Business For Home Reports: ForeverGreen Revenue Down 32.8%

FGXpress Founder Ron Williams Has To Figure Out A Way To Make His Farmer's Market Concept Profitable!


ForeverGreen Worldwide Corporation, a leading direct marketing company and provider of health-centered products, announced today financial results for the second quarter ended June 30, 2016.

Second Quarter Financial Highlights

  • Total revenues decreased 32.8% to $10,798,076 from $16,079,017 during Q2 2015
  • Sales and Marketing expenses decreased 48.6% to  $4,056,821 versus$7,890,203 during the comparable period in 2015
  • General and administrative expenses decreased 36.3% to $3,387,969 from$5,322,385
  • Total Operating Expenses decreased 43.7 % to $7,444,790 from$13,212,588 during Q2 2015
  • Net Operating Income Increased from a loss of $1,173,114 in Q2 2015 to a gain of  $338,151
  • Net Income for the quarter was $189,719 or .01 EPS compared to a loss of $1,446,797 or (.06) EPS during Q2 2015


Business For Home Reports: Total Life Changes Opens A&M Office

TLC’s founder and CEO Jack Fallon announce new satellite office will support an acquisition and merger division.


TLC’s founder and CEO Jack Fallon announced a new satellite office to be resided in Salt Lake City that will support an acquisition and merger division.

Total Life Changes has been recognized as an agent of change in the Direct Selling industry by offering a unique blend of innovative products and one of the most generous compensation plans for its Independent Business Owners.

Having assumed the additional role as President of Total Life Changes, Mr. Fallon has devoted substantial time to plan for the immediate and future success of the company.


Business For Home Reports: Nerium Appoints Rafael Avendano Santos GM Of Mexico

Founder and CEO Jeff Olson announced today the appointment of Rafael Avendano Santos as official General Manager of Nerium Mexico.


Founder and CEO Jeff Olson announced today the appointment of Rafael Avendano Santos as official General Manager of Nerium Mexico.

“It is an absolute honor to see our Mexico operation reach its two-year anniversary as it continues to grow from Mexico City and Monterrey all across the country. I know we will see Mexico success and excitement surge as we welcome GM Rafael Avendano, an accomplished professional who shares the Nerium values and culture, to our Nerium Mexico family,” said Founder and Chief Executive Officer Jeff Olson.

Since the company’s August 2011 launch in the U.S., Nerium has created skincare products focused on science and clinically proven to produce real results. After breaking sales records while building millions of consumer fans in the U.S., Canada, Mexico and South Korea, Nerium launched its Japan opening in July as part of its Asia-Pacific expansion. Mexico was Nerium’s third country opening in 2014.


FTC Settlement with Herbalife – OMG!!!!

Network marketing is in the midst of a rapidly advancing Orwellian era.


Network marketing is in the midst of a rapidly advancing Orwellian era. It’s been slow to develop, starting in 1996 when the Ninth Circuit Court of Appeals issued its decision in Webster v. Omnitrition, but it’s snowballed in the past two years.  Today the snowball grew exponentially with the announcement that the Federal Trade Commission and Herbalife have reached a settlement agreement.

Watch for detailed updates and analysis on the settlement. We’ll break it down into many little pieces to determine how it will impact your business. But today we just have time for a broad sweep so I’m just going to address some critical topics.

The obvious first question is: “Does this settlement affect my business?” It’s certainly an important question. After all, the FTC was investigating Herbalife and analyzing Herbalife’s program, so why should it apply to any other company? The answer is two-fold. There’s the technically correct answer, and the real-world practical answer. The technically correct answer is that the FTC settlement with Herbalife has no binding impact on any other network marketing business. The real-world answer is quite different.  The changes that Herbalife must implement offer a clear roadmap to the standards that the FTC expects all direct sellers to conform, and those are the standards that it will pursue in future cases against direct sellers.

There’s no law that requires direct selling companies to adhere to all of requirements in the Herbalife settlement. But those who stick their head in the sand and ignore the messages in the Herbalife settlement agreement do so at great peril. By now you’re certainly wondering what the settlement agreement requires. Here’s a high level summary of the most critical issues that will impact every network marketing program:

  1. The FTC has asserted a new basis upon which to attack MLMs under Section 5 of the FTC Act. They claim that Herbalife was “promoting participation in a multi-level marketing program with a compensation structure that causes or is likely to cause harm to participants.”

This is a groundbreaking position. Historically, the FTC has attacked MLM programs as pyramid schemes, but in the Herbalife settlement there’s no assertion that Herbalife is an illegal pyramid (that’s great news for Herbalife!). Rather, the settlement agreement asserts “the compensation structure is likely to cause harm.” This is a new angle of attack that requires a new analysis of compensation plans and programs. The legal standard of what constitutes a harmful compensation plan is not defined in any case law. The Herbalife settlement is the first glimpse we’ve had into what is a “harmful compensation structure.”

  1. Sales to non-participants in the business opportunity remain foremost in the FTC’s consideration of what constitutes a legitimate multilevel opportunity. The FTC acknowledges that some personal consumption of products by Herbalife distributors is appropriate. What’s critically important is that the settlement agreement specifies that no more than one-third of multilevel compensation may be paid from sales to distributors. Conversely, the FTC expects at least two-thirds of product sales to be to customers (i.e., those who are NOT distributors). Also of critical importance is that the settlement agreement very clearly delineates distributors from customers. The argument that distributors who don’t earn anything but who to buy products are “discount buyers” and not distributors will not hold water.
  1. To the extent that the program required distributors to meet minimum quotas to qualify for compensation, the minimum quotas MUST be met through sales to customers who are not distributors. This is a CRITICAL takeaway from the settlement because it stabs directly at the heart of the very common element of multilevel compensation plans that set minimum personal volume quotas necessary to be “active,” which is a prerequisite to being eligible for compensation.
  1. Distributors are PROHIBITED from participating in an auto-ship program. Yes, you read that correctly. Stop and take a deep breath. Now read it again. I don’t need to expound on that one.

There are A LOT of other elements to the settlement that are incredibly significant, and much further analysis needed on the points addressed in this blog. We’ll focus on the many facets of the settlement agreement in the very near future. But the above are such foundational concerns that every company using a multilevel compensation structure must be thinking about how to deal with this NOW. If these are the standards that the FTC will seek to impose on all multilevel marketers (and I fully expect that they are), it will impact EVERY direct seller and the structure of the overwhelming majority of direct selling businesses.


Herbalife to Restructure Operations, Pay $200 Million to Settle FTC Charges

Herbalife States USA Revenues Only 20% Of Total Company Revenues!

Angle Of Justice

Note: See an overview of how this settlement affects network marketers, and watch out blog for detailed analysis and updates.

Herbalife International of America, Inc., Herbalife International, Inc., and Herbalife, Ltd. will restructure their U.S. multi-level marketing business operations and pay $200 million to compensate consumers to settle the FTC complaint that the Herbalife companies deceived consumers into believing they could earn substantial money their products.

The FTC complaint also charged that Herbalife’s compensation structure was unfair because it distributors were rewarded for recruiting others to join and purchase products in order to advance in the MLM program, as opposed to actual retail demand for the product, causing economic injury to many distributors.

According to the complaint, Herbalife claimed that people could earn thousands of dollars a month or even get rich in the program. But the complaint alleged that the majority of distributors earn little or no money, with more than half the distributors known as “sales leaders” receiving less than $300 in rewards for 2014. According to a survey by Herbalife itself, Nutrition Club owners spent an average of about $8,500 to open a club, and 57 percent of club owners reported making no profit or losing money.

Those distributors who do make a lot of money, according to the complaint, are compensated for recruiting new distributors, regardless of whether those recruits can sell the products they buy from Herbalife.

As part of the settlement, Herbalife will change its compensation system so that it eliminates recruiting incentives and rewards retail sales to customers. As examples of the changes, the FTC says:

  • Herbalife will differentiate between participants who join simply to buy products at a discount and those who join the business opportunity.
  • At least two-thirds of rewards paid to distributors must be based on tracked and verified retail sales of Herbalife products. No more than one-third of rewards can be based on other distributors’ limited personal consumption.
  • I order to pay compensation to distributors at current levels, at least 80 percent of Herbalife’s product sales must be to legitimate end-users. Otherwise, rewards to distributors must be reduced.
  • Herbalife is prohibited from allowing participants to incur the expenses associated with leasing or purchasing premises for “Nutrition Clubs” or other business locations before completing their first year as a distributor and completing a business training program.

In addition, Herbalife will pay a $200 million for consumer redress, including money for consumers, such as Nutrition Club owners, who purchased large quantities of Herbalife products.


Wellman & Warren defends FTC investigation of MLM Company

Not All FTC Investigations End With The Government Winning!

Angle Of Justice

Wellman & Warren, LLP has, once again, successfully defended a Federal Trade Commission (FTC) investigation of a Multi-Level Marketing company. Due to the private and confidential nature of the investigation, Wellman & Warren is not able to disclose the names of parties involved in the investigation. The FTC’s investigation centered around the methods in which the company paid commissions to their distributors as well as various income claims made by the company and their distributors.

Read more on Wellman & Warren defends FTC investigation of MLM Company…

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Judge Rules that Monavie Must Pay a Former Distributor Over $1,200,000

Social Media Profiles May Be Protected By First Amendment Rights!


In a crushing defeat for MonaVie, an arbitrator in Utah has ruled that MonaVie must pay a former MonaVie distributor $1,215,000 plus cost for wrongfully terminating the distributor’s contract and for breaching its duty to act fair and in good faith.

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