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Currently viewing:: 2007 > August > 28 > Truth should never be a casualty.

Truth should never be a casualty.

Authenticity, not deception.

In the previous entry 'Another one bites the dust #3', I explored the contrasting behavior of two well-known Network Marketing companies (Mannantech and Amway) currently involved in hi-profile distributor terminations.

I highlighted how Alticor (the parent of the latter) were dealing with things in a far more upfront manner than Mannatech.

At risk of being considered to be 'Mannatech-bashing', let's explore further—ahead of which let's first make clear that other than 'deceptive business practices' I've no specific gripe with 'em. Overall, they probably mislead distributors and consumers no more/less/worse than many other Network Marketing companies have, do or will. Their products are of good quality, and there's evidence to suggest that 'ambrotose' has benefits beyond that which can legally be stated.

Also, I'm no fan of Amway—despite a lot of good stuff, there's more than enough skeletons dancing around their closets and they're long-overdue for a clean-up. And, later in this entry, I'll highlight such action—which they again appear to be undertaking authentically.

Whatever, back to Mannatech etcetera.

A large part of the reason for Gerbauer's dismissal is that he caught at a time when the company are already taking public heat. It's no secret that they were recently slapped by the Texas AG for 'unlawful, misleading sales practices'; nor that founder Sam Caster has had two prior losing [did not as advertised… is a hoax] run-ins with the Texas AG; and that various stockholder deception litigation is ongoing.

All things considered, the company is well aware of where right ends and wrong begins—and are happy to cross the line. When caught, their gambit is damage limitation rather than a sincere 'yeah, we're wrong—sorry; we'll put things right'.

When considered with their spin of the earlier 20/20 coverage ['outlandish claims by Mannatech sales associates'] and 'that other major recent event'—Caster quits as CEO, the 'sin of omission' is more readily seen.

Their public statements were wholly evasive—in the former Caster claims 'we sell nutrition' [contrast that with their onsite and distributor claims]; his 'removal' is benignly-spun as 'his changing role will allow him to step back from operating responsibilities to focus his efforts on working with field sales leaders to transition to Mannatech's new global wellness sales program' along with a talk-up of the credibility of two other high-level execs and a closing 'we do good stuff' pitch along with back-slaps for Caster. Absolutely no mention of the discredit he's brought to the company.

Wholly unacceptable, simply, this stuff stinks. In ducking and diving they're not dealing with things in a 'hands-up, we did wrong and we'll put it right' manner. It damages their credibility and needlessly hampers the ability of their associates trying to build decent businesses.

Let's again consider Amway. Their 'deal with it in an upfront manner' activity is also in-play elsewhere—where they're currently involved in a legal dispute with the UK’s Department of Trade and Industry. Here's their clip:

The DTI’s petitions initiated civil court proceedings, which, if successful, could lead to the closing of each company’s business operations in the UK. We certainly do not agree with all their claims [and] intend to address the problems that may exist in the UK and around the world so that no government ever sees the need to step in again.

The heart of the position is that the business opportunity is promoted in a manner that does not reflect the financial rewards people are likely to earn when they participate in the Amway business.

Amway’s fault, lies in our failure to take sufficient action to prevent [this] from occurring. Amway has already offered undertakings make it clear that Amway will stand accountable for the experiences people have when they join the Amway business. We fully intend to provide business reforms in the UK and in any other market where we see that business practices can be improved.

We are holding ourselves accountable to deliver on what we promise. We expect all our business partners to deliver as well.

There have been enough of these disappointments. They are serious distractions to the operations of the company, embarrassments to the many IBOs, and a threat to the company’s long-term health.

Change is on the way.

Refreshing. Let's hope they walk that talk.

In closing, let's repeat my focus here: this isn't a pro/anti Manantech/Amway thing. Like all of us, they both have good and bad things going on in their lives and at times, act with less honor than the situation merits.

My interest is the manner in which they deal with 'bad stuff'—and specifically whether they do it in a manner which helps-or-hinders the efforts of 'ordinary' Network Marketers trying to build decent businesses. So, I'll repeat my earlier assertion:

Outside its closed confines, Network Marketing has a lousy reputation—much of which is deserved.

Both Manantech and Alticor/Amway have acted in a manner which'll help this business. It's just that Amway did it 'enthusiastically' and Mannatech didn't—to the ongoing detriment of their associates.

To end, I'll fall back on some words from 'I'm not a rock star, I'm a man from Dorset' Robert Fripp. For those of you too young (and perhaps those old enough to be too stoned) to remember, Fripp is mainman of King Crimson—seminal prog rock band from 30 years back.

We all make mistakes: let us acknowledge them.
We have all acted in a lesser fashion than we should. Let us acknowledge this, and with regret.
We have all acted in accordance with standards lower than those to which we might aspire. Then let us declare what these higher standards might be and refuse to act otherwise.'

Q. Aren't you being idealistic again?
A. Yes. And also utterly practical.

'Party on, dudes—may the truth be with you.'

Filed by g on August 28 2007

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