The FTC Policy Statement On Deception
Wouldn’t it be a blast if, like horse breeders we could cross breed strong powerful sales leaders, and within a few months they would start duplicating and producing other great sales leaders and before you know it, our home-based or small enterprise will have become the next media sensation? Yet, at times I think that’s exactly what many home-based and small entrepreneurs think will happen when they go after sales folks in their competitors pastures.
A few years ago I read a book by David Horsager, titled The Trust Edge that left a lasting impression. I have adapted what David taught and expounded on it in helping my clients and others grow unwavering trust in their organizations.
Target Your Customers
You just crossed the finish line and got the checkered flag. This was the best presentation you have ever given. The prospects were engaged, their eyes lit up when you shared all the benefits, and you know the close is in the bag. And as you pull out the pen and turn the agreement around for them to sign, they lean back and say, “I have a few questions”, but what you hear is “I have some objections.” So what do you do?
The Direct Selling Association (DSA), using data which includes the top 20 direct selling member companies – AdvoCare International, LP, Nature’s Sunshine Products, Inc., Ambit Energy, Nu Skin Enterprises, Amway, Rodan + Fields, Arbonne International, LLC, Scentsy, Inc., Herbalife, Shaklee Corporation, Isagenix International, Stream Energy, LegalShield, Take Shape for Life, Inc.-Medifast, LifeVantage Corporation, Team Beachbody, Mary Kay Inc., Thirty-One Gifts, Melaleuca, Inc., USANA Health Sciences, Inc. reveals some amazing facts and figures.
Over 18 million people were involved in direct selling in the U.S. in 2014, with estimated retail sales reaching $34.5 billion, a 5.5% increase from 2013. (PRNewsFoto/Direct Selling Association)
According to date released at the DSA annual meeting June 1st, 2015, retail sales volume among U.S. direct selling companies grew 5.5% between 2013 and 2014 to $34.47 billion. Individuals involved in direct selling increased 8.3% during the same period, surpassing over 18 million (18.2 million) Americans for the first time.
I have read the FTC .vs Vemma complaint alleging that Vemma is an illegal pyramid scheme. I will be reporting on what we can all learn from issue.
Many have asked if I now after reading the FTC .vs VEMMA complaint and supporting documents, if I now believe Vemma is an illegal pyramid, and the answer is still NO!
I do however believe that BK Boreyko and the team at Vemma, may have taken their eye off the ball in some areas, and when you do this too many times, then what seems like small infractions, can mushroom into what we see has happened at VEMMA.
As I wrote earlier this week, this isn’t just a Vemma issue, this is an industry-wide issue.
I will be doing a video and editorial on this issue over the next few days, to address what I see as the most obvious issues the FTC have raised as concerns.
The two major allegations are:
It always amazes me how leaders inside the home business profession try and dictate team culture instead of influencing it. From company executives to top field leaders, I still come across folks who believe that based on their “rank” they have earned the right to lead, when the reality is, they are just dictatorial managers.
Now don’t get me wrong, I do not believe the majority of these folks are trying to sabotage their success or their team’s growth. I believe that in the majority of cases, people are just following the status quo of traditional business.
So, how do we stop dictating our team culture and start inflicting it?
Have you ever really thought about why Multi-Level Marketing (MLM) aka Network Marketing; which in reality is nothing more than a marketing strategy and compensation structure inside of the direct selling channel, is seen by many as some form of the illegitimate business model?
After reading all the court documents, I have decided to continue to the series to see what can be learned from each court document filed by the attorneys for the FTC.
In this editorial, I want to look at the TRO Application filed by Angeleque P. Linville, the leading attorney for the FTC office out of Dallas. Ms. Linville is without a doubt a very competent legal counsel, from reviewing her background.
But, when it comes to her TRO application, I respectfully disagree with her on several points, and truly take offense o the fact that in several areas she calls “Vemma a pyramid”, rather than an “alleged pyramid.” This may seem trivial to some, except that when anyone has already made up their mind in an argument, then it becomes hard for them to separate facts from their perceived reality.
You can watch the full interview, plus get access to some other great secrets, but registering and attending the FREE Webinar this coming Saturday, August 15th, 2015 at 11:00 AM Central!
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