Nutra Pharma Corp (NPHC)

[GDorn]

Small Update from the MLM Side

Last Monday morning Myyloxin cut a video detailing changes to their comp plan and product lineup. I'll touch on the products before addressing MLM commentary because it's more relevant to potential investors.

Here's one relevant section from the video. MyNyloxin is planning on adding weight loss and Zeolite products to their lineup. Question, did I miss a press release or does NPHC not produce weight loss or Zeolite products? Rik Deitsch has some less than salutatory experience selling Zeolite through MLMs but the real question is what company's bottom line will be advantaged by the sale of these new products by MyNyloxin. Until we hear otherwise it is perhaps a safe bet it wont be NPHC.

As to the MLM compensation plan changes, in general they aren't always a bad thing they're just an admission that the plan they have in place isn't working. Now as far as the new MyNyloxin "Dual Team" plan I can promise you it's a short term money grab by the very small handful of top distributors before closing the doors on this company.

Pet Pain Away sales are separated from the rest of the pay plan, affiliates are being required to purchase about $50/month of the product to qualify for any income from selling it, whether they have a pet or not. MyNyloxin is far too small and without much in the way of prospects to ever grow large enough to attract regulatory attention but if it ever did this compensation plan alone could get them shut down. But the real problem is that excluding Pet Pain Away from the normal commission structure will, long term, weaken the sales from both the old and new pay plans.

So why are they doing it like this? Either they have no experience in running a long term product based MLM company or they have a lot of experience in running short term pyramid based money games. In the case of TCN International (MyNyloxin) it is in fact both. The new "Dual Team" comp plan for Pet Pain Away actually pays less to the average affiliate for selling the product and will pay them nothing at all for a significant number of the sales they make. But the plan pays on "infinite depth" so the people at the top of the pyramid will be making a lot more money per sales volume than they would have under a more sustainable pay plan. The top handful of people at MyNyloxin know the company is going under. They have the choice if giving back more revenue to the sales force to try and encourage more product sales but they're doing the opposite. They're snatching up as much cash as they can before moving on to their next opportunity.

And someone correct me if I'm wrong but the first of no fewer than three batches of 60 million shares (each), acquired significantly below market value by TNC is soon to be coming off restriction.