Humor: Orrin Woodward Tries To Justify His Status As A Legitimate Network Marketer, Proves Otherwise
Note: This post was originally published on September 12, 2008. I think the analysis is very important, given TEAM’s upcoming transition to LIFE. Does LIFE qualify as a legitimate network marketing company or is it a scam based on Orrin Woodward’s own words? Leave your comments below!
Since Supreme TEAM Leader Orrin Woodward is not allowing comments on some of his more substantive blog posts, I must take the opportunity to translate them here on this site. While this post is provided for humorous purposes for critics of MLMs, MonaVie, and TEAM, it’s meant to taken somewhat seriously by anyone building an MLM. Orrin does make some good points here; I just contend that they don’t necessarily apply to his business nor MonaVie.
Without further ado, the Supreme TEAM Leader in his own “true” words:
How do you separate a legitimate Network Marketing company from the various scams that develop from time to time? The discussion today is centered on the difference between legitimate network marketing companies and the illegitimate companies that attempt to fly under the network marketing banner.
Here I will tell you why Amway, a place where I spent fourteen of my fifteen MLM years, is an illegitimate Network Marketing company.
It is possible to have a legitimate company where distributors are building in an illegitimate way.
I would know. It takes one to know one!
I am not a lawyer and this is not legal advice, but merely my opinions from spending 15 plus years in the industry.
I am not a lawyer. I just play one on stage. BTW, I’m speaking at the MonaVie Believe conference next week in Utah. Y’all should all come out to hear me say the same stories I’ve been telling for the past fifteen years: Lung Busters, Nobodies Can Become Somebodies, The Seven Beliefs, Tools and Integrity, and…
The Law of Networking.
Like I said, I am not a lawyer, but I do a darn good impression of one on stage!
Let me share the 5 key principles that make up a legitimate company in my opinion.
I know I should not be bashing my former MLM, Amway, in which I spent fourteen years amassing my million-person… err… 60,000, TEAM Army, but here goes anyway!
1. A legitimate product that has true end users, not just consumption from people interested in making money from the compensation plan. — The FTC clearly ruled that the product should have true customer demand whether there was a pay plan or not. A simple test would be to determine if you love the product enough to use whether you were compensated or not. This ensures the value proposition of the product is right so that the networking company does not mark the price up outside of the value range. This protects the distributors and customers against a company interested in enhancing their own profits to the detriment of their distributors. If the product has no demand outside of the network, then you are probably entering the danger zone.
We have a product here at MonaVie that costs $40/bottle. Our recommended daily dosage of our super-super acai berry juice (made from concentrate) is 2oz twice a day1. That comes out to roughly one bottle a week per person. If you have a family of four, that means one case per month per person, or four cases a month. One case costs about $150, so your monthly expenditures on my fruit juice concentrate for your typical family of four is $600, or $7,200 a year.
Now, I know that you can buy fruit juice made from concentrate for about $3 bottle. An entire year’s supply for your family of four would in comparison be only around $600, but let’s not debate the math here. My pal, Dallin Larceny is not jacking up the price of MonaVie by 1200% here. If you read my interpretation of the MonaVie Income Disclosure Statement, he’s paying out 50% of revenue, which means Dallin’s only marking up his juice by 600%! That’s a fair deal, no?
2. Protection against inventory loadings. — No one should be hitting new levels in the networking field by buying products and loading them into your garage or basement. If the networking company or field leaders are encouraging massive product loading – they are entering into the illegitimate zone. A good product ought to have real demand that allows distributors to hit new level through the normal building of the business. If all of the pin winners have loads of product sitting in inventory, then you are probably entering the danger zone.
Now, if you are serious about building the business, I recommend to all of my downline to buy at least 3, 6, or… if you are really serious, 12 cases to get started. I know that’s a lot of cases, and I realize you don’t have much space in your house to store them. Shhh… just put them in the basement or garage and we won’t tell anyone about that, okay?
3. No heavy pay to play requirements. — The entrance fee should not be exorbitant where the main incomes are being made from “headhunting fees”. If it cost thousands of dollars to get started, you are probably entering into the danger zone.
Like I said in point #2, if you’re serious about building the business, you need to buy 12 cases of MonaVie and get on my 100% guaranteed success TEAM System. Cost to join? Let’s see… 12 cases of MonaVie = roughly $1600. My TEAM Training System… or about $50/month. Let’s just call it $1650 to get started… again, if you are serious!
4. Keep the main business the main business. – Training and sales aids are critical and necessary to the building of a stable and profitable community. Without proper training and leadership, a community will not hold together in the long run. There may be profits created through the proper use of training materials. A legitimate enterprise will share those profits with the field leaders in a fair and equitable way. If the profits from the training become higher than the profits from the business, then you are probably entering the danger zone. A good rule of thumb would be that profits from training ought to be around half of what you make from the network marketing company.
Let me explain to you the power of duplication and multiplication. I don’t care if you are in my downline or not. As long as you are buying my tapes, CDs, and attending my functions, you’re all a part of my TEAM and I love you for that.
You see, when I was in Amway, my main business was my TEAM. Now, I know that Dallin Larceny and I have this agreement whereby I can only make a half of my money from tools, but what’s the difference between $6 and $12 million dollars between friends? Shh… don’t tell anyone I told you this, but Dallin said that he’d thrown in a jet or Lamborghini for free if I hit Imperial Black Diamond this year!
5. No hidden non-competes or other anti-competitive practices in the contract – A legitimate company understands that people should be free to join or leave depending on whether the network marketing company satisfies the distributors and customers. If they do not satisfy the customers, why would people stay with their failing enterprise? To force people to stay in a business where they are not getting the results they desire in their life is not free enterprise and is not good for an industry that claims distributors are “independent” and “owners” of their own business. Why would a legitimate company require fences to ensure the community stays in their business? If there are legal fences in place to force people to stay in the network marketing company’s business then they probably are entering the danger zone.
Those $%!%! at Amway tried to lock me in for another fifteen years, and I didn’t want any of it. Those pyramid schemers over in Ada are horrible. Now, I know that I was a part of what I’m calling an illegitimate MLM for fourteen years, but I was a fricking shining white knight during my entire time there. I swear on Bill Britt’s bible that what I’m telling you is the truth!
I love the MonaVie Team because the way we build the MonaVie business is in line with the proper use of all five principles! The MonaVie Team’s goal is to build a million people community through serving our distributors and customers. Anyone is free to come or go based upon our ability to serve them. We are building a TEAM where Together Everyone Achieves More. How many true teams have you been part of in your life?
Join us for the opportunity to spend $7,200 a year on fruit juice made from concentrate and at least $1200 on my tapes/tools/functions. I guarantee2 you that after fifteen years on my TEAM, your $126,000 investment on fruit juice3 and motivation will have been worth it!
The MonaVie Team has some of the best leaders in the country and is Having Fun, Making Money and Making a Difference!
99% of my leaders came from Amway, an illegitimate network marketing company.
God Bless, Orrin Woodward
God Bless Me, Orrin Woodward
1 It’s been pointed out that MonaVie is not entirely made from concentrate. For instance, the acai is made from freeze-dried acai powder (not from concentrate). However, the label does say that 15 of the fruits are made from concentrate and the remaining 3 from fruit purees. That’s still a lot of concentrate being used!
Here’s the official description from a MonaVie bottle label: “100% juice blend of freeze-dried acai powder and whole fruit juice with 15 fruit juices from concentrates and 3 fruit purees.”
2 Results may vary from person to person. Everything in this post should be taken with a grain of salt. Orrin Woodward is not liable if you never make any money from MonaVie nor TEAM.
3 Here is a photo of the label from a MonaVie Active bottle.