IS THIS GOODBYE TO ADVOCARE MLM? WHAT’S GOING ON? WHAT ABOUT THE 100,000S OF DISTRIBUTORS?
?♀️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.
NOT RECOMMENDED FOR NOW. WAIT UNTIL THE TRANSITIONS ARE OVER
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.
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.
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.
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.
#5. NEW POLICIES, PROCEDURES AND COMPENSATION PLAN USA
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.
#6. CONSEQUENCES OF THE CHANGES FOR THE CURRENT ADVOCARE DISTRIBUTOR
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.
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.
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.
#9. CONSLUSION OF THE REASONS WHY ADVOCARE ABANDONS THE MLM BUSINESS MODEL IN 2019
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.
''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.??