ViSalus Secrets Revealed

An unbiased review of ViSalus success and momentum in the USA and Canada.

In 2008 Visalus (founded in 2005) was a rather unknown MLM company struggling selling nutritional products, with thousands of competitors.  Blyth (a public company) made its initial investment in ViSalus in August 2008 and now owns 57.5% of the company. Almost overnight the company got into massive momentum.

In 2011 ViSalus received the Turn Around award at the DSN Global 100 in Dallas, Texas. Sales at ViSalus increased $20.6 million or 157% from $13.1 million in fiscal 2010 to $33.7 million in fiscal 2011. This growth was a result of a 330% increase in distributors on a year-over-year basis. (Source Blyth Annual report). In May 2011 Visalus reported 40,000 new distributors in one month. 67,000 sign up's and $25 million revenue In August 2011. Estimated revenue for 2011 $160+ Million.

What changed?

The products, allthough great, are not unique, the Uni-Level compensation plan is a standard one, and more companies have a free car program and great field and corporate leadership.

What can the Direct Selling Industry learn from this case?

ViSalus in 2011 is all about the ViSalus Body By Vi Challenge. It is a solution to getting into better shape. It is a nutritional program with recipes, menu plans, exercise videos and programs, and online community support.

Is the success in above program, in the Free BMW Incentive, the Blyth partnership, or is the Field Leadership and Corporate Team executing the whole offering brilliant?

Blake Mallen, Co-founder and Chief Marketing Officer, is cleary one of the best Young Direct Selling Corporate Executives. In below youtube he is sharing the company sales records.

I asked Top Leaders both from Visalus as outsiders, their opinion. Is it all hype, awesome marketing, or will the growth slow down?

 

Tara Wilson – ViSalus	Troy Dooly MLM Helpdesk	Ray Higdon Numis Network	Kyle Pacetti – ViSalus
Stephen Clarke	Jonathan Gilliam Momo Factor	Tom Chenault	Casey Chavez

 

Tara Wilson,  Visalus Top Producer:

Awesome marketing? Absolutely!!! While most MLM companies are fighting over the very small percentage of people who love, like or tolerate network marketing we are targeting mainstream America and Canada. We have a marketing message and marketing plan that appeals to the masses and a compensation plan that drives the behavior of customer acquisition.

Will it last? Who knows, but if history is an indicator, it will last for many years. If you look at the companies that stand the test of time, one common denominator is a high customer to distributor ratio. I don’t mean distributors that are being called customers, I mean customers who only purchase product and never had an interest in the business. We are holding around a 4 to 1 customer to distributor ratio. Things don’t last because people quit and with over 25% of our customers and distributors getting their product free, the future looks bright!

A compensation plan will always drive the behavior of the field. When you truly get you head wrapped around the dynamics contained within the visalus compensation plan, you will realize it’s designed for stability and long-term growth by first focusing on the newest person, then the midrange leaders and lastly the top leaders. That’s a 360-degree shift from what you will see with most companies

Stephen Clarke, Former Saatchi & Saatchi Executive Vice President:

Marketing…..they have create so much EXCITMENT around their 90 Day Challenge and the ability to drive a free BMW….I've never seen so much HYPE before with any Company. I'm excited for their success and wish them well but very apprehensive as to how long it will last…..but it is FUN to watch & listen!

Jonathan Gilliam, President Momentum Factor:

What Visalus have done is capture people's imagination and motivate them via a well-run gamification model using challenges and contests to motivate behavior. In doing so they've created a wave of imitators — because gamificaition works.

They've also done a fantastic job with their social and mobile platforms. People are craving fun, excitement and connection and also of course self-improvement and achievement. I think they've done a great job of providing all of these

Tom Chenault, Home Based Business Radio Show:

There is nothing to substantiate this incredible run that Visalus has enjoyed. The product, the car program, and the comp plan are average at best so maintaining this momentum will be difficult when the bloom comes off the rose… Blyth: From Partylite to Visalus to obscurity… it's just a matter of time in my opinion. But I hope not…for the industry?

Casey Chavez, Visalus 

Hype is usually questioned in infancy stages of start up companies, so why is there so much commotion about Visalus’ success going on to its sixth year in business. I thought the same until I did my research and have never seen a company so polished on all levels.

Joining Visalus has been the best financial decision of my life. We have had 11 months straight of double digit compounded monthly growth in some of our worst economic times. Experiencing growth like this in its sixth year shows that Visalus’ business model will be truly sustainable. At our Regional about 30 days ago in southern California, I witnessed over half the audience walk across the stage for rank advancement, and recognition.

The comp plan is very lucrative at the lower levels, which is unheard of. The excitement was pure, the stories were real and the incomes, not fluffed. I have experienced amazing Retention marketing the 90 day challenge. Customer loyalty is back, especially when 25 % of customers are even receiving their product for free. The proof is in the pudding here. There is no question Visalus had the customer and distributor in mind when giving away 10 million dollars in give aways a year, that number is more than what some companies are profiting this year.

So could it be the marketing? Absolutely, but what will drive Visalus to continue this massive momentum? In my opinion, The community that Visalus has created (especially in the back office). They have turned their product line into a true lifestyle for its customers and Promoters. The online marketing tools will keep their system truly duplicable and simple for the new marketer to succeed. I have witnessed first hand companies built on hype and marketing, seen the egos, and inflated numbers. With Visalus, there are no smoke and mirrors.