“Get out of Jail — Free”? Or “Go to Jail — Do Not Pass Go”?
The Direct Selling Industry is now in the post Federal Trade Commission era
The most critical issue facing the Direct Selling industry today is proving to government regulatory agencies like the FTC that you have actual, real end user customers. Not distributors or IBO’s on Autoship, but real customers.
It’s all a result of the lawsuit against one of the great companies, Herbalife and the US. Federal Trade Commission. https://www.ftc.gov/news-events/press-releases/2016/07/herbalife-will-restructure-its-multi-level-marketing-operations and it’s changing everything in the Direct Selling industry from compensation plans, autoship and who is considered a “real” customer.
According to Sally Greenberg , the executive director of the National Consumers League. Founded in 1899, the nonprofit NCL is the nation’s pioneering consumer and worker advocacy organization. We think the FTC’s requirements for this industry are powerful and important. Contrary to what Herbalife would like the public to believe, this settlement is not a “get out of jail free card” for them or, indeed, the direct selling industry. Instead, this settlement represents an unprecedented change that will fundamentally alter the way all direct selling companies — not just Herbalife — conduct business in the United States. The FTC took decisive action to protect consumers in this case. We hope the agency will prove as strong in enforcing the settlement as they have been in reaching a very important and tough outcome in the Herbalife investigation.
The FTC wants to see real customers. Real product end users.
That means no longer just distributors who buy products for personal consumption and samples. Some companies have changed their compensation plans to the point where distributors will not receive 100% commissions unless they show actual customer sales.
The solution is User Generated content. Short videos under about 40 seconds of your customers giving product testimonials. We have discovered a new company that can make it happen and its free. Its called Uklipz.com. The app to record a short video on your phone is free from the app store and the site where you post it is also free. You just sign up and create your own community. Best of all, these testimonials don’t get lost in the clutter of Face Book and it’s a great, legal prospecting tool for new distributors and those all important customers.