The world of direct sales got hit with a shockwave recently that had many wondering what does this mean for network marketing? AdvoCare recently announced that it was changing its business model. In essence, the company has decided to do away with the direct sales business platform and is transitioning to a retail “direct to consumer” model.
AdvoCare cites that “confidential talks” with the FTC has led to this decision. What they are saying is that the FTC (Federal Trade Commission) has taken issue with AdvoCare and its compensation plan. What we don’t know is how extensive were these discussions with the FTC. With the exception of Herbalife, it’s not common to see the FTC doing any type of confidential investigation. Usually their pattern is to bombard the doors with their cannons looking to take names and kick a$$. Of course, we all know that the FTC has the ability to engage in confidential investigations, but we just aren’t aware of many of these within our industry. This action by Advocare has caused quite a stir among many industry leaders.
I posted this video to summarize what some of the leaders of direct sales are saying about Advocare. Read the full article that was recently published in Business for Home. I highly recommend this site for those who want to follow what’s happening within the profession of network marketing.
