Cerberus to invest $600 million in Avon

According to the Wall Street Journal, Cerberus Capital Management LP is nearing a deal to buy 80% of Avon Products Inc.’s North American business, and nearly 17% of the parent company.

Cerberus will pay $170 million for the North American business, and an additional $435 million for the stake in the parent, which had a market value of $1.8 billion.

As part of the agreement, Cerberus will take three seats on Avon’s board of director and designate a new chairman.


Avon has been struggling globally and the North American business has seen sales falling steadily over the past seven years.

World-wide, Avon’s revenue declined 19% in the first nine months of 2015 to $5.3 billion.

Source: Wall Street Journal

Direct Sales grew over 16% in Italy this year

According to Italian direct selling association AVEDISCO,  its member companies grew 16.17 percent in the first nine months of 2015. The total sales were more than 418 million Euros.

This is great news for our industry and a country that is struggling financially. ASAVEDISCO believes that its members have provided 151,265 individuals an opportunities to become self-employed in 2015 by becoming sales representatives.

The ‘Clothing and Textiles’ category had the biggest growth with an increase of almost 30%, followed by “Nutritionals” which  increased  nearly 20% from the previous year. ‘Services’ and ‘Home and Durable Goods’ improved by more than 16% and 11% respectively.


Next companies to hit $1 billion in annual sales

According to Direct Selling News there are now several companies on track to break the $1 Billion barrier by year end. These companies include:

• Team Beachbody
• Isagenix
• It Works!
• Jeunesse
• Stream
• Shaklee
• WorldVentures
• Young Living


They are set to join a very elite club. The only network marketing companies to hit this milestone already are:

  1. Amway
  2. Avon
  3. Herbalife
  4. Mary Kay
  5. Vowerk
  6. Natura
  7. Infinitus
  8. Tupperware
  9. Nu Skin
  10. JoyMain
  11. Ambit Energy
  12. Belcorp
  13. Primerica
  14. Tiens
  15. Telecom Plus

Most of these companies have been around for decades and as you can see it’s just 15 of them. Now we’re set to almost double the number of Billion dollar giants so clearly the network marketing INDUSTRY as a whole is gaining momentum!

Juha Parhiala Top Earner in OneCoin Scam

The top news site for network marketing – Businessforhome – just reported that Juha Parhiala earns $1.5 million right now with OneCoin, making him the Top Earner in that “deal”.

While Juha is being celebrated and promoted by Businessforhome, let it be stated for the record that we believe OneCoin is a scam that should be shut down asap.

It does not have any resemblance to a legitimate network marketing company and we predict it will crash and burn. Hopefully sooner, rather than later.

For now that’s all from us about OneCoin. We’ll write a more in depth article later, if the “company” is still around.

Remember that while Ted Nuyten, Troy Dooly and other MLM “experts” wrote positive news reports about Zeekrewards, we warned about it on globalnetworker.com

We were right then and we are right now.

Stay away is our clear recommendation. And if you’re already in, sell while you can and never join these stupid deals again.


Randy Gage Leaves Agel

Generic MLM trainer and Network Marketing Superstar Randy has resigned as a distributor for Agel, apparently because of payout issues.

This is the last leader of many to leave. Back in the day, Agel was force to be reckoned with and had Randy Gage, Randy Schroeder and Eric Worre leading the distributor network. Now they have all left along with names such as Ann and David Fenstein, Bruno Griles and Chanida Puranaputra.

The future looks very bleak for Agel. Be surprised if the company is still in business in 24 months.

Alex Morton Leaves Vemma

This is probably the biggest “buzz” in the network marketing world right now: Alex Morton leaves Vemma and goes to Jeunesse. It comes as a BIG surprise because Alex is the guy that has spearheaded the growth of Vemma in the last few years in North America.

Clearly this is a “messy divorce” and the accusations are flying back and forth. One of them is that Alex got a big deal and a huge sign-up bonus, which is probably true. He is not the first one to get this and will not be the last.

The more interesting question is, “will Jeunesse’s momentum last?”

Probably not. Look at what happened with Monavie, a company that grew like crazy, fueled by leaders from other companies who got sweetheart deals. They are gone now.

It is also interesting that Alex – who has a team of mostly people under 30 – move to a company where the main product is anti-ageing.  That does not seem like the best match. Time will tell, but our prediction is that in 5 years from now Alex will still do great in Network Marketing, however it will not be in Jeunesse.


Lyoness under investigation in Norway

On December 9th, The Norwegian Gaming Board put out a press release that they have launched an investigation into Lyoness.

The investigation comes after a lot of concerned people have contacted  the Gaming Board and asked about the legitimacy of the company.

The Gaming Board has received information that it costs 20,000 Norwegian kroner (more than $3000) to join Lyoness. They are also concerned that members’ commissions mainly come from recruiting of  members and not from the sale of goods and services.

In a letter addressed to Managing Director of Lyoness Norway, Mr. Terje Duesund, the company is asked to provide a lot of information including:

– The difference between being paid membership and free membership

– The number of members in total, paying and free members

– Bonus and commission system , including the turnover of the company split the revenue types

– Information about the products being sold

– Evidence of how that the turnover of the company in Norway in particular is due to the sale of products and not referral (of new members)

Lyoness have been given three weeks to respond to the Board’s request for information.

Herbalife wins court case in Belgium

In a Belgian appeals court ruling yesterday, Herbalife was cleared of allegations that the  company operates an unlawful pyramid scheme.

This judgment overturns a previous ruling by the lower court, in response to claims brought by Belgian consumer organization Test-Aankoop, that Herbalife was operating a pyramid scheme.

The court ruling, says that Herbalife’s sales model is in “full compliance with the law.”

The news is of course great news for investors as shares went up $4.80, or 6.7%, to $76.65. So far this year Herbalife stock is up more than 130%.



Truman Hunt named CEO of the year

Truman Hunt, CEO of Nu Skin Enterprises,  has just been named CEO of the Year by Utah Business

During Hunt’s time as CEO, the company has flourished. Nu Skin nearly doubled revenues from $989 million in 2003 to $1.74 billion in 2011. The company has also expanded operations in the same time period, going from 33 markets to 52 markets. Stock prices hit an all-time high of $51 in November 2011.

As Hunt is dedicated to being a force for good, he also leads the company’s giving. Nu Skin’s Nourish the Children initiative has donated more than 235 million meals to malnourished children during Hunt’s time as CEO.

Hunt has a long-term vision for the company, and in 2009 introduced goals for the future that focus on company, employee and charitable growth.

Amway increased revenue 17% in 2011

Amway recently reported sales in 2011 of USD$10.9 billion.

This is 17 percent growth over 2010 annual sales of USD$9.2 billion and the sixth consecutive year of growth for the company.

Nine of the top 10 markets for Amway, including China, India, Korea, Malaysia, Russia, Thailand, Taiwan, Ukraine and the United States, reported strong sales increases.

With more than 50 years of experience, Amway now holds the top spot in direct selling in key markets like China, India, Japan and Thailand, and is a recognized leader in the industry globally. Reflecting 2011’s substantial gain, Amway has increased overall market share to more than 10 percent.

More than three million people worldwide sell AMWAY™ products in more than 80 countries and territories. Founded in 1959 and based in the United States (Ada, Michigan). Top-selling brands for Amway are NUTRILITE vitamin, mineral and dietary supplements, ARTISTRY skincare and colour cosmetics, and eSpring water treatment systems. With more than 20,000 employees worldwide, Alticor is privately held by the Van Andel and DeVos families, headed by Chairman Steve Van Andel and President Doug DeVos, and governed by a board of directors led by members of the two families and two outside directors. The company provides product development, manufacturing and logistics services through Access Business Group and Alticor Corporate Enterprises. For company news, visit www.globalnews.amway.com. For media questions, contact Public Relations at 616-787-7565 (Michigan, United States) or mediainfo@amway.com.

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