Max International without Cash?
by Ted Nuyten on December 21, 2011
Max International neglects to pay $37,0000+ donations raised for Abuse Child.
During the Max International All-Star Convention in October 2010 $47,341 was collected by Max Associates.
Max Corporate has been only paying $10,000 out of the amount, and never paid the balance of $37,341.80 (that was promised the following month (7 months after they collected). According to Gina DeSantis of PCAU, to this day, they never received that $37,341.80.
According to our reporters, Max has experienced 3 situations in the last 2 months where products where on back-order. Apparently Max's credit line from their product manufacture is bad. Consequently they can not keep enough product on hand to meet recurring demands. Max suggests that sales have increased, but that is not completely true. In our reporters opinion, Cash flow is the issue.
Max is paying off settlements from law suit settlements with Melaleuca and numerous distributors, plus high overhead. They had enormous legal fees also. They still have an outstanding $450,000,000 dollar law suit with Tripharma. http://successplan.com/tripharma-llc-files-patent-infringement-lawsuit-for-450-million The law suit against the Unclebach's was an attempt by Max to stop them from filing a law suit. Apparently they are going into arbitration during the first week of January.
Commissions payments were delayed by one day last month and employee Christmas bonuses were also delayed by a week.
All these signs are indicative of a company that is operating on slim margins and is having cash flow issues. If not, it is a sign of an inefficiently run company. Timely shipment of products and paying commissions on time are critical components to retaining the trust of Distributors in the field.