Shaq's big diet...a big MLM marketing stunt

by Seth Pollack on May 11, 2009 3:30 PM MDT in Phoenix Suns Commentary

Shaquille O'Neal rightly considers himself a marketing master who has leveraged his on-the-court success and his own unique personality into a global brand rivaling many Fortune 100 companies.

There's no question that he's one of the most recognizable figures in the world and his online popularity as evidenced by his nearly million strong tweeple army has reached epic proportions.

It should come as no surprise then to learn that Shaq's virtually-marketed diet is part of a scheme to sell something. In this case not just product but hope in the form of a multi-level marketing "opportunity".

The "Shaqlyte" diet (as previously discussed here) is probably a serious attempt by the Big Fella to lose weight and become a more mobile big man in the waning days of his great career. It is also clearly part of a bigger plan to generate hype for the July 31st Las Vegas mega-launch of a new product called Enlyten which seems to consist of two things, a product and an ethically questionable business model.

The product is based on a strip of dissolvable "stuff" similar to breath freshening strips but in this case loaded with various supplements and nutrients like melatonin and theanine. There are various flavors geared towards helping you sleep, improving your energy and antioxidenting yourself. Think of Vitamin Water without the water.

That's all well and good. Another product with another celebrity endorsement.

In this case though Enlyten is selling more then just a sketchy health claim.

Enlyten and Shaq operate a so-called "Direct Sales" organization and are promoting independent distributorships at the low low price of $49.95. Highly emotional sales tactics are used that focus less on the benefits of the product then the "opportunity" of being "distributor" and recruiting people into your down-line.

Ever hear of Amway? Same thing.

That's not to say that these types of things don't work for people. Many folks have made quite a lot of money with these enterprises but normally that is limited to the folks at the very top.

Fundamentally, these get rich quick schemes are based on the same thing that drives people to buy lottery tickets every day - the hope for making a fast buck. In fact, research by the non-profit Consumer Awareness Institute indicates you have better odds gambling in Vegas then making money from your "down-line".

Any business that needs to go to these lengths to make money and is built around taking advantage of people in such an exploitative way is not the kind of endeavor that bodes well for a famous athlete's reputation as a "man of the people".

Here's what the Federal Trade Commission says about such things:

The FTC advises that multi-level marketing organizations with greater incentives for recruitment than product sales are to be viewed skeptically. The FTC also warns that the practice of getting commissions from recruiting new members is outlawed in most states as "pyramiding".

In reviewing Enlyten's contract and policies document it is clear they are concerned about this. They mention some variation of the phrase "the primary function of the Company is to sell products and services to the general consuming public" multiple times and have rules designed to support that impression.

Those efforts don't change the fact that recruiting others to pay their $49.95 and make at least one order of product (the recommended initial order being $400) is where the focus is at:

If you introduce others to the opportunity of owning their own enlyten business you will find many differences from other companies you may have looked at in the past...You’re paid to help others promote, you’re encouraged to build strong and stable teams AND it pays to infinite depths!

Fast Track Pack
$400.00 ($815 retail value)
Includes 16 bags of enlyten strips (4 bags each of Antioxidant Strips, Energy Strips, Electrolytes Plus Strips, and Melatonin Strips), plus enlyten will mail a sample Energy cassette to your top 10 leads. Also includes product brochures for all four products (50 each) and 50 business opportunity overviews.
(only available to new IDs who subscribe to an autoship and place a First Order of 100BV or more)

Shaquille O'Neal, purveyor of dreams.

At least though he won't find himself alone in the Suns organization. The Suns are themselves a "Legacy Partner" of Verve Energy Drink. They market the heck out of it at the arena and there's even a Verve Energy Lounge in the building but you can't buy Verve at the store. You can only buy large quantities and the opportunity to sell more to your own down-line.

I hope Shaq and the Suns know what they are getting into with these deals. It is one thing to put your name on a bottle of Gatorade which sells for $1.25 at the gym but it is quite another to become a pitch man for companies like this.

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Comments

This...

.. seems strange. I have been foloowing the various twitter updates from Shaq and the woman formerly known as phoenixsunsgirl about this and don’t think I like it.

by bangbang240 on May 11, 2009 4:15 PM MDT reply actions

Whatever

just don’t give any of this stuff to Lopez, he needs to gain about 40 pounds!

by AcucracK on May 12, 2009 2:32 PM MDT reply actions

Shaq Is Not A Scam!

I don’t know much about this product or the opportunity behind it. However, I have been in the same industry for over 12 years and I know the person who wrote this article has a negative perception of the industry. Not only this, but to imply that Shaq is doing something illegal is absurd!

Why would business moguls like Warren Buffet who purchased “Pampered Chef”, Donald Trump is about to launch his own Network Marketing Company this October the"Trump Network", and of course as explained in the article Shaq is a markeintg force himself… again why would any self respecting business person work with a Network Marketing Company if it was not Legally and Ethically a good thing to do.

As far as the claims that the focus of that company is only in the recruiting of new independent representatives, you did not provide enough information to make an educated guess. A company must teach people how to both recruit and how to sell. Just because a company has literature on how to recruit does not make it illegal.

By the way, in any business model the people at the top makes the most money… if you don’t believe me ask your boss or the CEO of your company!

To the TOP!
Eli Gonzalez
MegaMarketingSuccess[dot]com

by megasuccess on May 13, 2009 8:40 AM MDT reply actions

I did not

say Shaq was going anything illegal, simply unethical. These types of businesses use manipulative tactics to convince people invest money in a scheme that in 99% of the cases doesn’t pan out.

They often end in law suits and are generally bad news. There are exceptions like Tupperware but in that case there is a real legit product and not some crap that exists only to be used as a vehicle to create a pyramid.

If these stripes had any real value as a stand alone product the producers would sell them through traditional retail channels. Period.

But this is a Suns / sports related site so the point is how this reflects on our team’s star and on the team itself who’s franchise identity is tied closely to our community. I would prefer that our sports teams and players find more legitimate ways to make money then exploiting people.

Shaq certainly has other/better options then this.

Blogging Suns Basketball

by Seth Pollack on May 13, 2009 10:18 AM MDT up reply actions

MLM is a scam...

like stan said, if the product had real value they’d sell the product and not the opportunity to sell the product. mlm is only useful if you don’t have the national footprint or recourse to distribute the product yourself. Shaq doesn’t have that? give me a break. If they could be making all the money, why would they give you a crack at it? well, they wouldn’t, because life’s just not that cool. The top 1.8% make money, a handful break even, and the other 98% lose money. those are just the facts. Shaq is a brand in and of himself. He could do almost anything in the promotions world. he picks this?

And Eli, don’t pander your bullshi t on a sports blog. If you make money doing your gig, congrats. But that’s at the expense of the other 98%. stan’s right on: “Shaq certainly has other/better options than this.”

by spider monkey on May 13, 2009 3:08 PM MDT reply actions

If they work, use them, if not, don't

Spider Monkey, I agree you, that direct marketing works great for expanding a product line thatdoesn’t have a national footprint or good method of distribution. However, if you look closer at Enlyten and the amount of education the public would need before they spend $30 on a pack of breath mints, I don’t think traditional marketing methods would have worked nearly as quickly and definitely not as inexpensively.

If it wasn’t for the fact that a friend explained how they worked to me, I would never have paid $30 at GNC or at Albertsons checkout isle on these things. How much money would Enlyten have had to spend on branding and educating the general public for the average person to see a small pack of breath mints and be comfortable paying $30 for them as they stand in a checkout line at a traditional store? My guess, millions… just ask Coke how much it cost them to turn Dasani into water. By using direct marketing, Enlyten educated a few people, and those people educate others, and so on. Significantly less expensive than national branding.

I am not a fan of most direct marketing businesses, as in my opinion, often are trying to sell snake oil products to emotional buyers. However, if a company has a unique product, direct marketing can be one of the fastest, most efficient and cost effective ways to get a product to market quickly. Look at Stream Energy, as an example. They are selling electricity using a direct marketing. I agree that most dealer/distributors don’t make much/any money, but the focus is to get people to sign up as electricity customers such that their electricity bill is less. Stream Energy became one of the largest energy companies in Texas in about 2 years, stealing a very noticeable chunk of business from Reliant and TXU in Texas. The savings to customers is a result of the parent company not having to spend millions on advertising on super bowl commercials, football stadiums, etc. In my opinion, it becomes a win for everyone, even those not making money as they too are saving on their electric bills.

When my friend initially showed me the Enlyten strips, I thought he was crazy, saying there is no way I would never pay $30 for a pack of breath mints. He explained what the strips did, and gave me some samples to try out (I tried the sleep ones Melatonin and the energy ones) and gauge for myself. Real or placebo, they work for me. Several times now, after a long morning of meetings followed by big lunch and more meetings afterwards… I usually fight to stay away after lunch. I have used several times now a few energy mints strips and was able to stay attentive. Also, now several times while travelling, I used the melatonin mint strips before laying down in the hotel room and slept the whole night, which isn’t the norm for me.

If they truly have a product that works, and choose to use direct marketing to sell the product, who cares? After trying these myself, I plan on being what they call a distributor for $45 such that I can purchase the products for less than buying as a customer. Make money or not, the products work for me and if I have to be a distributor to purchase for less, I will. If a competitor comes out and starts selling these for less at a traditional store, I will buy from the cheaper alternative provided they work as well. And how do you know that Shaq doesn’t believe and/or use the products himself? I say try them out yourself and if they work, buy them, if they don’t work, don’t buy them. Unless you have tried them yourself, how can you question Shaq’s decision to promote these products? Should I feel exploited if I buy the product because I think they work for me?

That is my $.02

by Mikepol on May 17, 2009 7:24 PM MDT reply actions