Friday, August 04, 2006

MLMers: “DING, DONG – Avon Calling”

Note: I realize this is ‘old news’ but I think it is important development that is relevant to our discussion.

USANA Health Sciences is fortunate to have Gil Fuller as their Chief Financial Officer. He is a straight shooter who has gained the respect of Wall Street and has brought credibility to the whole industry. He’s also a genuinely good human being.

I still remember the day Gil returned from an investor conference back East and reported that he had noticed a change in Avon’s presentation. For the first time they stopped trying to distance themselves from MLM companies, and started speaking about some of the positive benefits of a compensation system that paid leaders who played different roles within the selling system.

After nearly 100 years of business, Avon’s execs stopped standing in the middle of the room, hands on their ears, yelling “I can’t hear you.” They actually stopped, listened and learned that their much maligned MLM competitors had something that might help them solve their leadership challenges and improve their sales performance. It wasn’t easy to cross the ‘chasm’ that had separated MLM direct selling companies from their ‘party plan’ and one-to-one counterparts; to avoid the industry ‘slurs’ and to find elements of the MLM compensation system that worked for them.

As Nu Skin has done with beauty products, Avon has done with MLM compensation – they took ‘all of the good and none of the bad’ – theoretically.

Now, don’t get me wrong. I love AVON! I don’t just love them because they swallowed their pride and added MLM elements to their selling system. I know it’s a company for women, but as a man with a lot invested in this industry I’m a huge Avon fan.

I’ll be so bold as to say that Avon is the ONLY company in the industry with a model than can support continued, consistent growth….

I’ll tell you how I came to that ‘bold’ conclusion, but first you tell me who else has proven their ability to play with the ‘big brands.’ Who else is broadly and positively known by consumers outside the 5% involved in direct selling?

Hey direct sellers (MLMers specifically), "DING, DONG Avon is calling.”



Brett a Blake

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