WHY HAS ADVOCARE ABANDONED MLM IN 2019?

WHY HAS ADVOCARE ABANDONED MLM IN 2019?

IS THIS GOODBYE TO ADVOCARE MLM? WHAT’S GOING ON? WHAT ABOUT THE 100,000S OF DISTRIBUTORS?

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INTRODUCTION

?‍♀️Welcome to this article about why AdvoCare is leaving MLM.?

That’s right. AdvoCare is no longer an MLM as it used to be over 25 years ago and the transition is still in process. In fact, the new single-level distribution model will take effect on July 17, 2019. What are the consequences for current distributors? What’s the new single-level distribution plan about? What about the products? Will there be any changes at all? Will new products be introduced? While many people, especially the distributors, are wondering what’s at stake with regards to the future of AdvoCare, I thought it wise to publish An AdvoCare Review Discussing The Reasons Why AdvoCare Abandons MLM In 2019, and the changes to expect especially for the distributors.

TABLE OVERVIEW

Name Description
Product Name: ADVOCARE JULY 2019 TRANSITIONS
Product Price Distributor kit ($59 + taxes and shipping). $50 annual renewal fee.
Product Owner Charles E. Ragus
Launch Date 1992
Category MLM HEALTH AND WELLNESS
Overall Score

3/10

VERDICT

NOT RECOMMENDED FOR NOW. WAIT UNTIL THE TRANSITIONS ARE OVER

MY TAKE

MLM companies are increasingly coming into the spotlight for bad reasons. It was not so long ago in 2016 that Herbalife had to pay $200Million to FTC for unhealthy business practices. Even though Herbalife considered this settlement as a victory, it left many other MLMs deeply distressed and distributer fans more confused than ever.

According to the official press statement (which we will discuss in greater details further down), AdvoCare has been in confidential talks with FTC, the and consequence is a total transition from the MLM model to the direct sales business model, with huge negative consequences on the current distributors. Considering the fact that the transition is not yet over, I wouldn’t really feel comfortable recommending this company to you right now because everyone is still in shock, and no real time experiences exist for the new system.

If you are currently a distributor of any MLM, not just AdvoCare, you should definitely worry about your future and start taking a look at other business models that have a proven track record of stability in the online business space.

 

It’s time to dive deeper into The Reasons Why AdvoCare Abandons MLM In 2019.

 

#1. THE OFFICIAL PRESS STATEMENT ANNOUNCING THE REVISION OF THE ADVOCARE BUSINESS MODEL

An AdvoCare Review Discussing The Reasons Why AdvoCare Abandons MLM in 2019,
An AdvoCare Review Discussing The Reasons Why AdvoCare Abandons MLM in 2019,
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On May 17th 2019, AdvoCare issued an Official Press statement concerning the revision of their busines model from MLM to to a direct-to-consumer and single-level marketing compensation plan. Why would they do that?

No direct explanations were given as to the reasons why.

The only information being released is that AdvoCare has been having some confidential talks with the FTC on how the new plan will compensate distributors. It’s obvious that the current distributors will be forced to adapt to the new system if at all they would be willing to continue operating with AdvoCare.

I’ve never built a successful downline before, but boy, considering the amount of effort it requires, this change will certainly step on so many toes.

But for those who had been selling to customers directly, no changes will be noticed. And retail customers still serve the right to continue to purchase without any changes noted as well.

Retail and preferred customers will continue to enjoy their discounts of 20% to 40%, but when you look at the ratio of the number of distributors that will be significantly impacted negatively to the preferred customers that are currently active, it is 1:4. No wonder AdvoCare is willing to take the risk to completely eradicate the compensation system that was being enjoyed by the minority 100, 000 distributors.

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#2. FAQS WITH REGARDS TO THE CURRENT TRANSITIONS

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I’ve been talking about single business model all along without actually expalaining what it is. FAQs with respect to these trainsitions explain everything in greater details.

Among other things that are clearly defined, a single business model would mean that all distributors would have only one level of customers, who buy directly from the distributor. No more distributors buying from each other. All of them would now buy directly from AdvoCare.

So only 2 options are available now to enable AdvoCare distributors to make money with this company:

  • Selling products directly to customers
  • Signing up preferred of registered retail customers.

This is a different dance altogether. While the AdvoCare distributor could target anyone especially individuals, now their main focus would be identifying registered and preferred customers.

These distributors will have to do some learning and adapt faster. Or if they just want to start afresh and get out of the MLM business completely, this solution offers an excellent start to a much better and sustainable financial journey.

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#3. FINAL VERSION OF DISTRIBUTOR AGREEMENTS USA EFFECTIVE AS OF 17TH JULY 2019

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Among other things, I coudn’t help but notice in the final version of the distributor agreement effecitve as of July 17th 209, stating explicitly that they will be responsible for setting the retail prices for the products sold to their cusotmers.

This was not the case with the MLM system. I personally think some distributors can abuse this privilege of setting retail prices, by charging higher in order to make bigger profits. Even though the clause states that the distributor should aim to protect the image of AdvoCare in the process, and therefore use recommended prices, this particular clause will give room to a lot of misinterpretations and inconsistencies.

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#4. FINAL VERSION OF THE NEW AGREEMENT WITH REGARDS TO THE PREFERED CUSTOMER USA EFFECTIVE AS OF THE 17TH OF JULY 2019

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Here are some facts you need to know about the preferred customer under the new preferred customer agreement:

  • Preferred customers can buy at discounts ranging from 20% to 30% depending on the volume of the purchase made;
  • Preferred customers are not independent distributors, meaning they are not allowed to sell or resell products;
  • Preferred customers pay a membership fee of $19.95 with any sales tax if applicable;

By all counts, preferred customers can only consume the products, and not resell them to anyone. This is forbidden by the new agreement.

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#5. NEW POLICIES, PROCEDURES AND COMPENSATION PLAN USA

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So what about the new compensation plan? Seriously, when I checked it out, it felt like I was studying some taxation course at school. Why should you have to do with so many technical details when you simply want to make some extra income?

Check out a brief summary below of what the new compensation plan looks like:

  • You need to renew your distributor membership yearly at $50;
  • The distributor has to be responsible for preparing customer receipts;
  • Distributors should compute and collect sales tax on their retail sales to reimburse themselves for this expense;
  • He/She has to follow up with shipping expenditures to make sure that it is borne by the appropriate parties;
  • They have to handle refunds

And so much more. If you check out the complete document, you would understand better what I’m trying to say. Under the new system, you are literally running your own company, and making sure all your actions are compliant with company standards as well as regulatory laws governing a corporate environment.

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#6. CONSEQUENCES OF THE CHANGES FOR THE CURRENT ADVOCARE DISTRIBUTOR

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1. Adapting To An Independent Distributor In The Direct Sales System Requires A New Learning Curve 

The mentality implemented when running your downlines is completely different from the one you will adopt as a distributor in the new system. You as the distributed would have to move away from the coaching, training and recruiting mentality, to a more corporate one.

As part of the learning curve, you would now become responsible for certain aspects of your distributor business such as preparing retail sales receipts for tax purposes, the correct determination of sales tax, following up with shipping and ensuring that the appropriate rates are applied and accounted for, and so on.

It’s a whole new school that the AdvoCare distributor needs to get acquainted with. If you think you might not be ready for the switch as a distributor in the new system, there is a much better and relatively simple alternative which happens to be more lucrative and more flexible. CLICK HERE TO CHECK OUT MY #1 INCOME OPPORTUNITY FOR YOU.

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2. The New Agreement Gives Power To The Distributor To Fix Retail Prices 

While this appears to be advantageous to the new distributor, measures should be taken to avoid any sanctions related to what might be considered ”price abuse”. The same clause indicates that it is recommended to implement suggested prices, but you don’t want to drift too far away from what is recommended.

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#7. OTHER MLMS YOU MIGHT WANT TO CHECK OUT

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Whe it comes to MLMs. there are many of them out there.

When it comes to MLMs as a whole, I’m not so much of a fan because of the recruiting nature of the business. I totally understand that others do well at MLM, but with the rising number of MLMs that are being trapped under the radar of the FTC, I would rather strongly recommend that you start moving away from this business model, to other reliable and more sustainable ones that are very unlikely to go away any time soon.

Time is proving that MLMs company are slowly but steadily becoming very fragile and unpredictable. You had better start checking out alternatives to be on a safer side down the road.

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#8. THIS BUSINESS MODEL IS MUCH BETTER THAN MLMS

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I’m actually referring to affiliate marketing. But why is it an excellent alternative for MLMs or even direct sales?

  • No recruitment required;
  • No need to handle shipping expenses and taxes. The owner of the product would be solely responsible for that;
  • Sales taxes are not yours to handle;

And so many many more. Follow this link to learn more about affiliate marketing.

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#9. CONSLUSION OF THE REASONS WHY ADVOCARE ABANDONS THE MLM BUSINESS MODEL IN 2019

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Here is my take:

ABSOLUTELY NOT RECOMMENDED FOR NOW, UNLESS YOU ARE WILLING TO TAKE ON THE NEW LEANING CURVE

So what reasons were advanced to explain why AdvoCare is abandoning the MLM business model in 2019? Even the press release did not make any specific declaration. All we know is that some confidential exhanges have been taking place between the FTC and AdvoCare, which resulted in drastic changes that we have discussed in great details in the article above.

There is no smoke without fire, and when it comes to MLMs in general, you really don’t want to have anything to do this business model anymore. There were a series of MLMs that were struck by FTC before MOBE went down, followed by Herbalife in 2016, and now the 25+-year-old AdvoCare suddenly decides to change its business model?

If other MLMs are equally smart, it would be better for them to anticipate and make the same move, rather than wait to pay huge fines and suffer a painful death. The very unethical nature of the practices implemented by most MLMs only make the future very predictable==>FTC’s hammer.


I hope you found my review informative. Don’t hesitate to leave a comment below if you need more clarifications with regards to my article about The Reasons Why AdvoCare Abandons The MLM Business Model.

✌✌Thanks for reading.✌✌


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StunningBell

''Stunning Bell'' is a Digital Entrepreneur with 10 years of experience in the financial sector. She's now earning full-time online thanks to a world-class training platform she accidentally stumbled upon. Connect with her personally at Wealthy Affiliate, where, as an Affiliate Marketer of this university,she was able to make her first dollar online, which eventually transformed into a full-time income.??

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