The recent shut down of Fortune High Tech Management, and the ensuing Fortune Hi Tech Lawsuit should be a wake up call to all people looking at partnering with a network marketing company and those who are partnered with a company who has a similar compensation model.
FHTM founder Paul Orbeson started the company after the failing of the Excel company. Although most likely having sincere intentions, the coding model of paying people for turning bodies and sponsorship with little product or service volume is at best unhealthy and non-lasting, and at worse, misleading and criminal.
The decision on FHTM has been delayed until March, but the environment of the company is all but dead at this point with Mr. Orbeson clinging, and begging distributors to hold on. Unfortunately for the innocent distributors who were led to believe that they were doing the right thing, FHTM is terminal and the end is in sight.
This is a great lesson for us all as we move forward, and that edgy “pie in the sky” coded model will most likely be put on the shelf for good. The big three of Shaklee, Amway, & Mary Kay were found on fantastic principles when they were founded back in the mid 1950’s. Those principles go something like this;
A company took its products and instead of rewarding the retail market and requiring advertising, leaned on word of mouth advertising, rewarding its consumers for having a good experience and sharing that good experience with others. Investment is supposed to be very minimal, and the reward structure was based on someone doing something, not just saying “yes”.
Excel, FHTM, and other service orientated companies make or made 90% of their revenue from coded sponsorship. That is not a healthy ratio. Volume based giants like Amway and Mary Kay have now reached their global capacity as they have reached all the major markets and will forever be in a slow and steady mode without any negative unforeseen circumstances.
So what should you look for when partnering with the right brand in the network marketing industry?
- A foundational history of success (not a start up)
- Visionary leadership with great integrity and character
- Product loyalty with tenure = long term residual income
- International expansion in front of you, not behind you
- Technology and Marketability
So if a 55+ year track record as the gold standard of quality in the industry, with a billionaire leader who previously took multiple companies including beauty.com and burberry to billion dollar status, with 17 year average consumer loyalty, with international expansion to most recently China and now India, along with remarkable tech support and brand marketing interest you, YOU MIGHT WANT TO TALK TO WITH ME… The next 5-8 years will be the most expansive in our company’s history. Will you be a part of it? That’s up to you…
The Fortune Hi Tech lawsuit has taught us one thing, and that is not to get involved with a company that rewards distributors soley for recruiting. This is not a stable long term business model.
Til next time!