:31:00.000-05:00

Here's a link to the CyberWize Income Disclosure Statement for 2006-2007 . I have been getting a lot of inquiries about it on my blog traffic report, so here it is.

IncomeDisclosure.pdf (application/pdf Object)

Emergency Economic Stabilization Act Of 2008

2008-10-06T04:39:00.002-05:00

If you're tired of reading all the news accounts of the 2008 Bailout Bill, here is a link directly to the U.S. House website where you can open and read the entire ACT.

I normally don't get too political around here, but I find some irony in the fact that the same folks who ran the big banks and Wall Street several years back pushed (and quite hard) to have the nation's bankruptcy laws rewritten. In the new bankruptcy law is a requirement that before and individual can file for personal bankruptcy, he or she has to complete a Financial Management Course. Basically, the big banks were saying Americans can't handle their finances and need some schooling on it.

Nowhere in the 400 plus pages of the Bailout Plan did I see any mention where Congress is going to require any of the Bankers or Wall Street Brokers to attend or start attending any classes to show them how to handle their Finances as a condition for bailing them out.

House Financial Services Committee

The Big Fish Games Affiliate PNP Program

2008-09-23T02:10:00.009-05:00

One of our favorite affiliate programs is the Big Fish Games PNP program. Casual Gaming has taken off like a rocket the past 10 years and good game content is easily integrated into many sites and blogs.

Here is a summary of the pay plan:

You earn up to 40% of each purchase made by your Referrals.
A 2nd degree Referral (your Referral's Referrals) earns you 6.25% [or 25% of 25% ]of the purchase.
A 3rd degree referral earns you 1.56% [or 25% of 25% of 25%] of the purchases ... and so on to the nth degree.

What we really like are the lifetime residuals, once you refer someone to Big Fish Games their yours for life. Big Fish Games takes care of all the follow up marketing so once you introduce them your job is over.

Big Fish Games also offers a suite of tools to assist you with your customer base - links and banners for your Game Space, Iframes for your website, and Big Fish RSS feeds. The more advanced affiliate can take advantage of their XML data to build a robust affiliate site.

# Earn Up to 40%
# Earn lifetime residuals off the customers you introduce to BFGs
# Access the industry's top casual games before they launch on other sites
# Earn an additional 25% commission when customers introduce BFGs to friends and family through their personal Game Space! (available to all BFGs customers at no additional cost)

Principal Network Partners : My Big Fish Games!

California AG Moves to Close YTB Travel

2008-08-05T15:35:00.002-05:00

YTB Traveling Away From MLM Anyway?

August 5th, 2008California Attorney General Jerry Brown filed a lawsuit against YTB Travel (YTBLA.OB) yesterday seeking $25 million in fines and restitution, calling it a "gigantic pyramid scheme". The suit was filed against YourTravelBiz.com, a subsidiary of YTB International. The AG's press release states the lawsuit seeks to, "shut down the company's unlawful operation before more people are exploited by the scam." The basis for this position, according to the release, is that, "Once enrolled, members who join the pyramid scheme earn compensation for each new person they enlist, regardless of whether they sell any travel." The Attorney General has charged the company and it's senior management with unfair business practices and false advertising.

The timing of the AG's action seems opportunistic and deliberate. The YTB national convention in St. Louis starts tomorrow.

To read the entire press release see:

http://rs6.net/tn.jsp?e=0016Yq1TSM-6l4EGu8-j7awjarkPDHgG_S7zzi6eRcpVTchEUqBkWvoDvT4QoVlWGf-KhdHpC5UtlnOm832bjUqtRIQP1oJ2eshKWaIv39qjp6ZVDqk4_aVA6W3ayWgWO1RaXCFMOJwhlSDuQ10VWpfc9WeULbqK17c

YTB Travel also announced on July 14th that they are considering adopting a franchise operating system by 2009, where their distributors, which they refer to as "referring travel agents" (RTA's) can convert to franchisees.

In the company's press release they state: "Details regarding price, product offerings and the conversion plan are all under consideration, but the Company anticipates that its existing RTA base would be treated favorably under its forthcoming proposal." The company claims the franchising model "would facilitate the Company's expansion into additional markets by providing more comprehensive training and a new proprietary e-commerce platform." YTB Travel has already hired iFranchise of Chicago to "consult in the planning and development of the franchise model".

To review the company announcement see:

http://rs6.net/tn.jsp?e=0016Yq1TSM-6l4DdRZsJZFhOyHNy7x_IozJkqDH6lL5tvf5VrNCBGJYiWpFq_P0RUIOXQyZDVRgtCrtPIeOpBUV5kxn6Su2751uK4_bO9StWcpsnk66IEdax2VtMYMfRvAarpLSQpE7GniSEwbA0hb9Le4ybgifX2zoPJXokn9Lf7s=
Commentary:

As I have stated in past Alerts (#84, #86 and the end of #97), I have always considered YTB Travel's business model to be legally vulnerable. Based on much legal precedent we know that state and federal regulators do not like to see commissions being paid on things only a distributor (participant in the income opportunity) would ever purchase. They also don't like to see the company itself make any significant income from the sale of products or services that only a rep would purchase. A perfect example is a distributor kit, or sales aids, such as brochures, promotional and training CDs, and - a distributor's website.

Since only a distributor would ever purchase these things this creates a direct connection between recruiting and earning income.

Examples of cases where a company was declared an illegal pyramid for paying multilevel commissions on the business website are BigSmart and Km.net, which sold websites, or "online malls" that offered a variety of goods and services, including travel. But the affiliate commissions paid by the vendor to the company for purchases made through the cybermalls was very small - usually 5-15%. Then this amount had to be split between the company and the pay plan, and then split again down each level of the plan, so there was no significant income potential from the sale of the actual goods sold via the site. To compensate they charged a large upfront fee for the "cybermall" (website) itself (BigSmart $300, and Km.net $400). Since this resulted in a de facto recruiting bonus (since only new recruits would ever purchase the website), and the sales of the websites far exceeded the sales of actual products through the sites, both companies were found to be operating pyramid schemes and closed down. Sales of actual travel via these sites, and the payment of commissions on these sales, is perfectly fine. But isn't the site itself simply a sales aid? Who else would purchase the travel booking website other than a participant in the business opportunity? In fact, it appears to me that a substantial income could be earned from nothing more than enrolling other YTB agents even if not a single penny's worth of travel is ever booked. In the first quarter of 2008 YTB had revenue of $33,959,388 from the sale of the agent business package, which is primarily the booking website (up front purchase and monthly recurring fees). YTB paid out $3,852,416 in actual travel commissions through their pay plan. However, bonuses from the sale of the websites this travel was booked through totaled $25,068,543! Six-and-a-half times as much was paid out on the website (what is essentially a sales aid) than was paid on travel - the service RTAs are supposed to actually be in the business of selling.

Similar statistics were specifically cited in the California AG's press release and lawsuit. The lawsuit contained these statements:

"While Defendants purport to be in the business of selling travel, their real business is the operation of a pyramid scheme that relies on the sale of essentially worthless websites they refer to as 'online travel agencies'."

"Of the more than 200,000 consumers who purchased or maintained Defendants' websites during 2007, 62% failed to earn a single travel commission -- not even on their own personal travel."

"While the vast majority of consumers made nothing selling travel, Defendants generated 73% of their net revenue of over $141 million dollars from the sale of websites and monthly fees."

"In short, Defendants sell an illegal pyramid scheme that uses the minor, incidental sale of travel as a front for their scheme."

Keep in mind, California isn't one of those states (like ND and MO) that reluctantly allows MLM and doesn't really like any of them. In CA's position statement to consumers on this issue they acknowledge "there are legitimate multi-level or network marketing companies... Multi level marketing can be a lawful business."

The MLM model is perfectly sound, but simply doesn't work well with service based businesses such as travel. There just isn't enough margin on travel to generate a large enough commission to afford a competitive payout. Yes, YTB claims they sold $414 million in travel last year, but again, they earned $5,328,627 in commissions on that travel (1.3%), of which they paid out $3,852,416 (72%) of that to the field. So while $414 million in travel sales sounds impressive, when you consider they only paid 72% of 1.3% of that to their distributors (for those of you keeping score at home, that's a pay out of 0.9% -- most MLM companies pay out 40-50%), it's clearly not competitive as a stand alone MLM opportunity. That's why every MLM travel deal I've ever seen (many over the last 18 years) has based the large majority of their compensation plan on something else besides booking travel.

It is therefore my opinion that it is inevitable that YTB Travel will abandon the MLM model - one way or the other. I believe they will be economically forced to (they had a net loss of $3,517,651 first quarter of '08), or legally compelled to. Which is why it makes perfect sense for them to be "considering" the adoption of a franchise system.

The "Franchise" Announcement

The way in which YTB Management handled the announcement of this proposed new plan was dreadful. First they published a short, cryptic notice saying they were "contemplating the replacement of its referring travel agent ('RTA') business model with the implementation of a franchise operating system" (emphasis mine), then followed up with a notice from YTB CEO Scott Tomer in which he attempted to clear up "misrepresentations and untruths" being spread on the internet regarding YTB's "commitment" to the network marketing business model. The first notice not only made no mention of YTB maintaining their MLM model, they specifically said they were "replacing" it! What's more, the notice stated that the "existing RTA base would be treated favorably under its forthcoming proposal", further implying the MLM aspect was being eliminated. Where YTB had the opportunity to forgo any such misunderstanding, they instead stated, "Details regarding price, product offerings and the conversion plan are all under consideration".

Mr. Tomer began his follow up announcement (three days later) by saying, "I realize that many of you want more information about our July 14th announcement of the potential use of a franchise model". I'll bet they do!

Within hours after the first notice was published high level leaders within YTB were claiming they had been on a call in which management assured them the MLM model was not being abandoned, and the franchise system was only being considered as an "option". This only seemed to increase the confusion. Why would YTB announce publicly the franchise system was "replacing" the MLM system, but only tell a few key leaders it was being considered as an "option" in addition to the MLM model? I called and emailed YTB's Media Relations director and she was quick to send me Mr. Tomer's follow up announcement where he stated, "If RTAs elect not to become franchisees, they will be able to continue with no change to their status with all income opportunities and privileges they currently enjoy... the downline genealogy and network marketing division will remain intact."

YTB's stated reasoning for adopting the franchise model is also confusing. For example, "We believe a franchise model of our existing business will be easier to comprehend and more readily accepted by the general public." That would make sense if you were "replacing" the less accepted MLM model with a franchise model, but not if you're still going to be an MLM company, too. Or, that the franchise model will allow them to provide "additional tools and training for those who choose to actively pursue the travel business". What tools and training can be provided under the franchise model that can't be offered under the current MLM model?

Mr. Tomer also claimed that "many months of due diligence preceded our July 14th announcement". Well, then why confuse and scare the heck out of their reps now, while they're still just "contemplating" it, and when "Details regarding price, product offerings and the conversion plan are all under consideration" and "While there are some things we are unable to comment on"? Mr. Tomer further acknowledge that "outsiders will question this decision". For the record, I'm still as confused as most YTB reps seem to be about what, exactly, is being proposed. YTB corporate doesn't even seem to be clear on what this is all going to look like when it's done, and what effect it's going to have on those building multilevel incomes. And yes, I've made several attempts to avoid asking these questions rhetorically, but no one from YTB will respond to them.

Personally, I can't question this "decision" until I know what it is! I'm not questioning what they are proposing, I'm questioning when and how they proposed it.

But then, it may all be a moot point now.

Len Clements

MarketWave, Inc.

MonaVie Featured in Newsweek

2008-08-05T01:53:00.002-05:00

MonaVie is featured in the latest issue of Newsweek. The writer talks about a recent meeting in June where lined up on stage side by side are a Ferrari, a Maserati, and Bentley. What he does not mention is that a few minutes later another vehicle is brought in. An armored car containing a million dollars in cash! The cash is awarded to Brig Hart, MonVie's top distributor!

Heres the full article:

MonaVie Acai Juice: Cure-All or Marketing Scheme? Newsweek Project Green Newsweek.com

Usana Settles Law Suit with Barry Minkow

2008-08-02T00:04:00.002-05:00

Team Minkow Losing Streak Continues

August 1st, 2008
Last Monday morning (7/28), Usana announced they had reached a settlement in their lawsuit against Barry Minkow. USANA has agreed to withdraw its lawsuit and Minkow and his "Fraud Discovery Institute" have agreed to remove all references to Usana that they control, never to comment on Usana again in the future, nor will he ever trade in Usana's stock (long or short).

See the press release here: http://biz.yahoo.com/bw/080728/20080728005457.html?.v=1

The timing of Minkow's surrender was not that surprising considering his already discredited case against Usana, and to a lesser extend Herbalife, had taken another battering the past few days. To wit:

In their effort to eradicate naked pyramid schemes, China banned all forms of multilevel commission structures in 1998. Several legitimate direct sales companies were allowed back in, on a case-by-case basis, but with single level pay structures. China's Ministry of Commerce (similar to our FTC) just granted Herbalife five additional licenses to conduct direct-selling business in five more provinces, including Beijing.

See the press release here: http://biz.yahoo.com/bw/080720/20080720005039.html?.v=1

But this was just a tremor compared to the seismic rocking Team Minkow took last Thursday (7/24). Within days of Minkow's first anti-Usana report being published in mid-March, 2007, three class action law suits were filed on behalf of shareholders based specifically on Minkow's claim that Usana was an illegal pyramid scheme (the most prominent allegation of wrong doing among many). The suits were eventually consolidated into one, and that suit has just been dismissed with prejudice (meaning the plaintiff is barred from ever bringing an action again based on the same claim).

The US District Court judge ruled that the plaintiffs failed to assert any actionable securities laws claims against USANA. The ruling cited all of the major attack points presented by Minkow, and specifically addressed his "Fraud Discover Institute" as the source. Here are some, but not all, of the issues the court considered, and then summarily rejected:

⇒ Lack of demand for Usana Products
⇒ Inevitable Market Saturation
⇒ Misrepresentation of Usana's Long-Term Sustainability
⇒ Unlawful Pyramid Scheme

See the press release here: http://biz.yahoo.com/bw/080724/20080724005398.html?.v=1

Obviously, I have a lot to say about all this. Too much for a short Alert. In fact, my Commentary went to five pages.

Please see the whole Alert here:
http://www.marketwaveinc.com/alerts/alert-97.doc

Have a great weekend!

Len Clements
MarketWave, Inc.

Review Of Mike Dillard's Black Belt Recruiting

2008-07-24T01:17:00.002-05:00

I used to despise the networking industry... Thinking it as evil, where precious relationships were broken and wallets are emptied.

I even saw first hand how the great relationship between two of my long-time friends turned into hate...when one guy, along with his upline pressured the other to invest $1,500 to join in the business. I spent weeks listening to stories from both sides...before they eventually patched up.

In the end, I decided to give the industry a shot, as it's one of the easiest way to start a business. But I was still against pulling my warm market into my organization, and simply did not have the confidence to pick up the phone to talk to people I don't know.

So naturally, I tried to promote my business using primarily the internet... Posting articles, leaving my links at all the forums I frequent, blogging, etc...

That went on for two years without making a dime. And during that period I was struggling with my university studies as well.

With both studies and my own business going nowhere...I felt useless. I had no confidence at all.

After completing my 1st year of studies...I was pointed to Mike Dillard's site as a great sales letter to practice copy writing. As it turned out...Mike's videos just HOOKED onto me.

His videos was describing exactly the problems I was facing. A few weeks later I purchased Magnetic Sponsoring and The much anticipated Black Belt Recruiting.

Boy... Did my view of my business change.

Black Belt Recruiting is a GREAT course about how networkers should think about their business and most importantly themselves.

I realized that I'm the reason people join me...not the products I'm selling or how powerful the compensation plan is.

It covered great problems such as how to counter questions like, "How much you are making?", but the BEST thing The much anticipated Black Belt Recruiting has given me so far is this...

It helped me realize that I have what it takes to lead other people...I have what it takes to control the situation as a leader.

I can now confidently hold conversations with anyone when talking about my business and what I have to offer as a leader, and able to look straight into my prospects eyes telling them that they need me.

And you know what...all along I have a great prospecting system and a 45-day training program for my downlines, one which I built with my good friend and upline.

But something inside me still tells me that I'm lacking something. I still think I'm inferior in some way.

And it was SELF-CONFIDENCE...that's what The much anticipated Black Belt Recruiting has helped to inspire in me.

In fact just yesterday I approached Ewen Chia at his seminar. He's a renown millionaire internet marketing coach in my country, to discuss with him business building.

He was impressed, mentioning that he will visit my site.

And you know what? I don't even care if he visits or not, because I know that there are lots of other millionaires like him who I can approach. It's just a matter of time before I have one in my team.

So who should you buy The much anticipated Black Belt Recruiting?

After going through the entire course for 6 times already in the 2 weeks since Black Belt Recruiting was delivered to me, I seriously think anyone in networking can benefit from this.

Very soon...I will have prospects flocking to me and my downlines. Anyone in this industry will do themselves a GREAT favor in picking up a copy of The much anticipated Black Belt Recruiting.

It's a MUST in any network marketer's education.

Thank you Mike!"

The much anticipated Black Belt Recruiting

Black Belt Recruiting From Mike Dillard

2008-07-19T02:10:00.006-05:00

The much anticipated Black Belt Recruiting course is set to launch early next week, here a quick preview from Mike Dillard:

How six and seven figure network marketers close prospects on the phone without doing any "selling." (In fact, with Mark's methods, the LESS you sell, the MORE people you sponsor!)

A sneaky way to get your competition to help you sponsor people into your business... without them even knowing it.

Four words that will destroy your chances of sponsoring new reps — even the ones who already want to sign up! (When I stopped saying these four words — that 99% of networkers say during calls — my sponsoring rate shot through the roof.)

How to instantly "de-fang" loud and obnoxious prospects — and actually have them apologizing and pleading with you to show them the plan. (This secret works even if they were dead set against networking before!)

Be sure and watch the video and sign up for a copy.

View the Black Belt Recruiting video

Barry Minkow Broadens Attack

2008-06-25T00:51:00.002-05:00

Herbalife, PrePaid Legal and Nu Skin
Join Usana on Hit List

June 24th, 2008A lot has been going on in the network marketing (NWM) legal arena since my last Alert (see note below), not the least of which is Team Minkow's ever widening gallery of NWM targets to shoot at. Of course, they're still all publicly traded companies, but they're not just "illegal pyramids" now, they're products are supposedly dangerous, too. Curious how, out of over 2,000 U.S. companies in this industry, Minkow can only uncover these issues within companies whose stock he can short (put options, actually, but either way he still makes money by their stock going down).

If you are not familiar with this situation, please go to the Articles section of my web site and check out my first Rebuttal Report.

I'm working on a response to Minkow's latest stock dropping scare tactic propaganda (involving what are, in my opinion, a gross manipulation of statistics, as well as the legal system, and other physiological ploys designed to scare the Hell out of distributors - and investors), but first some old business: A few months ago Minkow attacked both Usana and Herbalife for allegedly "Cheating in China". That is, illegally operating "underground" NWM operations in mainland China where network marketing has been banned since 1998 (China was overrun with pyramid schemes in the 90's and essentially threw the baby out with the bath water). I began a Rebuttal Report to this attack but abandoned it when, well, no one cared. The SEC considered Minkow's allegations (substantial revenue from 30,000 undisclosed illegal Chinese distributors), and didn't care. Wall Street didn't seem to care. Even the Chinese government didn't care. So I stopped caring.

I care again. Yes, Minkow's "Cheating in China" issue is old, stale news. But there's something far more important to be learned - to be exposed - from what I learned in my investigation of this matter. Something, I believe, far more revealing, and more insidious here than simply a possible stock manipulator getting desperate and clumsy in his efforts to make a company look bad. I strongly believe Barry Minkow knew his China allegations were false, or at least extremely tenuous, but published them anyway. I have little doubt that he knows certain aspects of this attack are false now, but leaves them published anyway.

I finished my "Cheating in China" rebuttal not so much to defend these companies against Minkow's accusations (as, it seems, no defense was necessary), but more as an exposé of Minkow's motives and methods. And if you are not involved with any of these larger, public companies, I urge you to not even think for a second that this is simply an attack on a few competitors (which, unfortunately, too many distributors view as a positive event). These are only the first battles in what could easily and quickly expand into an all out NWM media war. These attacks are harming your company, right now.

Here's the link to the "Cheating in China" rebuttal report: http://www.marketwaveinc.com/articles/ChinaRebuttal-1.pdf

And now, a favor, please...

As most of you know, for the first and only time in 18 years my MarketWave web site was hacked and wrecked in April of 2007 - within a few days of posting my Rebuttal Report to Barry Minkow's initial attack on Usana (interesting coincidence, isn't it?). After several attempts to reconstruct it (it's only at 70% functionality now) I decided to rebuild a brand new, state-of-the-art site with tons of cool new features. I launched that project in October of last year and the site quickly progressed to about... 70% functionality. And now, after going through three web designers and overwhelming frustration, it has stalled at about 80% completed for almost five months now!

So, does anyone out there know of a good, fast, reliable, web developer who knows ASP and SQL who can focus on getting that last 20% done? This site is going to get huge traffic when it's done, so anyone interested in a partial banner-barter deal is a plus (no NWM company ads, though).

If you'd like to assist, or know of someone you would highly recommend, please email me at MWave1@cox.net.

Thanks.
Len Clements
MarketWave, Inc.

Leningrad Cowboys & Red Army Choir - SWEET HOME ALABAMA

2008-04-08T23:29:00.000-05:00

Prepare yourself for this one - maybe with a Stoli martini or two. Back in the days of the Soviet Union , the Soviet Red Army had an official choir composed of male soldiers and musicians. It still exists. The Red Army Choir performs throughout Russia to this day.

Now consider the Finnish rock band called The Leningrad Cowboys. A little while ago, they held a concert in Russia , in which - to the screaming applause of Russian teenagers - they got the Red Army Choir to join them on stage for a performance of " Sweet Home Alabama ." In English! You couldn't make this up!

FTC Revises New Business Opportunity Rule

2008-03-18T21:45:00.002-05:00

Exempts Multilevel Marketing Companes!

March 18th, 2008The Federal Trade Commission announced today that the New Business Opportunity Rule that was proposed in April of 2006 has been significantly revised.

According to the FTC notice, "The Business Opportunity Rule would still cover those schemes currently covered by the interim Business Opportunity Rule, and it would expand coverage to include work-at-home schemes." Most significant to our businesses, the FTC goes on to say,"the revised proposal, however, would not reach multilevel marketing companies or certain companies that may have been swept inadvertently into scope of the April 2006 proposal."

Within the revised new rule it goes on to streamline the required discloser information by "eliminating requirements to disclose the number of cancellations and refund requests that a business opportunity seller receives or the litigation history of sales personnel." View the FTC notice here:

http://www.ftc.gov/opa/2008/03/busrule.shtm

Commentary:
A number of individuals and associations within our industry claimed, or endorsed those who claimed, that the FTC proposed this new rule for the deliberate and specific purpose of destroying the network marketing industry. What's more, it was being "fast tracked" to expedite our industry's demise, or at the very least to garner significant federal revenue from the fines that would ultimately be levied on network marketing companies.
Chicken Little appears to have been wrong. I'm only hedging slightly because I haven't read the entire text of the 114 page revised version of the rule yet. I expect to find at least a few little gotcha's (or still-can-getcha's) in there somewhere. But at least based on the notice posted by the FTC today is seems to be a complete victory for the network marketing industry. And as it should be. If you haven't been following this issue, check out Gerald Nehra's article "FTC: What Were You Thinking?" to get an idea of how misguided the original version of the rule was.
Here was my take on it at the time:
http://www.marketwaveinc.com/articles/alert62.pdf There may still be more revisions, and perhaps surprises, but for now it looks like the sky is going to be staying right up there where it is.

Len ClementsMarketWave, Inc.

Neways Closed In Japan

2008-03-10T20:51:00.002-05:00

Harmful Ingredients CampaignTriggers Three Month Suspension

March 10th, 2008Japan's Ministry of Economy, Trade and Industry (METI), a federal regulatory agency comparable to the U.S. Federal Trade Commission (FTC), has placed a three month moratorium on all recruiting activity within Neways Japan. Product fulfillment to existing reps and customers will be maintained. Besides halting all enrollment of new distributors within Japan, the Utah based company must also recall and discontinue all promotional materials (DVDs, audio CDs, brochures, etc.) containing what the METI has deemed "false claims". The company must also notify all Japanese distributors and customers that the claims were false.

The primary focus of the METI action relates to the "harmful ingredients" campaign that Neways has employed worldwide for many years. The METI has deemed this criticisms of the products sold by competing companies to be unfair, misleading and unwarranted. According to METI, over the past three years Neways distributors were found aggressively attacking competing products by making untrue claims about the health dangers of various common ingredients within them (including the risk of contracting cancer).

METI alleges that Neways Japan has violated the "Act on Specified Commercial Transactions" designed to prevent marketers from lying to increase sales.

According to news reports, the National Consumer Affairs Center of Japan (similar to a Consumer Reports/Better Business Bureau hybrid organization) said it has received more than 1,000 complaints annually concerning the sales tactics of Neways reps in Japan.

Neways Japan launched in September 2000 and is (was) one of Japan's three largest network business companies. According to news reports at the time of Neways' sale to Golden Gate Capital in November of 2006, more than half of their annual $750 million in sales (ending fiscal year of August, 2006) came from Japan (the rest coming from almost two dozen other countries). Today sales in Japan are over $584 million (60 billion yen).

Neways has released a statement saying it takes the METI order seriously and that it will set up an in-house ethics committee and will try to increase its compliance.

Here is a recent news story related to the action:

http://www.japantoday.com/jp/news/428730

Commentary:

The play this is getting in Japan is extraordinary. Television shows comparable to our own 20/20 and 60 Minutes have done extensive segments on the government action, and there are numerous stories in the major print media there. MLM Company owners there are telling me there is a ripple effect going on throughout the Japanese MLM industry where other companies are now coming under more scrutiny. It's especially unfortunate that this has tainted the Japanese market, which has, at least until now, been a relatively friendly one towards MLM.

I've had two of the most prominent television segments translated for me and found at lease a slim silver lining to this otherwise dark cloud - there is little discussion of illegal pyramiding. It appears that about 25% of the focus is on exaggerated income claims, and the other 75% concerns the "harmful ingredients" propaganda that has been the basis of Neways' marketing efforts for over a decade. Based on the claims made by the Neways reps who were quoted or captured on video, they are no more over-zealous or misleading in their claims of "harmful ingredients" in competitor products than anything I've heard presented here in the U.S..

As some of you long time readers already know, I've always felt that this "harmful ingredients" campaign was bogus. In fact, I researched this subject for over 6 months and wrote a detailed exposé on this "harmful ingredients" hogwash back in 2000. You can find it here:

http://www.marketwaveinc.com/articles/spaghetti.asp

Neways was purchased by GGC, who also owns Herbalife, who's personal care products contain some of these allegedly "harmful" ingredients. I had hoped that this new dynamic would encourage Neways to tone down their attacks on competitor's product formulations, but apparently it did not. This is unfortunate on multiple levels. Besides being, in my opinion, a marketing tactic based on ignorance and deceit, and one that unjustly maligns other MLM companies in an industry where there's already far to much unjust maligning going on, it's also completely unnecessary. I've tried Neways products, and they're great! So good, in fact, that they could easily sell on their own merits, without having to convince anyone they should be purchased by process of elimination.

Needless to say, a three month ban on recruiting, a recall of virtually all marketing materials, and being forced to publicly declare many aspects of your marketing campaign to be fraudulent, is not going to bode well for Neways going forward in Japan, or anywhere considering that was where the majority of their sales were coming from. Besides this hit, Neways has also suffered from a significant exodus of distributors over to rival Sisel (recently launched by the brothers Mower and dad Tom, who had originally founded Neways), which recent law suits will not likely halt. Since Sisel also employs the "harmful ingredients" tactic, and operates in Japan as well, it will be interesting to see how this plays out. Maybe they'll both start focusing on why you'll love their products, rather than why everyone else's might kill you.

Len Clements

MarketWave, Inc.

"Magnetic Sponsoring LLC just sent you money with PayPal..."

2008-03-01T15:41:00.008-06:00

Just forget for a moment that Mike Dillard offers a lead generation and cash flow system for Network Marketers and that the system retails for less than $40.

Forget that you get a whole bunch of things you need for just $40: a book in the mail, several e-books, the Closed Door audios, lead capture pages, and complete and comprehensive instructions for making it work.

Forget that you are also given access to a state-of-the-art back office system that allows you to track your leads, traffic, and commissions in real time.

Also forget that Mike pays you $20 commission whenever someone purchases the course from your affiliate site and around $200 if they pick up a copy of the MLM Traffic Formula

Because not only does he do all those things, but he pays his commissions FAST! For example: today is Saturday, March the 1st. Most people are busy enjoying their weekend, right? But not Mike and his staff - they are working hard and fast to make sure they paid all of us (MS affilates)TODAY when most affiliate managers are on the Golf Course! Thanks, Mike - and thanks to your hard-working staff.

Have you picked up of a copy of Mike's program yet? Here's the link: Magnetic Sponsoring.

ABC New Slaps MLM Forbes Slugs Xango

2008-02-22T20:45:00.003-06:00

ABC News Slaps MLM
AP and Forbes Slugs XanGo

February 21st, 2008
In the "Creative Consumer" column on the ABC News web site, ABC News Consumer Correspondent Elisabeth Leamy has followed up to her "How to Avoid Work-at-Home Scams" article from a week earlier with one reciprocally discussing "Legit Work-From-Home Jobs" (at least that's what's suggested by the title). Within the column, which focuses almost exclusively on MLM, Ms. Leamy attempts to assist the reader in distinguishing between "Illegal Pyramid Scams and Legitimate Multilevel Marketing".

The ABC News article can be read here: http://abcnews.go.com/Business/SmallBiz/story?id=4298649&page=1

Associated Press (AP) Business Write Paul Foy has had his XanGo article titled "Company Builds $1 Billion Juice Business" picked up by several major news outlets in the past few days, including Business Week, US News, Washington Post, Fox News, and MSNBC (all online editions) as well as Forbes.com and numerous local news providers. Some provide the subtitle "Exotic 'Super Fruit' Juice Spawns $1B Nutrition Business for One Company; Experts Doubtful."

The AP article can be read here: http://biz.yahoo.com/ap/080208/exotic_juice_claims.html?.v=1

Forbes then followed up with an exclusive XanGo article of their own simply titled "Drinking The XanGo". This article, oddly dated 2/25/08 (4 days from now), is highly critical of exaggerated medical claims alleged to have been made by XanGo distributors.

The Forbes article can be found here: http://www.forbes.com/business/forbes/2008/0225/068.html

Commentary:

What is most disturbing about the latter Forbes article isn't just the examples sited of blatant disease treatment claims being made by XanGo reps, but the comments added by XanGo supporters that follows it. One such defender interprets the various testimonials quoted in the article as the "voicing of personal experiences protected by our Freedom of Speech, (and) First amendment rights." Indeed, this wholly inaccurate and dangerous concept is what is taught by XanGo leaders in the field and apparently sanctioned by XanGo corporate (considering it's stated on the "Magic Wand" audio CD - one of the most enduring and prevalent XanGo marketing tools). Neither the FDA nor FTC allow for disease prevention or treatment claims to be made about a dietary supplement, even in the form of a personal testimonial. The author, senior staff writer Helen Costner, also asks of XanGo's co-founder Gordon Morton what I have been asking for years. That is, what about claims made in open meetings and on the Web, where a Google search for the words "XanGo" and "cancer" currently returns over 270,000 hits (an all time high) with those connected to sales pitches both numerous and easily discernable. All, as Ms. Costner points out, "despite a compliance department at HQ that keeps a lookout for such things?" Mr. Morton's alleged response was, "I can't monitor individual conversations". Normally I'd suspect that such an answer - so non-responsive as to almost be a non-sequitur - was taken out of context and not the complete response. Except, this is pretty much the same kind of response I also received when I asked this question of XanGo corporate back in 2004.

Before anyone fires off another flame mail asking what I "have against" XanGo, let me be clear on this point. I like XanGo! In fact, other than one ill-conceived attempt to patent mixing the rind of the Mangosteen with any other fruit juice (which did not withstand a legal challenge), they appear to be one of the best run companies in the industry, and have made a lot of very right decisions. But why they continue to be so dismissive and cavalier about medical claims is disturbing. Why they don't have a massive compliance education campaign underway, and a zero-tolerance policy in place, is baffling. Especially considering they have already receive a Warning Letter from the FDA - the one strike allowed before the feds usually go all "SeaSilver" on you. I continue to comment on this not because I'm trying to "take down" one of my "competitors", but because I don't want them to be the next SeaSilver! What Ms. Costner seems to be asking is, Why can anyone with a web browser, such as a Forbes magazine columnist and I, find so many reps making so many such claims, so easily, so quickly, but XanGo's "compliance department" cannot? That's a great question!

The AP piece on XanGo isn't the first negative treatment of an MLM company by author Paul Foy. He has also written articles on Usana, and Amway. In his XanGo article he calls on discredited anti-MLM zealot Jon Taylor to comment on their pay plan, which doesn't demonstrate much objectivity. Taylor's conclusion, of course, is that XanGo's plan is indicative of a pyramid scheme. Foy, of course, offers nothing as a rebuttal (except XanGo's denial). Foy also quotes a nutritional exert who states, "My big concern with XanGo is that the business has gone a long way without showing any benefit in human trials", but offers no challenge to the obvious folly of such a comment. Virtually no marketer of a dietary supplement would want to substantiate a medical benefit lest they cause the FDA to change its classification to "unapproved new drug". Furthermore, no company is going to spend the time and money (potentially into the millions) to conduct clinical trials on a product based on a substance found in nature than can not be patent protected. Thus, XanGo executive Joseph Morton's comment, "I didn't have to have it confirmed in the New England medical journal before I would listen.", which Foy quotes in his opening paragraph, is not unreasonable.

Foy spends the bulk of his article attacking the anti-oxidant capacity of Mangosteen juice, but then quotes XanGo's own R&D manager as agreeing that such ratings are a "numbers game" and should be dismissed. So what was the point? Foy then mentions only in passing XanGo's assertion that there's more to a juice than simply its antioxidant rating. So then, shouldn't validating that statement have been the focus of the article?

In Ms. Leamy's (ABC News) previous column from a few days ago, about "How to avoid work-at-home scams", she states the astonishingly spurious comment, "Anytime a business opportunity requires you to spend money in order to start making money, that's a telltale sign of fraud." Ms. Leamy must see "fraud" it pretty much every business opportunity that exists!

A point by point response to her article can be found here:

http://www.marketwaveinc.com/articles/leamyarticleresponse.pdf

Ms. Leamy's column is optimistically subtitled "People Often Confuse Illegal Pyramid Scams and Legitimate Multilevel Marketing". She's right. They do.

And sometimes they write columns for major news providers.

Len Clements
MarketWave, Inc.

What Ingredients Are In Monavie

2008-02-03T22:11:00.003-06:00

A lot of traffic to my blog comes in from searches like "MonaVie label," "MonaVie ingredients," etc. The following was sent to me from a MonaVie Blue Diamond:

As per MonaVie:

To be compliant with food labeling laws set by the US Food and Drug Administration, the label states: Fruit juice from concentrate (white grape, nashi pear, acerola, aronia, purple grape, cranberry, passion fruit, apricot, prune, kiwi, blueberry, wolfberry, pomegranate, and lychee, camu camu).

WHY Juice from concentrate is widely regarded as having the same nutritional content when it is reconstituted as it would from a fruit juice that has not been concentrated. Even with this in mind MonaVie takes an extra step utilizing fruit juices that have gone through a gentle concentration methodology as an extra precaution not to affect the nutritional value or create any flavor loss.

The following is a list of the nutrition facts for MonaVie Original and Active Juices. While the exact amounts are proprietary, we can tell you that the ingredients appear on the label in order by amount from greatest to least. This means that because a?ai is the first ingredient listed on the label, there is more a?ai in the MonaVie products than any other single ingredient. The eighteen additional fruits have been added to MonaVie?s premier acai blend for the purpose of adding to the product?s nutritional spectrum to provide you with a variety of antioxidants

Label Information (Original & Active)
100% Juice

Nutrition Facts

Serving Size: 1 fl oz (30 mL)
Calories: 30
Calories from Fat: 5
Total Fat: 0.5 g, 1%*
Cholesterol: 0 mg, 0%*
Potassium: 55 mg, 2%*
Sodium: 5 mg
Total Carbohydrate: 6 g, 2%*
Dietary Fiber: <1g, 1%*
Sugars: 3 g
Protein: 0 g
Vitamin C: 25%*
Iron: 2%*
Vitamin K : 12%*

*Percent Daily Value based on a 2,000 calorie diet. Not a significant source of saturated fat, trans fat, vitamin A, or calcium MonaVie Original Ingredients: Proprietary blend of acai (freeze dried powder and puree); fruit juice from concentrate (white grape, nashi pear, acerola, aronia, purple grape, cranberry, passion fruit, apricot, prune, kiwi, blueberry, bilberry, wolfberry [goji], pomegranate, and lychee, camu camu); fruit purees (pear, banana, bilberry); citric acid, natural flavor, sodium benzoate, potassium sorbate.

MonaVie Active Ingredients: Proprietary blend of acai (freeze dried powder and puree); Fruit juice from concentrate (white grape, nashi pear, acerola, aronia, purple grape, cranberry, passion fruit, apricot, prune, kiwi, blueberry, wolfberry [goji], pomegranate, and lychee, camu camu); fruit purees (pear, banana, bilberry);d-glucosamine hydrochloride, esterified fatty acids, natural flavor, citric acid, sodium benzoate, potassium sorbate.

Usana and Barry Minkow Update

2008-01-14T23:23:00.000-06:00

Usana Vindicated
Company has Minkow & Anti-MLM Zealots on the Ropes
after Three Punch Combination

January 14th, 2008For those of you not familiar with the attack waged by ex-felon Barry Minkow on Usana, and most recently Herbalife, and indirectly against the entire MLM industry, please check my Rebuttal Reports at http://www.marketwaveinc.com/articles.asp.

Minkow's 86 page report that declared, among other things, that Usana was an illegal pyramid, caused the SEC to begin an "informal inquiry" about 10 months ago, and was also the catalyst to two shareholder law suits against the company. Forbes, and the New Zealand based National Business Review, also reported that the FBI was investigating Usana.

On January 3rd Usana announced that one of the shareholder lawsuits had been dismissed with prejudice (meaning the complaint can't be refiled). Usana filed a motion to dismiss, but before a judge could even rule on it the plaintiff agreed to not challenge the motion and drop the case. The basis of this suit was that Usana was an unsustainable illegal pyramid.

On Friday, January 11th, Usana issued a press release announcing that the SEC had closed their investigation and found no evidence of wrong-doing. No accounting irregularities, no disclosure issues, and no evidence of illegally operating a pyramid scheme - all in direct contradiction to claims made by Minkow and his team of anti-MLM zealots.

Within an article* published by the Wall Street Journal after the SEC announcement, it was further revealed that, according to their sources, there is currently no FBI investigation. Allegedly the FBI had, upon first receiving Minkow's anti-Usana materials, indicated they would inquire about them. According to the article, Minkow now admits that the FBI subsequently told him they were leaving the investigation of Usana to the SEC, and were not going to pursue it.

*Subscription required to read the full article.

Commentary:

Since everything Team Minkow claims is wrong and/or illegal about Usana could conceivably apply to all network marketing companies, I have always considered his attack not just on Usana, and more recently Herbalife, but the entire industry. Had any of his allegations gotten traction - such as, when most products are sold to distributors that makes the company an illegal pyramid - we might have had a major challenge ahead of us.

Usana's war is not over by any means, but this one SEC battle will most likely be the defining one. Virtually everything the remaining shareholder and "distributor" suits are accusing Usana of were surely part of what the SEC was looking at. Currently the judge in Usana's case against Minkow is mulling over Minkow's motion to dismiss, which may succeed. Not because the case had no merit, but because Usana is suing Minkow on stock manipulation issues rather than libel so the standard of proof is extremely high. But this SEC decision certainly can't help Minkow in his pursuit of a dismissal. And the "distributor" suit was a joke even before these latest developments. The two lead plaintiffs are an ex-Usana product customer, and a guy who is working with Minkow who openly admits he suffered only $500 in damages - and that's from refunds Usana refused to pay him on product he never returned!

Of course, the shorts, trolls, and general anti-Usana antagonists on Usana's Yahoo! stock board are already spinning their goofy, face saving theories (pay offs, incompetent or uncaring regulators, etc.). They're still not willing, or able, to accept the most obvious, logical reason for why the SEC could not find any evidence of Usana's MLM business model being illegal, or in any way wrong.

Because it's not.
Len Clements

MarketWave, Inc.

Saturday Night At The Movies - Texas Style

2008-01-08T00:31:00.000-06:00

I have been wanting to go see Tommy Lee Jones in No Country For Old Men for several weeks. So this past Saturday I checked the listings, and only one theater in Dallas was still showing it. My wife said she would take over parenting for a few hours, so off to the movies I went.

Now, I had several reasons for wanting to see this movie: Tommy Lee Jones is a favorite actor of mine, and No Country For Old Men was shot primarily in West Texas (in and around Marfa). For you movie history buffs, this is just a few miles from where Elizabeth Taylor and James Dean starred in Giant back in the late 1950s. In fact, some of the background scenery is the same in both movies.

Also, Tommy Lee Jones plays the Sheriff of Sanderson, Texas - my hometown. I arrived at the theater just a few minutes before showtime, and right as I was about to purchase my ticket, a gentleman and his wife came up to me and asked me if where I was standing was the waiting line for tickets. I said, "yes, and why don't y'all go next." After I let them cut in front of me in line, it suddenly dawned on me that I had just let head coach Wade Phillips of the Dallas Cowboys have my place in line!

Well, the movie was fantastic. Afterwards, I got to visit with Coach Phillips and his wife and tell them a little bit about my connections with the movie. I also had to mention that back in my college days out in San Angelo, the most exciting part of the summer was when Coach Phillips' father Bum Phillips had the Oilers' training camp on the Angelo State campus. I specifically remember Earl Campbell riding around on his motorcycle - equipped with a cassette player and loud speakers - blaring out Country and Western tunes.

I guess I'll have to make sure to visit that theater again. Maybe next time I'll run into Tony Romo and Jessica Simpson!

New Comments System

2007-12-23T01:58:00.000-06:00

I just found a new comments system that Aaron Cook Dot Com is now using. Like Aaron, I have never been a fan of bloggers comment system. The new blogger is very user friendy and they have some great new features, the comments system is not one of them. Thanks Aaron for posting about this.

By the way, Intensedebate directly support Wordpress, Typepad, and Blogger. So if you want to add this to your blog please visit them, and be sure and add me to your friends list when you get setup.

What is Magnetic Sponsoring

2007-12-16T13:48:00.001-06:00

I thought I would give my readers a more comprehensive look at the Magnetic Sponsoring program from Mike Dillard. What inspired me to do this was a recent search query on my blog traffic report. A reader came to my blog via a search on Google for "what is magnetic sponsoring." So, just exactly what is Magnetic Sponsoring?

Simply put, Magnetic Sponsoring is a lead generation and cash flow system designed for Network Marketers from all companies. We all need leads, and we all need cash flow. Cash flow is especially important when you're trying to get your business off the ground. Generating your own fresh leads is much more rewarding than purchasing leads. The MS system also teaches you how to Sponsor. Hey, you can generate leads all day, but if you can't sponsor anyone...!

I could go into the history of Magnetic Sponsoring,
and if you are really interested in the history, Mike talks about it in the book. For example, Mike was waiting tables and struggling with his network-marketing business. But now, when he sees a sports car he likes, they deliver it to his front door three weeks later!

Recently, the MS system also got a complete makeover and was relaunched as MS 3.0. There are some great new tools, such as a completely new state-of-the-art back office that allows you to track your traffic, leads, and commissions in real time.

This is one of the lead-capture pages that comes free with the affiliate system. The commission on this product is around $200!!

The new back office for MS 3.0 is created so that you can get started immediately in utilizing the system. The affiliate links page lists all the capture pages now available. More are coming! Including the much-anticipated Black Belt Sponsoring Course!

In addition to the Magnetic Sponsoring book that you receive by mail, your back office in packed full with other goodies! The MLM Domain Secret e-book itself is worth the cost of the entire Magnetic Sponsoring system!

The is the lead capture page I currently use - it works great:

In summary:

Magnetic Sponsoring is a lead generation and cash flow system for Network Marketers.
The system retails for less than $40.
You get a whole bunch of things you need for just $40: a book in the mail, several e-books, the closed door audios, lead capture pages, and complete and comprehensive instructions for making it work.
You also are given access to a state-of-the-art back office system that allows you to track your leads, traffic, and commissions in real time.
Also, Mike pays you $20 commission whenever someone purchases the course from your affiliate site and around $200 if they pick up a copy of the MLM Traffic Formula.

Pick up a copy of Magnetic Sponsoring

The Life And Death Of Network Marketing

2007-12-11T02:07:00.000-06:00

This post is not about the silly e-book sweeping through the industry right now that's got everyone abuzz. This is the real thing. I, just this morning, received a message from "The AGLOCO Development Team." It looks like the death of AGLOCO is eminent. I'm sure the member list will be salvaged, as often is the case when these things happen, and if you were signed up, you can expect to start getting a lot of spam about the next best thing.

Dear Joe,

We would like to update you on the status of AGLOCO's operations. We continue to believe in the AGLOCO concept, but our revenue is currently not sufficient to give Members a meaningful distribution. And though there are increases in membership, the resulting revenue is not enough to support operating costs. As a development team we are unable to continue to use our savings to fund the operations. If any Member would like to pursue continuing the operations of AGLOCO, you may contact us at agloco1@live.com .

We would like to thank every Member for supporting our effort to bring a piece of the Internet directly to the user. We hope that we can find a way to keep the operations going.

AGLOCO Development Team

If you've been in the industry awhile, you probably have a small collection of messages similar to this. Let's see... Better Universe, Everydaywealth, and UltimateMatch are a few that come to mind. Anyway, watch out for start-up deals. They can eat up lots of your time and leave you with nothing in the end!

I'm Back, Sorta

2007-12-04T22:03:00.000-06:00

I have to say readers these have been the most fantastic 5 months of my life! My son "Reagan" was born back in July and things for me changed real fast. I'm trying to get back posting more often so bear with me.

At some point in the past few months google has apparently done some type of update, I think I was around a pr3 and now I'm back to pr1? Must of been my review on John Chow dot com that got me clobbered? Oh well!

Blogger has recently added a new survey tool, and I have added a survey over on the left. I hope to add another in the next few days, please take time to fill them out!

And Happy Holidays to everyone!

Ten Reason Why The Monavie MLM is Not A Scam

2007-12-01T16:16:00.000-06:00

Acai Berry Juice Information: Ten Reasons Why the MonaVie MLM / Network Marketing Model is not a Scam

One of the most obvious objections to MLM or Network Marketing, is that it's a scam. People have a lot of varying opinions on what constitutes a scam. On Ty Tribble's MLMBlog.net
, there is a heated multi-month discussion concerning MonaVie being a pyramid scheme or MLM scam.

The discussion wanders into many areas concerning nutrition, effectiveness of the product, comparisons to competing products etc., but still keeps hammering home that MonaVie and MLM is a scam.

Some common arguments included in the post and what I hear from people are:

"It's a legalized scam."

"It's a pyramid scheme."
"All the company want to do is sell material, they aren't really interested in selling a product."
"Really, all they want you to do is sign up people."
"If they were a real company, they would put their product out in the traditional retail market where it stands on its own."
" You're going to alienate your friends and family."
"You're friends are just really high-pressure sales people."
"If you really believed in the product, you would try to sell it retail."
"These health products are way over-priced. You can get the same product at Costco."

Best MLM Resources: Straight Talk On Building Your MLM Team

2007-12-01T12:44:00.000-06:00

Best MLM Resources: Straight Talk On Building Your MLM Team

Here's a few questions many MLMers ask .... and worry way too much over IMHO:

"When building your downline in MLM, how do you keep it all organized?"

"How do you make sure you are helping everyone in your downline succeed?"

"Do you just keep it simple and only help those who call for it?"

"Do you keep in touch with every rep you personally sponsored?"

"How can you ensure you keep in touch with your downline, create a teamwork mindset, and help everyone succeed?"

In other words ..... "how do you "lead" your group of people successfully?"

Well....some folks start a website with a team name, and back office. IMHO that is just too complicated for the average MLMer to make happen.
My short answer...keep it simple.

You can't "do" everything for "everyone". Trying that will drive you nuts...and isn't a good recipe for a successful business anyway.

MLM Today: By Invitation Only - Fanista

2007-12-01T12:33:00.000-06:00

MLM Today: By Invitation Only - Fanista:

"As you may have read, Alticor is launching a new site called Fanista. Below is a sample of the invitation email posted at Idolator. Like you, I'm an ardent fan of all things entertainment. That's one of the reasons I am so excited to be a part of a new company called Fanista.com. It is a web site made for real, impassioned fans. The site's community is focused exclusively on music, DVDs, games and books, and is a place where members can share their reviews and opinions as well as shop. In its simplest form, Fanista.com is an attempt to replicate online what we all do in the physical world: champion the artists and entertainment we love. Also, like the real world, there is NO charge or subscription fee to do what it is we all do so naturally."

Network Marketing Today: MonaVie Set for January 2008 Pre-Launch in Brazil

2007-12-01T12:32:00.000-06:00

Network Marketing Today: MonaVie Set for January 2008 Pre-Launch in Brazil: "The January pre-launch is the first step in a process that will culminate in a full-scale launch of MonaVie in Brazil, offering Brazilian distributors access to MonaVie products, distributor support, and sales tools. During the pre-launch phase, distributors will have the opportunity to begin building their MonaVie businesses in this special market. Not only is Brazil the source of MonaVie’s key ingredient–the acai berry–but it is also the focal point of the efforts of the MORE Project, MonaVie’s charitable organization.'"

MLM - Network Marketing Blog : Ty Tribble Google Adwords MLM Coaching

2007-12-01T12:30:00.000-06:00

MLM - Network Marketing Blog : Ty Tribble Google Adwords MLM Coaching

I did a coaching session this afternoon for a couple of young ladies involved with a newer Network Marketing company called Zrii and they sent me a really cool note that I can't help but share.

I was pretty hesitant to offer coaching a couple of months ago, but with testimonies like this, I think I am going to have to continue...

Mike Dillard Launching Magnetic Sponsoring 3.0

2007-11-05T01:11:00.000-06:00

Magnetic Sponsoring

Watch out Ann Sieg, Mike Dillard just announced that on November 14th he will be relaunching his Lead Generation and cash flow system.

In the coming days leading to Wednesday the 14th, I’ll be sharing some of the most important features of the new system with you, including details about the new compensation plan that pays out on two levels, the five new products you’ll be able to earn a commission on, (including Black Belt Recruiting), and the brand new affiliate link feature that will allow you to build your own list while using the system.

A few other details mentioned:

Free to anyone who’s purchased a copy of the Magnetic SponsoringCourse.

No monthly fees to pay, and if you already have an existing system account, you’ll be upgraded automatically on the day of the launch at no cost.

If you don’t have an account, you can get one today just by picking up a copy of the Magnetic Sponsoring book for less than $40. It’s a physical course that will be shipped to your home, and you’ll have instant access the new system when it launches on the 14th.

Mike also says in his press release that if you pick up your copy now, you can participate in the launch of “Black Belt Recruiting” on November 27th, which promises a windfall of profits for affiliates.

The course comes with a 90-day money back guarantee so there really nothing to lose, and with all the exciting changes coming up this is a great time to get onboard.

GodTube Marketing Finds Its First Critic

2007-10-24T22:23:00.000-05:00

I just posted a few days ago that just 6 Network Marketing related videos appeared on GodTube. While the site is obviously about spreading the message and earning a "few" dollars in ad revenue, a few are bound to find a creative and not too in your face way of promoting their businesses.

The comment left on this Video shows that some believe there is no room for promotion on the site:

This video bothers me alot...it sounds too much like what those prosperity preachers teach which isn't in the bible. If property wasn't from God, then why does Paul say this: 2 Corinthians 11:27 I have worked hard and long, enduring many sleepless nights. I have been hungry and thirsty and have often gone without food. I have shivered in the cold, without enough clothing to keep me warm. Paul WAS doing the work of God and he suffered from hunger, from lack of warm clothes, was thirsty and on and on. Taking up our cross never meant having a comfortable life. In fact Jesus speaks against wealth! Matthew 6:24 â��No one can serve two masters. For you will hate one and love the other; you will be devoted to one and despise the other. You cannot serve both God and money. He also tells us to NOT store up treasures here on earth...that our treasures are in Heaven. You need to back up what you are saying with scriptures and you didn't...that raises alot of red flags. The abundant life Jesus was speaking of had nothing to do with money. << less
GodTube.com - Is Your Dream Alive?

Entrepreneurs On Call

2007-10-22T22:27:00.000-05:00

Len Clements to be Interviewed on Live Radio
Topics to Include the State of the Industry andDefending Against Competitor Hype

October 22nd, 2007

This Wednesday, October 24th, and next Wednesday, the 31st, I will be interviewed by Dale Stefancic, host of the live "Entrepreneurs On Call" radio program. The show airs on WELW 1330 AM in the Cleveland area, but can also be heard live on the web by going to EntrepreneursOnCall.com and clicking the ON AIR button.

The show will air from 2:00-2:30 pm PST (5:00-5:30 pm EST), but if you are new to the network marketing industry and still have to be at work during those time ;-) you have a couple of options:

1) Wait a couple of weeks for the show to be archived online, or;

2) Get Radiotime ($39.99), Magix Webradio Recorder ($29.99) or Replay Radio ($49.99), which are all basically like Tivo for internet radio. If you're a Mac user like me, by far the best Webcasting auto-recorder is Audio Hijack Pro ($32.00).

On a side note, there are other great MLM-centric radio shows, such as Tom Chenault's "Home Based Business Show", that might air too early for some of us left coasters. These cheap audio grabbers are a great way to collect these shows and then listen to them later in the day.

On Dale's show this week we'll be focusing on the State of the Industry, some of the challenges it is currently facing, and some very compelling reasons to believe that we've got some good times ahead of us.

The following week we'll be talking about some rather "out of the box" techniques for growing and expanding your business, including an overview of what I refer to as "Network Marketing Defense".

To see an announcement of these two shows, and Dale's entire upcoming guest list, click HERE. I hope you can join us. It should be fun!

Len Clements

MarketWave, Inc.

Be The 2nd Network Marketer To Market On The Fastest Growing Site In The US

2007-10-21T16:07:00.000-05:00

Launched earlier this year by a group of Dallas entrepreneurs GodTube
has quickly become the fastest growing website in the US. With 2.1 billion Christians worldwide it's not hard to imagine why.

Doing a keyword search for MLM on YouTube returns over 7,000 results and just 6 results on GodTube. It looks like all 6 are from the same user. There are lots of Christian Networkers out there and this looks like a great place to share the message. I don't think your latest company video with a link to your replicating rep site will fly here however as they do screen all videos.

Build Your Own Marketing List

2007-10-13T12:28:00.000-05:00

My good friend Mike Glaspie recently sent me a message about a new service he has just launched called MyMegaList. Many of you have heard of Mike, if you haven't you have probably come across some of his other marketing systems:

BannersGoMLM.com
BannerCo-op.com
FreeLinksNetwork.com
MyScitveIncqz.com
BuildReferrals.com
BuildReferralsNextGen.com

These are just a few of his other successfull marketing sites. Heres some more info from Mike:

"You MUST build and mine your own list."

In other words, develop an email subscriber list of people you can communicate with regularly who are more likely to purchase from you than any "cold lead" obtained through co-registrations or purchased lists or rented lists.

You MUST have your very own MyMegaList!

For most, this is a daunting, if not overwhelming task! Because while sending email is inexpensive, sending it to a LARGE subscriber list requires technical know-how and technological investment most are unable to obtain, or simply don't know where to start.

But now there is a simple way to start building your own list, with the built-in ability to mail to all your subscribers on a regular basis. Imagine being able to send your message to thousands of ready and eager subscribers EVERY SINGLE WEEK... all with the simple click of a mouse! And get this... IT'S FREE!!!

A unique list building program unlike all others

With MyMegaList, not only can you grow and mail to a massive list all on your own, you can actually LEVERAGE your referred subscribers into an even BIGGER list! That's because all your subscribers can refer other subscribers and all of these are also placed in your distribution list automatically! This goes on for FIVE FULL TIERS!

Monavie Income Disclosure Statement

2007-10-10T16:34:00.003-05:00

If you have wondered about how many people in Monavie are making money or how much they are making (or not making), Monavie has just released the 2007 Income Disclosure. Be sure and read the disclosures at the bottom of the page.

Putting more information in the hands of distributors and potential recruits is always a positive move. It seems like it's taken them awhile to finally publish this disclosure statement....since they launched Monavie in January of 2005!

Monavie Income Disclosure Statement

MonaVie - Product Information

Downline, The Movie

2007-09-29T11:29:00.000-05:00

I just got this update from the folks at Downline, The Movie. If you are in New Hampshire be sure and make it to the screening:

Hey Everyone,

"The Downline" was chosen to screen at the New Hampshire Film Festival on October 12 and 13th, 2007 in Portsmouth, NH. So, if you are in New England that weekend, come check us out. If you know anyone in the greater Boston area, please forward this e-mail to them. We want to pack the house. The venue is a beautifully restored theater called The Music Hall...an experience not to be missed.

The 2pm showing at the Music Hall on Saturday will be our main event. Come meet a few of the filmmakers...Eric Martinis (Director/Producer), Stan Pavuk (Producer), Andy Kintzi (Editor), Chad Gracey and Patrick Dahlheimer (Music Supervisors)

We'll do a Q & A session right afterwards... and that evening...Andy Kintzi will be spinning records at a local haunt in Portsmouth.

Please click on the link below for more information about NHFF and our two screenings.

New Hampshire Film Festival 2007 Presents : Downline, The

Sumner Redstone's anti-agingin secret- Monavie

2007-08-25T20:57:00.000-05:00

I just received a message from a member of the Monavie upline "Scott Olson": This was recent article
from CNN.com Talking about how Sumner Redstone is using Monavie.

At a recent party, Redstone gave bottles to Bill Clinton and celebrity chef Wolfgang Puck. "Just about every friend I have is on it," Redstone says - a group he says includes Viacom and CBS board members as well as cancer survivor and former junk-bond king Michael Milken. (It can also be found in the clubhouse of the Boston Red Sox; pitcher Jonathan Papelbon is a fan.)

Sumner Redstone's anti-aging secret - Aug. 24, 2007

MLM & Pyramid Scams: Monavie fans: Bill Clinton, Wolfgang Puck and more

Len Clements Marketwave- Mannatech Terminates Top Distributor

2007-08-25T11:56:00.000-05:00

Mannatech Terminates Top Distributor
CEO Sam Caster Terminates Himself
August 22nd, 2007

Last Friday (the 17th) Mannatech issued a brief press release announcing that they had terminated Ray Gebauer due to his recent conviction for tax evasion. Gebauer, who had been a Mannatech distributor since 1994, was their highest earning rep at one point with a downline exceeding 100,000 people that earned him a monthly income well into the six digits. He was one of only about ten Associates to reach the rank of "Platinum Presidential", the highest position in Mannatech's compensation plan.

According to Terry Persinger, President, COO, and now interim CEO of Mannatech, "Mr. Gebauer's conviction places him in violation of his Associate agreement with Mannatech. We expect, and the Company's policies require, all Mannatech Associates to comply with applicable laws, including tax laws."

According to an article published in the August 14th edition of The Wall Street Journal, Gebauer was found guilty by a jury and is currently being held without bail while he awaits sentencing (scheduled for November). He could face up to 20 years in prison.

The jury found Gebauer guilty of failing to pay taxes from 1998 through 2001. According to the WSJ article, which quotes assistant U.S. attorney Karyn Johnson, his gross income was over $3.5 million during those years and Gebauer owes at least $316,000 in taxes. Ms. Johnson is also cited as stating Gebauer last filed a tax return in 1996.

The press release can be viewed here:

http://biz.yahoo.com/prnews/070817/laf052.html?.v=81

The Wall Street Journal Article can be viewed here:

http://online.wsj.com/article/SB118713131702197779.html?mod=yahoo_hs&ru=yahoo

Sam Caster Resigns

According to a company press release, Sam Caster has resigned as Mannatech's CEO so he may "focus his efforts on working with field sales leaders to transition to Mannatech's new global wellness sales program."

The Texas Attorney General sued the company on July 5th for operating an "elaborate scheme" to defraud consumers (by overstating their product's ability to prevent, treat or cure diseases). Mannatech followed with the announcement of new "compliance initiatives" designed to better control the claims made by their Associates.

Sam Caster founded Mannatech in 1993 under the name Emprise International. He will remain chairman of Mannatech's board of directors. Mannatech's president, Terry Persinger, has been named interim CEO while a search is conducted for Caster's replacement.

Mr. Caster's corporate history with Mannatech has been contentious. On April 1, 2000, Caster resigned as President and became Co-Chairman with Persinger replacing him as President. Caster resigned a month later due to his removal as President and the board's refusal to name him the sole Chairman of the Board. Another month after that Caster entered into a "consultancy agreement" with Mannatech where Caster would be a "Global Vision Architect Consultant" (for $600,000 annually plus expenses and other perks). On March 5, 2002, the Board of Directors nominated Caster as sole Chairman of the Board. On April 15, 2003, Mannatech's board again appointed Caster as its CEO.

Here's an article about thier "compliance initiatives":

http://www.star-telegram.com/business/story/178805.html

The Texas AG's notice about their legal action is here:

http://www.oag.state.tx.us/oagnews/release.php?id=2086

The press release about Mr. Caster's resignation is here:

http://biz.yahoo.com/ap/070821/mannatech_ceo.html?.v=1

Commentary:

Let's count how ways somebody got this wrong.

The Wall Street Journal claims Gebauer "operated a network that had 718,000 associates and customers". As of June 30th Mannatech (the entire company) had sold products within the previous 12 months to a total of 569,000 people. The WSJ also states that Gebauer earned $3.5 million during those four years in question, and that was his total income, not just from Mannatech commissions. That averages about $72,900 per month. That's probably a little light. But assuming it's accurate, how does that result in a total tax burden of $316,000? Keep in mind, Gebauer didn't just skimp on his taxes, he didn't even file! Ray is one of those anti-tax renegades who believe paying taxes is voluntary (there's quite a few who believe likewise - some of which he's probably about to spend some quality time with). The article also states he didn't file a return from 1998 to 2001, but "last filed a tax return in 1996". What happened to 1997? I appreciate that much of the data cited by the article's author came from Ms. Johnson, but still, considering this and their previous Usana reporting I've got to wonder, does anyone vet these articles before they are published?

And then there's Mannatech. I also appreciate that there are a number of investor law suits against them right now, and the Texas AG has sued them for making medical claims about their products, so they have state regulators and shareholders to impress. But I'm not sure canning your top distributor is the way to do this. First of all, I believe they've just opened themselves up to blockbuster wrongful termination law suit. As an independent contractor, who was promised "residual income" I'm thinking what legal challenges one my have in their personal life shouldn't have any effect on that already earned income. I'm sure Mannatech isn't thrilled about the idea of paying huge sums every month to a guy sitting in prison (not the most conducive environment for recruiting), but so what? The deal wasn't to pay effortless "residual income" as long as you keep applying effort. It's my opinion that any clause in the Mannatech Policies that allows for termination of this income for legal violations that are personal and have nothing to do with the Mannatech business would not withstand a legal challenge. But yes, it likely will cause an up tick in their Earnings-Per-Share.

Then there's Mr. Caster. My suspicious (only that) is that, as I reported in Alert #83, Caster's stated beliefs as to what are defensible product claims, and the amount of warning and opportunity Mannatech was given to have avoided the AG legal action, might have again caused the board to ask for Caster's resignation. Either way, the violations of FDA regulations in how their products were being promoted were egregious, obvious, numerous, and continuous, and Caster had many months, if not years, to have implemented "compliance initiatives" that would have avoided the shareholder class actions, bad press, and AG law suit.

And finally, there's Mr. Gebauer. Ray, what were you thinking!? Even if you're right - even if there isn't a specific law that says we have to pay federal income taxes (no, I can't find it either) - how many like-minding inmates does there have to be before you abandon this utterly unwinnable war? After all, even if you were to prove, once and for all, that income taxes are voluntary, either everyone stops paying income taxes and the United States government and economy completely collapses within weeks and utter chaos ensures, or congress simply passes an amendment to the Constitution that makes income taxes compulsatory! Why risk such a wonderful, opulent lifestyle - which you still would have had even if you gave Uncle Sam 35% of it - to fight a war that logically, rationally, can not possibly be won, that practically guarantees your eventual incarceration!?

As Charlie Sheen's character said to Michael Douglas's in the movie "Wall Street"...

How many yachts can you ski behind?

Len Clements

MarketWave, Inc.

Why Network Marketing

2007-08-12T23:07:00.000-05:00

Enjoy Network Marketer Bruch Seah from Singapore as he sings his hit song Why Network Marketing

Update on YTB Travel and The Ricketts

2007-08-12T22:31:00.000-05:00

Previous Alert Was a Little Rickety
YTB Travel & The Ricketts Respond

August 12th, 2007After my July 14th Alert (#84) regarding the Florida AG's investigation of top YTB Travel distributors Rick & Brenda Ricketts I received letters from the attorney's for both the Ricketts and YTB Travel. My main concern regarding YTB Travel, which I described in the Alert, was that they appeared to be in business more to sell the business opportunity than to sell travel which, based on a mountain of legal precedent, might be indicative of a pyramid scheme. Multilevel commissions are supposed to me paid on a product or service that can be realistically sold to someone who just wants the product or service, and isn't purchasing it just to participate in the business opportunity

YTB's attorney, Ted Lindauer, responded, "Your article misunderstands the YTB business model. The network marketing 'product' is the Referring Travel Agent license, a business opportunity." Not only does it appear that I understand the YTB business model perfectly, their attorney just confirmed it.

Mr. Lindauer also asserted that, "The Reps who sell the RTA licenses do not have to buy it nor do they gain any commission advantage by buying it... Where the Rep position with MLM commissions is truly free there can be no illegal pyramid present." I see. So if I resurrected the "Airplane Game" (the classic pyramid scheme from the 70s and 80s involving $1,500 cash payments and cash rewards based solely on the recruitment of others) and made the $1,500 cash investment optional, it would no longer be an illegal pyramid? Or, might there be other aspects to consider than this single, overly simplistic factor?

Apparently the Florida AG seems to think so. Here is the text of the notice concerning the Ricketts investigation:

"Possible unfair and deceptive business practices in the sale of internet travel website opportunities or in the recruitment and operation of multi-level marketing systems promoting business opportunities and recruiting sellers of travel. Possible violations of Florida Deceptive and Unfair Trade Practices Act... prohibiting operating, participating in, or soliciting on behalf of a chain letter or pyramid sales scheme."

Mr. Lindauer claims that "YTB had extensive meetings with the Florida AG's office about the inference of YTB being an illegal pyramid and in November of 2006 the Florida AG informed YTB that there was no longer an investigation of YTB as a possible illegal pyramid...". However, a spokesperson for the Florida AG's office I contacted claims "The attorneys involved in the investigation of Rick & Brenda Ricketts did not conduct a meeting (with YTB Travel) in November". Furthermore, the above notice still exists on the Florida AG's web site, exactly as worded. To my knowledge, the Ricketts did not sell or promote any other travel related MLM business besides YTB Travel. Having said this, my Florida AG contact did state that their investigation currently has not extended beyond the Ricketts themselves.

Here is an open offer to YTB travel: There are several attorneys whom I greatly respect and whose practice focuses on the MLM industry. Hire any one of them to review the two aspects discussed above. If they concur with Mr. Lindauer I will pay their legal fees. If they agree that paying MLM commissions on the sale of a business opportunity is legally problematic, and making the fee for said opportunity optional does not exempt it from legal attack under anti-pyramiding laws, YTB pays their legal fees - and it will be the best investment in your business you have ever made. It's a no-lose proposition for YTB travel.

As far as YTB Travel the "business opportunity", I stand by my comments.

As for the Ricketts, I do need to eat some crow, with a slice of humble pie for dessert.

In the opening paragraph of Alert #84 I stated: "The Attorney General's office of Florida has taken legal action that would suggest they believe YTB Travel is an illegal pyramid. Oddly, though, they have chosen to file this charge against one of their leading distributorships rather than the company itself." Although technically correct in a generic, layman's sense, which is how I meant it, this was very clumsily worded.

First, "legal action" and "charge" are legal terms that imply a formal action has occurred subsequent to an investigation. It has not, and I should have known better than to use this language. The Florida AG's interest in the Ricketts is still in an investigative stage and no formal "legal action" has been taken, nor is there any certainty that one will (the Ricketts and their legal counsel are working to resolve the issue). While I would disagree with the Ricketts's attorney that they have "not been accused of anything" (someone had to accuse them of something), I should clarify that the Florida AG's office has not accused them of anything. As the notice I linked to in Alert #84 (and herein) clearly states, "The existence of an investigation does not constitute proof of any violation of law."

Secondly, while I did not specifically state that the Ricketts had been previously investigated by the FL AG's office (I suggested there was a relationship to the termination of their Excel Telecom distributorship and the FL AG's office investigation of Excel), I wish to clarify that the Florida AG's office had not specifically investigated the Ricketts in this matter.

Finally, while I made no comment at all related to the veracity of the charges against the Ricketts by Excel, or any subsequent event beyond their termination (as it was not germane to the point), it should be noted that the Ricketts did prevail in their subsequent arbitration action against Excel.

Two clarifications in 17 years, and only one deserved (this one). Still inexcusable. It won't happen again.

Len Clements

MarketWave, Inc.

Most Popular Post

2007-07-28T14:22:00.000-05:00

Monavie's Brig Hart On MLM Success

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Is Your $7.99 MLM Domain Name Safe From Predatory Lawsuits?

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The Takeaway Close

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Create Your Own Leads With Mike Dillard's Magnetic Sponsoring Program

YTB Travel Hit By Florida Attorney General

2007-07-14T22:03:00.000-05:00

YTB Travel Distributor Hit By Florida
Attorney General Taking Unusual Bottom Up Approach
July 14th, 2007

The Attorney General's office of Florida has taken legal action that would suggest they believe YTB Travel is an illegal pyramid. Oddly, though, they have chosen to file this charge against one of their leading distributorships rather than the company itself.

Case information can be found online at: http://myfloridalegal.com/lit_ec.nsf/investigations/E5753C00CCA85B05852571AA005A4C44

Publish Reject

Rick & Brenda Ricketts, as their corporation and as individuals, are accused of the following (quoted from the above referenced online document):

"Allegation or issue being investigated: Possible unfair and deceptive business practices in the sale of internet travel website opportunities or in the recruitment and operation of multi-level marketing systems promoting business opportunities and recruiting sellers of travel. Possible violations of Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Fla. Stat., and violations of Section 849.091, Fla. Stat., prohibiting operating, participating in, or soliciting on behalf of a chain letter or pyramid sales scheme."

There appears to have been no action taken, as yet, against the parent company YTB Travel Network.

Commentary:

YTB (Your Travel Biz) is another one of those enigmas where they not only clearly do pay commissions based on recruitment, and it's where the large majority of commissions are derived, but they openly and clearly acknowledge this!

Therefore, I believe YTB is yet another example of a company designed and operated by people who had good and honest intentions, but made a mistake. A lie, a fraud, a scheme - these all imply a deliberate, knowing attempt to deceive. A "mistake" is where you honestly believe you are doing nothing wrong - but you are.

In my opinion, YTB Travel has, in designing their business model, made a very bad mistake.

"Rep commissions are paid exclusively on the enrollment of new Referring Travel Agents (RTAs) and on their monthly license fees."

That's straight from the web site of the accused. Which, by the way, appears almost identical to every other YTB Travel rep's site I found. What the Ricketts did that was so much more egregious that any other YTB rep is not at all clear from the AG's limited disclosure. However, Rick Ricketts was terminated by Excel Telecom (where the majority of income was also made from an initial sign up package) for alleged policy violations that caused the Florida AG to get involved. So it appears Mr. Ricketts and the FL AG's office were already acquainted before this latest action. He was also a successful distributor with the notorious SkyBiz scheme (terminated by the FTC - for paying commissions on recruitment based revenue).

YTB goes on to describes an "Independent Marketing Representative" ("Rep") as someone who may "earn commission on personal online Travel Agency sales" but who may "not receive travel credentials and cannot sell travel."

They further openly reveal that a $50 "Direct Sale" and "PowerTeam" Commission will be paid on "Every new sale (of an online Travel Agency)". A "Direct Sale" commission is defined as "Reps earn $50 for every personal online Travel Agency sale they make".

There is a $500 upfront fee and a $49.95 monthly fee charged to those who want to acquire an online travel agency site. Not only do these $50 bonuses come from this $500 sale, the monthly $49.95 fee also spins off $2.00 in "residual commissions". A $10,000 "Dream Bonus" can be earned when "you reach a total of 100 active PowerTeam enrolled RTAs." No mention of actual travel sales, just the number of RTAs (Referring Travel Agents) recruited.

They do pay a commission on the actual travel booked via the agent's web sites, but as had been the challenge with virtually all travel based MLM ventures, you can only cut the pie so thin, and when the cutting is done there just ain't much pie left for the rep. In the case of YTB, again they are very forthcoming in that they pay out 60% of the agency commissions they receive on travel products, but they only get a small portion of each travel fee. For example, a domestic air travel ticket only kicks back $5.00 to YTB, of which they pay 60% of that, not the net cost of the ticket, back to their reps. A Carnival Cruise ticket might cost $700, but they don't pay 60% of $700. They pay 60% of 16% of that $700.

So, like most service based MLMs (like I described in Alert #81 re: BurnLounge), when the actual service you're in the business of selling does pay enough, add a big enrollment fee up front for something and pay bonuses on that. Problem solved. Then new problem caused.

YTB International is a public company (YTBL.PK) whose sales the first quarter of '07 were 24,178,481. However, their own financial disclosures show sales from "Online travel store sales and monthly fees" as being $17,965,361, or 74.3% of all revenue (it was 83.8% in 2006). Furthermore, "Training programs and marketing materials" accounted for another $3,361,152. So revenue derived entirely and solely from recruiting new reps accounted for 88.2% of their total revenue! Of the $24,178,481 taken in from associate web sites and monthly fees, $16,136,795 is paid back out in commissions (exactly two-thirds). But of the $2,537,694 that YTB earned in commissions from actual travel bookings and related fees, they paid out $1,608,688 of that. That is a healthy 63%, but again, that's 63% of about 5-15% of the actual travel booked. But what is even more telling, and raises a huge red flag, is that of the total $17,745,483 that YTB has paid out in commissions in the first 90 days of '07, 91% of it (86% last year) came from the sales of marketing web sites and monthly rep fees - not from the sale of travel!

It was also disconcerting to see their annual net loss every year since 1998, with 2005 and 2006 being the largest ($5,880,927 and $6,052,984 respectively) and an operating loss of over $2.2 million the first quarter of this year.

There doesn't appear to be any question that the $500 and $49.95 fees for the "travel agency" are entirely based on recruiting. Obviously no one can sell this to someone who has no interest in the business opportunity (unlike a bottle of vitamins or shampoo). Furthermore, the travel web site (store) is clearly a sales aid and, based on substantial legal precedent, MLM companies are not suppose to even make a significant profit from, let alone pay commissions on, sales aids (because only reps, never customers, would buy them).

YTB Travel does have legal council in Ted Lindauer, who is knowledgeable of MLM law. In fact, Mr. Lindauer was an "MLM attorney" for many years and represented numerous MLM clients over that time. However, before going in-house with YTB Mr. Lindauer had gained a reputation within MLM circles for representing "questionable" clients (i.e. The Millennium Group, Platinum Choice, Purchase Plus, H.O.P.E., National Communications Network, Top Marketing), and had a history of having to defend them in front of state and federal regulators.

I contacted YTB President & CEO Andy Cauthen for an interview. Nine days ago he forwarded my request to Mr. Lindauer and their investor relations firm for follow up. There has been none.

Several travel deals have been leveled over the years due to poor income potential, or to legal challenges involving the paying of bonuses on "travel agent" packages or training (i.e. World Class Network and Nu Concepts in Travel). Others have been shut down for paying commissions on the sale of online malls, through which many types of goods and services could be purchased, including travel (i.e.BigSmart, and NexGen).

Picking on one of YTB's leading reps rather than the company itself seems to smack of picking the wings off flies (why not just hit the company and get on with it?). I'm sure the Florida AG's office has their reasons, but they ain't tellin'. But time will.
Len Clements MarketWave, Inc.

Perry Marshall -- Great Newsletter

2007-07-08T19:24:00.000-05:00

I get lots of marketing info in my inbox. One I always read is Perry Marshall. Enjoy

Joe,

Today, some links to some really useful sites:

-One of my all-time Favorite Keyword Research
Tools, especially adept at locating tiny, unexploited
"nano-niches." Watch the demo here:
http://www.adwordsacceleration.com

-John Fox's superb Marketing Playbook -
102 highly succinct 1-page marketing strategies.
For a couple years was $39 on Amazon, but now
free online and fully updated for '07:
http://www.marketing-playbook.com/

-Save Up To 50% on FedEx shipping.
Just like using FedEx.com only less expensive:
http://www.shipzip.com

-The Guru Glut: John Carlton rants about
Teachers, Guides, Wise Men and Sherpas:
http://www.john-carlton.com/2007/06/10/the-guru-glut

-Perry goes to India: Last month I hung out in the 2nd
busiest country in the world. Tiny taste of a huge culture:
http://perrymarshall.com/india/

-Get THE most important report I ever wrote
in my snail-mail print newsletter, in 5 years...
and a subscription to Mastermind Club, plus
2 DVD's, 4 CD's and my AdWords Blackbelt Course,
just for saying "maybe":
http://www.perrymarshall.com/mastermind.htm

In coming weeks - watch for more episodes
of mystery, suspense and intrigue.
Same Bat-Time, same Bat-Channel.

Perry Marshall

2007-07-07T20:10:00.000-05:00

Texas Attorney General Hits Mannatech
With Long, Slow, Looping Right Hook They Should Have Seen Coming From Ten Blocks Down Main Street

July 7th, 2007The Attorney General's office of Texas has finally taken legal action against Mannatech, alleging they have violated state and federal health and safety codes as well as the state's own laws regarding deceptive trade practices.

Basically, Mannatech is being sued for making medical claims about their products. The law suit itself says the TX AG is only seeking a permanent injunction against the company "to prohibit Defendants from continuing to operate a food manufacturing establishment and to advertise, or offer for sale, and sell their products if they refuse or are unable to comply" with "required standards" (emphasis is mine). The suit also states, "Defendants should not continue to operate a food manufacturing establishment, advertise, offer to sale (sic), and sell its products in violation of the laws of Texas." While this language seems to indicate Mannatech can continue to fully operate as long as they abide by the law and discontinue making medical claims (that is, the permanent injunction is against making such claims about their products, not selling them), TX Attorney General Greg Abbott's own comments appear to be far more threatening. In a press release issued by his office he stated, "Texans will not tolerate illegal marketing schemes that prey upon the sick and unsuspecting. Aided by an army of multi-level sellers and their fictitious claims about its products, Mannatech has aggressively marketed supplements to countless unwitting purchasers. With today's enforcement action, the Office of the Attorney General seeks to shut down an elaborate scheme to defraud innocent consumers across the nation." The AG's press release goes on to say that the enforcement action is the result of "a large-scale investigation" which revealed "Mannatech's scheme to exploit families, including those challenged by cancer, Down's syndrome, cystic fibrosis and other serious illnesses. According to investigators, exaggerated claims about the therapeutic benefits of Mannatech's dietary supplements and nutritional products were unlawfully used to increase sales."

The AG's enforcement action also asserts that "Mannatech's deceptive practices pose a health risk to seriously-ill consumers who may forgo traditional medical attention because of the company's false claims." Besides the injunction, the suit also seeks a fine of $25,000 per day, per violation of state law, as well as reimbursement for those who have purchased Mannatech products. As was reported in MarketWave Alert #80 (5/30/07), ABC's 20/20 program aired a segment featuring a woman who had chosen to forgo any traditional treatment of her cancer in lieu of taking Mannatech's Ambrotose product. MarketWave has also previously reported on an investor class action law suit against Mannatech alleging the company's stock price was artificially inflated due to their exaggerated disease treatment claims (Alert #51, 9/1/06), and on a negative Wall Street Journal article also claiming that the substantial sales success of Mannatech was due to the miraculous claims being made about their products (Alert #78, 5/13/07). In this WSJ article is was also reported that the Texas Attorney General's office had publicly revealed as early as last October that an investigation of "health-law violations" has been ongoing since 2005 and that they did "anticipate filing suit" against Mannatech.

Mannatech's President Terry Persinger has offered the only public response thus far, as follows: "We are aware of the situation and will be taking appropriate action to address any issues or concerns from the Texas Attorney General's office. We take matters of this nature very seriously and intend to cooperate to reach a resolution." Read the TX AG's press release HERE.

Read the recent Wall Street Journal article about this most recent action HERE. Read Mannatech's public response HERE.

Commentary: Mannatech will surely continue to claim, as is described in the AG's law suit itself, that they are somehow insulated from these claims because:

1) Renegade reps are making the claims, not the company;
2) The company itself clearly states their products do not cure or treat disease;
3) Reps are quoting third party scientific reports & studies;
4) Reps are stating personal testimonials;
5) Reps are talking about Ambrotose, a substance within Mannatech's products, but not Mannatech's actual products. Some of these defenses were eluded to by Mannatech Chairman and CEO Sam Caster during a recent interview conducted by ABC's television show 20/20 (video version is on YouTube).

As has been cited here in many Alerts before this one, and based on an abundance of case precedent, none of these excuses will get them off the hook. For evidence of this please review the following:
A) Dietary Supplements: An Advertising Guide
B) Dietary Supplement Enforcement
C) SeaSilver/Coral Calcium Conference Call
D) Medical Claims Conference Call
E) Network Marketing Product Claims

As of today, 07/07/07, a Google search for the registered trademark "Ambrotose" and the word "cancer" results in 54,800 hits. "Mannatech" and "cancer" returns 90,000 hits. Certainly many of these hits now relate to news reports, blog entries, etc. mentioning these search terms within the context of this most recent legal action and the 20/20 segment. However, I had done this same, admittedly not very scientific, test over a year ago (while researching Alert #51) and both searches returned well over 100,000 hits! What's more, I recall receiving an unsolicited cassette tape in the mail which contained a recording of a live Mannatech event where their product was openly and blatantly described as an effective cancer treatment - and this was in the mid-90s!

After three securities class action lawsuits, three shareholder derivative lawsuits (all still pending, all dealing with allegedly deceptive product claims), a negative Wall Street Journal article, a negative 20/20 exposé, and an open declaration from the Texas AG that an investigation is in progress and a formal legal action is "anticipated", Mannatech certainly can't be surprised or unprepared for this. Talk about telegraphing a punch - Mannatech was essentially put on notice that the AG's fist was cocked back in preparation for a right cross to the jaw nine months ago! This was surely enough time to implement a zero-tolerance policy against anything resembling a medical claim, and to initiate a massive reeducation campaign throughout the field as to what one is. The fact this was not done would appear to indicate Mannatech management actually believes they are not ultimately responsible for what their distributors say, and/or that citing third party material or personal testimonials is somehow a safe haven for medical claims. In spite of the fact that evidence to the contrary is abundant and easily available.

In my opinion, this is one of the best reasons why an MLM company should never go public. It's hard enough putting the kibosh to claims that are making many distributors and corporate leaders money, but when it will cost your shareholders money, you're in for a heap o' trouble. Which is why it's so much harder for a public company to put the kibosh on such claims. Which is why Mannatech is now in a heap 'o trouble.
Len ClementsMarketWave, Inc.

Lajitas Resort Up For Auction

2007-06-30T12:52:00.000-05:00

Here's some interesting news from the Alpine Avalanche.

Steve Smith who was instrumental in the growth of Excel Communications bought a Resort in far West Texas back in 2000 at an auction. After spending a reported 100 million dollars making it into one of the most plush get aways in the world one of his lenders has filed for foreclosure.

EverydayWealth, and SoulMate which became UltimateMatch are some of the other Network Marketing companies that Steve had started after his days at Excel.

EverydayWealth looked poised to become the next Excel during it's first couple of years. They had a former CEO from WalMart Stores on the board along with a who who's list from the credit and debt industry. It is ashamed that EverydayWealth didn't stick around as identity theft has become the fastest growing crime in America. EverydayWealth's mission was to show consumers how to get out of debt, manage their credit, and protect themselves from identity theft and predatory lenders.

Initially and up front investment of around $39.00 and and ongoing $19.95 per month paid for your business, 2 websites, and your monthly credit report. They had a fantastic compensation plan and were evening seeking to patent a lending model which assured consumers the best interest rate on loans.

Well it didn't last and 1000's of associates including myself were quite disappointed. I hate to see whats happening to Steve's other businesses as he's s a great guy who is genuinely interested in helping others.

U.S. Internet defamation suit tests online anonymity

2007-06-24T19:56:00.000-05:00

As interesting as it has been with USANA and Burnlounge being on the hot seat here these past few months this article really caught my attention because it brings up an issue that is long overdue.

It happens daily in the Network Marketing industry. Someone makes a lot of money and builds a huge business, and a group of no name thugs go to work destroying their reputations on forums and sites like s c a m . c o m . The traffic to these sites creates plenty of revenue for these site owners who have a vested interest in seeing innocent peoples reputation's destroyed.

Lets hope that this case sets the precedent and forces some of these anonymous bashers to pay up for a change.

BOSTON (Reuters) - It bills itself as the world's "most prestigious college discussion board," giving a glimpse into law school admissions policies, post-graduate social networking and the hiring practices of major law firms.

But the AudoAdmit site, widely used by law students for information on schools and firms, is also known as a venue for racist and sexist remarks and career-damaging rumors.

Now it's at the heart of a defamation lawsuit that legal experts say could test the anonymity of the Internet.

U.S. Internet defamation suit tests online anonymity | Reuters

California distributors file lawsuit against USANA - BloggingStocks

2007-06-24T19:17:00.000-05:00

This just game across from BloggingStocks

California distributors file lawsuit against USANA - BloggingStocks

The Lawsuit was filed by San Diego class-action lawyer Alexander M. Schack.

Among other things it seeks:

An injunction stopping Salt Lake City-based USANA from doing business in California.
And Seeks damages for "downline" distributors

It will be interesting to see how this turns out. Most distributors sign an "arbitration agreement" when they sign-up for a business opportunity. Can the attorney have the arbitration agreement declared null and void so he can put together a class action suit?
If most of these class action particiapants were only active for a short period of time as USANA distributors what kind of damages could they expect to reap?

Well one thing is for sure, it will not be a quick process. Most suits drag on for months or years before a settlement is reached. Most settlements see a huge percentage of the damages eaten up my attorneys fees and other miscellaneous expenses. The attorneys could take 40% right off the top and pay all legal expenses before the first settlement check is ever mailed.

A win by the distributors would have major ramifications on the industry. Churn rates are high in the industry. The Class Action Attorneys know that this is fertile feeding ground with hundreds of thousands of inactive distributors, and it looks like they want to shake the tree a little and see what falls.

Is USANA guilty of anything? If the court will here this we all find out. There sure seems to be lots of smoke for there not to be any fire!

Verticle Acceleration With Just One Leg?

2007-06-22T22:14:00.000-05:00

Like everyone else thats been around a few years, I'm on every other mailing list sold. Here's a message that sound pretty cool, I have no idea what they are talking about, but the person writing it is sure excited.

Hi Joe!

VERTICAL ACCELERATION ... started.

this is one of the most exciting announcements in the entire network marketing industry in the last 10 years!

With our Vertical Acceleration you can qualify for rank by personally enrolling 3 people of the previous rank...even if they are all in the same leg!

That means FOR THE FIRST TIME EVER, you can max out the compensation plan with just ONE LEG!

This announcement alone will make ANYONE who knows ANYTHING about the network marketing industry absolutely PUMPED to join your team. So fasten your seatbelts! As fast as we are growing right now, momentum is about to go through the roof!

Get in TODAY

Your No Brainer Business Team

BurnLounge Abandons MLM

2007-06-21T19:24:00.000-05:00

I just got another message from Len Clements letting me in on the latest developments he had on the whole Burnlounge mess. Once again Len has let me post the entire alert. Thanks Len! I have tons of traffic from some of the forums, especially a couple tied to SC Football.

I know lots of you think this is becoming the Burnlounge blog, but is more interesting Amway changing there name back to Amway.

Affiliate Sales Opportunity Will Remain

June 21st, 2007As predicted in Alert #81, BurnLounge has not only dropped the payment of bonuses on the enrollment packages, they have removed the multilevel aspect of their commission system completely. BurnLounge, a reseller of downloadable music, will retain an affiliate-type compensation system where the direct seller of the download will receive a significantly larger commission, and no compensation will be paid to anyone "upline" from the seller. Essentially, there will no longer be an upline, nor any formal hierarchy of affiliates.

There was to be a hearing in front of a circuit court judge last Tuesday (June 18th) to decide whether the FTC's attempt to shut the company down would be successful. Apparently the decision to adopt a non-MLM commission structure was sufficient to avoid such an injunction (although, as of this writing, no formal decision has been announced by either party).

A company announcement is forthcoming and will appear on their web site soon. In the mean time, here is a preview of the key points to be addressed:

BURNLOUNGE SIMPLIFIES BUSINESS MODEL

New Model Will Drive Community Expansion and Greater Rewards Per Sale, Benefiting Retailers, Artists, and Partners

New York, NY, June 21, 2007 - BurnLounge, the world's first fan driven digital download community, today announced a simplification of its business model that will eliminate the network marketing element of its business while providing greater business benefit for entrepreneurial members of the BurnLounge community.

The company intends to focus on its free service and will deliver increased rewards per sale. BurnLounge will continue to build strong partnerships and high-margin product lines providing a viable business for its members and artists. The free service is comprised of BL2, the software that enables anyone to open up their own download store and become a digital retailer; and BurnPages, a personal web page with customizable widgets.

"Despite our strong disagreement with the Federal Trade Commission's complaint against the network marketing portion of the business, BurnLounge has voluntarily decided to make this bold move to show our commitment to our artists, partners, and independent retailers who have supported us from the beginning," said Grant D. Johnson, chairman and chief executive officer, BurnLounge.

Johnson added, "Network marketing was a unique channel to promote our products, but not integral to the future success of the company and its retailers. We took this strategic action to benefit the greater BurnLounge community."

With the new model, BurnLounge retailers will earn even greater compensation per sale in a more traditional affiliate marketing structure. The new model will be simpler, and retailers will soon be able to expand their businesses beyond music into high-margin entertainment products such as movies, videos, portable devices, and accessories.

"Our retailers are BurnLounge's top priority, and we will make this transition together," said Ryan Dadd, co-founder, president and chief operating officer, BurnLounge. "They have played a vital role in the growth of our company and we remain committed to their success. BurnLounge will continue to give its retailers strong revenue-generating products."

Stephen Murray, co-founder, president of entertainment and chief creative officer, BurnLounge, added, "The new model is a win-win situation for our members, the company, and for the industry. It is a revolutionary concept and a revolutionary product. Making this change to our business model to focus on our core products of BL2 and BurnPages makes it much easier to grow this community."

Commentary: This restructuring was spun in the best possible way, under the circumstances. Although, had I written it I might have left off the last comment about this change being a "win-win" for everyone, and it making it "much easier to grow this community." This invokes the obvious question: If true, why did the FTC have to demand that you make such a change?

A network marketing compensation system surely would have caused BurnLounge to grow faster (as it apparently was doing) and need not have been completely abandoned to satisfy the legal issues described in the FTC's complaint. Only the bonuses paid on the initial and annual payments for online store "packages" were problematic in that they created a direct financial reward for recruitment (since only new recruits would ever purchase them). The paying of commissions down six levels on the actual sales of music downloads, which clearly could be, and were being, purchased by non-distributors, surely was not an issue of legality to the FTC on it's face.

However, the aspect of requiring a certain number of download sales to qualify for bonuses on the reseller packages absolutely could have been legally problematic. As one industry expert I spoke to said, "BurnLounge probably had more sales to family pets than any other company in the industry." That is, the affiliate made token sales essentially to themselves, but under the name of friends or family members (and yes, even Fluffy and Fido occasionally appear in MLM sales lists, although I have no evidence this occurred in BurnLounge). It is not uncommon for MLM programs with a sales quota related to low cost products (in this case as low as 99¢) to be artificially met out of the distributor's own pocket. But this issue would have also disappeared along with the bonuses on store packages.

I might have tried adding a separate catalogue of generic MLM audio/video products and then maintaining a simple matrix or unilevel pay plan (although, under any circumstances, it should never have been six levels deep - four maybe, five at the most). This catalogue could have included non-MLM specific motivational and sales training materials as well (think Nightingale-Conant). As I said in Alert #81, the relatively low cost and profit margin on the products would not have left enough income to maintain a stand-alone, full time income opportunity. But with the addition of a generic tools library BurnLounge could have been a successful supplemental, or side-program, that networkers could have offered to their existing downlines.

But then, we also don't know what went on during those discussions with the FTC the last few days. As can be seem from cases such as Equinox and Five Star Auto Club (see this FTC letter), to satisfy the FTC their target often times must stretch well beyond what ever point they would have had to be at to have avoided their wrath in the first place. This could very well have been what happened here. BurnLounge may not have been given the option of revising their MLM aspect, but only to remove it altogether. But this is all academic. BurnLounge is not a multilevel marketing company anymore. Thus, is no longer relevant to an MLM Alert eLetter. Now it's only a matter of how much they remain relevant to the music industry.

Len ClementsMarketWave, Inc.

FTC Attempts To Snuff Burnlounge

2007-06-18T21:19:00.000-05:00

Hot off the press from Len Clements, Len has been gracious enough to let me post the full version of his most recent update on Burnlounge.

When You Play With Fire...

June 18th, 2007Early last week the Federal Trade Commission announced that they had filed a complaint in a U.S. District Court of California against BurnLounge, Inc. (actually filed on June 6th), a multilevel reseller of downloadable music via "online music stores". The FTC alleges that BurnLounge is an illegal pyramid scheme and is seeking a permanent injunction against the company (halting it's business). According to the FTC, the BurnLounge sales pitch "represented that participants in BurnLounge were likely to make substantial income." BurnLounge recruited participants, says the FTC, by selling them tiered priced "product packages" that are offered for as much as $429.95 per year. The higher priced packages provided BurnLounge distributors with a higher paying status in the BurnLounge compensation plan. The FTC asserts that the BurnLounge compensation plan "primarily provided payments to participants for recruiting of new participants, not on the retail sale of products or services". The FTC has asked the court to halt the "deceptive practices and misrepresentations" and to freeze the defendant's assets (to preserve them for eventual consumer redress). On June 8th the FTC attempted to get the court to issue a temporary restraining order against BurnLounge, which was denied. The Judge ordered that a hearing on the FTC's request for a preliminary injunction and asset freeze would be held this Tuesday (June 19). In addition to naming BurnLounge Inc., the complaint also named Juan (Alex) Arnold, their CEO and Chairman, as well as three high level distributors. BurnLounge announced the resignation of Mr. Arnold today, June 18th. The FTC also acknowledged in their Press Release the "invaluable assistance of the Office of the Attorney General of South Carolina." BurnLounge is a Delaware corporation based in New York City. You can view the FTC's Press Release here:

http://www.ftc.gov/opa/2007/06/burnlounge.shtm

The actual complaint can be viewed here:

http://www.ftc.gov/os/caselist/0623201/061207complaint.pdf

BurnLounge has responded that "We are absolutely certain that our model will stand up to the most rigorous scrutiny", and that, "If there are changes to our operating structure that are warranted and appropriate, we'll consider them."

BurnLounge's public response can be viewed here: http://corp.burnlounge.com/default/press_articles/ftcFaq.html

Commentary: In the vast majority of service based MLM programs (long distance calling, legal assistance, medical discount programs, travel, etc.) the actual product or service sold is of such low margin, or low overall cost, that no substantial multilevel income can be derived from it. For example, if an online shopping mall company were to receive an optimistic 15% affiliate fee for all sales made via the malls of each rep, they would likely need to keep 10% (67% of the affiliate fee) to run their business leaving only 5% to pay out in the pay plan. So even if the plan paid 10% down eight levels, this generous appearing plan would actually be paying out 80% of 5% of the sales made through the mall itself (that's a total 4% pay out). Same with a long distance reseller, which maybe gets 1¢ of every 6¢ charged per minute, which is what they would have to run their company on and, with what's left over, pay out in their pay plan.

So how does a company that's paying 5-25% on a $10-$50 monthly sale compete with the "pills & potions" companies that typically pay 40-55% on $75-$150 in monthly sales? They add a "training fee" or some other one time, upfront fee that usually ranges from $100 to the legally mandated limit (for non-franchise opportunities) of $499.99. Then bonuses are paid from this fee which is where the most substantial income is derived.

The challenge with this is that, based on many years of legal precedent, paying compensation for the act of recruiting new distributors is indicative of an illegal pyramid scheme. When this compensation is paid from a purchase that only a distributor would make, even if it's for a genuine product of value, that is still a reward for recruiting since there is no other way to earn the bonus other than to recruit. For example, Equinox actually had fine products. But they were closed down by the FTC (mid-90s) because most of the income was being earned by new distributors "buying in" for $5,000 to over $20,000 in product, which obviously is sales volume only a new recruit would generate. A better example is FutureNet, which sold $195 WebTVs. Since they only got a small piece of the margin on each unit sold, and only part of that went into the pay plan, no significant income could be made by just selling Web TVs. So they added a $495 "internet training" package that new distributors could purchase. That's where the real money was being made - until the FTC shut them down for being an illegal pyramid.

Does BurnLounge do this? Unfortunately yes, it appears they do.

Remember those $29.95 to $429.95 "product packages" offered to new enrollees? BurnLounge not only pays one time bonuses to the sponsor on these packages, they pay monthly commissions upline on them through a binary pay plan. In their own FTC response they claim:

"Our free business model is based on revenue from music and movie downloads. For users who want more features and products, we offer other fee-based packages with extra products such as BurnLounge Presents, BurnLounge University and BurnLounge EventPass."

The FTC seems to be eyeing these music downloading "stores" the same way they viewed the online malls in the cases of BigSmart, 2by2.net, and several others. These web sites are essentially sales aids - and MLM companies are not suppose to pay commissions on sales aids (because only distributors would buy them, thus you must recruit to earn money on them).

The only way BurnLounge will be able to justify paying commissions on these packages is to convince the judge that a very significant number of people are buying these packages who have no interest in the business opportunity. That is, they will have to sell the judge on the idea that money can be made by selling these packages without the act of recruiting a new distributor. That's going to be a very tough sell.

It's amusing how BurnLounge, in direct response to the FTC's action, describes their willingness to "consider" making changes that they feel are "warranted and appropriate". That's not how it really works with the FTC. Most likely, here's what I think will happen: 1) BurnLounge will have to remove the "product packages" from their compensation plan, and by doing so will avoid a permanent injunction; 2) The remaining income potential will not be sufficient to maintain a viable network marketing opportunity; 3) BurnLounge will either add many more tangible products to their program or, most likely, will abandon the MLM model and go direct sales (those licenses they possess are far too valuable to just give up).

We should know soon. I'll let you know what happens after the Tuesday hearing.
Len Clements MarketWave, Inc.

MLM - Network Marketing Blog : MLM: The 3 Foot Rule

2007-06-12T00:33:00.000-05:00

If you have not seen the 3 Foot Rule Video yet you have to go over to Ty's MLM Blog and watch this. It's too funny!

MLM - Network Marketing Blog : MLM: The 3 Foot Rule

Brig Hart Monavie's First Imperial Black Diamond

2007-06-06T23:36:00.000-05:00

Congratulations to Brig and Lita Hart from Ponte Vedra, Florida, on achieving the rank of Imperial Black Diamond Executive. Here's what they had to say on reaching this impressive milestone…

"Wow! The past two years have been an incredible journey for us. There is no way this type of achievement would have been possible without some key factors coming together. Of course the five obvious ones are: right product, right management, right compensation plan, right timing, and right cause. But the ones that aren't so obvious hold as much value. The right chemistry between our key players, the respect we show for each other, a proper work ethic that motivates and inspires our team to be fully involved, a common vision, and a plan that gives each new and seasoned distributor a map to follow. myspace.com

I saw Brig speak in Dallas not long after he started with Monavie. A whopping 30 people were there, now he might have 2000 at his meetings. Brig said that no one sponsored him into Monavie, he found Monavie online doing an Internet search. Some lucky random distributor must still be talking about the day a guy name Brig showed up in his downline!

Imperial Black Diamond is no small feat. It requires among other things 4 consecutive weeks of a minimum volume of $600,000. Thats $2.4 million in a single month. And the rewards are tremendous. To start with try a $300,000 cash bonus, another $300,000 in jet credits, and then theres the "juice" on the $2.4 million itself.

Congrag Brig and Lita

MLM Success Coach

2007-06-06T23:01:00.000-05:00

“We are all salesmen every day of our lives. We are selling our ideas, our plans, our enthusiasms to those with whom we come in contact.”
~ Charles M. Schwab

MLM Success Coach

ITV Ventures

2007-06-06T22:52:00.000-05:00

An update from a friend who recently ventured over to ITV Ventures. ITV has married mlm to the infomercial. A bunch of network marketers got sold on this idea a few years ago with a company called BetterUniverse. ITV seems to be getting this right as you can see from this reps experience. BetterUniverse never really offered an explanation as to why their infomercial never hit the airwaves.

ITV SuperStars

ITV Ventures is amazing. I got on the phone this morning and took 7 Live Calls from people who just got done watching one of our 30 Minute TV Infomercials on one of the incredible products sold by ITV.

I was on the phone 2 hours and 12 minutes, I sold 6 of those 7 customers 15 different products, earned $370 and one of those people want to join the business opportunity and that will pay another $150 commission, so thus, I earned over $520 for 2 hours on the phone, answering the phone at home.

Here is something even more amazing, out of my 6 sales, all of them are on our Monthly Auto Ship which at 15 products x $15 per month will pay me another $225 per month or $2700.00 per year. In just the last 10 months, I have over 600 customers on OAP and my weekly checks on these customers alone are over $2000 per week and this does not even include the nearly $15,000.00 per month in residual I am earning at just 10 months in the ITV Ventures business!

Now here is the sad part, many of you have been sitting on the sidelines, "waiting to get in the game", but you have not ever believed that a home based business could really be this simple! Pick up the phone, say hello and take the order, type in the customers information on your computer and the company ships the products and does all the paperwork and bookkeeping, then every week, sends you a check and at the end of each month, they pay you again with the monthly residual check.

Are you sick and tired of NEVER succeeding in your opportunities(s)? Do you want to be a part of a six-year old, multi million dollar, cash-rich, debt-free company who will spend over $100 Million dollars on TV Infomercials building your business for you over the next 12-24 months, would you like to once and for all be done with chasing the elusive, "pot of gold" in home based businesses?

If so, this is the last stop. I will show you, teach you and mentor you to a great income no matter if you want to work 5 hours per week, 20 hours per week, or more! It just needs to be you, making a decision once and for all to take the step to get started! Call me now!!

usana -Bidding War

2007-06-02T02:14:00.000-05:00

Usana battling for it's existence after short-seller Barry Manikow's report was published back in February appears to be in a key word bidding war of sorts with Manikow who is running PPC ads for his Fraud Discovery report on Usana.
usana - Google Search

Usana has launched
TruthAboutUsana.org
TruthAboutUsana.com
TruthAboutUsana.net
UsanaFacts.com
UsanaFacts.net

Google does not publish the prices that bidders are paying for keywords but after some experimenting with my own adwords account using the keyword usana I determined it would take between $2.50 and $3.00 to achieve the top positions.

Bidder Barry Manikow apparently is not willing to spend top dollar to maintain top ranking and his PPC ad for his FraudDiscovery.net sits around number 7. I wonder if Barry Manikow will ever reveal how much he has made off his short position in USANA? The stock which actually went up for several days after Manikow's report hit on Feb 20th closed on Friday at $37.18, it was at $61.50 per share on Feb 22nd.

Usana apparently thinks the battle will be short lived. I checked the whois records for the new Usana domain names and found they were created in March of 2007 and will expire in March of 2008. The corporate domain Usana.com created in 1996 will expire in 2009.

Manikow's Frauddiscovery.net was created in 2001 and expires later this year.