This Video Explains Which Statement is True: Celebrity Endorsements Improve Marketing or Celebrity Endorsements are a Double-Edged Sword.

In the conventional advertising world, celebrity endorsement is very effective. Among the factors for effectiveness includes the fame of the celebrity, the connection with the product or service, whether or not the celebrity is a user and whether or not the statements of the celebrity appear as truly authentic or merely a “pay for endorsement.”

The use of celebrity endorsement is far less successful in the direct selling industry. In fact, the advertising model for MLM is quite different than conventional advertising. In conventional distribution, such as retail stores, internet or broadcast media, companies pay advertising dollars and endorsement fees to promote the brand. However, in direct selling, the commissions and rewards paid to distributors are effectively the advertising

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The combined total the companies are ordered to pay is approximately $34 million, which the FTC will use to refund consumers.

Early January 2014, Sensa and three other national marketers of fad weight-loss products settled charges raised by the FTC in an effort to stop “misleading claims for products promoting easy weight loss and slimmer bodies.” The weight-loss company, Sensa, will pay $26.5 million to settle charges that accused the company of exhorting consumers in their “sprinkle, eat, and lose weight” campaign. Charges were also announced against the companies L’Occitane and HCG Diet Direct for making unfounded promises to consumers. The combined total the companies are ordered to pay is approximately $34 million, which the FTC will use to refund consumers.

To read the FTC’s full press release, click HERE.

MLMLegal.com has launched the Innovation Campaign for its February 2014 MLM Startup Conference. Read how to get your two free tickets by clicking HERE!

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