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Jon M. Taylor

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  • Ackman Was Too Kind In His Attack On Herbalife [View article]
    Nu Skin is built on the same flawed foundation and assumptions as Herbalife - recruitment of a whole network of endless chaiins of participants as primary customers. It assumes an infinite market, which does not exist in the real world. It also assumes a virgin market, which cannot exist for long. So like HLF it must "re-pyramid" from market to market to survive and grow.

    I tested the Nu Skin program as a distributor for one year - rising to the top 1%, but still losing money (Top 1% is not good enough in their pay plan.). All of this is reported on my web site and in my ebook, which you can download free of charge from my web site - mlm-thetruth.com

    After analyzing some 500 MLM programs, I find that all have the same fundamental flaws in their compensation plans. In my opinion, a "good MLML" is an oxymoron.
    Jan 24 11:52 PM | Likes Like |Link to Comment
  • Ackman Was Too Kind In His Attack On Herbalife [View article]
    Did you read the whole article, or just skim it? I won't repeat the explanations that I have already written and that answers most of your objections.

    My consumer advocacy work is all pro bono, although I occasionally get called in as a consultant or expert witness in MLM cases.

    As for the buyers' club concept, I would have no objection if an MLM company like Herbalife sold its products as a "pay more" buyers' club. But it is grossly misleading to promote it as an income or business opportunity when 99.9% lose money. Again, one can do far better in Vegas.

    Selling Herbalife as a business opportunity makes as much sense as placing a "BUSINESS OPPORTUNITY" sign over the roulette wheels in Caesar's Palace. Even though the odds of profiting are far greater at the gaming tables than for MLM recruits, if a casino owner did that, the Nevada gaming commission may revoke his license.

    As for the difference between a Ponzi scheme, a pyramid scheme, and MLM, I would refer you to Chapter 2 of my ebook, "The Case (for and) against Multi-level Marketing," which can be downloaded free of charge from my web site. Chapter 9 ("Villains and Victims") and Chapter 11 ("Where Is Law Enforcement in all This?") will answer your final objections.
    Jan 24 11:38 PM | 4 Likes Like |Link to Comment
  • Ackman Was Too Kind In His Attack On Herbalife [View article]
    I was contacted for my advice in an insurance case in which a person had terrible side effedcts from the products. He complained to the person who sold them and wanted to make an issue out of it for the company - but the complaint went nowhere. When the distributor and an upline person showed up. the customer shot and killed both of them. That's three murders and six suicides related to MLM participation that have been reported to me. It's not just about the money.
    Jan 24 11:18 PM | 1 Like Like |Link to Comment
  • Ackman Was Too Kind In His Attack On Herbalife [View article]
    Apples and oranges comparison. MLM is not insurance.
    Jan 24 11:11 PM | 1 Like Like |Link to Comment
  • Ackman Was Too Kind In His Attack On Herbalife [View article]
    The buy back program is a ruse - exercised for less than 1% of sales. with its "clawback" provisions and with self-incrimination implications of endless chain recruitment programs (as explained in the article), HLF has protected itself from having to worry about significant buybacks. Victims often wind up storing, tossing, or giving the stuff away.
    Jan 24 11:10 PM | Likes Like |Link to Comment
  • Ackman Was Too Kind In His Attack On Herbalife [View article]
    My take on the growth outlook for HLF is that it will continue growing to the extent the execs are resourceful enough to keep coming up with new markets to exploiit; i.e., re-pyramiding from maraket to market. And when they've covered the world, it will be time for a new product division to start the whole process over again. Perhaps sexual enhancement pills? Than ought to be good for another twenty years. Then they can start all over with a new generation. How about smart pills?
    Incidentally, some MLMs are going after college students, who are using thier student loan funds to "build a future" that college may not provide. Many are thus giving up on their education and wind up flipping hamburgers instead.
    Get the dismal picture?
    Jan 24 10:56 PM | 1 Like Like |Link to Comment
  • Ackman Was Too Kind In His Attack On Herbalife [View article]
    The 100% buy back is a ruse to satisfy regulators, the media, and the public. Ackman explains in his presentation why refunds are less than 1% of sales. The hurdles for exercising the buy back option are too formidable for all but the most determined to exercise it. And if we have learned anything about MLM, it is that victims are not only blaming themselves, but with "claw-bacK" and other provisions, they usually just keep, store, or give away the inventory and eat their losses.
    Herfalife and similar MLMS also claim thee is little or no cost to join. But it you study their compensation plan carefully, you will see that you don't gain commissions or rand advancement without a considerable purchase commitment.
    Jan 24 10:41 PM | 8 Likes Like |Link to Comment
  • Ackman Was Too Kind In His Attack On Herbalife [View article]
    <Is it much different in traditional sales?>
    Yes. Traditional sales are tough with low success rate. But not less than one in a thousand.
    <Are the odds of a new college graduate making the C-Suite any better than making the HerbaLife President's Team?>
    It depends. In MLM, the first ones in can make a killing. Every one else is sold a ticket on a flight that has already left the ground. This is true of any pyramid scheme, especially one as highly leveraged as Herbalife.
    Jan 24 03:35 PM | 1 Like Like |Link to Comment
  • Ackman Was Too Kind In His Attack On Herbalife [View article]
    <Why don't you go after the gambling industry with this same kind of fervor? The losses to the average Joe are many times as great as the losses with MLMs like Herbalife.>
    Apparanlty you didn't read the last of the article comparing gambling to MLM. I conducted a survey of tax preparers in Tooele County, Utah, which borders on Nevada. There were 300 times as many reports of winnings from gambling as from MLM, even though approximately 6% of the population in Tooele County was involved in MLM.. These statisitacal cmparisons are all reported on my web site - mlm-thetruth.com
    Jan 24 03:35 PM | 4 Likes Like |Link to Comment
  • Ackman Was Too Kind In His Attack On Herbalife [View article]
    Yes!
    Jan 24 03:35 PM | 2 Likes Like |Link to Comment
  • Herbalife's Circular Reference - 'Popping The Question' [View article]
    Matt Stewart's logic is right on target. Appropriate officials from both the SEC and the FTC should read this.
    Jan 22 02:11 PM | 1 Like Like |Link to Comment
  • An Investor's Guide To Identifying Pyramid Schemes [View article]
    For anyone who wants a thorough analysis of the entire MLM industry, go to MLM-thetruth.com. You can download a book which summarizes analyses of over 500 MLM companies over a period of 18 years. It is called "The Case (for and) against Multi-level Marketing", and you can download it free of charge. Several other interesting articles are posted on the web site, including a 5-step do-it-yourself evaluation program, all based on solid research - not mere opinions.
    Oct 12 02:01 AM | 2 Likes Like |Link to Comment
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