I was on the main FTC website today. Out of curiosity I typed in "Amsoil" upon reading all 5 results. I found a letter from "Dean Alexander"(Smilen' Al's son in law) complaining to the FTC about Rule #R511993. What's the deal with this new rule and why is Amsoil so upset?
Amsoil Upset with FTC.
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Try this link.
www.mlmlegal.com/images/FTCProposedBusinessRule.pdf
www.mlmlegal.com/images/FTCProposedBusinessRule.pdf
^ Would whomever reads the 44 pages, please write a synopsis for all?
Here's what Dean wrote:
http://www.ftc.gov/os/comments/businessopprule/522418-08265.pdf
The only portion I sort of like is the disclosure of local dealers. The rest is a bit onerous.
http://www.ftc.gov/os/comments/businessopprule/522418-08265.pdf
The only portion I sort of like is the disclosure of local dealers. The rest is a bit onerous.
OK, my atttempt at a synopsis: There are a lot of fly by night multi-level marketing companies, bogus work-at-home schemes, and over-hyped small business opportunites out there that have bilked lots of unsuspecting people out of their money. Some of the operators of these shady outfits rotate through a series of new companies to keep suckering in new people. The typical scenario is that a new "distributor" is promised the world, and is convinced to spend hundreds or thousands of dollars to get started, and winds up stuck with questionable stuff that he/she can't sell, or winds up selling at fire-sale prices. (Do an eBay search on Herbalife and see what it sells for in the real world.)
The FTC is proposing a rule that would require lots of disclosure, even of unsuccessful lawsuits against a company, and a seven day cooling-off period when recruiting potential new sellers in a MLM scheme, franchise, or business opportunity.
No matter what you think of the company and their marketing, Amsoil is not fly-by-night. Their products are legitimate and they have been around for 30 years or so. I have never been associated with them, so I don't know what kind of things they tell people interested in selling their stuff, but it's probably realistic. Most small-time distributors don't make a lot of money, but it doesn't cost that much to get started either. Many do it just to get the discount for themselves and a few friends or family members.
Mr. Alexander is complaining that the FTC ruling paints with a broad brush, creates extra record keeping and paperwork, delays delivery to new distributors, and makes Amsoil look too much like some of the bad actors. He complains that it will hurt their business unfairly. I think that if more of the the bogus operators are stopped, it might actually help them.
The FTC is proposing a rule that would require lots of disclosure, even of unsuccessful lawsuits against a company, and a seven day cooling-off period when recruiting potential new sellers in a MLM scheme, franchise, or business opportunity.
No matter what you think of the company and their marketing, Amsoil is not fly-by-night. Their products are legitimate and they have been around for 30 years or so. I have never been associated with them, so I don't know what kind of things they tell people interested in selling their stuff, but it's probably realistic. Most small-time distributors don't make a lot of money, but it doesn't cost that much to get started either. Many do it just to get the discount for themselves and a few friends or family members.
Mr. Alexander is complaining that the FTC ruling paints with a broad brush, creates extra record keeping and paperwork, delays delivery to new distributors, and makes Amsoil look too much like some of the bad actors. He complains that it will hurt their business unfairly. I think that if more of the the bogus operators are stopped, it might actually help them.
It wouldn't take much extra paperwork to keep a good share of their smallest dealers who just sell to a few friends and associates from paying their $30. Those sales may be a significant hunk of their business.
Amsoil's version of MLM seems to be pretty clean. With all the unstable nut jobs (no, that doesn't include any of the BITOG Amsoil reps) out there selling Amsoil, complaints against Amsoil by former sales 'droids would be rampant if Amsoil didn't run a clean shop and go out of their way to treat their sales people fairly.
So does that mean Amsoil's marketing model is a legitimate MLM scheme?
Triple_Se7en
$50 Site Donor 2024
Good Oils.... just a questionable/deceiving way to describe their products.
FTC needs to do more!
FTC needs to do more!
Sorry, but I read the date I couldn't get past it. IMO, if you cannot proof-read your own writing, I wonder what other errors may follow, and credibility is lost regardless of how valid the point made.
Back to topic; this is an area that's needed regulation for a very long time and if Amsoil "has nothing to hide", they shouldn't be concerned.
I am an engineer so when I hear the word "scheme" I think of "schematic"...it merely means a plan/design to be followed. However, the "street" definition of scheme must conotate something more sinister.
If'n eny of yu boyz ride a motorsickle ya might be innerested in Big Jim's "Chrome at Home" progrum...just buy a snazzy chrome part for your scoot ever month an git 3 bros ta do the same and yu kin be rich as kin be plus have the coolist bike in town... Yu'll lose weight, yer hare will grow back and the wimmens...
Dean's letter to the FTC is right on the button. The FTC needs to do their job, and it's not adding red tape to the cost of doing business. There are plenty of other opportunities for the FTC to protect us, and this is not one of them. I think we would be better served if they looked at ticket camera's instead.
As I understand it, the only time that Amsoil pays a commission is when product is sold to a customer. . . not for literature . . . not for signing up new dealers . . . not for selling an overblown starter kit to a new dealer. Their MLM is geared to getting their product sold, not building a quick pyramid and cutting out. Their corporate site is heavy on product information and light on how selling it will make you rich. From what I've read, their sales meetings also focus mainly on product information rather than a get-rich sales pitch on the organization. Yes it's a legitimate marketing system.
However, the very fact that it is MLM is a turn off for me . . . guilt by association, I guess. They even sell vitamins.
Is Amsoil an honest company? I think so. Are their products good values? Maybe. Are some of their dealers total flakes? Definitely, but so are some of the guys selling oil at auto parts stores and big box chains.
So what if Amsoil is a MLM company. If you like their products and they do what you want them to do. "Get over it"
Most every company is basically MLM. They manfacture a product and it goes through wholesalers then eventually gets to the retail market and you buy it. Wow, all those middlemen. Duh, MLM.
Most every company is basically MLM. They manfacture a product and it goes through wholesalers then eventually gets to the retail market and you buy it. Wow, all those middlemen. Duh, MLM.
Relax, no one's telling you to not buy from MLMs.
xs650.
I'm not upset in any way. Just wanted to explain my opinion about other companies marketing vs. Amsoil. There are some that won't by Amsoil because of the MLM thing.
I am not an Amsoil user or dealer. Although, I have been in the past.
westex
I'm not upset in any way. Just wanted to explain my opinion about other companies marketing vs. Amsoil. There are some that won't by Amsoil because of the MLM thing.
I am not an Amsoil user or dealer. Although, I have been in the past.
westex
I have to say that the MLM nature of Amsoil is definitely a turn off. Having a vitamin business and packaging that literature with the oil products line is even a larger turn off. I think the marketing department really is missing the mark at Amsoil. I think they would sell a lot more of their products if they at least portrayed an image that didn't sound so "shady".
I think Amsoil is successful because they make a good product, but their marketing is detrimental to their brand image. Just because it has worked for this long doesn’t mean that it always will. Today’s American consumer is much more aware and more protective of their dollars with the advent of the Internet. They see rip-offs every day.
I buy Amsoil in spite of their MLM structure, but I get this uneasy feeling whenever I see those silly Altrum adds. Am I the only one that thinks these two businesses need to have a lot of distance between them? Would you buy herbal supplements from Mobil or Castrol?
I think Amsoil is successful because they make a good product, but their marketing is detrimental to their brand image. Just because it has worked for this long doesn’t mean that it always will. Today’s American consumer is much more aware and more protective of their dollars with the advent of the Internet. They see rip-offs every day.
I buy Amsoil in spite of their MLM structure, but I get this uneasy feeling whenever I see those silly Altrum adds. Am I the only one that thinks these two businesses need to have a lot of distance between them? Would you buy herbal supplements from Mobil or Castrol?
Laminar Lou,
I agree about combining the vitamins and oil sales. They should separate the companies.
I didn't like it when they first did it and still don't. Looking at in reverse, is like buying your oil from a herbal vitamin co. Talk about a turn off.
I agree about combining the vitamins and oil sales. They should separate the companies.
I didn't like it when they first did it and still don't. Looking at in reverse, is like buying your oil from a herbal vitamin co. Talk about a turn off.
I am sure Amsoil products are great, however, every time I hear somebody praising/defending an Amsoil product I take it with a grain of salt because in the back of my mind I think they might be an Amsoil dealer. I guess it goes back to the MLM perception thing.
What can I say?
I never have sold any vitamins. I don't try. It's pretty separate on the web, thank goodness.
Believe me - I would never sell the traditional MLM soap and ****. I became a dealer because I wanted to buy the oil products for my turbo car - I didn't even know about the preferred customer thing or any other products.
I never approach folks unsolicited, most of my neighbors and no one at work knows I'm an Amsoil dealer. Maybe stupid business practice - but that's who I am. (I'm not a "sales" guy). I get my leads from Amsoil referrals (I'm T-1 in the area), my rep, word of mouth and BiTOG.
I never have sold any vitamins. I don't try. It's pretty separate on the web, thank goodness.
Believe me - I would never sell the traditional MLM soap and ****. I became a dealer because I wanted to buy the oil products for my turbo car - I didn't even know about the preferred customer thing or any other products.
I never approach folks unsolicited, most of my neighbors and no one at work knows I'm an Amsoil dealer. Maybe stupid business practice - but that's who I am. (I'm not a "sales" guy). I get my leads from Amsoil referrals (I'm T-1 in the area), my rep, word of mouth and BiTOG.
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