VEMMA Goes Affiliate… Or Do They?
Updated: April 5th, 2014: First live interview with BK Boreyko
The MLM Attorney Kevin Thompson Responds to Vemma’s Move!
BK Boreyko Tries His Hand at Magic: Does he pull it off?
With BK’s latest announcement, he’s attempting a similar effort. In summary, he’s changing the perspective (words) about MLM without changing the model itself. He’s just rotating the stage while keeping the statute (the model) in tact.
In BK’s video below, he SPRINTS from the MLM category, claiming that Vemma is “more like Amazon and less like Amway.” I’ll start this breakdown with the obvious points first:
(1) Amazon is not a member of the Direct Selling Association;
(2) Amazon does not terminate its affiliates for promoting other MLMs;
(3) Amazon does not bind its affiliates to non-solicitation clauses (commonly done by clients of mine and every other company in the MLM industry);
(4) Amazon does not have monthly volume requirements. BK makes it clear: “We no longer require our affiliates to buy products.” Well that’s good to know, because you technically were never supposed to have such requirements anyways. I know, I know….it’s debatable whether a company can impose a purchase requirement. ViSalus does it (I think). But in my opinion, I advise all clients to stay away from required monthly purchases. Instead, Vemma is doing what 95% of all other MLMs do: they’re now requiring VOLUME. Can this volume be achieved via the now optional Autoship? Yep. Will the majority of reps qualify in this manner? Probably. Does this “change” make Vemma more like Amazon and less like Amway? No. Ironically enough, Amway has ZERO volume requirements for reps to join.
(5) Amazon does not have a genealogy for calculating commissions i.e. there’s no opportunity for recruitment;
(6) Amazon discloses its revenue from customer sales. While BK implies of significant customer activity, we have no way of knowing the numbers. (Read The Full Editoral Here)
Network Marketing Pros In The News
Rich DeVos, co-founder of Amway, recently published his fifth book, “Simply Rich: Life and Lessons from the Cofounder of Amway.”
Cindy Monroe, CEO of Thirty-One Gifts, has been awarded Enterprising Women magazine’s 2014 Enterprising Women of the Year Award.
Direct Selling Companies In The News
Cookie Lee, founder of Cookie Lee, Inc., has sold her privately owned fashion jewelry company. Buying the firm is Debbie Millar, who is founding partner of HÔM, a luxury residential real estate group in Newport Beach, Calif. Millar will be leading and further modernizing the firm. Lee will not hold an official company role but will help if needed. During the past 20 years, the Cookie Lee salesforce has grown to more than 40,000 independent consultants nationwide.
Mary Kay and the Junior League of Dallas partnered to provide four women with a combined $25,000 collegiate scholarship through a new Junior League of Dallas program, Women LEAD (Learn, Excel, Achieve, Dream).
Natura Cosmeticos has been named by Ethisphere as one of the World’s Most Ethical Companies. The company received the honor in the Consumer Products category. The 144 honorees represent 41 industries.
Primerica was recently recognized by the Atlanta Journal-Constitution as one of the best workplaces in Georgia. Primerica was the highest-ranking public company headquartered in Georgia, and it ranked 18th in the “large companies” category (500+ employees in Georgia), when compared with private companies, nonprofit organizations and local offices of public companies based out-of-state.
Scentsy announced it will donate $6.50 from every Roosevelt the Rabbit purchase ($30) to the March of Dimes “imbornto” campaign, a movement dedicated to continued research and education responsible for helping more mothers have healthy, full-term pregnancies.
Talk Fusion is hosting its annual corporate event, IMAGINE, in Tampa in April. The company plans to unveil its newly redesigned websites at the event.
Youngevity reported financial results for the fourth quarter and full year ended Dec. 31, 2013. For the fourth quarter of 2013 net revenue increased 18.1 percent over the prior-year period to $22.7 million. Gross profit increased 17.6 percent to $13.3 million compared to $11.3 million in the same period last year. Net income increased 451.7 percent over the prior year period to $480,000. For the full year net revenue increased 14.2 percent over the prior year to $85.6 million. Gross profit increased 17.1 percent to $51.3 million compared to the prior year. Net income increased 570 percent over the prior year to $2.7 million. View the full press release online.