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When a company gets bad press…

Thanks Ty, for the Mannatech tip…
badpress

What do you do when your company gets bad press, like what’s just happened to Mannatech?

Years ago when I was involved with Juice Plus as it was first starting out, no more than 6 months into it, I got a call from the company’s VP of Marketing, asking me desperately, “Kim is it true? Did OJ Simpson really kill those people?!”

OJ had been a recent spokesman for that product back then (1994) and suddenly, he was in the national news national news as a murder suspect. Worse, he had said in his TV spot for the company that the JP product had helped him overcome arthritis in his hands, which he said he could barely use anymore before he started on the product. Boy did we hear it about that

What to do when the company gets bad press about its products?

1. REPS: Before panic sets in, ask yourself: Is it helping YOU?

If so, that’s the main story to tell. How it’s helped you. That’s all you can ever say for sure isn’t it?

No promises. No hype. Tell your story, and ask the listener if she knows anyone who’d like to know about a product like that. Pure niche prospecting, like we’re teaching people how to do in the New School and in the If My Product’s So Great book and CD program .

2. CEOs: Change the manuals & trainings: NO PROMISES. If there are no promises made, what could the basis be for “making false claims”?

P.S. Here’s how CNN Anchor Kyra Phillips turns bad press into a win…

About the author

Kim Klaver

13 Comments

  • For those of us who know and understand your teachings about Network Marketing, it comes as no surprise that Mannatech has tripped over its marketing.

    I did not read all the “advertorials” but the six that I did read were filled with hype, technobabble, self-serving comments about products, market and promotions about company executives.

    Most people will not have read or heard anything about Mannatech’s problems. The reps have to hope that few people know.

    Also I only saw a few testimonials in Mannatech’s ads and they weren’t specific enough to attract me to their products.

    If Mannatech did do what they were accused of doing, then it serves them right to get caught. If they didn’t do them, unfortunately, few people will believe they didn’t.

    As a former advertising and marketing executive, I see that Mannatech and a number of other companies have violated the rule we used to preach to our clients.

    “Never say or do anything that you wouldn’t want to see printed in 16-foot high letters.”

    Whether they’re guilty or not, this just serves to underscore what is wrong with our industry.

    The do-anything-say-anything nature of recruiting, the shading of truth about products, the convoluted explanations about comp plans, the money talk and worst of all, the blase attitude of company management about all of these things.

    Mannatech’s management might not have told their reps to say or do the wrong thing, but it appears they damned sure didn’t tell them not to until after the problems arose.

    All I can say is here comes the Zombie again. Rising from its grave to haunt the industry. I am not sure that we’ll ever see it dead and buried for good.

  • Interesting how even on the home page of Mannatech, which I saved a screenshot of, the newspaper reference they make suggests the company was actually written about in the paper, by journalists, when they were really just ads Mannatech paid for.

    These are the kinds of half truths that eventually catch up with people.

    It’s is easy to go over the edge, obviously, if you drink too much of the kool aid.

  • What unbelievable timing for this blog.

    This morning, I learned that the founders of my company were sentenced to over 2 years jail time for tax evasion.
    http://www.heraldextra.com/content/view/193206/

    I’ve already had a distributor say she’s going to drop out because she doesn’t want to associate herself with their company.

    Despite having a mini panic attack, I’m going keep going using the niche prospecting techniques. Thanks for writing this article..it’s helped keep me stay focused.

  • It’s disturbing to see that Mannatech – or any other company – would be tempted to make it appear that the company had been written about by a newspaper when it was, in fact, ads.

    On the other hand, bad press doesn’t have to affect our businesses negatively, as Kim rightly said.

    Years ago when I was in another NM company, I heard about the death of the founder of another NM company. Hearing about the death of this person at age 44 made me snicker, since it’s a health and nutrition company – if his company’s products were that great, why was he dead so early in life? (Stupid thought at the time, true, but think it I did).

    Fast forward a year or two when I was no longer happy with my NM company. I checked those guys out at that company I had snickered at before. I joined the company – after much research, of course. And five years later, I still love the products. Wouldn’t want to be without them. So the bad press wasn’t enough to drive me away when I really needed a new company, and I humbly submit that if we’re talking to people for whom our thing is the right thing, bad press won’t drive them away either.

  • Robert – yes, it is so tempting to be boastful and fall into the claim/technobabble land, hoping to impress people. But it only seems to impress the people who wrote it at the home office.

    Elaine – I’ve elevated your comment to full posthood see today’s post “Add Neways to the bad press news”

    Susan – at least you got your senses back when you went to check them out. Probably everyone thought what you did at the time…but people’s bodies have different tolerance for sleeping pills and such, as Mark’s mother’s death at about the same age showed.

    Interesting how thinking comes around after some time has passed, huh?

  • Kim, you said, “Interesting how even on the home page of Mannatech, which I saved a screenshot of, the newspaper reference they make suggests the company was actually written about in the paper, by journalists, when they were really just ads Mannatech paid for.

    These are the kinds of half truths that eventually catch up with people.”

    When you go to the Mannatech website, there is a link button on the front page that says, “14 Reasons Why Mannatech is an Industry Leader…as seen in The Dallas Morning News”. When you click the link, you go to a page which clearly identifies all of the ads as “Advertorials” and shows an example of one with a large Mannatech logo on it and web address. Kim, I think you missed it in inferring that Mannatech is trying to make it look like journalists wrote those ads.

  • Hi Cris:

    You are right…after you click on the Mannatech home page link suggesting the newspaper has written about the company, THEN it reveals they’re really “Advertorials.”

    My point was that the home page gives the impression the paper wrote about the company. It isn’t until you after you click on the link that you see they’re ads. It’s the same info you can get on the company website, disguised on the home page to look like the newspaper wrote good stuff about the.

    That’s what I was referring to as a a half truth. The home page representation.

    Hope that clarifies…

    I use several of the Mannatech products, and have thousands of reps in my classes over the last 15 years. I think the corporate folks can do better in the way they represent themselves, is all. Why make it easy for others to take pot shots?

    🙂

  • It is very tempting to gloat when somebody seems to be in trouble. Especially if that person is successful.

    Quote from the article “Mannatech Inc.’s sales of dietary supplements have surged in the past three years, but some leading nutrition scientists view the products as having little or no benefit, according to a published report.”
    Question why is the sales up in the last 3 years. Be careful who you quote, so called experts. Dr. Ben Carson also of John Hopkin, a professor saw the sceience beleived in it, spoke at Mannatech convention. You see all these crap have come and gone. It happened in Australia about two years ago. What Mannatech corporate insist is that associates should not make claims. For those of you who do not know, nutrition does not cure, mitigate, ameriolate diseases the body does.
    Yes Mannatech’s Ambrotose is sugar,not you mama’s sugar. Science from all over the world proves that the body needs them for proper cell structure and function. You and I should be getting them from our food, but we are not. That is why supplementation is not an option.
    Talks to the thousands whose life have been changed and you will realize that it is not your mama’s sugar.
    Why was Mannatech invited to the Royal Society of Medicine in England to present its science?
    Why was Mannatech invited to the 8th annual world congress on Medicine in Geneva to present its science?
    Don’t be fooled by so called experts who are in the pockets of big Pharma.
    Yes some Mannatech associates may be guilty of using technobable but Kim, that it why we are here.
    Sorry for venting because I’m one of the many who eat those “sugars” and glad I did. I would continue to do so that I don’t have to be on Prof. expert’s kill me slowly “AZLTMY” pill.
    This controvery also shall pass.

  • My company, Advantage Nutraceuticals, is a very small company almost a start-up. A couple of weeks ago the FDA with the help of the U S Marshalls raided the office and “arrested” 3 products putting yellow tape around them.
    This was about a labeling/bochure “violation” 2 years ago WHICH WAS COMPLIED WITH then but nobody ever followed up on it…. until the RAID.
    A lot of bad press followed with even the MLM Watchdog putting their sensational spin on it.(When our company’s attorney and the owner of Advantage called them they did do a retraction of a sort).
    Thousands of $$$ later in attorney’s fees and products not getting to sick people who really needed them we are once again able to offer the same products.
    An example of the labeling stuff they opposed was with a product named Arthritis Support.. We couldnt use the word Arthritis .
    That same day I visited stores in my area and found 5 products from 5 different companies using Arthritis in the name.
    What is really going on here?
    Because we knew what really happened this didnt affect us EXCEPT to cause doubt in people we might approach as customers who might already be skeptical of Multilevel Marketing.

  • Common sense, integrity & honesty being the goals, and agreeing with the need to weed out those conducting their business/life otherwise, I’m always saddened at bad press for any MLM company, as in the minds of some, that is a reflection of the entire industry, like a dishonest realtor seemed to reflect on that industry when I was part of that. Often, too, competitor reps have a feeding frenzy on the bad news, doing even more damage.

    It’s quite clear, Kim, that your wisdom is reaching more ears/hearts at a time when we seem to be ready to make it our own.

  • I don’t care for testimonials. Let’s face it, there are *plenty* of crappy products that present great testimonials.

    The single reason I started network marketing was because I found a company (actually, the company found me) that can scientifically validate the efficacy of its products. I don’t need to sell. I just say, “Let me prove the products are working for you, or you get your money back . . . no questions asked.” It makes it a lot easier to find customers.

    I don’t think I could do direct sales otherwise . . .

    . . . unless I was Mary Jane Medlock. (She has a GREAT testimonial!)

    🙂

  • Kim,
    I’m really surprised at you as someone who is an expert in the field of NWM and as someone who is familiar with Mannatech that you would fall for the false, twisted claims in the Dallas article. The doctors who were quoted in that article obviously know nothing about these products or this science. They are doing such a diservice by pretending to be experts. I’ve been with Mannatech for 10 years. The health results that my family and I have experienced have literally changed our lives. I’ve worked with and met thousands of people who could tell you the same thing. Placebo effects don’t last 10 years but our results have – this is real. There is a ton of science and I sure hope that someone educates that ignorant doctor who may have scared people away from taking a very safe, effective product so he can hand them a toxic medication to treat their symptoms. It is sad. I couldn’t believe when I read your newsletter and then clicked on to see more that you would go along with this. Big disappointment! Mannatech is an awesome company with leaders who are more ethical and caring than anyone I know. The science is sound. The products have impacted so many people’s lives in positive ways. Anyone who stays away from Mannatech because of that rediculous article – I really feel sorry for you.
    Susan

  • Hi Susan:

    The point of the piece is how to deal with bad press. I don’t think I “fell for” the bad press, I wrote about the fact of it.

    This piece was bad press about Mannatech’s products, wouldn’t you say?

    Forget for the moment whether it is true false, since all reports have two sides.

    When bad press happens, some people just deny it. Or just discredit the source, like you did. And that may be right for you. But that doesn’t mean such stories won’t affect others. If your only answer to questions about it is that the bad press is just a bunch of hooey, then others get the impression no matter what anyone said, you’d say they were wrong or worse.

    I think, especially as someone who CARES about the products like you do, and many others, it is good to acknowledge these complaints first, so you show you’re listening. Second, let someone know that despite this story, the product has helped you for 10 years. Isn’t that the only truth you know? It’s helped you and obviously many thousands of others?

    When I repped Juice Plus we had a group of about 10 people come to one of my Super Saturday meetings and announce the JP product was mostly filler. In front of like 200 people!

    My only response was, since I wasn’t at the factory to see what was being put it in that week, that if it was filler, or a placebo, that it was the best filler product I’d ever used and I’d keep right on using it. And I did. Everyone laughed and that was the end of it.

    Because that’s how I felt about it. And I used it another 7 years.

    That’s what I wrote in the post as the best antidote to bad press…not that you just deny and discredit the bad press, since that’s what everyone does. Instead, have a strategy – namely, tell your story. “It’s worked for me for 10 years, and that’s what I am going with. What if it works for you the way it did for me??

    Then you are transparent, you acknowledge the other person’s concern who read such an article, and you come across as genuine and credible, regardless of what was in the paper.

    Think?

    🙂

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