I just read an interesting news article about developments surrounding the possible acquisition of ViSalus by Blyth, Inc., which happens to be a publically traded company. The article was dated in LOS ANGELES, Jan. 13, 2012. You can read the whole news article here at PR Newswire. So with the potential acquisition of ViSalus, where does this leave ViSalus Distributors? Please also note that it is NOT my intention to bash Blyth, Visalus, ViSalus distributors, their management team or owners of either of these companies. I would however like to draw your attention to the fact that in a publically traded company the shareholders are the bosses and say what is what.
For those in network marketing and those who like to keep a pulse on what is in the news, developments of this sort are worth taking a look at. Just days ago Blyth, Inc., completed the 3rd phase of a 4 phase procurement of ViSalus.
The interesting thing to note is that Blyth is a publically traded company. So when times get rough (and all companies go through growing pains) it is time that distributors to pay attention to warnings when they surface.
Who is going to get paid first? The Distributors or the Shareholders? Exactly, the Shareholders. When revenue is tight where will the money come from to pay the shareholders? Right again…the commissions that should have been paid to the distributors is now going to the shareholders. It comes from the checks of the Distributors!
Read the following paragraph from the article and see if you see the same warning signs that we see”:
All three company co-founders, Ryan Blair, Chief Executive Officer; Blake Mallen, Chief Marketing Officer; and Nick Sarnicola, top sales leader, have agreed to stay on with ViSalus in their current roles. The founders personally invested $14.6 million from the proceeds of the acquisition in restricted stock of parent company Blyth, Inc., making them the largest inside shareholders after the Goergen family.
These guys now become part of the top shareholders. To be exact they will be the second biggest shareholders next to Blyth, Inc. All three now answer to someone else. They no longer will be the final decision makers on any aspect of business that goes on with the company or with the distributors or if the company business model will remain MLM or become direct sales business model. Look ViSalus is a great company with great products, they have to be or they would be out of business by now. These guys; Ryan Blair, Chief Executive Officer; Blake Mallen, Chief Marketing Officer; and Nick Sarnicola are top notch guys, but with a deal like this the distributors will no longer be first in any financial concerns.
Anyone paying attention knows that ViSalus has had a great growth period this year from $34 Million in 2010 to $231 Million. A seven fold increase. Not bad at all. This should be a warning sign to any distributor in any company that it could spell potential hardship in the future of the company. Right now it looks like a great deal for everyone in the company including the distributors who should have received some pretty good commission checks.
But what really happens when ViSalus becomes a “household name”? Will ViSalus keep it’s current business model or will they go direct sales….will they need the distributors any longer? This situation has happened many times in the past when the company becomes so big and everyone knows about them that the distributor base is terminated and the company resorts to retail selling. They change the business model.
This whole news article that we read at PRNews brings up a lot of concern for us. We always encourage network marketers to READ their contracts. Your contract is what is referred to as your Policies and Procedures which also includes your Terms and Conditions as well as your detailed Compensation Plan. Why do we encourage people to read this information. Simply because it is YOUR LEGALLY BINDING CONTRACT!
Right now you probably do not fell the ViSalus or any other company would ever terminate their distributors and change their business model. Well they would and they can. They CAN and they DO, just like in the case of Bazi and Xelr8 Distributors. Read their story here. http://www.mlmwatchdog.com/MLM_Bazi_Xelr8_Distributor_terminations.html
ViSalus distributors should take a look at their Policies and Procedures, which is the binding agreement between you the Distributors and the company. It’s all spelled out there in black and white what they can do.
We found this clause in the ViSalus Policies and Procedures which states that Distributors are forbid to be in any other Network Marketing company. Here’s the clause:
24. During the term of this agreement (and any renewals) I will not participate in any other network marketing companies. In addition, during the terms of the Agreement and for (1) one year thereafter, I will not solicit or recruit, ViSalus employees or Promoters, whether active or inactive, to participate in any network marketing program. I acknowledge that my violation of this provision will result in immediate termination of my Promotorship and payments of any kind
If the procurement of ViSalus by Blyth, Inc. does go through that means that they will own TWO network marketing companies. PartyLite and then ViSalus (this hinges on “if’s” at the moment remember) It looks to us that it is quite alright for the company to have their hands in two companies but not the distributors. The old saying, “What is good for the goose is apparently not always good for the gander!” in this case.
Where is the integrity in this guys? When a company isn’t managed with integrity and when the going gets tough they either shut their doors or change their business model and eliminate all of their distributors. You know, the people who have built the company in the first place. Why? Because the management cares more about THEIR bottom line than the well being of their distributors.
There are companies that don’t want you to know this. Some companies make it virtually impossible for you to find their P & P’s. You may be in a company now, that on the surface, looks great and you think, they would never do something like terminate you for no reason. It may be two years down the road, but if you are in a company in which the policies and procedures dictate that they can terminate you at any time for any cause, then it can happen to you.
Just like any other career, there are skills and education that everyone needs to build a successful network marketing business. Part of that education is knowing what your contract says. In network marketing you are in business for yourself, but you work for a company that controls the way you are paid. The employment contract in network marketing is your Policies and Procedures. You MUST read your Polices and Procedures and OBEY it to the letter.
Visalus is a remarkable company with expert people doing their marketing. They rock the industry with their product that is certain. We are just concerned about the information that we are reading and seeing the hand writing on the wall.
This article was not written to bash or bad mouth anyone, it is however; our personal opinion on the matter which we are entitled to. We recommend that everyone think as a critical thinker when it comes to their long-term success as a network marketer and never suggest that you substitute our opinion for your own. We believe that everyone should be asking questions.
We learned early on from our mentors Michael Dlouhy, Frieke Karlovits, Jennifer Fisher and Bob and Anna Bassett to be critical thinkers. We learned how to think and not what to think.
We ask that if you consider calling, leaving a comment or writing us, please don’t just do so to throw names around or accuse us of not telling facts. Please explain exactly what we got wrong. Our opinions are ours, and we are entitled to those. If you can point out what is verifiably inaccurate, we will be happy to make any and all corrections to those mistakes, or to make clarifications when and where necessary.
Commit To Success Today
Dave and Darlene Mills
Leadership With A Vision
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