MLM Weekly News: Quaterly Network Marketing Financials, Pyramid Lawsuits, And MLM Mergers

Direct Selling Edge Conference 02

LifeMax

Dear Lifemax Family,

We are pleased to announce that Lifemax has chosen to create a strategic partnership with a nutritional industry powerhouse, Genesis PURE to further refine the Mila brand. Genesis PURE acquisition of Lifemax will allow Mila to spread exponentially throughout the North American market, while leveraging the international capabilities of the fastest growing nutritional company in the world. This unique partnership will allow us to expand the Mila brand expansion and ramp up production, giving us greater speed to market. Additionally this relationship will allow Mila Distributors globally to increase their businesses with velocity, fulfilling on the commitment of our mission, which is to restore health and build wealth through awareness, education and opportunity.

This company was started as a way for others to experience the benefits of Mila while at the same time fulfilling their dreams. To us, Mila has always been more than just a product; it’s been an opportunity for us to provide an avenue for people to live their full potential and have the freedom to really create the life they want. Lifemax has been such a blessing to us throughout the years and we are grateful to each and every one of you who have shared yourselves and your lives with us.

With great excitement, we look forward to growing with all of you, to the next chapter with Dr. Lindsey and Genesis PURE and of the possibilities we can create together. Make no mistake; Mila will continue to penetrate all markets while reaching an abundance of lives. We did not choose Genesis PURE because they are the fastest growing network marketing company, because they are debt free, or because of the amazing arsenal of products, Genesis PURE chose us because Mila is the world’s most healthiest whole raw food that is changing the way we look at health, nutrition and wellness.

We’re happy to partner with Dr. Lindsey who is well versed in the benefits of Mila. With over 28 years of clinical experience, he is a naturopathic doctor, certified nutritionist, master herbalist, formulator and trusted leader in the natural health products industry. He’s also appeared on Dr. Oz where he introduced chia seed and its health benefits for the very first time to the world and is a leading expert on super foods, herbal medicine, natural remedies and natural health. Dr. Lindsey is the in-demand nutritionist and media’s top source to get the truth about health and plant-based nutrition.

We know you have questions and they will be answered. As we move along in our partnership, we will certainly be in communication with you about all of the amazing things we have in store for the future.

Much love,

Jim and Sherri

Vemma® Doubles Sales in 12 Months

Vemma Nutrition Company announced that sales reached $20 million per month in July, a first-ever record for the company. After taking 7 years to reach the $10 million monthly sales mark in July 2012, Vemma has now doubled that to $20 million a month just 12 months later.

Vemma

In addition, Vemma monthly customer and Brand Partner enrollments reached the 30,000 mark for the first time in July. This growth continues to be driven by the $100 million Verve healthy energy drink brand, including the release of Verve Bold this past January, which sparked record-breaking sales and became the most successful product launch in the company’s history, selling over 4 million cans in the first 5 months.

“With this announcement, excitement is high and our team is setting goals that would have seemed impossible just 12 months ago,” commented Vemma Founder and CEO, BK Boreyko. “We expect sales will continue to increase as school gets back into session, and with the new Verve ParTea™, a flavored iced tea energy drink which will be released this fall, followed by Verve MoJoe™, a vanilla latte flavored iced coffee, in January 2014.” (Read the full Press Release)

MLM Attorney Kevin Thompson

Distributors Fight Back: File a counterclaim against Wealth Masters International

Almost two years after leaving Wealth Masters International, our clients were sued by WMI for cross-recruiting. Our clients have had experience leaving an MLM in the past (Xango). They knew what to do and they did it well. They left honorably, without incident as they’ve done in this case with WMI. There was nothing malicious with their exit. There were no disparaging words. They simply wanted to go in another direction. And due to their decision, they now find themselves in a lawsuit for $10,000,000. (Read The Full Press Release and Review The Lawsuit)

 

The Benefits of the Age Gap: How Direct Sellers Have Successfully Targeted Both the Youngest and Oldest Members of the Workforce

According to the AARP, by 2015, nearly one-third of the total U.S. workforce will be age 50 or older. In that same timeframe, Generation Y will grow to represent the majority of the U.S. labor force, helping to create an age gap through which many employers will find themselves with a staff comprised largely of both the youngest and oldest members of the workforce, with fewer employees in between.

To put that into context, for some companies, the age gap is so wide that workers could be the age of their colleagues’ grandparents and still share similar titles and responsibilities with their youngest counterparts.

While the age gap presents many challenges in the direct selling industry, such as the need to be sensitive to technology preferences when providing distributors with tools to build their businesses, in many ways, this age discrepancy can actually benefit companies, even those whose products tend to target specific demographics. (Read The Full Article Here)

Direct Selling Assocation

 

Happi Magazine, which covers the Household and Personal Products Industry, recently released its annual list of the top 50 U.S. companies in that industry. Ten direct selling companies were featured on the list, as follows:

4Life and LifeVantage are now members of the United Natural Products Alliance, based in Salt Lake City.

Internet Retailer has released its 2013 Top 500 Guide, in which it ranked online retailers. Amway was ranked the Web’s largest seller in the health and beauty category for the 10th consecutive year, ranking No. 32 overall. Avon ranked No. 42 on this year’s list.

ACN has partnered with Anovia Payments to provide its independent business owners with complete payment solutions. The platform enables the processing of credit, debit, gift card, e-checks and e-commerce across any point of sale medium.

Avon reported second-quarter 2013 results. Total revenue of $2.5 billion decreased two percent, primarily due to an increase in average order, which partially benefited from inflation in Latin America. Active representatives and total units were relatively unchanged and price/mix increased two percent during the quarter. Avon Beauty sales declined four percent; Fashion & Home sales were up two percent. Second-quarter 2013’s net income from continuing operations was $85 million.

In July 2013, the company completed the sale of the Silpada business for $85 million plus the potential for a $15 million subsequent earn-out.

Brazil revenue was down one percent, primarily driven by an increase in active representatives, partially offset by lower average order. Mexico revenue was up 12 percent, primarily driven by the positive impact of the timing of the Easter holiday, as well as an increase in active representatives. Venezuela revenue was down 22 percent, primarily due to higher average order. Russia revenue was up six percent, primarily due to an increase in active representatives. U.K. revenue was down eight percent, primarily due to a decrease in active representatives. Turkey revenue was up six percent, primarily due to higher average order, partially offset by a decrease in active representatives. South Africa revenue was down six percent, primarily due to higher average order, partially offset by a decrease in active representatives.

North America revenue decline was primarily due to a decrease in active representatives. North America Beauty sales declined 14 percent, driven primarily by skincare. Revenue in China declined 27 percent, primarily due to declines in unit sales and the transition to a retail incentive model during the third quarter of 2012. Revenue in the Philippines was relatively unchanged, as a decrease in active representatives was primarily due to ongoing operational challenges in that market. View the full press release online.
Herbalife reported second-quarter net sales of $1.2 billion, reflecting an increase of 18 percent compared to the same time period in 2012. Adjusted net income for the quarter of $150.7 million compares to the second-quarter 2012 net income of $132 million. For the quarter ended June 30, 2013, the company generated cash flow from operations of $213.8 million, an increase of 56 percent compared to 2012. View the full press release online.

Longaberger recently announced it will be expanding to Australia next month. One of Longaberger’s sister companies, under publicly traded CVSL, is Australia-basedYour Inspiration At Home. “The Longaberger salesforce now has an open door to recruit and grow their businesses in Australia, just as the Your Inspiration At Home salesforce has an open door to enter the North American market. Each company can benefit from the other’s presence and familiarity with the new market,” said CVSL chairman John Rochon.

Mannatech has announced its financial results for the second quarter of 2013. The company reported a net income of $800,000 for the second quarter ending June 30, 2013, as compared to a net loss of $2.5 million for the second quarter of 2012. Net sales for the second quarter of 2013 were $44.8 million, an increase of 2.7 percent as compared to $43.6 million in the second quarter of 2012. Net sales for North America declined 6.6 percent to $21.3 million as compared to $22.8 million in the second quarter of 2012. Recruiting increased 31.2 percent in the second quarter of 2013 as compared to the second quarter of 2012.

Net sales for Asia/Pacific increased 17.1 percent to $19.9 million as compared to $17 million in the second quarter of 2012 due to an increase in the number of active associates. Net sales for Europe, the Middle East and Africa declined 5.2 percent to $3.6 million as compared to $3.8 million in the second quarter of 2012. The number of new independent associates and members for the second quarter of 2013 was approximately 36,200, as compared to 27,600 in 2012. The total number of independent associates and members based on a 12-month trailing period was approximately 240,000 as of June 30, 2013, as compared to 230,000 as of June 30, 2012. View the full press release online.

Nu Skin announced record second-quarter results with revenue of $682.9 million, a 15 percent increase over the prior-year period. In Greater China, second-quarter revenue increased 35 percent to $269.1 million, compared to $199.7 million in the prior year, which included approximately $100 million in product launch revenue. The sales leader count in the region improved 51 percent, while the number of actives increased 121 percent compared to the prior year. Second-quarter revenue in North Asia was $196.8 million, compared to $177.7 million for the same period of 2012.

The number of sales leaders in the region was up 21 percent while the number of actives improved 15 percent. Revenue in South Asia/Pacific was $85.9 million, a 13 percent decline compared to the prior year. Revenue in the prior year included approximately $40 million in product launch sales. The region’s second-quarter sales leaders decreased 20 percent while actives increased 16 percent compared to the same period in 2012. Revenue in the Americas improved 17 percent to $84.3 million, compared to $71.8 million in the prior-year period. The number of sales leaders in the region improved 16 percent while the number of actives increased three percent compared to the prior year. Revenue in the Europe, Middle East and Africa region was $46.8 million, a two percent improvement over the prior-year period. Sales leaders decreased three percent, while actives increased four percent compared to the prior year. View the full press release online.

Reliv reported its financial results for the second quarter of 2013. Net sales for the quarter were $15.4 million, an 8.1 percent decrease from the second quarter last year. Net U.S. sales totaled $11.8 million, down from second-quarter 2012 net sales of $12.9 million. Net sales outside of the U.S. declined 6.3 percent in the second quarter of 2013 compared to the prior-year quarter, as net sales declined by 46.5 percent in Asia, offset by sales increases of 12.6 percent in Europe and 9.2 percent in Australia/New Zealand.

The net loss for the second quarter of 2013 was ($214,000), compared to net income of $103,000 in the 2012 second quarter. Net sales in Europe increased to $1.96 million in the second quarter of 2013 compared to $1.74 in the prior-year second quarter. Australia/New Zealand increased net sales to $524,000 in the second quarter of 2013 compared to $480,000 in the same quarter in 2012. Net sales for the first six months of 2013 were $34.3 million, which represents a 6.1 percent decrease from the same period in 2012. Reliv’s international net sales declined six percent in the first half of 2013 compared with the first half of last year.

In the U.S., net sales declined 6.2 percent. Reliv reported a net loss of ($19,000) in the first six months of 2013, compared to net income of $635,000 in the same period of 2012. Reliv’s total distributor count was 53,390 as of June 30, 2013, a decrease of 9.9 percent from the same date in 2012, of which 5,910 are Master Affiliate level and above. The number of Master Affiliates decreased by 7.9 percent compared to the year-ago total. Master Affiliate is the level at which distributors are eligible to earn generation royalties. View the full press release online.

Thirty-One Gifts has partnered with the Boys & Girls Clubs of Middle Tennessee to throw an inaugural Back to School Bash. More than 300 children from five Boys & Girls Clubs will enjoy a day of games, inflatables and music. Each child will receive a backpack from Thirty-One Gifts.

In additional company news, Thirty-One Gifts announced the company will be bringing its 2014 annual convention back to Columbus, Ohio, where it was last held in 2011. The event, which will be in July, is expected to bring in about 16,000 attendees and will have a $12 million economic impact.

USANA is hosting its annual superhero-themed USANA Champions for Change 5K charity event on Aug. 17, in Salt Lake City. Dr. Mehmet Oz, of the The Dr. Oz Show, will serve as the master of ceremonies. All proceeds of the superhero-themed event will be donated to the USANA True Health Foundation.

In additional company news, USANA has been named one of America’s “Best Places to Work” by Outside Magazine for the fifth consecutive year, ranking No. 18 out the Top 100 companies in the U.S.

XANGO announced it laid off employees at its headquarters office facility this week. Less than 30 percent of its employees were affected by the layoffs. This round of layoffs is the beginning of the company’s process to better position itself for today’s economy and focus its resources on its most important initiatives.