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The MLM Story.

Other Amway Resources: “The Good, the Bad, and the Ambivalent: Managing Identification among Amway Distributors,” by Michael G. Pratt, published in Administrative Science Quarterly, Sept, 2000: http://articles.findarticles.com/p/articles/mi_m4035/is_3_45/ai_68217153 Read this lengthy excerpt from Jay Van Andel’s autobiography “An Enterprising Life” (Zondervan; September 1998), which was published in the Nov/Dec 1998 issue of The Saturday Evening Post: http://articles.findarticles.com/p/articles/mi_m1189/is_n6_v270/ai_21279901 ” . . .Usually I would not approach the children with the idea of pushing my view on them, but I would certainly give them advice and urge them to reconsider their behavior if it was going to cause problems. “I think that way of doing things has affected the way my children work as leaders in Amway today. I’ve observed Dave [DeVos] using the same technique–he gives individuals considerably free rein and tells them, ‘I’m giving you the freedom to do this work the way you see fit, but at the end of the day, you’re responsible for the actions you took.

If I see something that is incompatible with the way we do business around here, or if there is something substantially wrong, at that point I’ll intervene.’ Micromanagement of an employee’s work is likely to produce the same sort of outcome that would result from constantly looking over a teenager’s shoulder . . . .” A used copy of Van Andel’s book can be obtained via Amazon.com: http://www.amazon.com/exec/obidos/tg/detail/-/0887309976/qid=1085523879/sr=1-1/ref=sr_1_1/002-9833057-4089625?v=glance&s=books See this profile of Dick DeVos from the Nov. 1998 issue of Success, written by Gerald Secor Couzens: http://articles.findarticles.com/p/articles/mi_m3514/is_11_45/ai_57608670 I found a review of the now-out-of-print “Empire of Freedom: The Amway Story & What It Means to You” [Prima Publishing, 1997] by James Robinson. This link at Powell’s shows you how to order a copy: http://www.powells.com/cgi-bin/biblio?show=Trade%20Paper:Used:0761510885:8.95 MLM Survivor, an archive of Amway-related articles: http:

The MLM Herbalife Story. msurvivor.com/enteramquix.htm

HERBALIFE Like Amway, the ability to convey a strong message of self-empowerment reeled in distributors — in droves. But Herbalife had another dimension: the product appealed to people who had struggled with weight problems, just like Herbalife’s founder and CEO, Mark Hughes. Tied into Herbalife’s message of self-empowerment was the equally compelling element of self-improvement: the good-looking, energtic Hughes had triumphed over a miserable childhood and a serious weight problem.

Everytime Hughes stood before a crowd, or appeared in an infomercial, his own life story (he always told the story of how his overweight mother died from diet pill overdose) proved that anyone could overcome adversity. Anyone in Hughes’s earshot who had been touched by tragedy during their childhood and/or battled the bulge for as long as they could remember, was likely to be moved, and many of them were moved enough to sign on with Herbalife.

Hughes grew a brand, and a company, so strong in its appeal, it would ultimately survive even the scandalous circumstances surrounding his death. “Mark Hughes and the Herbalife Story”: http://www.moreenergy.com/history.html (The official bio.) “Death and Denial At Herbalife: The Untold Story of Mark Hughes’ public image, Secret Vice and Tragic Destiny,” written by Matthew Heller, from the Los Angeles Times,February 18, 2001: //www.rickross.com/reference/herbalife/herbalife9.ht

ml “. . . Hughes has racked up 20–and become extremely rich in the process. In the preceding fiscal year, he earned more than $2 million in salary and bonuses; he controls 60% of Herbalife stock, worth about $250 million, and has interests in suppliers of the company’s products. In 1998, he collected a tidy $43 million in a leveraged buyout of one manufacturer. . . .”

The article goes on to note that, when Hughes was a boy, his mother had died, Hughes claimed, as the result of chronic fad dieting and diet pills. According to Heller: “The real story was a lot more complex, and fit less neatly into an inspirational parable. Jo Ann Hughes did die of an overdose . . . [but] his mother died addicted to painkillers, not diet drugs.” Herbalife’s Structure:

According to Heller: when Hughes launched his company in 1980 the “products weren’t cheap. A weight-loss program alone cost about $30 a month . . . But Hughes had a way around that. Customers who became distributors would get a minimum 25% discount on everything they bought in lieu of the money-back guarantee; with that discount, you could make a profit selling products to others. You could even get commissions by recruiting other salespeople.

The bigger the organization you built, the bigger the payoff. “The payoff for Herbalife, which didn’t have to worry about sales-force overhead, was dramatic. In its first five years, sales soared from $386,000 to $423 million, an increase of more than 100,000% . . .”

Blessings…

doug Firebaugh / PassionFire Intl http://www.passionfire.com

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