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Details Behind MLM Business Development Arrangements (Backroom Deals) at Jeunesse Global

February 26, 2015

Oz at BehindMLM has a fantastic article about MLM Business Development Arrangements (BDA), backroom deals that happen between MLM companies and high-level distributors from other companies. BDAs are a means by which these distributors are enticed to leave their current company to go over to the new MLM opportunity.

We’ve hinted at these backroom deals in the past before. The Salt Lake Tribune previously described the $3 million dollar loan that MonaVie made with Orrin Woodward. Seeing Robert Dean move from company to company has led many to wonder what kind of money is being exchanged behind all this MLM hopping. Oz details how Jeunesse Global enticed Matt Nestler, “25 year veteran in the multi-level marketing industry,” to join its company with a 6-month $15,000/month incentive to bring volume to the company.

Jeunesse saw the acquisition of Nestler and Kevin Giguere (Nestler’s immediate downline from a previous MLM opportunity) as an investment.

The BDA required Nestler to generate enough sales volume for the company to make back what it agreed to invest in him and Giguere over his first six months with the company.

Oz describes what happened next as “cloaks within cloaks, daggers within daggers. With so many possible layers of subterfuge, backstabbing and betrayal in play, it’s difficult to get a clear sense of what exactly went down.” Much of the detail he shares has been gleaned from a lawsuit filed by Nestler against Jeunesse Global, which he accuses of the following six counts:

  1. breach of contract (Jeunesse)
  2. breach of The Implied Covenant of Good Faith and Fair Dealing (Jeunesse)
  3. tortious interference with (Nestler’s) contract (Kevin Giguere)
  4. interference with Nestler’s business relationships (Jeunesse and Giguere)
  5. tortious and civil conspiracy to interfere with Nestler’s business relationships (Jeunesse and Giguere) and
  6. violation of The Florida Deceptive and Unfair Trade Practices Act (Jeunesse)

Read the rest of Oz’s post to get a glimpse at the backroom deals that often accompany top distributors leaving one company to go to another “amazing” opportunity.

For those at the bottom-rung of an organization or just starting out, this could be what really happens at the top of your company. Your chance of being successful at your MLM — just like Mr. and Mrs. so-and-so — is not as good as you might think or are led to believe. As Oz puts it:

Meanwhile what of Jeunesse’s affiliates. In this snapshot of the upper echelons of the Jeunesse affiliate-base, what hope does a regular affiliate just starting out to compete?

It certainly sounds like if you’re not getting your own secret backroom deal when you join Jeunesse, then you’re probably under someone who is.

And can you be sure they’re then acting in your best interest, or theirs.

10 Comments leave one →
  1. WISLER permalink
    February 26, 2015 8:39 pm

    SO IF YOU ARE SO SMART, AND I DOUBT THAT, SHOW ME WHERE THE FEDERAL TRADE COMMISSION HAS FOUND ANY PROBLEM WITH THE LIFE LEADERSHIP COMPANY?
    I’M SURE YOU ARE AN AMWAY VETERAN AND UPSET THAT THE LIFE LEADERSHIP COMPANY IS SUCCEEDING. JUST THE NAME OF YOUR BLOG “AMTHRAX” IS A CROSS BETWEEN AMWAY AND ANTHRAX. ACTUALLY, THAT IS PRETTY COOL.
    IT’S TOO BAD THE PEOPLE THAT COULDN’T MAKE IT (BOO HOO) IN NETWORK MARKETING COMPANY HAVE TO CRY ABOUT IT. THE FACT IS THAT THEY DIDN’T COMMIT TO THEMSELVES.
    LIFE LEADERSHIP NEVER PROMISED A QUICK FIX, OR EVEN TO GET RICH QUICK. “THEY” THE PEOPLE GOT THEMSELVES INTO A PROBLEM FINANCIALLY BEFORE THEY JOINED ANY NETWORK MARKETING COMPANY. IF YOU DON’T LIKE WHO YOU’VE BECOME, LOOK IN THE MIRROR…ITS THAT PERSON’S FAULT!!

  2. Jerseylamb permalink
    February 27, 2015 11:56 am

    I know a person who was offered $25-million to join Juenesse – I kid you not!

  3. noteam permalink
    February 27, 2015 5:40 pm

    Wisler – Amthrax is an anti mlm and anti Amway site, contrary to the brainwashing Orrin & Chris try to feed everyone. Read through the site. The overwhelming majority on this site hate Amway too.

    The reason the FTC has not shut down Orrin & crew yet is because they are so small they will probably collapse on their own. Waste of taxpayer money to shut down a company on such a decline. Five years ago we had 25,000 at the Freedom Arena in Louisville. Sounds like last weekend, actual numbers in a arena that only holds 12,000 was lower than 7,000 by the time you account for the huge area behind the stage, empty seats in upper levels, empty floor space and a few extra seats in every other row throughout the arena. Their numbers are waaayyyyyy down compared to what they used to be. People are finally starting to get sick of re-branding the same talks over and over, having to buy new sets of the Top 50, Culture Pack, Relationship Pack, Getting Started Pack etc. There have been around 10 versions of those same packs. Anyone who has blindly followed for the past 10-15 years has probably wasted $50,000-$150,000 or more on that crap.

    We were one of the top leaders when we left and aside from myself, literally did not have a single person in the entire group who had a net profit on their Schedule C the year we left. And this was not a small group.

    Look at your own Schedule C. Show it to an accountant that deals with real businesses and see what they say. Be careful, not only will you waste tens of thousands of dollars, you will alienate all your real friends and miss out on memories you will never get make with your kids. Several hundred thousand people have been a part of Orrin’s group over the past 15 years and only 6,500 left????? Should tell you something!

  4. exTEAMster permalink
    February 27, 2015 8:27 pm

    Wisler …. First of all, WHY ARE YOU YELLING? Second, even if the FTC gives its blessing to Life, that doesn’t mean it’s a good business opportunity. Look closely at the company’s Income Disclosure Statement and look at what percentage of people were earning more than $500 a month. The reason I suggest $500 is by the time you pay for your monthly subscription, your business building subscription, meeting and seminar fees and tools, money spent driving to meetings, seminars and plan showings, anything less than $500 and you’ll likely be in the hole (and that doesn’t even place any value on the time invested in all of those efforts).

    Next, the argument that the only reason people don’t succeed in network marketing is a lack of effort is completely false. If people could replace or exceed their current income simply by spending more hours at an MLM opportunity, wouldn’t the attrition rate be much lower than it is? The only way you can make money at Life or any MLM is by getting others to build a big downline. It’s not based only on your effort. You are also at the mercy of the people below you and their willingness to sacrifice as much time and money as you are. As one of Amway’s top distributors once said, “The key is to add people faster than the other ones quit.”

    Here’s why I find this site to be helpful. I spent more than two years in Life and found myself more than $8,000 in the red. I never missed a weekly meeting, a monthly seminar or a quarterly major. I was on every subscription recommended because I was told that was the way to be successful. In two years I signed up 6 people, none of whom stayed in the business for more than a few months because they started to realize how much time and money the business TRULY required. Why was I failing? Obviously the message was that I needed to work harder. But sites like this made me realize that the flaw was not effort specific. The bigger problem is that MLM success is almost a statistical impossibility, and LIFE is an MLM.

    By the way, many of the people who claimed to be on the verge of financial freedom when I joined LIFE are no longer doing the business. Why do you think that is? Did they simply stop working hard? Nope. They met the same fate as other people I know who supposedly were doing “really well” in other MLM companies. The growth slows to a simple sign-to-replace business and the anticipated riches never materialize for anyone but those at the very top of the company pyramid.

    Trust me, I remember having the same attitude towards critics of LIFE as you have. Negative thinkers who just didn’t want to do what was necessary to succeed. Maybe you will be that rare individual who overcomes the odds and becomes financially free. Hey, someone eventually wins the Power Ball every few weeks as well. But more than likely, you”ll just be in debt and feel very frustrated that you didn’t realize how you were fighting a losing battle from the start.

  5. Melanie Morgan permalink
    February 28, 2015 1:01 am

    WISLER~

    “SO IF YOU ARE SO SMART, AND I DOUBT THAT, SHOW ME WHERE THE FEDERAL TRADE COMMISSION HAS FOUND ANY PROBLEM WITH THE LIFE LEADERSHIP COMPANY?”

    I have to re ask as exTeamster did, Why are you yelling? Something about the (Backroom Deals) at Jeunesse Global upset you? Do you have a problem with informing people of the truth?

    I find it very Interesting to say the least how upset you are about this article on Jeunesse…. then you ask why the Federal Trade Commission hasn’t found any problem with LIEf Leadership Company?!

    WiSLER , Here is an article and quote (to follow) that I find more than interesting to say the least ( being talked about now in 2015?) by Kevin Thompson, who BTW..was the Chief Legal Counsel for the Team/Orrin Woodward the founder of LIFE Leadership company, the one you are referring to that you seem to be so upset about. Perhaps you too will find it interesting too?.

    Article:http://thompsonburton.com/mlmattorney/2014/12/10/mlm-special-deals-the-fraud-ends-now/

    “The first question: Is it legal to offer distributors special incentives (in addition to the pay plan) to join a company? Yes. Just like it’s legal to hire the services of a doctor to promote a new medical device.”

    *******The second question: Is it legal when the company / distributor fail to disclose the existence of these deals? No. Actually, it’s fraud.*****

    Did you catch that?!,,,, When the companies fail to disclose the existence of these deals…..it’s FRAUD!

    Amthrax

    Thanks for linking to the OZ article and putting this article up. Makes you wonder what other secrets and truth will eventually be forced out?🙂

    I just wish I knew about these fraudsters and their Secret “undisclosed” Fraudulent.. deals” before we got sucked in!!

    These companies and those receiving these special deals (that their downlines build for them) and yet they have been lying to the masses for years…telling them they have to “earn it”, “everyone has the same opportunity”, “2-5 years” “you can earn more than the TOP guy and that’s why it isn’t a pyramid scheme”! etc… The whole scam is One big lie..

    Keep up the good fight!

  6. Melanie Morgan permalink
    February 28, 2015 1:10 am

    My question… How long or when…. will the FTC, SEC, DOJ, AG’s catch up to these companies and or Distributors who have and continue to fail to disclose these deals to the masses, therefore, commit FRAUD?

  7. Melanie Morgan permalink
    February 28, 2015 1:11 am

    JerseyLamb~

    I believe you!!

  8. February 28, 2015 7:35 am

    Oh, Wisler. When someone comes in all ‘Matt Foley’, starts stomping around and crashing coffee tables, it makes me sad knowing they got to you and that they can still pull this off. I fell victim to the lie during the launch period of the fraudulent endeavor known as LIFE. After almost 4 years, how can anyone call this anything other than a sham?

    Let’s forget the lawsuits and bankruptcies that can be verified by court documents. Where are all the PCs that should’ve been crowned by now?

    SPOILER ALERT: there never were going to be any.

    For one, it’s statistically impossible, even with a mostly-ignorant public.

    Secondly, do you think OW wants more people in the inner-most circle that could possibly challenge him? Why hassle with that when he can make the same money from the hundreds of committed peons at the bottom doing the dirty work?

    I know I’m the 1873rd person to state the obvious but MLMs are fueled by attrition at the bottom. If you can accept this premise, then you must ask ‘who’s shoveling the fuel?’

    YOU are. With rare exception, the PCs don’t sponsor or broker their own subscription deals as would be done in a legitimate business.

    It’s all about shuffling the bottom in and out. It’s all about YOU shuffling the bottom in and out.

    Your wasted time and your wasted money creates that leverage. Leverage. They preach it and they live it.

Trackbacks

  1. Jeunesse Global Strategically Acquires MonaVie | AMTHRAX
  2. Jeunesse Global A Highly ILLEGAL PYRAMID SCHEME!! | Schiebel Networks

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