Friday, August 7, 2015

JM Ocean Avenue: Why did Ocean Avenue merge with a suspect scheme out of China called JM International?

Ocean Avenue *was* a nutritional supplement based MLM that started in roughly 2012. After a rough tossle with Visalus due to some people jumping ship, which culminated apparently with a theft of laptop from Ocean Avenue office in 2013, Ocean Avenue apparently merged with a Chinese company called JM International in 2014, according to a member:
OK JM International did a take over of Ocean Avenue back in 2014.
JMOA is part of Joy May who is owned by Joe Zhou, Bruce Fang and Jackie Zhang – JMOA is a $2 Billion company based out of china.
The Ocean Avenue managment stayed after the take over but it was not a happy merger and although Hop Rocket was initially going to be part of JMOA, it was decided that the US team would relinquish their interest in JMOA and everyone in the US office wanted to move to Hop Rocket which soft launched just 1 week ago.
Comment posted by Dottie Lotto on 6-AUG-2015
But who/what is JM International? Seems all we know are some Americanized names, and "it's out of China". (The 2 billion can't be trusted as it's unclear it's revenue, profit, products sold, cumulative or single year, etc.)

So who is JM International? If you search for JM International, , you will find ONLY "JMOA" (JM Ocean Avenue). In fact, you can't even find what JM stands for.

What's really interesting is how the "board of directors" change depending on which site you access, as you can't tell which is official and which is not. Some pages include Tim Richerson and Fred Ninow, others included two other Chinese names (Peter Li and Gary Ren).

However, after a bit of searching, I found an alternate domain, jmtop.com, which appears also to be a global corporate site. However, what's REALLY interesting is for a company allegedly started in China, it has NO CHINESE WEBSITE. It has Hong Kong and Taiwan, but none for Mainland China.

JM Ocean Avenue "select country" page as of 7-AUG-2015 ... No China? 

Next stop... Youtube, as I need to find the CHINESE name of this allegedly Chinese company, so I can research it on Chinese media. Searching for "JM International" found an alleged official channel, and following videos:



So we now know that the Chinese name for JM International is 中脉国际

So what does the Chinese Media Say about them?

MLM Myth: How Mary Kay Ash incorporated the Bumblebee Myth into company culture

A bit of link surfing on bad arguments brought me to an unexpected link... the Bumble Bee Myth, and its link to Mary Kay Ash of Mary Kay Cosmetics.
Diamond Bumblebee
pin award (photo credit:
Mary Kay Website)

Mary Kay Ash was quoted saying "Aerodynamically, the bumble bee shouldn't be able to fly, but the bumble bee doesn't know it so it goes on flying any way." She told the story in 1970 Seminar, where she started presenting the top sellers with the diamond bumblebee pin. (see right)

The problem is there had been NO physicist, scientists, or aerodynamicist that ever claimed bumble bee shouldn't be able to fly. Folklorists and historians have been trying to track down this myth for decades. It's obviously bull****, since we see bees fly every day.

People have "heard" of this myth, as it was variously attributed to various "leaders" (who repeat the bull****), various scientists (never authenticated), and celebrities / politicians (such as Mitt Romney).  Nobody can find the actual claim, paper, quote, or whatever. The closest historians can get was a single sentence in an old etymologist book Le Vol des Insectes (1934) by Antoine Magnan, where he claimed an assistant told him insect flight is impossible given law of air resistance. Bumble bee was NOT mentioned.

Mary Kay Ash
Mary Kay Ash
(Photo credit: Wikipedia)
In other words, this is another myth, perpetuated by MLM. It is not real.

But it is necessary to create a cult of personality, where myth is built up around the leader of the cult through heroization / idolization of the leader, often by enforcing a dress code and perpetuating ideological myths.

And the bumblebee myth is one of them. It is positive thinking mumbo-jumbo, about how you should IGNORE other people's advice, by citing a myth of something nobody ever said.

There is no denying that Mary Kay Cosmetics is a personality cult that enforces a dress code. You didn't know that? NO PANTS in Mary Kay. Founder hated pants. Everybody must wear skirts. That's right, skirts only. NEVER wear pants to any Mary Kay function, or you're forever be ostracized as troublemaker. In fact, it's #2 of "14 Nevers" on a MK Checklist. Oh, there's even "get a new hairstyle". Really.

Control types of clothing and hairstyle is #4 on "Behavior Control", one of four pillars of cult mind control.

And misquoting statements and/or using them out of context from non-cult sources? #5b of Information Control, another pillar of cult mind control.

The Real Motivation: It's Magical Thinking


Motivation is a form of magical thinking in which you imagine that
your words can turn useless people into high achievers. 


http://dilbert.com/strip/2015-08-07

Wednesday, July 29, 2015

HUMOR: Suspect Credential Translator

A lot of scams misrepresent their "credentials" by inflating what they do, piling on euphemisms, and stretching the definition of the term to be something that's barely relevant.

MLMSkeptic has compiled the following terms and show you the real meaning behind the fancy terms.


They say: US based company!

Reality Says: I registered this online in Nevada (or Delaware) for $149 (or less)!


They say: Renowned Investment Group!

Reality says: I registered more than one companies online!


They say: International Conglomerate!

Reality says: I registered companies online in more than one country / continent!


They say: Decades of experience in the industry!

Reality says: I spent decades amounting to nothing (which is why I'm STILL at it!)


They say: Internet advertising platform!

Reality says: I know how to deploy a free banner rotation script!


They say: We have investments in biotech!

Reality says: I sell some nutritional supplements I got from some no-name factory in Asia!


They say: Experienced Internet entrepreneur!

Reality says:  I launched multiple failed schemes one after another!


They say: We have signed contract, making everybody a ton of money!

Reality says: A memorandum of understanding... i.e. "intent", not a contract, can be backed out at any time. 


They say: We have resort on _____!

Reality says:  We have a piece of rocky beach that nobody would bother build a resort on.


They say: We have a golf course!

Reality says: We have a CLOSED golf course we *want* to redevelop! 


Monday, July 27, 2015

Scam Tactics: Two-face... being very different things to different people

One of the most memorable villains to Batman is Two-face, formerly district attorney Harvey Dent. After a severe injury that left him scarred on half of his face, he developed full blown schizophrenia: two completely personalities depending on which side is talking to you.

And guess what company is acting like Two-Face? Herbalife. To lawmakers, it's presenting itself as a company that's changing lives, and it's FLYING IN members from across the country to show them off in Washington D.C. to, quote, "talk about the benefits of Herbalife's science-based nutrition products. Members will also be sharing their own experiences and the income-generating opportunities available to Herbalife members through hard-work and dedication", as per Herbalife's own press release.

Why are a bunch of distributors talking "science-based nutrition", not scientists and nutritionists?

Furthermore, why are these 12 members talking about "income-generating opportunities available to Herbalife members" when Herbalife itself stated that 73% of members did NOT join Herbalife for income as a primary reason? Are 9 of these 12 NOT going to talk about the opportunities, as Herbalife itself claimed?
Herbalife rebuttal slide, page 91, circa 2014
Of course not. Herbalife flew these 12 in because they are bright-eyed and bushy-tailed enthusiastic distributors (sheeple?) properly trained in Herbalife's alternate reality. They may be telling the truth as they know it, but it's not "the" truth, and they sure do NOT represent the rank and file as Herbalife want Congress to believe.

In the meanwhile, Herbalife is hiring as many high-level government people as it can, as well as lobbyists. But that's not the other face. The other face is the Herbalife convention in St. Louis.

Friday, July 24, 2015

USFIA Update: Is USFIA involved in child labor exploitation of amber mines in Mexico?

Thanks to SierraMadreTattler, MLMSkeptic was recently made aware of an article published back in May 2015 that certain unnamed Chinese has been hiring anybody who can work (including children) in the tiny town of Simojovel, in Chiapas, Mexico, to mine amber. Children as young as 7 were hired to work in the amber mines, often during school breaks, with promise of pay of up to $500 pesos per day. Many even die in the mines.

But is there any link to USFIA? We don't know as USFIA does not specify if they use any Mexican amber. In fact, most of their amber mining references are about amber mining in Dominican Republic. However, since each affiliate prepare their own slides based on whatever sales meeting they attended at USFIA HQ, they often have additional insight, such as the one I found here:

USFIA affiliate states that Chen Yan, VP of USFIA, frequently travels to factory (mine?) in Mexico
and Dominican Republic, and stated their mine seems to be in a TINY village in Mexico. 
So here, we have an USFIA affiliate claiming (based on his attending USFIA HQ seminar) that no less than Chen Yan, Steve Chen's brother, visiting Mexico to check up on factory (mine?) of amber. And it's in a tiny village.

Sunday, July 19, 2015

MLM Basics: Is Multi-Level Marketing a Shared Delusion?

In a blogpost back in 2014, author Robert Fitzpatrick, who operates the website PyramidSchemeAlert postulated that Multi-level Marketing, i.e. MLM is really a delusion that redefined various terms to create a myth around itself that cloaked its true nature (as a part of his "Myths of MLM" series). It is an interesting viewpoint, and I can see how he came to that conclusion. The premise can be narrowed down to five separate yet related delusions that MLM participants perpetuate. Fitzpatrick claimed that by accepting the myth jargon, the participants gave the MLM myth power over themselves.

The MLM Myth has five major components, according to Fitzpatrick:

1) MLM is described as "direct selling", but few if any participants actually make retail sales or profits from such.

2) MLM is described as "income opportunity" even though most MLM participants lose money.

3) MLM is described as a "business" even though there is no fair exchange of value... Majority of people lose money.

4) MLM is described as "legal" even though it's merely "have not been proven to be illegal", i.e. presumed innocent

5) MLM is described as "network", "relationship", "personal" even though it disrupts the social norm.

Let us examine each part and see if Mr. Fitzpatrick is right.

Is MLM really Direct Selling? 

From my personal experience, most people in MLM had learned to emphasize the "multi-level" part of MLM rather than the "marketing" part. I have read comments of hundreds of people on BehindMLM and many commenters believe one cannot succeed in MLM without recruiting, and the emphasis should be on recruiting and retaining downlines, rather than product sales. Not that BehindMLM attracts the "typical" MLMer, of course.

It is also interesting that the MLM industry association is called Direct Selling Association, even though the organization actually predated MLM by about 20-30 years. DSA started its life as "Agent Credit Association" in 1910, and its members are companies that employed door-to-door sales, and Avon, then known as California Perfume Company, was a founding member. It wasn't until 1968 that it adopted its current name, Direct Selling Association.  Most people accept that MLM was popularized with California Vitamin Company, later Nutrilite, in the 1930's, which eventually became an Amway brand, founded in 1950's. Thus, MLM came AFTER direct selling, but took over the name direct selling.

For what it's worth, Avon was direct sales up to 2005, when it went multi-level. Didn't seem to help its bottom line though.

There is no doubt that MLM is supposed to have a direct sales component, but in reality, this is rarely put into practice. When the companies themselves count purchases BY the distributors as "sales" for calculating commission, instead of actual retail sales by the associates, there really is little if any incentive to retail. Even Direct Selling Association want to formalize "self-consumption" as a RIGHT of MLM distributors, i.e. they have the RIGHT to NOT retail what they buy, and still have that counted for commission. A couple states even put that into law thanks to lobbying by DSA.

Indeed, in the past decade or two DSA has fought every attempt by various groups to require the companies to document how much retail was actually performed by the industry. Any stats they compile are based on estimates by the companies themselves based on sales to distributors.

In 2013/2014 Herbalife was accused by none other than Bill Ackman to be a huge pyramid scheme. You'd think that Herbalife would simply produce some numbers proving they were retailing their products, and if they didn't, they have a WHOLE YEAR to gather that data, but no, instead, it spent money on hiring lobbyists instead, and hire survey teams, but NO ACTUAL RETAIL FIGURES. And DSA said nothing, because DSA is not a regulatory body... DSA is a lobbying organization for the companies.

Think about it. The Direct SELLING association does NOT want its members to prove they are actually SELLING stuff, through their distributors, to the public. And claims it is a RIGHT for distributors to NOT SELL their stock.

Verdict: MLM is now mostly NOT direct selling, even though it was meant to be.

Is MLM really an income opportunity? 

Proponents of MLM claimed this is a way to earn supplemental income, part-time income, side job, with potential transition to full-time if you find yourself attracted to it.

The REAL pros in the business knows that to make serious income in MLM you need to dedicate two to five YEARS to build your organization and during which you will achieve MINIMAL income.

Thus one can be answered pretty definitively: NO, not for a vast majority of the people involved.

From DSA's own statistics for 2014:
  • 18.2 million people involved in direct selling
  • Estimated product sold 34.47 billion dollars
That's average SALES of... $1894 dollars per person PER YEAR. And that's just revenue, not profit. We haven't taken into account any of the expenses involved either. Even if the person was able to achieve 50% profit, (i.e. $947) AFTER counting expenses (highly unlikely), and spent only two hours a week on this... That's only that's $9.10 per hour, not much above Federal minimum wage of $7.50 an hour.

Furthermore, Herbalife, in their own defense, claimed that 73% of their own distributors DID NOT JOIN FOR INCOME. This is one of their own slides released as rebuttal of Bill Ackman's claim that Herbalife is a pyramid scheme.
Herbalife, in 2013, claimed that 73% of distributors did NOT join for income as primary reason

Thus, MLM can be an income opportunity... for a tiny minority of people who made it to the top. The rest of you are likely to lose money or earn minimum wage, or not even that, as you get no benefits or even income security, unlike a minimum wage job.

Verdict: MLM in general is not income opportunity (with small exceptions)