STABILITY, SECURITY, YOUNGEVITY, by Keith Halls
Recently, a friend of mine asked me what I think about the financial strength and future of a network marketing company named Youngevity (Stock Symbol: YGYI).
I have been involved in network marketing since 1984. For the first 17 years of my career, I was on the corporate side of the industry. Since 2001, I have been involved on the distributor and consulting side of the industry.
During my first 17 years, I worked as the Director of Finance and Accounting for a multi billion a year company. I am glad that I had this opportunity. Why? It gave me many of the “tools” I needed in order to judge other network marketing companies. Many people join network marketing companies and spend their time, energy and effort working for a company, only to lose everything because the company goes bankrupt. In today’s world of network marketing, many recognized leaders and new distributors are choosing to join an established, financially secure company, rather than a new start up company. Why? All too often, start up or new companies don’t truly have the financial strength they need and even though they may pretend to have it, they often don’t and the company goes under quickly. If you are sincerely looking at a company, and trying to decide if you should, ask to see their financial statements. Many of the financially secure company’s will be willing to provide you with the statements. Audited financial statements, such as a Balance Sheet and Income Statement will allow you to make an educated guess. Don’t be fooled by company’s who state that they have a billion-dollar investor, but are unwilling to show you their financial statements. Yes, a billionaire may have invested, but the financial statements will show if he or she has invested “their name” or if they have invested “their money”. Money wins.
In 2013, I spent a lot of time looking for the “right” company to join as a distributor. What was important to me:
1) The leadership of the company;
2) The products of the company;
3) The compensation plan of the company;
4) The financial strength of the company; and
5) How long the company had been in business?
Based upon the criteria, I joined Youngevity. So, when my friend asked me about my thoughts of Youngevity’s financial strength, I was able to answer.
First, the company is growing and growing rapidly. Here are Youngevity’s sales from the last few years:
2012 2013 2014 2015*
75 million 85 Million 134 million 155 million
A company that has sales that are growing this rapidly represents lots and lots of satisfied customers. Most of Youngevity’s sales come from within the USA because that has been their base of operations. The company is now beginning to expand globally, so many believe the company will continue to grow and grow rapidly as they now add satisfied customers through out the world.
Second, the company’s equity is growing and growing rapidly. The equity is how much in assets is left over, after paying one’s bills. Part of the equity is from the given year and part is an accumulation of all the years they have been in business.
Here is the growth of their equity:
2012 2013 2014 2015*
10 million 12 million 18 million 20 million
Third, the company is investing in its future. This is measured by looking at the growth in their inventory. Inventory equals future sales and Youngevity’s inventory has grown rapidly. This represent millions and millions of dollars in future sales and the inventory is on hand.
2012 2013 2014 2015*
4 million 6 million 12 million 18 million
Having been a CPA for many years and being an active investor, I always look for the Accountants Notes to the financial results. Youngevity’s financial records are audited each year. This means that CPA’s examine the financial records and then state whether they agree with them or not. Youngevity’s CPA’s notes have always been “clean”; in other words, the CPA’s believe in the statements. . Additionally, if for any reason the auditors believe that the company is a financial “risk”, or if the auditors believe the company will fail, they must disclose that information. Youngevity’s auditors have never ever stated that they are worried about the long term future of the company.
Finally, let’s go to an outside source; Dun and Bradstreet (D&B). D&B is an independent 3rd party who evaluates the credit worthiness of a company. Their agency is the most influential in the USA. Often times in the business world, your D&B rating will mean the difference between getting a loan or not. Banks and lenders want to know a company’s rating before they consider loaning money. D&B rates Youngevity’s as “high” or very credit worthy. In other words, the most sought after 3rd party rating a company can have and Youngevity is at the top.
I could go on and on, but I hope this brief analysis can show you why I believe in the financial strength of Youngevity.
I believe in them so much, that I have banked my future with them.
• This is an educated guess. It is based upon the first 3 quarters of the year 2015.
** The numbers have been rounded to the nearest million
One of the first times I met Keith Halls, Co-Founder of NuSkin, he taught me something about the importance of lifelong learning. Here is a man who has done some amazing things in his life, yet he takes time each day to learn and develop professionally and personally.
Keith showed me binders filled with notes he has taken over the years from books and information he has read, divided into subject categories. He does this so that when he is teaching or training, he can easily locate information he found helpful by searching for the subject.
What struck me is the REASON he has done this. It's about building a BELIEF SYSTEM. Keith often says that we are in the greatest industry in the world, and part of the greatest company in the world. Keith has done his research!
Everything comes down to belief system. In the Direct Sales/Network Marketing industry like we are involved in, if we find ourselves lacking the motivation to do what is required to make our businesses successful, we might wonder if our belief system is strong enough. For example, if we wanted more time and financial freedom in our life, and REALLY believed that our businesses could do what experts like Keith Halls know they can, wouldn't we do everything we could to make it possible?
If we have what others say, an INCREDIBLE CATALOG of product, yet we are unsure about it ourselves, could that be because our belief system isn't strong enough.
When my company first merged with Youngevity, while I felt it was the right move, the moments of uncertainty went away the more I learned about their products like the Healthy Body Pack, and Youngevity Essential Oils. As I listened to recordings and other trainings by the Founder, Dr. Joel Wallach, and our Essential Oils experts like Brenda Wright and LeiAnn King, learned about healthy diet and nutrition from Sanjeev Javia and others, my enthusiasm and my belief system in the company increased. I developed excitement in trying the products for myself, which increased my belief system even more.
Keith Halls' 20 minute a day belief system is based on taking time to learn more about 4 key areas:
1. COMPANY - our history, founders, management, growth trends, stock, press releases, etc., are all great areas to research and learn about the stability of the company.
2. PRODUCT- testimonials, recorded trainings, quality, product details, etc., help us learn for ourselves why Youngevity's products are talked about and enjoyed by so many.
3. COMPENSATION - the first step is to learn about our compensation plan. The next step may be learning about other plans in the industry, so you truly see that Youngevity's is the best of the best.
4. YOU - professional development is sometimes an area we set aside as we're learning the ropes and staying on top of our business. Learning about leadership, motivation, serving our customers, and more is one of the best ways to keep our business and ourselves growing.
A few weeks ago, I decided to listen to Keith's advice and start my own 20 minute a day BELIEF SYSTEM program. Today I spend time on #4, and read about "Team Building". I have had fun getting my NOTES and QUOTES document started, and I hope you enjoy making one too.
THE GREATEST COMPANY IN THE GREATEST INDUSTRY IN THE WORLD TODAY
We are involved in the greatest industry in the world today and that industry is network marketing.
Think with me, what is the greatest form of advertising? Word of mouth! Which industry actually pays people for performing the greatest form of advertising? Network marketing! All industries, including ours, depend upon people opening their hearts and sharing their product. The biggest difference is that in network marketing, we get paid for it.
If I went to a movie with my wife and enjoyed it, that would be a lot of fun. If I were to share the movie I went to see with my friends and they in turn go, they would also have a great night. How much money did the movie industry pay to advertise that movie? In the millions? Tens of millions? Hundreds of millions? Wouldn’t it be a lot more effective to offer a reward to the person who refers the movie to their friends and their friends in turn go to the movie. If you received a referral fee of $1.00 or $2.00, would you now tell 5 people? 10 people? That is what network marketing does. It pays a referral every time you share the company’s products and another person buys. Network marketing is simply a lot more effective than other industries.
Next, nearly all other industries pay their employees or the people who work for them by exchanging a unit of time for a unit of money. $15 for an hour of work. $45,000 for a year of work. In network marketing, we don't. We are paid every time we share a product and that person buys. Sound great? Maybe a little. Let’s continue.
If you have a group of people who you have shared the company’s products with and those people in turn share the product, once again, you get paid. Sound better? Let’s continue.
You can be paid for the rest of your life, for the time, energy and efforts of whom you share with today.
Normally, if you retire, or leave a job, you don't keep getting paid. In our industry, you do! You can get paid for the rest of your life. It’s called residual income. Network marketing has residual income; no other industry has it like we do!
Again, network marketing is the greatest industry in the world!
At Youngevity, we are the greatest company in the greatest industry?
Let me show you some of the reasons that Youngevity is the best….
No other company has the leadership that we do. Other companies have great leaders, but when you look at the entire package of leadership, of integrity and of experience which we have at Youngevity, we are the best in the industry!
Our product lines are the best of the best. We have a line of weight loss, of nutrition, of beauty, of essential oils, of mineral make-ups, of scrap booking, etc. We can share different lines with different people. Yesterday I enrolled 2 CEO's in nutrition. Today, I have already enrolled 1 person with oils and 1 with scrap booking. Who else can do this? Again, Youngevity offers more and also offers products which are the best of the best!
Our compensation plan pays out more than any other. Our uni-level pays out up to 63% of BV. Where else does this happen in the industry? No where! Period! And we have a CEO program that pays out up to $320 on every $500 kit.
We are simply the best
In the best industry.
In the world!
Keith Halls, Co-Founder of NuSkin
Youngevity, SVCMD Distributor
When we break our Youngevity business down to the most important elements for success, it's:
CARE - YOUR BUSINESS SUCCESS MODEL
Relationships are at the core of everything we do. Training, connections, helping our team members find the success they are looking for is the foundation.
The road map to follow is simple, CARE. Follow this model, and help your new distributors do this as well, and you'll find the business success you're looking for.
With focused effort, and following the CEO Kit Model of duplication, a Distributor can rank advance to EMD in one week, and SEMD in just one month.
TAC (Top Achiever's Club) is an annual trip that Youngevity hosts, that you can work toward earning. The business actions required to earn your trip are the same business steps to lead to your success. Learn more about TAC requirements here and follow these to create your own business success plan as well.
Do you have questions about how to prepare your taxes for your home-based business? Keith Halls has created a 2 part video tutorial to share what we need to know as we're working on our taxes. Thank-you Keith!
Keith Halls, one of the most successful people in the network marketing/direct selling industry, has developed a simple system for success that has been used to thousands of people to help them create success in their businesses. We are so fortunate to be able to work with him, and to be mentored by him. He's recorded a 3 Part Series to help us create a successful business with Youngevity. Please take some time to listen to his recordings, and to follow the advice he shares. It will help your business grow and prosper.
Part 2 - THE INVITATION
We have an amazing business, and there are a number of different ways people may want to be involved.
CLICK HERE to learn from Keith Halls about how to properly invite someone to be part of the company.
Part 3 - YOUR PRESENTATION
Youngevity has a lot of amazing products we can use for our business, and that comes with a lot of flexibility and options for presentations as well.
CLICK HERE to learn some tips for doing an effective presentation of Youngevity products and business.
Learn more about Keith Halls and his training.
Hi, I'm Lisa! I have worked in the memory keeping industry for nearly 15 years, and now because of the merger of Heritage Makers and Youngevity, I get to enjoy an expanded product line and learn about so many unique and top quality products.