What Can We Learn From The Ex Parte Application Filed By The FTC Against Vemma Nutrition Company

Certification & Declaration Of FTC Counsel Angeleque P. Linvelle In Support Of Ex Parte Application For TRO & Motion To Seal

Last week I wrote an article about the FTC filing a complaint against BK Boreyko for running a pyramid scheme called Vemma Nutritional. I titled the article “When Does Aggressive Sales Team Recruitment In MLM Become Enticement Into An Illegal Pyramid Scheme?”

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.

When Does Aggressive Sales Team Recruitment In MLM Become Enticement Into An Illegal Recruitment Pyramid”

FTC Claims VEMMA Illegal Pyramid Scheme

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.

ComplianceMany 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:

  1. Pyramid Scheme
  2. Illegal Recruiting Enticement

VEMMA_VERVEOn the first allegation I believe with detailed communication between Vemma legal and compliance teams, they should be able to present to the courts ALL the facts to show that VEMMA isn’t an illegal pyramid scheme. And I personally do not believe BK, his staff, the influencers in this community, the DSA, or even the FTC truly believe VEMMA is a pyramid scheme. The evidence, when presented to the courts should prove this out without any trouble.

As to the second allegation, I fully understand and based on all the supporting evidence, (some I have talked about in past editorials and videos posts) it’s very clear that enticement of recruitment is evident.

AlkazinOne major piece of evidence which stood out, that I have cautioned against for years is the promotion of “TOP EARNERS” (Tom & Bethany Alkazin we also charged in the FTC case against Vemma) in public blogs such as Business From Home.

Don’t get me wrong, I love reading through all of Ted’s stats just like most folks. But I have warned that some regulatory agency might use those stats to support enticement charges, or for an IRS audit.

Many thought I was just being overly conservative, and that regulators never read any of our blogs!

Well, now we know regulators read the something we all read.

The take-away for EVERYONE… Don’t make any INCOME CLAIMS, which include lifestyle claims, bling videos, pictures of exotic cars, boats and planes and pretend your earned it, or lease a huge home and act like you bought it.

ALL Companies should STOP creating super-sized checks and plastering them across stage to be used out of compliance through social media.

Every enticement charge is something I work with clients on and warn against. Some still do it… But most will stop now!

Here is the link to the FTC Complaint – Curtesy of Kevin Thompson of Thompson Burton PLLC.

FTC vs. VEMMA Complaint

Linville Declaration – FTC .vs VEMMA Complaint 

Bosley Declaration – FTC .vs VEMMA Complaint

Memo In Support Of TRO – FTC .vs VEMMA

Tony Robbins On The Power Of Direct Sales

Eric Worre Interviews Tony Robbins On The Power Of Network Marketing

Eric Worre had the opportunity to interview Tony Robbins this week on the power of network marketing. 

Eric_TonyYou 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!

Just click the link below for all the details!

Everyone who registers for this special Free webinar will receive access to the replay of this event. So even if your schedule doesn’t allow you to watch live, you won’t miss a thing!

Go To Network Marketing Pro to register! 


The Story Behind Jenny Caldwell – Jeunesse Global Sapphire

Much has been written about Wendy and Randy Lewis, and the company they founded, Jeunesse Global. But, what about the hundreds of thousands of average everyday home-based entrepreneurs who are independent professionals marketing Instantly Ageless the flagship product, and building a team of other independent sales and marketing professionals?

Who is Jenny Caldwell? 

I met Jenny Caldwell a couple of months ago while I was covering a controversial Jeunesse issue and used a Facebook post, of a corporate image of Ms. Caldwell, which had been doctored a little with additional text (not by her, but by a raving fan of hers.) However, even the best intentions can go wrong, and before you know it, I received a private message which stated out “Shame on you!”

Well I don’t get many messages that stat out with “shame on you,” so it truly caught my attention. I read her sincere message, and went and reviewed my post. I quickly saw where the confusion was coming from, and responded to her, that I would remove the image of her, as well as any mention of her in the article.


But, the story doesn’t end there; it’s just the beginning. From that point forward, Jenny Caldwell and I struck up an online friendship. Her life is remarkable, not just as a female living in America, but as a leader who has touched countless lives as she fulfills her purpose in life.

Do You Know The Impact Direct Selling Has On The U.S.A. Economy & Employment Numbers?

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)

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.

Six Strategies To Answer Any Objection From Clients & Prospects

Target Your Customers

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?

  1. Don’t see an objection see a question. Although the objection might sound like a verbal attack on what you just shared, brush it off and rephrase what they just said back as a question. If their objection was phrased as a question, then provide a direct answer by sharing the benefits you will provide them.
  1. Turn their objections into reasons for buying. One common objection in any sales situation is “The price is high, or why is your prices so high?” Don’t back away from this objection, instead share confidently that at times higher prices is a sure sign of higher value! And if you have done your homework or are observing your prospect, you can use something you have observed they already value and use that as an example.
  1. Reveal hidden objections. Be bold and ask, “do you have any other concerns, we have not covered”? If there is a common objection you have heard in the past, and your prospect hasn’t brought it up, then share it and the answer. And if you see your prospect has real concerns and is digging to get the answers before making an informed decision, look them straight in the eye and ask “if I am able to answer all your concerns today and show you the value of doing business with me, can I earn your business today?”
  1. Stop the objections before they are raised. I have learned that asking the right questions from the beginning of my presentation can eliminate objections before they are raised. One very important question is to confirm that you are talking to the right person. I often ask “is there anyone else who you will want to talk with before making your final decision?” If they say yes, then I stop and we schedule a time for all the decision makers to be present for the presentation. Remember your time is your most important asset, and you can’t get it back!
  1. Reach an agreement. Empathize; never sympathize with your prospects. When you prospect raises an objection like your prices, then don’t act as if this is the first time you have heard the objection. Respond with complete understanding “Yes I hear that often, and you are right my prices are somewhat higher. However, with us you will get the following added value, that I have not found with the majority of our competitors.”
  1. Never hype your product or service over the objection. There is no such thing as a perfect product or service. Even with purpose driven companies, there are times when their products will fall short. Don’t try and prove your prospect wrong when they raise a solid issue, admit it, share what the company has done to fix it, and how their input as a new client will help them deliver better products and services in the future. Remember trust is the key to a successful close.

Although there are many more you may write down as you build your home-based or small business, these six should get you rolling.

How to Create a Culture of Excellence

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?

Beware Of Recruiting Your Competitor’s Sales Leaders

Horses Running

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.

Like rustlers from days gone by, more and more I am witnessing good-hearted entrepreneurs doing just that. They are falling into the trap of thinking its better to go after their competitor’s sales force then growing and maturing their own. It’s like some magic will happen and their company will explode. Now don’t get me wrong, when a large group moves into a company there will be a rise in sales, which can be seen as momentum, when in reality it just like a wild horse stampede, it’s a magnificent sight to see, but once the bulk of the herd have stampeded over the fence and scatter, then there is nothing to see but the meeting dust of the herd. And if the majority has followed a leader over the edge, hit quicksand, or have found a new pasture, then most will die off and leave the company financially devastated.

Here are five myths I have found that happens when we go after our competitor’s sales leaders.

Beachside CEO News Report: Bogus Takeover Bid For Avon, Mannatech & Youngevity Revenues Up!

Mannatech Reports Positive 1st Quarter Results – First quarter net sales for 2015 were $44.4 million, an increase of 3.3% as compared to $43.0 million in the first quarter of 2014. Mannatech’s net sales increased 7.4% in constant dollars, which is a non-GAAP financial measure that excludes the impact of fluctuations in foreign currency exchange rates.

Who Really Owns MonaVie and MYNT, Jeunesse, TSG-MV Financing LLC, or Employees?

Utah-based MonaVie faces foreclosure after spectacular rise and fall

This story broke yesterday when Tom Harvey, of the Salt Lake City Tribune, published his article. I went through the whole article I realized several issues. First is the fact, there are many moving parts of the rise and fall of MonaVie aka MYNT, and Second…

If I get this right, and it’s tricky as I said there are many moving parts, and we are just now pulling the lawsuits and filing, here is what I see on the surface.


1. In 2010 two transactions took place (not sure of which came first at this point); major stockholders sold their stock valued at that time at $186 million to the EMPLOYEE ESOP secured by a high-yield (article called it an “exorbitant interest rate), and during this same year, MonaVie executives sought out financing for $182 million from TSG-MV Financing LLC, securing “virtually all the assets” of MonaVie.

Here are my observations…