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Network Marketing (M.L.M.) - Omnitrition
Number of Customer Reviews for Omnitrition: 0
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OnlyCritiques.com Review:
Roger and Barbara Daley started Omnitrition International, Inc. in 1989. This is a multilevel marketing company dealing in health and nutrition products. So far, Omnitrition International, Inc. has had total sales of more than $343 million. The company deals in direct marketing of its products through salespersons with direct home delivery too.
Omnitrition International, Inc. welcomes distributors for its products. Distributors of Omnitrition International, Inc. earn through wholesale profits, retail sales, bonuses, and royalties. Overall payments to distributors have been around $199 million since 1989. Omnitrition International, Inc. projects itself a group of dedicated and hardworking personnel working and selling health care products on most ethical terms. This business yields profits and benefits to both company and its distributors.
Omnitrition’s marketing program consisted of a multilevel marketing program whereby distributors received twenty percent discount of the cost of the products for retail sales. Each of the distributors had to develop a chain or downline under them. The lowest in this chain had no obligation to neither buy nor sell but just market products. However, the lowest did not receive any commissions either.
You have to become a supervisor by purchasing goods worth $2,000 in a single month or divide it into two consecutive months. Distributors of Omnitrition turned against the company in 1992 for violating many rules, laws and operating a pyramid scheme. Lower trial court dismissed the case in 1994. However, a higher appeal to the United States Ninth Circuit Court of Appeals changed the lower court orders and the case was once again in the court.
Court found Omnitrition guilty on many counts. The number of required sales of each distributor should be in proportion to the amount of inventory purchased. There was no rationality for purchases.
Besides, Omnitrition made it mandatory to provide proof of 70% sales for receiving any commission. Court stressed on personal sales also being a part of qualifying sales for receiving commission. Omnitrition did not have any solid retail sales program in place and this was the main reason for lack of proper inventory loading.
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