Herbalife Scores Beckham

It was brought to my attention this morning on a call with a bright NYC Investor that I haven't given credit where credit is due. I've been talking about the lack of consumer branding among Network Marketing companies, and Herbalife has made a noteworthy effort.

Congratulations to Herbalife who scored huge by branding the LA Galaxy and world soccer star David Beckham.

USANA is NOT a PYRAMID

The "PYRAMID" word continues to be used in discussions about USANA. As I have read the charges and the defense arguments, it seems clear that there is a lack of understanding as to what constitutes an illegal Pyramid scheme and how to recognize a legitimate company.

Kevin Grimes and Spencer Reese are among the most conservative and knowledgeable attorneys when it comes to the FTC's regulations for direct selling and case law. They have written a clear and concise primer that covers this issues nicely. It would be helpful for USANA haters and USANA defenders to take time to read this primer:

http://www.mlmlaw.com/library/guides/Primer.htm

I think you'll find that (despite what conculsions you may have drawn about direct selling) USANA is NOT a PYRAMID.

NuSkin's Nourish the Children Wins Best Corporate Responsibility Program

I stumbled into a small hair salon on the Gold Coast of Australia several years ago and was accidentally introduced to NuSkin's Nourish the Children program. The salon owner was also a NuSkin distributor who showed me the "VitaMeal" food packs and told me how NuSkin had decided to build plants in Africa to manufacture these high nutrition 'full meal' substitutes for distribution to those in need.

My first reaction was "why didn't I think of that."

NuSkin's efforts have been awarded "Best Corporate Social Responsibility Program" at the 2007 American Business Awards. According to the Deseret News, The American Business Awards are a national program that honors businesses and their performance.

Congratulations to Truman Hunt and the entire team at NuSkin. This is a company run by a solid management team and I'm happy to seem them receive this honor.

USANA Management: WAKE UP YOU ARE AT WAR!

Once again I have opened the newspaper to find yet another story about a USANA executive who has 'misrepresented' credentials. This time it is Gil Fuller who I respect and have defended in earlier posts. For each of these "credential scandals" I could write several paragraphs about why the whole "scandal" is nothing more than smoke and mirrors -- Minkow's attempt to divert attention from substantative issues -- but enough already.

USANA is reportedly paying big bucks to a PR firm in New York, but they are either not listening to the firm's advice, or need to hire a new firm. You can't sit back and wait for Minkow to uncover the next smoking squirt gun. You know his tactics, you know what he is trying to do, he is so predictable, and yet USANA continues to sit in their fox hole, arms over their helmets waiting for the next M80 to explode.

GET AGGRESSIVE! It's time to invite every member of the executive team to a 'tell all' meeting. Go line by line over every resume made public and make sure there is nothing else that could be made to look dishonest. Get Fred thinking about how Minkow could be 'gaming' the statements and then develop a pro-active plan to get out in front of him.

Everyone knows Ladd has been less than effective the past x years -- so why risk having him on your Medical Advisory Board? Clean your own ship! Take this opportunity to pull into a fresh water dock and get the barnicles of the hull.

USANA is fortunate to have great field leaders, but they can only do so much. They can only defend the company from so many New York Times or Wall Street Journal stories. If there is more, let it all come out at once -- in a USANA issued press release -- and then move on.

And GET a SPOKESPERSON on the road to New York. The Wall Street Journal and the New York Times have reputable reporters who will talk to USANA Executives. Anyone who sits across the room from Minkow and Fuller will believe Fuller every time.

And finally, find out WHO IS FUNDING MINKOW? You have more money than he does. Hire your own private investigators. Find his money source and give them a chance to defend themselves in a court of law.

This is war, and it's time for USANA to show some signs that they have the ability to defend their company -- not just their own reputations.

Read Len Clements Thoughtful Response to FDI

Len Clements recently posted a point-by-point white paper anyone interested in USANA and FDI should read. In that response Len said:

"I am the founder and CEO of MarketWave, Inc.2, a research, education and consulting firm exclusively serving the network marketing industry, and the author of the book “Inside Network Marketing”. I have worked full time over the past 17 years studying and analyzing the MLM industry and have worked to expose the frauds and pyramid schemes that often try to disguise themselves as legitimate MLM operations. As one of only five court-certified experts in multilevel marketing in the United States, I am acutely aware of the difference."

Read the entire article on his website: www.marketwaveinc.com...