Natural Products Group, parent company to direct selling company Arbonne International has filed for Chapter 11 bankruptcy protection in the United States.

In theory this simply allows the company to restructure and continue operations, but with liabilities ($804 million) outstripping assets ($286million) and revenues ($450 million in 2008) it’s going to be tough. Indeed, documents suggest the debtors have now taken a majority stake in Arbonne – I’ve not yet established who they are, so it will be difficult to judge what their future goals with the company may be.

In an interesting but perhaps rather belated PR move the company has launched a blog today. Nothing but an opening posts as yet but I imagine there’ll be some damage control going on once the news gets out.

My thoughts and best wishes with the many, many Arbonne reps around the world who must be nervous with the news.

UPDATE: Arbonne has some information and a video from CEO Kay Napier on their website.

Bazi and XELR8 distributors must be in shock today with the following announcement. Apparently without much warning the parent company has announced that they will no longer be operating a multilevel networking plan. Hundreds, perhaps thousands of people are likely to lose significant incomes! One more reason, in my opinion, to choose an established company.

To: XELR8 Independent Distributors

Re: XELR8 Multilevel Marketing Program

After careful consideration, the Board of Directors of XELR8 has determined to pursue an alternative business model resulting in the discontinuation of our XELR8 Multilevel Marketing Program in its current form, and has asked me to inform all XELR8 Independent Distributors of this decision. As a result, the current XELR8 Compensation Plan will be terminated effective February 28, 2010, and you will be offered the ability to participate in a program to be announced on a national call on February 3, 2010. At that time you will be offered an attractive incentive for you to continue to enjoy XELR8 products as well as compensation for existing and new customers that you introduce to Bazi.

Although the current XELR8 Compensation Plan remains in effect until February 28, 2010, please be advised that no new Distributors may be enrolled as of the date of this letter. While you will no longer be able to enroll new Distributors, you, and your customers (both existing and new customers) may continue to order XELR8 products. Commission and bonus payments earned prior to the date of this letter will be paid according to the current XELR8 Compensation Plan. Commission and bonus payments earned after the date of this letter through February 28, 2010 will be paid on or about March 15, 2010. Following the payment of these commissions and bonuses, no further bonuses or commissions will be paid to any XELR8 Independent Distributor under the current XELR8 Compensation Plan.

Although the Company has elected to terminate the current multilevel marketing program, XELR8 products will continue to be available through Independent Distributors through February 28, 2010, and other direct marketing channels to be announced on our national call on February 3, 2010. If you are enrolled in our AutoShip program, you will continue receiving your monthly AutoShip order until such time as you elect to cancel your participation in the AutoShip program. Preferred Customers will also continue to receive their automatic monthly orders until such time as they choose to cancel their Preferred Customer Agreements. If you wish to cancel your monthly AutoShip order, please send your notice of cancellation to us at 480 South Holly Street, Denver, Colorado 80246. Alternatively, you may fax or email your notice of cancellation to us at (303) 316-8078 or support@xelr8.com. Please include your Distributor ID Number in your notice of cancellation.

As mentioned above, XELR8 intends to continue distribution of our products through Internet sales and other direct marketing channels. As our thanks to you for your support over the past several years, you will be offered the ability to enroll new customers after February 28, 2010 and receive compensation under a new compensation plan at a preferential compensation payout to be announced on February 3, 2010. If you are not on our AutoShip program, you may still enroll as a customer under our AutoShip program by contacting our Customer Service Department at 888-935-7808 or email support@xelr8.com.

In closing, I want to thank ALL of our Independent Distributors for their support of XELR8. While the decision to terminate our multilevel marketing program was not a decision that any of us at the Company wanted to make, ultimately it was deemed necessary to insure that our products remain available to support the health and vitality of our customers. We are extremely grateful for your efforts to spread the word about XELR8 products and wish you success in your future endeavors.

Best regards,

XELR8 HOLDINGS, INC.
By /s/ Sanford D. Greenberg
Sandford D. Greenberg
Chairman and Founder

Pizza Hut has branched into Network Marketing with  The Blast Off Network, which appears to be an offshoot of PrePaid Legal.

Press release below -

DALLAS, Oct. 27 /PRNewswire/ — “Pizza dough” is taking on a whole new

meaning. Pizza Hut, America’s Favorite Pizza, is announcing to its customers

the launch of BlastOffNetwork.com, a Website that provides online shoppers

value and financial rewards during an economic time when they need it most. By

signing up through PizzaHutBlastoff.com, Pizza Hut customers can take

advantage of Blastoff Network’s unique online shopping mall.

Members who join Blastoff Network’s free online shopping network will be

eligible for discounts from more than 400 major retailers and can accrue

payments through purchases made by other members in their social network who

have signed up for the program, and have made purchases. In addition, this

unique shopping website offers members a fully customizable homepage featuring

access to web mail, social networking, news, videos, music and games. Pizza

Hut is among Blastoff Network’s inaugural promoters.

“We are always on the lookout for programs and initiatives that can save our

customers money,” said Bernard Acoca, Senior Digital Director, Pizza Hut. “The

Blastoff Network does just that and we’re excited to be among the first

companies to promote the new site.”

When you order through PizzaHutBlastoff.com, you’ll earn money in your

Blastoff Network account. And, by using the Web site’s social media

capabilities, you can refer a friend and earn additional money through their

purchases as well.

The promotion with Blastoff Network is the latest in a long line of digital

marketing innovations from Pizza Hut. In just the past year, Pizza Hut has

seen its following on the Facebook platform surpass a million fans, introduced

the world to the “Twintern,” who manages the company’s Twitter profile

@pizzahut, and debuted the first app from a national pizza chain for iPhone

and iPod touch. And when you order from pizzahut.com, your Pizza Hut favorites

are just a few clicks away.

The hardest part of ordering from Pizza Hut, whether through the phone, or in

the restaurant, is choosing from all the great menu items. Of course, there’s

America’s Favorite Pizza, in a wide variety of styles and toppings. Pizza Hut

now also delivers the great taste of WingStreet® wings, bringing the authentic

taste of wings to your home. You can choose from three different wing styles

and eight different sauces – from hot and spicy to sweet and sour. And for the

pasta lovers in your house, Pizza Hut’s four different styles of Tuscani

Pastas are the perfect dish for a large family gathering or an intimate

evening for two.

To get started earning money with your Pizza Hut orders, log on to

PizzaHutBlastoff.com to open your free account.

About Pizza Hut

Pizza Hut, America’s Favorite Pizza, delivers more pizza, pasta and wings than

any other restaurant. The only pizza company to be named a top ten franchise

in 2009 by Entrepreneur Magazine, Pizza Hut began 50 years ago in Wichita,

Kansas and today operates more than 10,000 restaurants in more than 90

countries. Pizza Hut, Inc. is a subsidiary of Yum! Brands, Inc. (NYSE: YUM).

To check out what’s new at Pizza Hut visit pizzahut.com.

About Blastoff Network

Blastoff Communications is a Texas-based LLC, founded to enable Members to

save money shopping online and make money online leveraging their professional

and social networks. Blastoff Network Online Shopping Platform incorporates

customer rewards (discounts, cash-back and cash payments for online purchases)

with social networking and features a fully customizable homepage of streaming

news, video, and music feeds along with social networking platforms and online

games. For more information please visit www.blastoffnetwork.com.

LOS ANGELES, Sep 22, 2009 (BUSINESS WIRE) — The Herbalife Family Foundation has established a Casa Herbalife program at the Dom Tuskanac charity (Children and Youth Home) in Zagreb, Croatia, to help support the center to provide good nutrition to children.

The Children and Youth Home provides accommodation for children who suffer from moderate mental or learning disabilities which prevent them from staying with their families. The center has been caring for children for 64 years and currently accommodates 66 young people. One of the major tasks of the Home is to prepare the young people for independent life and work after they have completed their education and integration into the community.

This is the 45th Casa Herbalife program to be established worldwide. After an initial grant from HFF, local Herbalife independent distributors and employees will support the program through volunteerism and fundraising.

HFF is a 501(c)(3), non-profit corporation dedicated to improving children’s lives by helping organizations provide healthy nutrition to children at risk. Additionally, HFF often supports relief efforts in response to natural disasters.

source: http://www.tradingmarkets.com/.site/news/Stock%20News/2541015/

Provo, Utah (PRWEB) September 18, 2009 – Nu Skin Enterprises (NYSE:NUS) was recognized in seven major categories last night at the International Business Awards ceremony in New York City. Founder and Chairman of the Board Blake M. Roney was named the 2009 Chairman of the Year. Nu Skin Korea was honored as the Most Innovative Company in Asia.

Nu Skin Enterprises is one of only two direct selling companies to ever receive an International Business Award and the only direct selling company to win more than one. This accolade comes during a year of celebration for Nu Skin Enterprises as the company commemorates 25 years of business success.

“With record-level growth and numerous international accolades, Nu Skin has a lot to celebrate this year. At the heart of our success are our people. Blake is a phenomenal leader, and he is very deserving of this esteemed award,” said Truman Hunt, president and CEO of Nu Skin Enterprises.

“Blake Roney built this company on a solid foundation of values such as innovation, hard work and generosity, and those values have been the reason behind much of the company’s 25 years of success. Likewise, Nu Skin Korea, under the direction of Luke Yoo, has continued to be a significant contributor to Nu Skin’s growth and its innovative sales initiatives have served as a catalyst for growth throughout the our organization.

This is Nu Skin’s second win for its Korean operations, named Best Corporate Social Responsibility Program in Asia by the International Business Awards in 2008. Nu Skin’s history of Stevies nods includes two American Business Awards, one for Most Innovative Company in 2005 and another for Best Corporate Social Responsibility Program in 2007, as well as two corporate finalist recognitions in both the American and International Business Awards competitions.

Additional Nu Skin finalists at this year’s International Business Awards included two Corporate Social Responsibility nominations (Taiwan), two Marketing Campaign of the Year nominations (Taiwan) and Executive of the Year for Asia recognition for Nu Skin Korea’s President and General Manager Luke Yoo.

About The Stevie Awards

Nicknamed the Stevie® for the Greek word “crowned,” the Stevie Awards are conferred in four programs: The American Business Awards, The International Business Awards, the Stevie Awards for Women in Business, and the Stevie Awards for Sales & Customer Service. Honoring companies of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about The Stevie Awards at www.stevieawards.com.

The Company

For 25 years, Nu Skin Enterprises, Inc. has been demonstrating its tradition of innovation through its comprehensive anti-aging product portfolio, independent business opportunity and corporate social responsibility initiatives.

Nu Skin’s scientific leadership in both skin care and nutrition has established Nu Skin as a premier anti-aging company, evidenced in its patent-pending ageLOC™ technology and flagship products including the Galvanic Spa® System II, Tru Face® Essence Ultra, LifePak® Nano and the g3® nutrition beverage.

A global direct selling company, Nu Skin operates in 48 markets throughout Asia, the Americas and Europe and has more than 750,000 independent sales representatives. Nu Skin Enterprises is traded on the New York Stock Exchange under the symbol “NUS.”

NEW YORK — Avon Products Inc. said Thursday that its president, Elizabeth Smith, is leaving the beauty products company at the end of October to seek out a CEO position elsewhere.

Smith joined Avon in January 2005 and has been president since September 2007. As president, Smith was in charge of the company’s global marketing, supply chain and information technology divisions and also oversaw global sales.

Andrea Jung has served as Avon’s CEO since November 1999, according to CapitalIQ. Smith said in a statement that it was likely Jung would remain at the company’s helm for some time.

“With Andrea’s commitment as a relatively young CEO to lead Avon for the foreseeable future and with her full support, the time is right for me to seek the next step of my career outside of Avon,” she said.

Stifel Nicolaus analyst Mark S. Astrachan, who has a “Buy” rating on shares of Avon, said he thinks the announcement indicates that Jung will remain in her current role for the foreseeable future.

“While we believe the departure of Ms. Smith has the potential to create near-term business disruptions, we believe momentum in representative growth will continue to positively contribute to improving revenue and operating profit trends over the balance of 2009 and 2010,” Astrachan wrote in a client note.

Avon, which sells its products mostly by catalog and door-to-door sales representatives, said it has no immediate plans to name a replacement for Smith.

A slowdown in discretionary spending during the recession has squeezed demand for Avon’s cosmetics and fragrances, so the company has started to offer more products at lower prices.

In July the New York-based company said it would cut about 1,200 jobs, or about 2.8 percent of its global staff, by 2013 as part of a turnaround effort designed to save $200 million by 2012 to 2013. The job cuts exclude sales representatives.

Shares of Avon fell 75 cents to close at $31.94 Thursday.

GLOBALINX announced that its parent company, 5LINX, has made Inc. Magazine’s 28th annual list of America’s Fastest Growing Private Companies. 5LINX ranks No. 274 on the list with a three-year sales growth of 831 percent.

Inc. 500 says its list represents the most comprehensive look at the most important segment of the

economy – America’s independent-minded entrepreneurs. Companies such as Microsoft, Intuit, GoDaddy, Under Armour, Jamba Juice, Oracle and hundreds of other powerhouses gained early exposure as members of the Inc. 500.

“With four straight years on the Inc. 500, our highest ranking ever of 274 despite a down economy, 831 percent three-year growth and giving out over $125,000 in 2nd quarter employee bonuses, 5LINX® is on a roll,” said Craig Jerabeck CEO of 5LINX. “This prestigious 4th consecutive selection further validates our business model of outstanding products and services marketed by a marvelous team of Independent Representatives, Agents and Resellers supported by dedicated employees and sound business strategy. Our further penetration into the VoIP space with GLOBALINX will continue to propel our growth as we enhance our network platform and our service offerings through all of our sales channels including wholesale.”

source: http://www.phoneplusmag.com/hotnews/cp-vegas09/5linx-makes-inc–500-list.html

Reliv International Inc. plans to purchase one of the company’s independent distributors for nearly $2.1 million.

Michael and Julie Williams of Eureka, Mo., are selling the distributorship, according to a filing Thursday with the U.S. Securities and Exchange Commission. Their business was one of the most successful Reliv franchises.

At closing, Reliv has agreed to pay the Williams $500,000 in cash and pay off $216,000 of their company’s debt. Reliv will pay them the remaining $1.3 million in installments of nearly $19,000 a month over seven years at a rate of 5 percent interest.

The NSW (Australia) government has issued an official media release about Liberty League International. As I highlighted a couple of days ago, they’ve indicated they believe it’s an illegal pyramid. The press release is available here – Pyramid schemes alert: Judge. Note that they do say it’s ultimately up to a court to decide if LLI is an illegal pyramid. It’s interesting to note that LLI has recently renamed themselves Polaris Media Group and reportedly introduced a range of lower cost products.

Reports coming out of Australia indicate that the Office of Fair Trading in the Australian state of New South Wales (NSW) have declared that Liberty League International is an illegal pyramid under the 1987 Fair Trading Act. The OzSoapBox blog has a post including a scan of an official letter which states -

Liberty League is an American based company which markets lifestyle coaching products via independent promoters in Australia and internationally. The Scheme has been examined and found to be a pyramid sales scheme within the meaning of the Fair Trading Act 1987 (NSW).

Section 60U of the Fair Trading Act prohibits participation in or promotion of a pyramid sales scheme. The maximum penalty for a contravention of that provision is $22,000 for individuals and $110,000 for corporations.

Liberty League (perhaps not coincidentally recently renamed Polaris Media Group) ostensibly sells 3 products, a 90 day home personal development course Beyond Freedom, a 3 day personal development seminar Liberty 3 day Conference and a 5 day personal development seminar Summit 5 day Conference. According to the Liberty compensation plan, in Australia these cost (retail) -

• Beyond Freedom   $1495
• Liberty 3-day          $7995
• Summit 5-day         $12995

Now, without getting in to the compensation plan let’s first look at these prices. Are they competitive compared to other similar programs? Let’s have a look at one of the “gurus” of personal development, Tony Robbins, and what he offers -

• Liberty League Beyond Freedom – 3 CDs, 1 DVD, Workbook, Journal - $1495
• Tony Robbins Personal Power II – 25 CDs, 1 DVD, Workbook, Journal, $100 seminar coupon and more -  $360*

Beyond Freedom is 3 CDs compared to 25 and more than 4 times the price of Tony Robbins

• Liberty League 3-day Liberty conference - $7995
• Tony Robbins 4-day Unleash the Power Within conference – $995 to $3995

The 3-day Liberty League conference is more than twice the price of front row seats with private lounge at a Tony Robbins 4-day conference, and more than 700% the price of a general admission ticket.

• Liberty League 5-day Summit conference - $12995
• Tony Robbins 6-day Date with Destiny conference – $5995

Liberty League is more than twice the price for a shorter conference – and no Tony Robbins of course!

Now, it’s possible the Liberty League products are worth that much more than Tony Robbins, but well … frankly I’m skeptical, and I’d suggest the NSW Office of Fair Trading is as well. Section 60T(4) of the Pyramid Selling Scheme definition says -

(4)  In deciding whether a scheme that involves the marketing of goods or services (or both) is a pyramid selling scheme, a court may have regard to the following matters in working out whether participation payments under the scheme are entirely or substantially induced by the prospect held out to new participants of entitlement to recruitment payments:

(a)  the extent to which the participation payments bear a reasonable relationship to the value of the goods or services that participants are entitled to be supplied under the scheme (as assessed, if appropriate, by reference to the price of comparable goods or services available elsewhere),

(b)  the emphasis given in the promotion of the scheme to the entitlement of participants to the supply of goods and services by comparison with the emphasis given to their entitlement to recruitment payments.

Does the price of the Liberty League products bare a reasonable relationship to their value? Well, to be honest I can’t judge. I’ve never tried them. At that price I wouldn’t.

So why would people by them? That’s where it really gets interesting – you can make money selling them, and look at the profit margins!

• Beyond Freedom home study course
  retail $1495 “wholesale” $495 – $1000 profit
• Liberty 3 day conference
  retail $7995 “wholesale” $2995 – $5000 profit
• Summit 5 Day conference
  retail $12995 “wholesale” $4995 – $8000 profit

But that’s not all. If I understand correctly, for each of the three packages, you have to “sell” 5 of them before you earn any commission at all – unless you buy one yourself first … then you only have to sell 2 “Beyond Freedom” packages, and you don’t need to sell any of the Liberty or Summit packages to profit from them – you just need to buy a ticket yourself.

In other words, there is a huge incentive to purchase the packages, not for any inherent worth – but for the money you make when other people enroll. And they then have the same incentive driving their enrolment, and so on, and so on. The “profit” from selling packages could easily be seen as a “payment for recruiting” – they classic sign of an illegal pyramid scheme. In the United States the FTC has a few simple “tests” of the legitimacy of a business opportunity, one of which is “can the last person to enrol make money?” ie can they simply sell the product to someone who has no interest in the business opportunity. Every person considering joining Liberty League, and every current member, should ask themselves a simple question – are the Liberty League personality development courses really worth so much more than even the best of the competitors?

* price converted to AUD 2009-09-02