The Business For Home app delivers Direct Selling news, company analysis and market data.

Download for free:

Advocare Terminates 100,000 Distributors Leaves Network Marketing

Advocare Terminates 100,000 Distributors – Leaves Network Marketing

For an update and opinions about the Advocare – FTC case click here.

 

MLM Attorney Kevin Thompson stated:

AdvoCare recently announced that it was doing away with its network marketing business model and instead shifting to a “direct to consumer” model. AdvoCare cites “confidential talks” with the FTC, saying that the FTC has taken issue with “how AdvoCare compensates its Distributors.”

Instead of taking their chances with litigation against the FTC, the owners have decided to completely bail out, going for the more certain outcome where they get to keep their profits instead of losing them to the government.

 

This all assumes that there’s a real threat from the FTC, which I’m not convinced that there was. I could be wrong, but something seems fishy.

With the exception of Herbalife, I’ve never heard of the FTC doing a confidential investigation. Usually they storm the gates, guns blazing. I know they have the ability for confidential investigations, I’ve just never personally seen one in our industry.

There’s part of me that wonders if AdvoCare initiated these talks with the FTC so they could “blame the government” as a pretext for these changes.

 

I’m probably wrong, but there’s just something off about the message below.

The regulatory landscape has not changed at all since 2016. In fact, it’s improved. The FTC has relaxed quite a bit since the election. AdvoCare was not led by fools. They seemed to have had a good in-house attorney, they had a healthy focus on product…by all indications, they were ok. This sudden shift, due to a “confidential discussion with the FTC” seems bizarre.

It’s worth mentioning that there’s not a single expression of gratitude to the field that built up their company to its heights today. They deserved better.

 

The advocare press release:

AdvoCare International announces a revision of its business model from multi-level marketing to a direct-to-consumer and single-level marketing compensation plan.

AdvoCare has been in confidential talks with the Federal Trade Commission about the AdvoCare business model and how AdvoCare compensates its Distributors. The planned change will impact Distributors who have participated in the multi-level aspect of the business. Those who currently sell only to customers will not be impacted and there will be no impact on Preferred Customers or retail customers’ ability to purchase products.

“Over the years, we have made many changes to the AdvoCare policies as the regulatory environment has shifted. Based on recent discussions, it became clear that this change is the only viable option,”

says Patrick Wright, AdvoCare’s Chief Executive Officer.

“Regardless of the model, we remain steadfastly committed to providing our high-quality nutritional products to our loyal customers who are seeking to live healthier lives. We stand behind the integrity and values of this company and will continue to work with our dedicated Distributors to provide the best customer service to ensure AdvoCare products are available for decades to come.”

The company gave notice to its more than 100,000 Distributors on May 17 that, effective July 17, 2019, AdvoCare will revise the business model to a single-level distribution model, paying compensation based solely on sales to direct customers.

The Retail and Preferred Customer programs will remain intact with discounts ranging from 20 – 40 percent. This new business model will allow the company to explore new and innovative ways to bring their premium products to market.

“AdvoCare Distributors have been helping change lives since its founding in 1993, by providing premium wellness products to those looking to reach new health and fitness goals – and that will not change,” says AdvoCare’s former CEO and current Chairman of the Board Reid Ward. “We’re proud of the growth of our Preferred Customer program we launched in 2016, which has grown to almost 400,000 discount customers. We look forward to reaching even more customers with a new business model.”

About the AdvoCare International, L.P.

At AdvoCare, We Build Champions®. Backed by the most credible scientific research and internationally recognized Scientific and Medical Advisory Board, AdvoCare offers premium nutritional, weight- management and sports-performance products. AdvoCare is a family-owned company founded in 1993 and is headquartered in Plano, Texas. For more information about AdvoCare, visit advocare.com.

 

Get more information, fact and figures about Advocare, click here for the Advocare overview.

Comments (213)

  1. Call me if you want a never ending team building sustainable business for your future.
    James Jowers – 678-306-6111

  2. I loved Advocare products. I’m deeply sorry for the position the company has left it’s hard working Representatives in.
    I’m grateful every day that I chose Mary Kay as my career. 56 years of solid business model.
    My prayers for all that are affected!

    1. Hey Kimberly, Please look at PURE products. They are the best out there. We get testimonies everyday to the awesomeness of our products. IM me to 828-200-9109 to receive the link.

      1. I’m with an outstanding company with amazing, no compromise products, privately help so their ethics are priority #1 for the company and its distributors. Work constantly to remain 100%complient. Call me at 845-216-4494 for information to join a winning, growing organization – 17 years strong.
        Dr Phil Barone

  3. Was with advocare for a while. Was good. Been with a new company now and it’s growing quickly. Best time to join is now!

    geloflife.newulife.com

    Hit me up for more info! You grow very quickly and easily with this company!

  4. AdvoCare did not terminate distributors. And the integrity of the company goes beyond all of these speculations that do nothing but generate gossip. As an AdvoCare distributor, I am saddened by the impact that this has had on many, I have no doubts about the company and what they had to do. If there was another way, they would have found it. I am sticking with Advocare., the products are unmatched anywhere.

    1. I’m pretty sure they did terminated distributors. I am suppose to be one. I went in yesterday to place an order and could not get in. Now they want me to pay a big chunk to get a 30% discount when I buy. I already paid a HUGE chunk to get the 40% discount I had.
      No thank you, I’m done with them.
      (No relation to Julie Conner)

      1. That happened to me too Sherrie Conner! I’m Extremely disappointed on how AdvoCare has changed. I’ve been a loyal distributor since 2013 at 40% discount. I now need to register as preferred customer at 20%. So much for being a loyal distributor…I feel like so many of us got screwed! Sadly, I won’t be supporting this company any longer.

    2. Hey Julie,
      I looked at AdvoCare but found product that are so much better. and the Compensation Plan
      is 2nd to none. Goto FB page Changing Lives with PURE and read some of the testimonies.
      IM me at 828 200 9109 if interested.
      Thank you, Kathy

  5. ???????? ???????? AdvoCare, ??????? ???? ????? ??????????? – ??????????????? ?? ??? ? ???????. Skype: onlinekapital.ru
    ?????? ??-??????.

    1. Partners of AdvoCare! Who looks for new opportunities of MLM! I invite in my team. Skype: onlinekapital.ru
      Welcome! I speak Russian

      1. Please stop preying on people’s pain and loss. Posting “join my team” is not helping our industry. If you are on this forum, you already know there are a bunch of awesome companies out there to choose from. I am deeply saddened that my advocare friends are going through this and wish them the best in all their future entrepreneurial endeavors.

        1. You sort of have a point. However, everyone’s distribution network is still out there and if they would like to be sponsored by any of the other MLM companies, all they do is get sponsored and they then sponsor their AdvoCare people into the new company and everyone benefits. I do Amway and we would be glad to sponsor you, although sponsorship is a little bit more complicated than most, and we get NO MONEY for sponsoring anyone. We only benefit if the people we sponsor are already benefitting.

  6. Sorry to hear I’m #2 over at Valentus if anyone needs a new home. We have weight loss coffee weight loss cocoa, minerals, detox, energy, weight loss drinks, skincare etc Loved AdvoCare back when Ragus was there.

  7. Zurvita hired and welcomed a new CEO from Advocare! I’d love to aid you to connect.
    I will help you find the superfoods, protein, probiotics, & cbd oil to best compliment you’re health. It’s improved my life more than green drinks.

  8. My heart goes out to those of you in Advocare who spent years building your business. Similar thing happened to many friends of mine when Silpada eliminated their MLM approach and later sold off. I am part of Zurvita and we just hired Richard Wright to be our new CO-CEO. Please know that you are welcomed at Zurvita and we look forward to meeting and working with those of you who will be joining us. I know that you will love our products and if you have any questions please feel free to reach out to me. Blessings!

    1. Patrick Wright, the new CEO of Advocare, is the nephew of Richard Wright. He will do the same thing to his distributors there that was done to the Advocare distributors. I’ve already heard enough negative about him.

        1. You were told wrong, they are definitely related and the only reason Patrick was even given the opportunity to be the POS CEO that he was.

  9. Hi there,
    If you’re looking for a new income then contact me for information. We’ve just launched in the UK following massive growth in USA. We’re going global.
    Suzie +447517404211 x

  10. I’m always saddened to hear when an MLM gives notice to the reps who work so hard & rely on the income they receive. I looked at Advocare before choosing Valentus two years ago. I liked the people.
    I wish all reps the best of luck in finding a new company. There are some exceptional opportunities in the marketplace right now.
    With kindest regards,
    Cheryl Hillskemper

  11. I’m saddened for everyone in Advocare who spent years building thier business. I am a distributor of Zurvita and we just hired Richard Wright to be our new CO-CEO. Please know that you are welcomed at Zurvita and we look forward to meeting and working with those of you who will be joining us. I know that you will love our products and if you have any questions please feel free to reach out to me. Blessings!

  12. CBD oil industry is growing by the day and as much as I sympathize with every distributor within Advocare, I welcome every resolute entrepreneur who would want to join my team to expand the market.

  13. So you have hit a road block. What will you do with it? Give up and go back to a 9 to 5 job? No! Businesses have ups and downs. You have customers, the drive and the know how. You just need another business avenue. If you want to keep those finances in check, contact me. I am on facebook.

  14. My heart breaks for all the Advocare distributors who lost their downlines. I know the blood, sweat and tears that goes into that. Message me if you are looking for a new opportunity. God will always open a new door when one closes. I am fortunate enough to be helping pioneer the new CBD industry. Please reach out. We won’t let your dreams die! We got you!

  15. Sorry for Advocare distributors.
    My company is doing business in over 145 countries worldwide.
    Huge momentum in US
    Welcome to your new future home!

  16. I tried 2 MLMs before finding a Direct Selling company that I love. (Its been in business for 30+ years.) There is no hype, no crazy expensive products, no false claims, no unsustainable growth in my new company. We just focus on consumers who need our products. People join MLMs like Advocare because they want to grow a business and they believe in the promise. Some MLMs are great (like my 2nd one – I’m still with them because of the products but not making the money I was told I would make.) Some are not so great and come under heavy scrutiny from the FTC for a reason! If you are open to steady growth, with a true possibility for long-term, safe residual income, with a non-MLM, consumer-focused, work-from-home business, then contact me. What I am doing now just might work for you, too. (I truly love it, and I believe you will, too.)

  17. Hey Team,
    So sorry with what is going on with the company. If you’re looking for an opportunity please reach out IG: JaviLima. I’m expanding in the US market and Hispanic market and taking I’ve the Latino Market. We have less than 1% market penetration all resources for winning!

  18. Please stop preying on people’s pain and loss. Posting “join my team” is not helping our industry. If you are on this forum, you already know there are a bunch of awesome companies out there to choose from. I am deeply saddened that my advocare friends are going through this and wish them the best in all their future entrepreneurial endeavors.

    1. You sort of have a point. However, everyone’s distribution network is still out there and if they would like to be sponsored by any of the other MLM companies, all they do is get sponsored and they then sponsor their AdvoCare people into the new company and everyone benefits. I do Amway and we would be glad to sponsor you, although sponsorship is a little bit more complicated than most, and we get NO MONEY for sponsoring anyone. We only benefit if the people we sponsor are already benefitting.

  19. This is such a lie! AdvoCare is still in business and I’m still making money! The garden has been weeded!!!

    1. The garden has been weeded?? That is what you have to say to the thousands of people that left other jobs to join Advocare, work their tails off to grow the company and have a good income, and this is the thanks they get. I will no longer buy their products. There are products out there that are just as good. My daughter-in-law has devoted the last 8 years of her life to Advocare, and to losers who think like you. Go ahead and stay in the garden.

      1. So true! I used to be with AdvoCare and my heart goes out to your daughter as well as the many distributors that the new model will affect. Time, money, blood, sweat and tears go into your business, your team, the company and customers. I chose to leave the company after 2.5 years and I’m so glad I did because I’m really not sure how I would take a hit like this. Prayers to all distributors.

  20. It “ticks” me off when I see people abandon common human decency in favor of what I call “vulturism” …The dust hasn’t settled yet, and people are already circling like vultures around a dying corpse.
    Can’t we just show empathy and stop pitching our “Opportunities” to Advocare reps. …Imagine somebody proposing marriage to someone who’s just lost a loved one …Not Cool, Guys.
    Let’s put back some professionalizm back into our industry.
    To the Advocare reps who’ve just lost their sources of income: “Keep Your Head Up! “

    1. You sort of have a point. However, everyone’s distribution network is still out there and if they would like to be sponsored by any of the other MLM companies, all they do is get sponsored and they then sponsor their AdvoCare people into the new company and everyone benefits. I do Amway and we would be glad to sponsor you, although sponsorship is a little bit more complicated than most, and we get NO MONEY for sponsoring anyone. We only benefit if the people we sponsor are already benefitting.

  21. ?If Penicillin went MLM when it was discovered would it have been a good idea to get in? ?This is a bigger opportunity !?

    Distribute technology that EVERYONE needs and EVERYONE can afford! A patented new area of health science that NO ONE ELSE can get. Please do yourself a favor and CALL ME IMMEDIATELY!! You owe it to yourself to know about this! NO MLM has ever had anything like this. ? Call Chris ASAP!! ????702-370-9109????

  22. Having considered the PRESCRIBERS DESK REFERENCE (pdr.net) where PURE’s products have amazingly scared through with amazing testimonies and SPLENDID COM PLAN, I then strongly believe that LIVE PURE GLOBAL will make people smile on every side. +2349050093971- Whatsapp comments welcomed.

  23. Praying and hopeful that whomever has been negatively affected by this change will bounce back. Network Marketing is still a fantastic way to earn full-time money in part-time hours, once you make the decision to do the work. There’s risk in everything, for life itself can be risky. But the rewards can be amazing. May you find another company that pleases you and gives you more than you loss.

  24. It is always uncomfortable when these things happen, but it is not the end of the world. Their issue was not agreeing to follow new regulations. There are many companies that do follow the rules, so if we believe in the industry, keep going. I am in the Financial Services with WFG/Transamerica, If the financial services are of interest, please call (347)446-5166

  25. I am very sorry for all the affected families, especially for the children.
    I currently work with a network marketing company and at first I was not sure if it was a good company or not.
    So I did a lot of research, and what I loved most was that it made the customer very loyal and helped future generations.

  26. Having a company culture that’s based on products and customer end-users first, to me, is the sensible way to run any sustainable business. A company’s independent consultants are wise to build a business with this in mind and not focus solely on team building and fast start bonus.

    We were introduced to the concept of sharing not selling and have embraced that model in everything we do. As a result, our model rewards hard working consultants a higher proportion of margin for customer purchases than typically found in the industry.

    I personally am not familiar with this company or their previous compensation model but actually I am very happy to hear that the customer and the consultants that will continue to serve the customer, will be well served.

    Relationship marketing will always be popular and is indeed a fantastic way to introduce products you love to those in your sphere of influence.

    Any thoughts, comments? let’s share and learn from each other.

    Paul Drake
    Co-Founder
    [email protected] TomorrowsLeaf.com
    615-333-0662

    Please excuse any typos! On my handheld and it’s Sunday morning!

  27. The MLM business model is flawed – only 5% of the world is looking for a home based business. Therefore smart people focus on 100% of the world’s population… they are called consumers, we all buy something everyday dummies! MLM belongs in the last Century, before the internet. Now we are all wiser and see through the hype and bogus promises of wealth and fame – less than 1% of ALL networkers achieve an independent lifestyle, for a while anyway.

  28. Don’t go to Isagenix. They are laying off masses of people and closing markets. Overpriced products that were once unique but now commonplace.

    1. You seem to be very misinformed. Isagenix is growing at an astronomical rate.
      This is a legacy company with integrity, know how, and smarts.

  29. That is so sad… but one great thing is you have a skill that no one can take from them. The strong reps will survive and rebuilt. Former AdvoCare Reps your future is bright.

  30. I have (hands down) the best Network Marketing Compensation Plan in the world.

    The Problem: SIN DEBT – we sin everyday (sin is an offense to God); we are born sinners; we cannot pay our sin debt; the penalty is death (physical and spiritual resulting in eternity in the debtors prison called Hell … it’s bad)

    The Solution: Jesus Christ (God in the flesh) paid our sin-debt with His perfect blood sacrifice when He died on the Cross, and Jesus was Resurrected back to life on the third day. If we believe in Jesus, Jesus will save us from our otherwise hopeless situation. If we ask Jesus (God) to forgive our sins, He promises to forgive our sins and prepare a place for us in Heaven for eternity. Jesus changes our heart from hardness like stone to softness like flesh. He opens our eyes to see and understand things like never before. He sends His Holy Spirit to live in our “heart” and to lead us in our thoughts and actions. Jesus essentially purchases us with His blood, so we are not our own anymore. Jesus is now Lord of our lives and we now turn away from our sin (offenses to God) and try to please Him. God is pleased when we love our neighbor and love God. All of Gods instructions are derived from love.

    The compensation plan: Our rewards and treasure in Heaven last for eternity and are earned when we love others like God wants us to and manage what God gives us (God owns everything). When we recruit others to follow Jesus and train them, we please God and will be rewarded. In fact, the Bible says that the angels shout and rejoice when someone is saved and “joins the team”. It’s the ultimate compensation plan. You also get love, joy, peace, patience, kindness, goodness, gentleness and self control. The journey will entail persecution and suffering as people are born rebellious to God (wanting to rule their own lives as their own “lord”/god) and will attack you because of Jesus… not because of you.
    Jesus promises to return and hold the wicked accountable and settle all debt-accounts. Our opportunity to ask forgiveness of sin-debt ends upon our physical death, so do not delay because we don’t know when we will die.

    Eternity is more important for our focus than the few years we are on this Earth. Jesus is the ultimate answer for our problems. The love of Jesus is beautiful and unmatched. It’s a “no brainer”. Ask Jesus to forgive you and start attending a local Church; start talking to God through prayer; start reading the Bible to learn more about God and His love. The book of John is a good place to start. God bless you. I love you but God loves you so much more than I ever could.

  31. Anyone from Advocare looking for the next thing… let me know. We are seeing tremendous growth and looking for folks who are looking for a supportive atmosphere with unlimited growth potential.

  32. Adocare DID NOT do away with their distributors. I am one and remain one. I still have the same log in and the same discount. I have ordered 3 times (as recent as this morning) since the announcement. If you have be kicked off the site for some reason you need to call Adovare and have it corrected. ONCE AGAIN ADVOCARE HAS NOT LET DISTRIBUTORS GO AND WE REMAIN AT 40% (WE HAVE BEEN GIVEN THAT STATEMENT IN WRITING). Do not jump ship for other ‘less than’ companies. WE BUILD CHAMPIONS

Write a comment

Your email address will not be published. Required fields are marked *

Load more