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  1. #1
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    Proof that MLM is a recession proof industry

    Quote Originally Posted by ChrisDoyle View Post
    Proof that MLM is a recession proof industry... (talking about NuSkin)
    One company.

    How about Reliv?

    Reliv International's Q4 net income dips to $249,919

    Net sales for the year 2008 down 11.6%


    Reliv International, a nutrition and direct selling company, has reported a net income of $249,919, or $0.02 per diluted share, for the fourth quarter ended December 31, 2008, compared to $696,998, or $0.04 per diluted share, in the corresponding quarter of 2007.

    For the year ended December 31, 2008, net sales equaled $98.2m, down 11.6% from $111.06m in 2007. Net income for 2008 was $2.9m, or $0.19 per diluted share, down from $5m, or $0.31 per diluted share, in 2007.


    UPDATE

    CHESTERFIELD, Mo., Apr 30, 2009 ( Reliv International, Inc. (Nasdaq:RELV), a nutrition and direct selling company, today reported its first quarter results. Net sales for the quarter declined to $23.8 million compared to net sales of $28.3 million in the first quarter of 2008.

    Net income for the quarter was $1.0 million or $0.07 per diluted share, compared to net income of $1.5 million or $0.10 per diluted share in the 2008 first quarter.

    Robert L. Montgomery, chairman, president and chief executive officer, said, "In an effort to increase sponsoring this year, beginning in January we began offering distributors half-price distributor kits".

    Proof indeed that MLM is a recession proof industry

  2. #2
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    Re: Proof that MLM is a recession proof industry

    Quote Originally Posted by Doc Bunkum View Post
    One company.

    How about Reliv?

    Reliv International's Q4 net income dips to $249,919

    Net sales for the year 2008 down 11.6%


    Reliv International, a nutrition and direct selling company, has reported a net income of $249,919, or $0.02 per diluted share, for the fourth quarter ended December 31, 2008, compared to $696,998, or $0.04 per diluted share, in the corresponding quarter of 2007.

    For the year ended December 31, 2008, net sales equaled $98.2m, down 11.6% from $111.06m in 2007. Net income for 2008 was $2.9m, or $0.19 per diluted share, down from $5m, or $0.31 per diluted share, in 2007.


    UPDATE

    CHESTERFIELD, Mo., Apr 30, 2009 ( Reliv International, Inc. (Nasdaq:RELV), a nutrition and direct selling company, today reported its first quarter results. Net sales for the quarter declined to $23.8 million compared to net sales of $28.3 million in the first quarter of 2008.

    Net income for the quarter was $1.0 million or $0.07 per diluted share, compared to net income of $1.5 million or $0.10 per diluted share in the 2008 first quarter.

    Robert L. Montgomery, chairman, president and chief executive officer, said, "In an effort to increase sponsoring this year, beginning in January we began offering distributors half-price distributor kits".

    Proof indeed that MLM is a recession proof industry
    Too Funny..
    Len Who?? Who is this Len character you guys keep talking about?

  3. #3
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    Re: Proof that MLM is a recession proof industry

    Mannatech Reports Second Quarter Results
    Tue Aug 4, 2009 4:15pm EDT

    COPPELL, Texas--(Business Wire)--
    Mannatech, Incorporated (NASDAQ: MTEX), a leading developer and provider of
    proprietary nutritional supplements, weight management products and skin care
    solutions, today reported a net loss of $5.5 million or $0.21 per diluted share
    for the second quarter ending June 30, 2009, compared to a net loss of $10.5
    million or $0.40 per diluted share for the second quarter of 2008.
    Operating
    results were negatively impacted by higher commissions paid due to several bonus
    types associated with the volume of units sold of the new $499 Premium/All-Star
    Pack and continuing unfavorable foreign currency exchange.

    Second quarter net sales for 2009 were $77.6 million, a decrease of 10.5%,
    compared to $86.8 million in the second quarter of 2008.
    North American sales
    declined 11.6% compared to the second quarter of 2008. International sales
    decreased 9.1% for the second quarter of 2009 compared to the second quarter of
    2008, partially due to the negative impact of a stronger U.S. dollar in the
    second quarter compared to the second quarter of 2008.


    Further proof that MLM is indeed a recession proof industry

  4. #4
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    Re: Proof that MLM is a recession proof industry

    Hi Doc, who are you today..... sorry I meant how are you today?! rofl

    I reckon you should try MLM Doc..... you've tried my cookies havent you? Oh yeah, thats right, you were helping out some lady who needed to qualify....

    :cwm2::cwm2::spin2:
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  5. #5
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    Re: Proof that MLM is a recession proof industry

    Tupperware Releases 2008 Sales and Revenue Results - Itís Not Terrible

    For the full year, the Kissimmee-based company (NYSE: TUP) had a net income of $161.4 million, or $2.56 per share, compared to a net income of $116.9 million, or $1.87 per share. Sales for the year were $2.16 billion, up from $1.98 billion in 2007.

    Tupperware Brands Corporation is a portfolio of global direct selling companies, selling premium innovative products across multiple brands and categories through an independent sales force of 2.2 million.

    So 2.2 million sales reps generated sales of $2.16 billion.

    That's an average of $981.81 sales per rep.

    Now, considering Tupperware Consultants earn a base commission of 25% on all sales, that means the average income for Tupperware reps was $245.45.

    Out of that they had to spend time booking parties, driving to the hostess, setting up, taking orders, then packing the orders and delivering them once they came in - all for $245.45.

    I wouldn't get out of bed on my day off for that amount of money.

    And some people here say MLM is a great way to beat the recession. :cwm2:

  6. #6
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    Re: Proof that MLM is a recession proof industry

    245.45.. And that was before their cost of website, gas etc..

    I was going to look up this, I just didn;t have the time.. So thanks doc, keep em coming.

    BTW: Doc, Chris doesn't care about the numbers.. He only cares about the dream//

    oh and I wouldn't even get out of bed for that little money.
    Len Who?? Who is this Len character you guys keep talking about?

  7. #7
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    Re: Proof that MLM is a recession proof industry

    I love MLM math. It gets me so lathered up! Bring it on!!!!!

    Soapboxmom

  8. #8
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    Re: Proof that MLM is a recession proof industry

    Quote Originally Posted by Soapboxmom View Post
    I love MLM math. It gets me so lathered up! Bring it on!!!!!

    Soapboxmom
    I love your anti-MLM math better....
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  9. #9
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    Re: Proof that MLM is a recession proof industry

    Avon is the one to look at. Highest recruiting rate ever lead to a whopping ~10% drop in overall North American sales 2 quarters later (the exact opposite of what Doyle said happens). MLM is hardly recession proof. MLMs may very well do better from a recruiting stand point, but actual product sales are what matters. More people selling less overall is not the definition of recession proof.

  10. #10
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    Re: Proof that MLM is a recession proof industry

    Quote Originally Posted by Doc Bunkum View Post
    Tupperware Releases 2008 Sales and Revenue Results - Itís Not Terrible


    Out of that they had to spend time booking parties, driving to the hostess, setting up, taking orders, then packing the orders and delivering them once they came in - all for $245.45.
    Now,

    c'mon,

    be fair,

    you're completely ignoring the gift Tupperware proprietary ice cream scoop or gift proprietary Tupperware potato peeler the hostess' get for hosting a party.
    The only thing necessary for evil to triumph is for good men to do nothing

  11. #11
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    Re: Proof that MLM is a recession proof industry

    Quote Originally Posted by calvinandhobbes View Post
    Avon is the one to look at.
    Okay, let's take a peek.

    Avon: 13% Revenue Drop in 1st Q
    05-11-2009

    Direct-to-consumer giant Avon Products, Inc. reported first quarter revenues of $2.2 billion, a 13 percent drop from last year's first quarter.

    Revenue in the North American region declined by 11 percent, and units sold were 9 percent lower than last year, which the company attributed largely to a 24 percent decline in the home category. Although active representations remained flat, in March representation in the region grew by 51 percent, which the company attributed to aggressive recruiting efforts.

    At the quarter's end, Avon's total debt had increased to $3.2 billion: a $678 million increase from the year-end level. During the quarter, Avon issued $850 million of notes, primarily to reduce outstanding commercial paper balances, according to the company.


    Carrying $3.2 billion in debt???

    Quote Originally Posted by calvinandhobbes View Post
    More people selling less overall is not the definition of recession proof.
    It is in Chris' world.

    MLM is a recession proof industry, you know.

    Chris said so.

  12. #12
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    Re: Proof that MLM is a recession proof industry

    Quote Originally Posted by Doc Bunkum View Post
    Okay, let's take a peek.

    Avon: 13% Revenue Drop in 1st Q
    05-11-2009

    Direct-to-consumer giant Avon Products, Inc. reported first quarter revenues of $2.2 billion, a 13 percent drop from last year's first quarter.

    Revenue in the North American region declined by 11 percent, and units sold were 9 percent lower than last year, which the company attributed largely to a 24 percent decline in the home category. Although active representations remained flat, in March representation in the region grew by 51 percent, which the company attributed to aggressive recruiting efforts.

    At the quarter's end, Avon's total debt had increased to $3.2 billion: a $678 million increase from the year-end level. During the quarter, Avon issued $850 million of notes, primarily to reduce outstanding commercial paper balances, according to the company.


    Carrying $3.2 billion in debt???



    It is in Chris' world.

    MLM is a recession proof industry, you know.

    Chris said so.
    C'mon Doc.... you know more about MLM than you're letting on, dont you...

    :cwm2:
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  13. #13
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    Re: Proof that MLM is a recession proof industry

    Quote Originally Posted by Doc Bunkum View Post
    At the quarter's end, Avon's total debt had increased to $3.2 billion: a $678 million increase from the year-end level. During the quarter, Avon issued $850 million of notes, primarily to reduce outstanding commercial paper balances, according to the company.

    Carrying $3.2 billion in debt???
    Carrying debt is not a bad thing by definition. Properly managed debt is a powerful tool. Poorly managed debt is a terrible thing.

    If a company is running a return on assets (ROA) of 15%, and they can borrow money at 5%, they are far better off taking out 3 billion in debt, turning that to assets, making 15% on them and paying off the debt over time while making a net of 10% on someone else's money.

    A big corporation with no debt may sound like a good thing, but that would generally mean they can't get more ROA than the going loan rates, and that would be a bad ROA.
    Last edited by calvinandhobbes; 10-22-2009 at 12:00 PM.

  14. #14
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    Re: Proof that MLM is a recession proof industry

    So what are you saying?

    That the big hype thing for new mlm companies that they are debt-free is not a good thing..


    I have always wondered about that also... How many brand new mlms have stated that they were debt free?? Why do mlmers think that, that makes the company stronger?
    Len Who?? Who is this Len character you guys keep talking about?

  15. #15
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    Re: Proof that MLM is a recession proof industry

    Quote Originally Posted by calvinandhobbes View Post
    If a company is running a return on assets (ROA) of 15%, and they can borrow money at 5%, they are far better off taking out 3 billion in debt, turning that to assets, making 15% on them and paying off the debt over time while making a net of 10% on someone else's money.
    That's true - in times of economic stability.

    But you've had what - 94 bank failures or so this year so far?

    What happens when a bank calls in a note?

    3 billion is a lot of money to owe.

    We don't really know what they're doing with the money - at least I haven't read the entire financial statement yet.

  16. #16
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    Re: Proof that MLM is a recession proof industry

    Yeah... Avon will probably go bust soon!

    :cwm2:
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

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