Advocare Terminates 100,000 Distributors – Leaves Network Marketing

  • May 18, 2019
  • Press Release
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.

 

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Comments (245)

  1. Your people are your highest asset! When you create raving fans your business will thrive, if you don’t, you will end up losing everything!

    Risk here is to going from
    100.000 positive people to 100.000 mad people. We all know what that means for the future of this brand.

    There is always another way….
    “People before Profit”, and you will make more profit!

  2. Ted,

    For over thirty years I have watched the brand promoters and distributors in our industry take companies that are completely unknown, then turn them into household names and multi-billion dollar brands.

    Once these companies are up and running, there has always been a temptation by owners and the corporate teams to eliminate the very people who drove these business into the billions. To bypass the top earners and pick up the 30% to 50% paid out commissions. Very few have ever tried to bypass the field, for fear of the legal damages, but it looks to me like today one just did yesterday under the guise of “working with the FTC.”

    AdvoCare has become a giant in the industry built on the backs of some of the best leadership our industry has to offer. Many of them are my friends!

    Now, after “secret meetings with the FTC,” they have made the decision they are cutting everyone out of the comp plan except for people at the point of sale and themselves? What about the people who have spent their lives promoting the brand as well as gathering all these people?

    I know it’s still early, but I don’t buy any of it!
    “All distributors will become AdvoCare’s front line July 17th says everything I need to hear.”

    If the FTC intervenes in a company, it has been my experience that it does it in the open for all to see. Not in the shadows. Especially a company with a unilevel comp plan similar to the one Amway fought the FTC over in ’79 and won.

    If this turns out to be a profit over partners grab, which I believe that it is, then everyone of us here have our future commissions and businesses at stake. (How much of your income is simply retail profit? )

    This isn’t about customers… Advocare is customer heavy, this is about loyalty in my opinion!
    I pray someone here can show me where I am wrong, otherwise, WE must ALL join this fight…

    Prayers to all my Advocare friends… I am so sorry…we are all behind you!

    LWS

    1. Couldn’t agree more. A representative Bill of Rights may not have changed ultimate end result but the hard working rps would not have been blessed with an end of business notifiaction on a Friday if one was a part of a business model.

    2. Lance – I am a person AdvoCare terminated in the past – they have zero loyalty to folks other than a few at the top – i sued and won but mysteriously the jury awarded almost to the penny AdvoCare’s low ball offer – to convenient – this whole thing stinks and I will let you know they have continued to terminate folks consistently since 2004 – My attorney knows them well – he has become the go to guy for AdvoCare screw jobs – his name is Bill Masterson and he is in Dallas – if people want to challenge AdvoCare call him – he is representing people today against them – 214-969-9099 https://www.kilgorelaw.com/

    3. Lance – I am a person AdvoCare terminated in the past – they have zero loyalty to folks other than a few at the top – i sued and won but mysteriously the jury awarded almost to the penny AdvoCare’s low ball offer – to convenient – this whole thing stinks and I will let you know they have continued to terminate folks consistently since 2004 – My attorney knows them well – he has become the go to guy for AdvoCare screw jobs – his name is Bill Masterson and he is in Dallas – if people want to challenge AdvoCare call him – he is representing people today against them – 214-969-9099 Kilgore Law

    4. Lance,
      What a scary time for AdvoCare reps. I can’t imagine the company I’m with wiping out the team I’ve built. I’m a consultant with Scout & Cellar, an organic wine distribution company. Send your scorn AdvoCare reps my way, and I’ll help them rebuild a team with a company that cares as much about their consultants as they do about their profits and products.

      Best to you,
      Karyn Morrow
      [email protected]
      http://www.scoutandcellar.com/KarynMorrow

      1. Suing is one thing and costly. How about a relentless campaign on every social media platform, news stations, newspaper articles, letters to every organization they are affiliates with and so forth. Show the devil to the people and watch them crumble.

  3. This is terrible. 100,000 distributors have no access to residual income again. May you receive $10,000 in residual income, in June ad beyond $0.00.

    Terrible.

    You have to build from scratch all over again. I am not a distributor of Herbalife but consider how Herbalife distributors have been so loyal to tge company. Some have been in Herbalife ever since they were born. It a their life!!! I strongly believe Advocare has such loyal leaders and distributors all of whom have been pushed into a gutter.

    If you’re with advocate, please don’t despair and feel hopeless. There’s always a network marketing company somewhere that will value you more than profits. This is a blessing in disguise.

  4. This is the beginning of the end to AdvoCare International and it should be. They forgot who made them to where they are now.

  5. Anyone liking to join a company 38 years in business 95 country’s message me Herbalife is growing stronger and is still number one in nutrition world wide . Allstarocala.com or message me today 3526537071 don’t look at it as a fall just join the best now ????

  6. That is why I highly recommend to take time and make a serious due diligence in finding the facts and mission of the companies.

    I am glad to offer a great opportunity to all Latinamerican markets with such an opportunity with Bmor Global.

  7. Wow, Wow… This will be a mega black eye for the MLM world.. we works so hard to build and share a Dream to only have a taken away in a Blink!
    Sounds like corporate America… You lose your retirement, benefits, your income..
    This makes MLM look just any company and you can’t count on it when you need it the most. I hate the word shame , but Shame Shame Shame on you..

  9. This is terrible. Advocare should know that there is no way the distributors will hang around with this type of business model. It does not make financial business sense to. Happy and raving customers will build a thriving business, whereas unhappy customers can slow business. This is the true example of building your brand instead of building up a company’s product base. Prayers to those affected by this. I know how it feels to have 60 days to find another means to support your family. Thankfully, I’ve been able to learn and find a network Marketing business model that works.

    1. Jose,
      I am posisitve Steven would be sad to see you advertise this way! His heart for people would think this insensitive to those loosing something they have worked so hard for. Zilis is better than this.

  11. My heart goes out to the 100k reps in Advocare that must be devastated with this loss. I’m an ordained minister and it’s sad to see company’s like this putting profits over people. My prayers are with you as you seek a new business home. ~ Michael, the Unstoppable Entrepreneur

  12. I could imagine how horrible that must feel to be betrayed! My heart goes out to anyone affected. There are people and companies who can help you rise back up quickly AND stronger than you ever were before IF you can decide to become a Victor over this situation.. and there are companies set up in ways to prevent this sort of behavior. I’m a high level Diamond that’s produced Diamonds who have produced Diamonds. If you don’t want to research my company and unique situation, I know of a couple of other outstanding options too I can share with you to produce profits again quickly. Bryan 210-862-1111

  14. It’s a terrible and I feel for the people. This can and does happen. It’s happened to me. So I looked for an alternative. I found one build it once call me 514-663-0303

  15. Wow are you people really using this devastating news to recruit??? Get your heads out of your ass and start being people first! Isn’t that what we learn in network marketing???
    My heart personally goes out to each and every distributor hit by this mlm breakdown! I was laid off 3 times from jobs in the last 6 yrs and it takes a few days or even weeks to heal from the initial blow, regain composure and get into your next new chapter! I pray you will all be ok in spirit and financially in the months to come! Hugs!!! XXX

  16. We worked with Advocare for 8 years. The original founder was amazing- Charlie Regus. I think he would be so disappointed about this. He passed away and his family took over. Over the years they’ve had numerous presidents and none really did the job with excellence. I have many friends from Advocare and know they are shocked and in unbelief. We all need to be considerate of this as they look for new homes in our industry. *we left Advocare because of product changes, comp plan changes and unwillingness to listen to leaders/Distributors.

    1. hey ms vickie – something smells bad here – i don’t believe the story – i saw pictures a bunch of diamonds the night before this happened and either they got dropped literally on their heads or something fishy is going on here!

  18. Well I can tell you first hand AdvoCare has not been shy about terminating people based on BS before! I was one of them. I can also tell you that they don’t care at all about distributors, as far back as 1996 there were discussions about getting rid of distributors and going direct to retail through retail stores. It is funny that they did not say one word about appreciating their distributors or anything else, only they were taking care of themselves! If you need a good MLM attorney let me know, they know mine very well. He has been in some suit or another with them since 2005!

  19. That is unfortunate for so many building their dreams. Bad ownership can’t be helped.
    The industry is strong and changes people’s lives everyday.
    I would love to show you what gave me my life back!! I have been full time and traveling the world for 4 years. Follow me on IG – Atomic_dom_b

  20. Terrible decision…unrespectful towards the reps that build the company for years and a guaranteed suicide for the company. Who would ever be willing to keep a customer with them being betrayed like that?

  21. What a shame!?. Hang in there you guys…there is a company out there that will take care of you and treat you what you’re worth…biggest reasons I went with Isagenix over other mlm’s I’ve worked with in the past.
    Don’t give up…you’ve worked too hard to get where you are!

  22. Dear Advocare Reps,
    This is sad news indeed. As even some MLM attorneys have suggested; this is very fishy. I am so sorry this has happened to your businesses. It is a grim and intense reminder that we all are just independent 1099 contractors, not owners.
    So now you will be hunted by all the sincere recruiters with their best of the best deals. No mortal can see what is in another person’s heart. Five decades of experience in our profession encourages those of you who desire to continue, to start at the top. By that, I mean thoroughly investigate the Captain of the ship. He/she alone sets the course and his/her philosophies trickle down throughout the entire organization. It is no guarantee, but it is a sure-footed beginning.
    I wish you all a rapid recovery that takes you to a better place.

  23. My guess is the company is being sold right out from under the people who helped build it. So many companies have lost there way when the founder is no longer around. The values, that made them great and special are lost to the quest for profit over all. I hope all the affected distributors over come these events and return greater. When one door closes other one opens up. To your great openings. Bless you all

      1. Lance – I am a person AdvoCare terminated in the past – they have zero loyalty to folks other than a few at the top – i sued and won but mysteriously the jury awarded almost to the penny AdvoCare’s low ball offer – to convenient – this whole thing stinks and I will let you know they have continued to terminate folks consistently since 2004 – My attorney knows them well – he has become the go to guy for AdvoCare screw jobs – his name is Bill Masterson and he is in Dallas – if people want to challenge AdvoCare call him – he is representing people today against them – 214-969-9099 Kilgore Law

  25. Because they see the success of individuals selling shakes from health clubs. They want to do that and get the whole profit. Not even surprised.

  26. My thoughts:

    1. Company. Not only does it not seem like the company was not grateful for its reps not thank them, they just didn’t fight for them assuming the FTC threat was as legit as they are saying

    2. Haters. Those who are celebrating the fall of the reps are assholes. Don’t engage with them, unfriend or block them. To celebrate a bunch of single moms, families, entrepreneurs trying to better their life is just a jerk move. Non-MLM companies go out of business everyday, happens to every type of business.

    3. Sharks. How quickly do you ask the widow out on a date? Instead of shark attacking the hurt reps, have some compassion and send them some love, if THEY want to talk business, go for it

    4. The Industry. There are company owners (non-mlm and MLM) that will not fight for their people and take the easy way out screwing over others. The industry is still great and the people that had life goals still have those life goals. The industry providers a low risk, low overhead way to start a business. It is not $100,000 to start and does not require degrees or certifications. Still legit but there will be stories like this from time to time like in any business where the owners choose not to fight for the reps.

    I did a video summary on this here – https://www.facebook.com/rayhigdonpage/videos/1751846041627709/

  27. Just look at the parasites in here trying to recruit for their own garbage products that are “the best” in the world. Nobody should feel bad for any of the distributors. When you prey off selling an “opportunity” and garbage products this should happen. The only problem is it didn’t happen sooner.

  30. I’m so sorry to hear this unfortunate circumstance. The distributor base deserve better. The field are the people who built the business not the suits at the office. They took to easy way out not thinking about the field at all.

  31. To the Advocare distributors, I am so sorry you are experiencing this tragedy – and it is a tragedy for the distributors who depend on this income, and will suddenly have it taken away. Some of you have gotten off track here saying it is a problem with the MLM industry; you might want to look into your statement. How often does something like this happen in MLM companies? And how often does it happen in corporate America? BIG industry shuts the doors more and more with the rise in online shopping – anybody shop at Toys R’ Us?

    Yes, the distributors deserved WAY better, and yes, the whole thing is suspicious. But let’s focus on the fact that the distributors were doing this because they had dreams of a better life. The positive, more people will be aware of what to look for in a direct sales company – READ your agreements people – every time they update! Some companies allow your income to be distributed to your heirs – others do not. Check the fine print, and know what your company really stands for. The Advocare distributors have learned valuable skills about running a business and making it what it was before the announcement. They can now take and apply their knowledge and passion to another company. I think some of the newer companies have much more opportunity. I always look for the positive that comes from an event. A door has closed. You take your desire to help others and apply it to something else you are passionate about. Your dreams have not changed, so don’t give up on them!

  32. Today my heart is hurting for Advocare reps and the industry as a whole. We’ve spent the last 3 yrs building a business in a different NWM company, and it’s changed our lives in so many ways!! Prayers for you guys and gals. I’m not sure what I could do to help you other than share our business with you. If so, I would be honored to help.

  33. My heart goes out to everyone that this has been affected. I’m praying for each of you. I’m here if you keep your options open and live in the United States. Reach out to me personally. I have experience this before. My number is 479-5673314

    Be blessed

  34. To everyone scrambling to “scoop up” an AdvoCare distributor…..STOP IT!!! Now is NOT the time!!! Don’t be the vulture overhead circling what you think is a dead carcass!

    The AdvoCare business model has drastically changed and thousands of families are grieving, mourning and trying to figure things out and they will in due time.

    Like one AdvoCare person wrote, God spoke to her saying, “Watch out for the wolves.” As her family is mourning, grieving and looking at what’s best for their future her inbox is flooded with messages from all kinds of people that know their success and decided to try and prey on a weak moment.

    Shame, shame, shame on the vultures!

    AdvoCare has good products. I was once an AdvoCare distributor but left as I found something that was a better fit for me (my leaving had nothing to do with AdvoCare).

    Something great is going to come out of this for the distributors as there are too many Christian people involved. God will use this to their blessing.

  35. Read the book who moved my cheese? This is a hard learning experience. In the MLM world emotional strings are pulled but associates need to remember the owners own the business and they will do what is best for them. It’s business and for many I assume it has been a good run.

    If someone has a job loss do they say it’s too soon to tell the person who lost the job it’s too early to tell them about an opening where they care at?

    I know it’s tough for many and I’ve been through the eye opening realization of there’s a business side to being with a company but if your vehicle to your dream shut down then just find another but learn that even though you build a business within a business you don’t own it.

    I wish all involved the best but take the emotion out best you can and get back in business.

  36. I was once a AdvoCare rep but decided not to invest any more time and money, Im now with Kuvera and have made more money in my first month than I did in a few years,I’m looking for new team members who really what to make money daily,catch me on Facebook messenger Brian Burdine or email [email protected],thanks ?

  37. All of you “sharks” circling in a feeding frenzy should be ashamed of yourselves for trying to recruit the people who are losing so much due to Advocare’s unfortunate decision. It’s people like you who give MLM a bad taste in other people’s mouths. Why not show some love, respect, and support of encouragement to those affected?

  38. I am so sorry to
    Hear this. I love the industry of network marketing and have worked as a distributor w a very successful team w a competitor for over 6 years. I cannot imagine how devastating this must be for them. I pray for them and am blessed n excited to welcome anyone looking to join a company wca solid reputation n generous comp plan.

  39. My heart goes out to everyone at Advocare and their families. It is absolutely insane that a company would do this overnight and something smells really fishy about the “secret meetings with the FTC”. This is bad for the entire industry. A company abandoning what made them successful. It’s as if the company ripped its own heart out.

    Sending love to all the families who built their dream upon this brand, and as tough as it seems right now. There is always light at the end of a storm.

    Shame on Advocate for doing this to their people!

  40. Advocare had great integrity when Charlie Ragus was running the show, after Charlie die , the company died with him. They started terminating people after Charlie died, everything started to change and I got out. The bastards that were running the company did honor Charlie’s integrity! I feel bad for the distributors that are going to lose that built the company. I will never use Advocares products again!

  41. I actually like this business model much better. As a personal trainer I love the products and I love selling them. I can’t stand the pressure of signing people up and earning bonuses based on that. For me it’s all about the products. That’s all it should ever be about

    1. Your absolutely right Sandy!
      Customer first should always be the premise to build a business through quality products.
      If you need any additional product offerings for your clients, perhaps I can help? What I have to offer may be unique even for Advocare reps. Just text me at 506-870-0545 with the message “How can I raise my clients blood oxygen level for better performance?” I will send you a link with all the information.
      Keep up the great work you are doing for your clients. If your clients truly love a product and the services you provide, I’m sure they will ask you how they could become a distributor if they really wanted to promote it. That’s the best way to build a team of distributors, through happy satisfied customers. That’s the principal I believe in for the company I represent and it’s family of products.

      All the best wishes to the current Advocare reps having to face this unwanted life’s tribulation, may you succeed in your decisions whatever that may be best for you or the company.

    2. It’s all about the products? I don’t think so!! If you help me build my business and we both become millionaires together, and then I terminate you, I bet you wouldn’t say it’s all about the products then. You lose everything while I go on living life like a KING! And you have to start your life over again! It’s easy for you to say that it’s all about the products, because you didn’t lose anything. It’s all about integrity my friend! You’re wrong!!!

  43. This is just another reminder
    NEVER PUT ALL YOUR EGGS in one proverbial basket
    Diversify as fast as you can
    Multiple streams of income is CRUCIAL for everyone no matter the industry

    That being said, my heart ?? and ???? Go out to all impacted this in all ways life changing (mental and emotional and spiritual and financial)

    I love love love MLM biz model and am saddened for all of you

  44. I feel soo sorry for the hard working people . That worked for advocare keep your chin up there is a place for all of you .I work for a company that respects all of there people if you’re looking for a home please message me

  45. AdvoCare screwed me years ago to. I searched and found a better company, better products, better comp plan, better people. write me at theoldsindelarfarm@yahoo and I’ll send you my website to look over. AdvoCare bye bye!

  46. My heart goes out to each and everyone. This happened to me in the past from a company I shall never speak every again. I’m not recruiting but the company I brought my global team to are learning new skills where we don’t have to rely on recruiting to make ends meet. We have an optional compensation plan in a $5.7 trillion dollar a day industry known as FOREX. Learning to trade currency for currency around my busy schedule.

    http://www.whatisiml.com

    Dr. Brian Stevens, PhD
    Global Lifestyle Expert
    Certified Human Capital Strategist
    Author of the “Network Marketers Handbook for Success”

    Always remember this: SUCCESS IS THE BEST REVENGE, FOR IT SPEAKS WITHOUT WORDS!”

    You’ll shine again. Trust me!

  47. I am so sorry to all the AdvoCare distributors who worked hard to build a business and grow the brand. This is such a horrible way to treat their distributors and I am sure it will end up being the end of their brand. I for one would never trust that company. Thankful the leaders in the network marketing business I am in have integrity. So horrible!

  48. I feel sadden for all my Advocare friends. I believe everything will be ok. I pray for all the families that will be affected. If you need to talk I am available. If you need a place to go please contact me.

  49. My heart goes out to all these hard working , loyal , and caring Advocare distributors . As a 15 year full time distributor in this wonderful and rewarding industry. I wish there were words that I could say to help but I know that if this happened to me and my income were stripped away I would be lost for words. Please know that there are still some Good Companies to hang your hat with.

  50. Dear Advocare distributors,

    This is heart breaking news to receive. It is absolutely devastating to get this sort of news, my family has been in our industry for 16 years and 2 generations, I would be completely heart broken. But stay strong, you years and efforts spent building your business has given you the best asset you can ask for. It’s not the income, it’s the relationships, the skills and the people. I have no doubt that those of you who are ready to pursue another venture will absolutely do amazing! I wish you the best of luck with all your new pursuits and I have no doubt you will turn your adversity in to prosperity. Hang in there, tough times don’t last, but tough people do. You will make a come back.

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