I’m sure by now many of my fellow UnFranchise Owners have seen the news about Herbalife and the $200 million dollar fine they were just hit with by the FTC after their federal investigation into Herbalife’s sales and marketing tactics. As this is major news I figured this would also serve as an excellent opportunity to discuss how the UnFranchise is different from companies like Herbalife and how we are the solution to traditional Multi-Level Marketing.
Here are just a few of the key media hits regarding this story, to help give you more perspective:
FTC Press Release – Herbalife Will Restructure Its Multi-level Marketing Operations and Pay $200 Million For Consumer Redress to Settle FTC Charges
NPR Article – Herbalife Agrees To Pay $200 Million To Settle Complaints It Deceived Consumers
First, you must realize the UnFranchise with the MPCP is not an MLM business for many reasons including: we don’t have a horizontal tiered payout system, or redistribute products as we deal directly with customers and are an internet marketing business with a revolutionary tracking system which tracks the referral thread of customers and organic footprint to UFO’s and connects UFO’s, while giving 100% credit for SALES to UFO’s, customers or consumer end-users without dilution!
In regards to the Herbalife settlement, I understand this whole scenario and the reality of the regulatory outcome better than almost anyone and will explain the rest of the story as it holds many lessons about why we do what we do and are what we are – which is totally different than and not to be confused with MLM companies like Herbalife. In fact, we the solution to the MLM industry.
The Root of Their Problems Lie In:
Inventory loading and the marketing plan economically encouraging it.
Outlandish income claims and the negative incentives and math of the marketing plan. The plans are designed for few to make big money at the expense of many.
Lack of retail requirement and measurement or tracking it to earn.
No contact or engagement with customers or shipping directly to customers and that wholesale customers who are part of the Compensation plan and the fact that Herbalife redistributes product in a multi-level stair step scenario encouraging abuse, breakage, with negative incentives to the “upline” when newer people grow.
The horizontal nature of their plan facilitates and duplicates failure and earnings dilution and requires constant horizontal recruiting on successive levels in completion with group in order to maintain or grow income.
This regulatory outcome with Herbalife reflects tradeoffs and bargaining with the FTC which allowed them not to be shut down as a pyramid scheme. Because of what the FTC discovered, Herbalife had to take big hit ($200 Million) and were forced to change some of their core business practices in order to remain in business. Had they been shut down by the FTC that would have set off a whole other series of devastating consequences and more problems (as they’re a publically-traded company). Herbalife will obviously attempt to position this as a “win” for their company in that they get to remain in business, but anytime you have to take a $200 million dollar hit from the FTC you know something isn’t right.
OUR SOLUTIONS: The UnFranchise System, Products & Plan
There is no inventory loading in MA and no reason or incentive for it. It is based on shopping with the Shopping Annuity™ and retail selling in the University majors!
The MPCP ties required training to earn in the marketing plan and requirements insure that all commissions are earned on retail volume as well as being self-reconciling where every requirement is ties back to retail selling and performing bona fide sales & supervisory functions and activity controlled by checks and balances in the requirements. This also insures stability of repeat volume from retail sales and constant accruing of volume week to week without time limits or monthly resets to increase the probability of consistent earning of residual commissions on top of retail profits. It tracks and rewards customers with cashback and offers or reminders.
CAUTION: No need for exaggerated income claims – tell it like it is (use official disclaimer in UBP to protect yourself and company against misunderstanding as people hear what they want to hear):
This also serves as a cautionary tale on how exaggerated income claims and exaggerated misrepresentations can be a problem, which is why our UFO levels are structured as they are and based on performance and earnings rather than making up stories and selling blue sky.
The plan works if you work it and it is the most realistic out there but people earn based on just two organizations and the sales they generated. There’s no need to sell blue sky as it is realistic and based on what the average person statistically was proven to do by the direct selling statistics over 50 years.
The plan is perfect, retail driven, self-reconciling and in-line with reality but entrepreneurial in nature – which requires making it happen and not everyone will do what is necessary or succeed automatically or equally. That is called LIFE!
You EARN what you PRODUCE in the plan:
Personal performance based on retail sales, 5 steps of MPCP, and activity requirements insuring performance and strengthening residual income.
Requirements insuring everyone carries their own weight and preventing passive earning or manipulation.
Management responsibility fulfillment (making sure others are trained and assisted for duplication) and must demonstrate a bona-fide sales and supervisory function.
Requirements reconcile all accrual and earning with real sales to retail customers and end users tracked with metrics. (Millions of customers beating the doors down for products or shopping online).
Form 1000 and UnFranchise.com retail sales tracking and reports with preferred customers prove it!
That’s why our business has been going strong for over 24 years and is solid as a rock. Unlike some of these companies we don’t leave a trail of destruction behind – we share prosperity instead. The bottom line is simple:
WE ARE DIFFERENT. WE ARE NOT MLM. WE ARE THE REAL DEAL.
I can’t wait to see you all at #MAIC2016!
Keep Growing!
-JR Ridinger