PLANO, Texas (May 17, 2019) –
“Today, AdvoCare International announces a revision of its business model from multi-level marketing to a direct-to-consumer and single-level marketing compensation plan.
AdvoCare has been in confidential talks with the Federal Trade Commission about the AdvoCare business model and how AdvoCare compensates its Distributors. The planned change will impact Distributors who have participated in the multi-level aspect of the business.
Those who currently sell only to customers will not be impacted and there will be no impact on Preferred Customers or retailcustomers’ ability to purchase products….”
When Your Hard Work is Threatened
Networkers create large organizations by working their tails off.
There is increasing uncertainty in the direct sales world when it comes to building a residual business that will last.
It may be some time before we know the true reasons why Advocare decided to pull the plug on the network marketing business model.
- They lacked a high enough distributor to customer ratio to make the FTC happy
- The owners just got a major pay raise because now they don’t have to pay out the comp plan.
It’s all speculation at this point.
Regulation on The Rise
It’s about customers and generating REAL business.
Companies that fail to get their customer to distributor volume in balance will find themselves in the same boat as Advocare.
Ever since FTC forced Vemma to shut down their operation in late 2016, companies have been scrambling to adjust their business models to stay out of the sights of the FTC.
Online Marketing and Customer Aquisition Models on the Rise
Network marketing companies have rarely embraced true online marketers as a part of their business model.
This is changing rapidly as online marketers that represent brands well in a compliant way can generate customers for the company in a massive way.
Typically, 90% of the volume of an online marketer working within the comp. plan will be CUSTOMERS.
We have seen a massive shift where now some of the largest and most respected companies are seeking out highly skilled online marketers to help balance their ratios.
It seems that Advocare was not able to make this fundamental shift.
Residual Relationships will Prevail
Major leaders inside Advocare are already positioning themselves in new companies.
They will bring their “team” to a new home.
Will their income take a hit?
Maybe… Maybe not!
Bridging the Transition
We can help those seeking to make a transition
- A call with top distributor of company
- W’ell fly you in to review the company in detail
- Bridge contracts – don’t skip a beat with your monthly cash flow
- Preferred positioning inside a solid, $1.5B+ per year company in the top 15 worldwide
- Feed your team with a customer acquisition model driven by online sales and leads
Who is this for?
- Anyone with a decent size organization that want to protect and grow what they have built