If it quacks like an Enron
Authors Note: The dates, names and companies that appear below in italics are fictitious, however the written accounts in this article are very real.
Looks like someone is pumping up the stock. Word has it, the stock needs to hover above two dollars for a while, or ABC will have pay about 2 mill in goodwill from the blundered LSD merger. Expect the stock to float over two, and then for the bottom to fall out of it again. When are they going to release year-end
figures? It looks it was a horrible year.
The above passage is just one of many lovely posts found on a Yahoo bulletin board regarding a public MLM company.
How do you think this helps the field focus and recruit?
The events reported by the company in this next account were posted by the company itself. Who owns this company? Are they private, public or just cant make up their mind?
We were founded in 1980-something by John Doe. We were acquired in 2000-something by an investment group led by WT & Company, LLC and GC Capital, Inc [private equity firms]. To consummate this acquisition, WT, GC and their affiliates formed a new holding company called WTGC Holdings (Cayman Islands) Ltd., a Cayman Islands exempted limited liability company (which has since been renamed XYZ Ltd.), and several new direct and indirect wholly owned subsidiaries of that holding company, including an acquisition vehicle called AB Acquisition Corp., a Nevada corporation, in order to acquire us. On July 31, 2000-something, AB Acquisition acquired us pursuant to an Agreement and Plan of Merger we entered into on April 10, 2000-somethingAs a result of the acquisition, we became a privately held company and were delisted from the NASDAQ National Market at that time.
This company is now public again. And to their credit, they are doing very well. Go figure.
I dont know about you, but I would have a hard time promoting a company like the one featured in the following Salt Lake City Tribune article. Especially with leaders like these at the helm. If it quacks like an Enron
Sunny MLM Company in Bad Light
Internal probe: Letters tell the SEC the firms leaders knew of alleged fraud
Sunny MLM Company refused to fire its CEO and remove a key board member despite evidence both men knew about likely illegal acts within the firms foreign operations and didnt tell auditors, prompting the auditors to bolt and shareholders to shudder.
According to correspondence made public Tuesday, the same day NASDAQ announced it was delisting Sunny MLMs stock, an ongoing internal investigation into one of Utahs largest makers of vitamins and herbal products has turned up electronic proof that CEO Bob Jones knew about an alleged fraud, twice made false misrepresentations to the independent auditing firm KPMG about it, and approved a payment in violation of the Foreign Corrupt Practice Act. The letters, dated last week and filed by the company with the Securities and Exchange Commission, also say board member Jim Smith, then chairman of the audit committee, knew about the falsehoods, failed to correct them and understood they could pose a significant problem to our company.
Unsatisfied with the demotions, KPMG quit on Friday.
The barrage of bad news is yet another blow to investors, many of whom bought stock in Sunny MLM based on glowing financial reports officials now say are unreliable. At least one of those shareholders has initiated a federal class action suit in Utah against the Provo-based company, whose stock skidded another $2.01 to close at $10.01 Tuesday.
Thats a far cry from last fall when shares were trading as high as $23.24, a time when top officers in the company sold more than $2.9 million in stock. The CEO dumped 68,000 shares in September for nearly $1.5 million.
The probe soon expanded to include other areas of the company and the CEO is still being investigated for his role in a transfer tax plan, the design and approval of bonuses in conjunction with the tax plan, and the termination of the former corporate controller of the company, according to correspondence from KPMG.
There are many more reports like these, obviously not just in the MLM industry, but also in business in general. And not just in business, but in religion, politics and government. Leadership is not always about serving the constituencies. It is not always about the 100-year business plan. It is not always about IF you make enough other people successful, your success is assured.
Sometimes it is about greed and shortcuts and a myriad of hidden agendas.
Our beloved MLM industry is a natural place for con-men/women, stock manipulators and just plain old greed. There are tens of millions to be made. And often no one knows exactly how you made it.
The true test of a mans character and heart is in what he does when there is much to gain and even greater secrecy or confusion to hide how he gains it.
Who owns/controls your opportunity? Who is that person? Where do they live? What are their core values? Their guiding principles? What is their vision for you and them? How do you know them? Have you met them? Have you looked into their eyes...into their soul? Do they hide from you even in your presence? Or are they available, fully present, accounted for and accountable to those who follow them.
Dont be fooled by titles. Even a CEO can be merely an employeeavailable to join your competitors or be sacked on a moments notice. Who owns your company? Do you know them? Do you trust them? Do you respect them? Do you admire them? Are they going anywhere but to the top with you in tow?
A midlife crisis is when youve reached the top rung of your ladder only to realize that youve leaned it against the wrong wall.
There is nothing more important to you or should be nothing more important to you than who owns your company. They hold your destiny in their hands, in their heart. Ask any MLM veteran. What is their greatest fear? Their worst nightmare? The big black cloud that follows them around? That they will give themselves fully one more time to a man...a women...a team only to be let down. Not so often by incompetence, but by the hidden agendas.
It is the only really valuable thing, economically speaking, that MLM has to offer. You can earn $50,000 a month selling real estate, or doing mail order, or on the Internet. But how long will it last if you are not there burning and churning every day, every week and every month? Where else can you invest three to four years of your part-time life and create something that built right, and in the right company could and should last a lifetime? Where else can you invest less than $5,000 and be earning $5,000 a month forever? That little $60,000-a-year income has an asset value of $2 million! If investors really understood our return on investment and knew the secret to buying residual MLM income, it would instantly become the most popular investment of all time. The thing is, you cant buy it. You have to build it. And here is what you and I and every other MLM field leader has to invest in order to build their very own:
1. All of your heart
2. All of your soul
3. All of your courage
4. All of your persistence
5. All of your enthusiasm
6. All of your leadership
7. All of your belief and faith
8. All of your business passion
9. All of your credibility
10. All of your contacts
11. Most of your free time
12. Some of your money
You have to give all this for four to five years sometimes much more to earn a lifetime of residual income. How does it feel to give your all, only to have your ownership bail out on you? It makes you sick and causes most people to swear off ever believing again.
How does it feel to build it in a company whose owners are giving the effort as much as you are or more? How does it feel to build an income you know you couldnt stop even if you worked hard at killing it? How does it feel to create for you and your family permanent financial freedom? As good as it gets!
What is right about MLM company ownership?
The hundreds of companies that are owned and run by leaders who share your dream, your vision and your passion for manifesting all the personal, spiritual and financial abundance our industry has to offer. Leaders with these qualities:
1. Vision and the ability to communicate it
4. Listening (not necessarily agreeing)
10. A sense of urgency
11. Team work
13. Personal growth
16. Owns the distinctions of a true MLM leader, whether by gift or actual experience
Fortunately for us, there are many MLM owners/leaders that sing this song. They get it and know what opportunity they have to steward for others.
There are many who are living far below their possibilities because they are continually handing over their individualities to others. Do you want to be a power in the world? Then be yourself. Be true to the highest within your soul and then, allow yourself to be governed by no customs or conventionalities or arbitrary man-made rules that are not founded on principle.
Ralph Waldo Trine, 1866-1958
Excerpt from: In Tune With the Infinite
Pick your owner wisely. If you hear them singing your song, if you feel it in every bone in your body, then follow them. They are true to you.
Copyright 2006 by High Performance People, L.L.C.
Used with permission.