This has been a crazy and fun week inside the MLM community. From Text Cash Network receiving a review from Ted Nuyten, to Lifeshare doing a complete makeover to become Pixingo, to the energetic and passionate Navy wife Lisa Diaz launching Homecoming Trunk Shows. All this and more in this weeks MLM News Report.
MLM News Advertising Sponsor
Pixingo may very well be one of the most creative makeovers and re-branding of a company in the network marketing community in history. I rank this creative move with the likes of New Vision (VEMMA) and OxyFresh (21Ten). What Michael Yanke and his strategic partners have done is in my opinion is the closest thing to a business miracle I have seen in 2011!
I have had the privilege of not just working closely with Michael as an outside brain storming partner, we have become very close friends. Like other close friends of mine who own companies which use the network marketing community as their main marketing channel, I have seen what Michael has gone through, as well as what he field leaders have gone through as they together weathered the first year of a MLM Startup company. My hat has to go off to the loyalty he has shown to his field force and the loyalty his field force has shown to him, as they went through this re-branding to create a stronger business opportunity for home-based entrepreneurs, and a more powerful digital imaging experience for their retail and wholesale customers.
MLM Startup Spot Light Of The Week
As someone who has served in the U.S. Marines and who fully supports our troops and their families today, when I found out about Lisa Diaz launching Homecoming Trunk Shows, I could hardly wait to go see what she had put together.
What I found was that although the company itself is what we call an MLM Stratup company, Lisa has been laying the foundation for the company for over eight years.
“Lisa Diaz, a proud Navy wife, has been hosting Trunk Shows for years as fund raisers for every type of organization you can imagine. She had a knack of finding unique, affordable and incredibly stylish handbags, clothing and accessories that women loved. After eight years, she decided to start a company that gives women the opportunity to work on their own term and to be rewarded and recognized for their
hard work and effort. She wanted to create a community of women working together where they can thrive personally and professionally by helping each other succeed.”
Now boys, this is not a company where you may feel at home as a distributor, but it truly is one you should share with your wives. Liza and the founding Stylist’s are all Navy wifes, and they are very proud of the fact they launched this new MLM Mission to “Our mission is to Inspire and Empower Women with Style.”
I truly love the fact, they are not trying to be politically correct or make “everyone feel at home” They are on a very strategic mission. As a matter of fact when I read the mission statement of Homecoming Truck Shows, it reminded me of another lady, who while sitting at her kitchen table wrote out a similar mission statement. And today her company is one of a handful of billion dollar network marketing companies… Mary Kay. If I have learned nothing else in my life, when women put their mind to something, you can bet they will succeed.
Miss Liza, welcome to our great community, we support you and your mission wholeheartedly.
Red Flag Alert
Updated December 27th 2011: Purported World Headquater DOES NOT Contain The Name of Text Cash Network: http://www.patrickpretty.com/2011/12/14/police-confirm-that-name-of-text-cash-network-does-not-appear-on-building-in-boca-raton-fla/
Editorial Update: Brett Hudson, President of TCn reached out to inform me, Ted Nuyten has updated the above mentioned review to show a correction in the TCN compensation plan. Although my opinion is that this business model does fall under the legal definition pyramid, out of fairness we must link to Ted’s update. Click Here!
My good friend Ted Nuyten published an article on Text Cash Network yesterday that caught my eye. After reading the article I went and did a little research on the company based on the fact their master distributor Joe Reed has such a controversial history at joining companies which seem to come on strong, but are gone just about as fast. One of his last rides to the top was the DNA (Data Network Affiliate) which in their early stage was nothing more than a shell game, and fell under the term pyramid scheme.
In doing a review of Text Cash Network, they are working under the same idea, that with free signups it is ok to pay people from outside sources which the distributor has no contact with. And on the surface this does look like a great deal for the company and referral agents (the name for distributors). However, the laws are very clear this is not legal. As a matter of fact I wrote an article on being a distributor for a direct selling company this week at The Network Marketing Advocates which explains this in detail. (What Does It Mean To Be A Distributor For A Direct Selling Company)
For those who do not want to read the full article here is the two factors based on the U.S. Tax Code specific to direct sellers (YOU!):
26 U.S. Code 3508
The term ”direct seller” means any person if –
(A) such person –
(i) is engaged in the trade or business of selling (or soliciting the sale of) consumer
products to any buyer on a buy-sell basis, a deposit-commission basis, or any similar
basis which the Secretary prescribes by regulations, for resale (by the buyer or any other
person) in the home or otherwise than in a permanent retail establishment,
(ii) is engaged in the trade or business of selling (or soliciting the sale of) consumer
products in the home or otherwise than in a permanent retail establishment, or
(iii) is engaged in the trade or business of the delivering or distribution of newspapers or
shopping news (including any services directly related to such trade or business),
(B) substantially all the remuneration (whether or not paid in cash) for the performance of
the services described in subparagraph (A) is directly related to sales or other output
(including the performance of services) rather than to the number of hours worked, and
(C) the services performed by the person are performed pursuant to a written contract
between such person and the person for whom the services are performed and such
contract provides that the person will not be treated as an employee with respect to such
services for Federal tax purposes.
So based on the current business model of Cash Text Network, there is no “soliciting the sale” by the distributor, only the solicitation of “recruiting other distributors” which raising huge red flags of a pyramid.
Some other red flags I found are as follows:
1. The website is under a private registry. From the SEC, FTC to state AGs all state this is a red flag.
2. The two companies I found listed on their website T.C.N. Inc and The Cash Network Inc., are not listed anywhere on the official Florida Secretary of State website (SunBiz.org) to transact business in the state of Florida.
4. Another red flag, although a very small one is the fact, the picture Ted shows in his review as their new international headquarters is not located in a database of over 2 billion images listed on the Internet.
I have reached out to Brett Hudson, the president of Tech Cash Network, and he has agreed to review the questions and red flags I have. From researching Brett’s background, he seems to be an extremely experienced and successful business man.
If you decide to join Text Cash Network or any other texting company purporting to use a MLM compensation structure, I strongly suggest you do your research, before jumping head first into the business.
Also, as a side note. Google owns the worlds largest mobile texting network, and works closely with the four wireless carriers to provide this service to the end users. Just like last year with several small MLM wireless companies launched and went out of business. The top four carriers controls the space and can decide who they do business with. I am not sure this niche will ever be a viable long term business for network marketing.