Multilevel Marketing Connections Dog Candidates

Multilevel Marketing Connections Dog Candidates

Multilevel Marketing Connections Dog Candidates

Justin Lavelle
May 2, 2016

We’ve written before about the importance of choosing your business associates wisely. Especially if you have a reputation in the public view, you need to make sure that all of your past, current and future business associates are on the up and up.

Politicians seem to have the hardest time with this lesson.

Donald Trump, for example, has a long and uncomfortable past association with members of organized crime families, during his time building casinos and hotels in Atlantic City and Manhattan.

Another name in particular has caught our attention during this one of a kind election season is Mannatech, a multilevel marketing firm. The company’s connections to Ben Carson surfaced at a time when the gloss was coming off his campaign and now it has emerged through a New York Times article, that Ted Cruz’s father was a top salesman for the firm and a consultant to the company’s CEO.

We answer your questions on the controversial company and its connections to leading political candidates below:

What is Mannatech and why has it been so controversial?

Mannatech is a Texas-based nutritional supplement company that is structured as a multilevel marketing firm. The religious inspired firm has a history of making questionable claims about its supplements’ effectiveness in treating a host of medical issues, such as Down Syndrome, cystic fibrosis, autism and cancer. The company was sued by the Texas Attorney General after repeatedly being warned by the FDA for making false advertising claims, according to IBT.

What is a multilevel marketing firm?

Multilevel marketing is a tactic used by some direct sales companies. The practice relies on distributors, who then recruit their contacts to join the company and become distributors, who then contribute to the original recruiter’s income stream. In order to make significant income from multilevel marketing, most distributors need to recruit a significant number of “downstream” distributors.

Is multilevel marketing legit or a scam?

There are a few legitimate and mainstream multilevel marketing firms, including Mary Kay Cosmetics and Amway. However, due to the nature of multilevel marketing being reliant on recruiting, multilevel firms can get ensnared for their controversial marketing practices such as in the example of Mannatech. Another firm, Herbalife, has also been targeted for similar practices.

How have the candidates responded to questions about their connections with Mannatech?

During the third Republican presidential debate, ben Carson moved to distance himself from Mannatech, despite the fact that he had filmed multiple promotional videos for the company. Ted Cruz has not yet responded about his father’s connections to the company.

 

Disclaimer: The above is solely intended for informational purposes and in no way constitutes legal advice or specific recommendations.