Could it be the old school duo of aggressive recruiting and big income-promising is wearing thin? Even abroad?
NuSkin is only one of many big MLM companies seeking to boost their flagging U.S. sales by going abroad.
1. NuSkin reports that 50% of its business comes from Japan alone. They entered China with high hopes in 2002, but now, have to pull back. The Daily Herald notes:
Truman Hunt, the company’s president and chief executive officer, said new Japanese and Chinese management teams are implementing plans to boost business in those markets.
“At the end of the third quarter in Japan, we began launching aggressive sales initiatives focused on distributor recruitment,” said Mr. Hunt.
They’re not the only one looking abroad to keep things alive for the old school mlm.
2. Amway‘s business in the U.S. has been on the decline for several years, based on my conversations with some major distributors. Amway’s (Quixtar) business is mostly abroad – especially in Asia.
3. Herbalife, another one of the big MLM companies in the US, reports in their last 10-Q that approximately 80% of their sales come from outside the US.
Has the relentless focus on recruiting and the non-stop promises of big income (which virtually no one attains) finally done them in here?
Easy income promises notwithstanding, distributors leave faster than the recruiters can bring them in.
And the old school solution hasn’t changed: bring on more “aggressive sales initiatives focused on distributor recruitment” (with promises of big financial success). Is that the best they can do?
Is there a lesson here for the rest of us?