Day: August 24, 2021

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The Direct Selling Self-Regulatory Council Has Referred ByDzyne’s Earnings Claims To The Federal Trade Commission

direct-selling-news
direct-selling-news

After ByDzyne, a direct selling company that sells a variety of health and wellness, technology, beauty, and travel products, failed to respond to DSSRC’s inquiry, the Direct Selling Self-Regulatory Council (DSSRC) of BBB National Programs referred certain earnings claims to the Federal Trade Commission (FTC) for possible enforcement action. Earnings claims broadcast on the corporate website and by salesforce members on social media are at the center of DSSRC’s investigation.

DSSRC brought the earnings claims to ByDzyne’s attention as part of its ongoing independent monitoring of the direct selling marketplace, which DSSRC was concerned about communicated that ByDzyne independent salesforce members can typically earn significant income through the company’s business opportunity.

Earnings claims include, but are not limited to:

• “For a free webinar on how to improve your health, lifestyle, time, and finances.”
• “HOME BASED BUSINESS – Your Financial Freedom, Your Freedom Connection, No more sacrificing your valuable time for money, Have time to enjoy your life with your family, Live Life to the Fullest and Do What You Love”
• and the bonus is that whatever your friends save when they book, you gain, so if they save a thousand dollars, you just got a thousand dollars in reward credits, which you can turn into a thousand-dollar Amazon gift card, one for one. You may exchange it for a thousand dollars and use it to book your travel.”
• “Welcome to our daily FREE webinar on how to improve your health, lifestyle, time, and finances.”
• “There’s no limit to how high you can go”
• Free vacations to Mexico for up to $2700 and free vacations in 26 countries worth up to $2450 are depicted in this image.
• “The funds are on their way. The new house is on its way. The breakthrough is on the way. The new vehicle is on its way. Good health is on the way. The day of financial independence is approaching. And it’s all happening there in front of my eyes in ByDzyne.”
• Multiple allusions to being able to make between $500,000 and $1,000,000 per month are included in the video. Salesforce members may also get a $50,000 cash bonus for a car and a $250,000 bonus for a house, according to the video.
• Unqualified assertions regarding a $50,000 car incentive and a $250,000 house bonus are made in a compensation plan video.

About BBB National Programs: Businesses may turn to BBB National Programs to improve customer trust and have their voices heard. Through the creation and execution of effective third-party accountability and dispute resolution services, the non-profit organization promotes a more level playing field for businesses and a better experience for customers.

About the Direct Selling Self-Regulatory Council: The BBB National Programs’ Direct Selling Self-Regulatory Council (DSSRC) provides independent, unbiased monitoring, dispute resolution, and enforcement of fraudulent product claims and income statements made by direct selling firms and their salesforce members across digital platforms.

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Even During Pandemics, Direct Selling Demonstrates Its Worth To Local Economies

direct-selling
direct-selling

Despite local governments’ vaccination campaigns across the world, we are still in the midst of the epidemic.
According to the IMF, the world economy would contract by 4.4% in 2020. The majority of the world’s economies are seeing growing unemployment.
One industry, though, has remained stable.
According to the World Federation of Direct Selling Associations’ (WFDSA) annual Direct Selling Report, worldwide direct sales grew by 2.3 percent year over year, from US$175.3 billion in 2019 to US$179.3 billion in 2020.

Despite the destruction wrought by Covid-19, the three-year compound annual growth rate (CAGR) is increasing, according to the research.

The direct selling industry grew at a 3.0% CAGR (excluding China) from 2017 to 2020, exhibiting resilience in a time when other commercial sectors are witnessing a negative trend due to the pandemic.

What Is Direct Selling?

It is a sales channel used by firms to advertise their products directly to the end customer, away from a physical retail store, depending largely on word-of-mouth advertising from existing users.

Direct selling is, in some respects, a development of the traveling salesman of the early 1900s. Before internet firms popularised flexible job options in recent years, the direct selling industry was the first gig economy business.

Many firms utilize the direct selling business model to market distinctive products and services in sectors including health and nutrition, personal and cosmetic care, and home care items, among others.

The Pandemic Effect

The relationship and personal touch that distributors create with their clients and team members is the cornerstone of the direct selling company. The direct selling sector took a hit in the early days of the epidemic, as the lockdown forced social distance and extended periods of seclusion.

Most businesses, on the other hand, swiftly recovered after fast adapting to the new normal with the use of digital engagement tools, virtual events, and training programs.

Many organizations were obliged to accelerate their digital deployment as a result of the epidemic. This was especially important for the direct selling sector, which has historically relied on in-person contacts.

Those that were able to make the transition swiftly and connect with and assist their consumers and distributors not only survived but flourished!

For example, in several African countries, QNET witnessed record-breaking growth of up to 65 percent.

What Is Next For The Industry?

Companies that provide health and wellness goods saw a large rise in sales as a result of the pandemic’s increased awareness and personal health concerns.

With $64.8 billion in global direct sales, these items grabbed the lead. This pattern is expected to continue in the next years.

Direct selling got more agile in 2020 as a result of changes in customer behavior. To respond to the rapidly changing global environment, the industry had to reinvent itself.

In the way people and businesses create money, innovation is all around us. Microbusiness is becoming more popular. E-commerce is on the rise.

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Mannatech’s Second-quarter Revenue Increased By 12.9 Percent To $42.5 Million

Mannatech
Mannatech

Net sales for the second quarter of 2021 were $42.5 million, up to $4.9 million, or 12.9 percent, from $37.6 million in the second quarter of 2020. In the second quarter of 2021, income from operations grew to $2.0 million, up from $1.1 million in the same period of 2020.

In the second quarter of 2021, net income was $2.1 million, or $0.99 per diluted share, compared to $1.1 million, or $0.47 per diluted share, in the second quarter of 2020.

Other operating costs grew by $0.6 million, or 13.6 percent, to $5.4 million for the three months ended June 30, 2021, compared to $4.8 million for the same period in 2020. A $0.2 million rise in consultancy fees, a $0.2 million increase in credit card fees, a $0.1 million increase in travel and entertainment expenditures, and a $0.1 million increase in office expenses accounted for the majority of the increase in operational costs.

The provision for taxes for the three months ended June 30, 2021, was $48,000, or a 2.2 percent effective rate. Provision for taxes was $0.2 million for the three months ended June 30, 2020, or an effective rate of 12.3 percent. The projected annual effective income tax rate was used to calculate the effective tax rate for the three months ending June 30, 2021, and 2020.

As of June 30, 2021, and 2020, the number of new and continuing independent associate and preferred customer positions held by Mannatech network members and connected with product purchases was approximately 176,000 and 172,000, respectively. In the second quarter of 2021, the number of new independent associates and preferred customers recruited grew by 13.0% to 21,527, up from 19,047 in the second quarter of 2020.

About Mannatech

As of June 30, 2021, and 2020, the number of new and continuing independent associate and preferred customer positions held by Mannatech network members and connected with product purchases was approximately 176,000 and 172,000, respectively. In the second quarter of 2021, the number of new independent associates and preferred customers recruited grew by 13.0% to 21,527, up from 19,047 in the second quarter of 2020.

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Punjab’s Direct Selling Sector Has Surpassed The $500 Million Level

idsa
idsa

According to the annual survey report issued by the Indian Direct Selling Association (IDSA) here on Monday, the direct selling sector in Punjab has exceeded the $500 million barriers for the first time, with a year-on-year rise of about 6%.

Punjab has a gross turnover of 523 crores in 2019-20, according to the IDSA study, making it one of the major direct selling marketplaces in the northern region. According to a report published during a news conference, almost 1.5 lakh individuals in the state engaged in direct selling.

Last year, IDSA treasurer Vivek Katoch praised the Punjab government and food, civil supplies, and consumer affairs minister Bharat Bhushan Ashu for announcing direct selling norms. The rules provided regulatory clarity for the state’s business model, he said, adding that the industry also paid more than $60 million in taxes to the state coffers.

To reinforce the state’s regulatory framework, the department of food, civil supplies, and consumer affairs issued direct selling rules in November 2020. According to the Punjab recommendations, the state monitoring authority must be formed, including senior officials from several ministries of the state government and a subject matter expert selected by the government.