Ava Anderson, The Founder
In 2009, 14-year-old Ava Anderson was watching the news with her family. Seated around the kitchen table, they were all astonished about a report on how American teenagers were suffering due to harmful cosmetic products. Cancer, acne, allergies, and immunotoxicity were among the effects of even some of the most popular formulations in the market.
Ava Anderson Non Toxic Company Formation
While the typical teenager would dismiss this report as soon as it ended, or at most change products, Ava went a step further. She persuaded her family to help her start a business venture. Her mission was to help teenagers, and everyone else for that matter, get safe cosmetic products. From lotions, to bath soaps, scents, and
Ava says at first they considered using conventional distributors and retailers. But the risks were too high. The retailers and distributors would control everything and could decide on a whim to expunge your stock off their shelves.
That’s when the family decided to adopt Multi-Level Marketing (MLM). This has worked for Mary Kay and Tupperware, among many other leading brands.
Five years later, Ava Anderson Non Toxic was a huge company. They had at least 75 individual product in 11 product lines. The company reported 2014 profits in excess of $200 million, representing a 300% rise from 2013. They had over 50 employees and 7,500 individual distributors aka “Ava Consultants”.
THeir MLM model worked this way. Ava Consultants would earn commissions, bonuses, and rewards for recruiting more consultants and for the sales they made. The Consultants held marketing and networking events similar to Tupperware meetups in homes, churches, and community centers.
In 2015, Ava Anderson was considered for the Coolest College Startups award. By then, the company had grown to about 80 employees and over 12,000 individual distributors all over the US.
>>Click On The List Below For More Options<<
Ava Anderson Scandal
By 2016, the company was on a high growth trajectory and seemed like there was no stopping it. Nonetheless, bloggers such as Eco Friendly Mama (https://ecofriendlymamausa.com/2016/01/23/third-party-soap-analysis-determines-ava-anderson-dish-soap-a-complete-fraud/) relentlessly scrutinised the company products with claims that they were using the same unsafe chemicals that they claimed to stand against.
The company later admitted they found issue with some of the ingredients. Their explanation was that some of their suppliers included unauthorized ingredients in clear violation of their contracts. Whether that was true or not has never been openly determined. In any case, the family closed down the company in late 2016.
Anyone who has ever operated a big MLM will tell you quality assurance is one of the toughest tasks. Young Living Essential Oils and Herbalife faced the same issues. However, with the right management, MLMs can always bounce back and streamline their products to meet standards.
An often cited reason for Ava shutting down was due to online bullying. It was unclear who was bullying Ava, but it’s understandable that finding fame and fortune at such a young age may come with some backlash.
I believe Ava Anderson would have survived the storm by just taking off a few products off their lines. They should also have sought USDA certification.
After closing their doors, the Anderson family withdrew from operations but the management largely remained the same. They rebranded to Pure Haven Essentials. Their mission and key focus is seemingly the same, with a goal to produce cosmetic products free of harmful chemicals. The new management has gone ahead and become USDA certified. They have streamlined the product line, with fewer products and more stringent quality controls.
Lessons for MLM Distributors
The MLM model is designed to reward distributors for two things, recruiting and sales. High ranking distributors typically work full time or close to full time. They have the most to lose if the company goes under.
For this reason, distributors need to choose their products wisely. Interrogate any claims made by the company before using them in your sales pitches. You don’t want to authoritatively make a claim which may later be proven to be wrong. It may cost you your livelihood and wipe out your investment.
Additionally, if you are a distributor, it is important to work with companies that allow you to promote several services simultaneously. If you depend entirely on one income stream you are at risk if the brand goes under.
MLM works best for the owner of the brand. If you have a product you believe in, and a story as captivating as that of a 14 year old trying to rid the world of harmful chemicals in cosmetics, you can reap huge profits and become a national or even global brand.
Even if you don’t have a product, you can become a self-branded entity and set up an online business promoting several MLM assets. This gives you multiple income streams while protecting from from losses in case one company pulls the rug from under you.
Many modern businesses are challenging the traditional way of doing things. The traditional retail and distribution channels are prohibitive to newcomers and greatly reduce the income of entrepreneurs.
One of the ways entrepreneurs are getting their products to their target market is by recruiting individual distributors under an MLM model. This is a fantastic way to market your products since your distributors are not just middlemen, they are also customers who strongly believe in your product. No one else has the power to become a better ambassador for your brand or provide more credible word of mouth marketing.
On their part, distributors have so much leeway in ways of earning and how much they earn. They can earn by recruiting and managing other distributors. Additionally, they earn from their sales and their recruits’ sales.
If you are a distributor, you can choose when and where to work. You can even choose to take your business online and appeal to a worldwide pool of distributors and potential customers. Moreover, you can self-brand and promote multiple products simultaneously to increase your profits and develop multiple income streams.
You can even trade under pseudonyms online to protect yourself against the kind of online bullying that Ava Anderson had to suffer through. There are no limits to what you can do as an affiliate marketer under an MLM business model.