Wednesday, March 27, 2013

Critical Analysis of YOR Health Part 3

Let's jump straight into it shall we?

THIRD SLIDE


Dave starts off by explaining that although we see adverts and commercials on television, he just doesn't believe people understand why it's so important (shock horror). But it's ok, YOR Health is here to educate, because that's what this company is all about - education. These trained educators are here to educate us on health. Actual teachers have degrees, and they are continuously undergoing training to ensure valid teaching methodologies are being used. They have no ulterior motive. They do not want you to purchase anything as a result of their teaching. They are experts both in the profession of teaching, and in the subject in which they are administering. Now, at last check, Dave Nelson does not have a degree in nutritional science, nor does he have a degree in teaching. So tell me, how on earth does anybody believe he possesses the ability to educate anyone on anything? Perhaps, we can admit, he does have expertise on being a fitness model, so I would happily take his advice on... modelling fitness, but until then, I refuse to believe a word he says. So let's just skip the next few minutes on the video because really, it would be like having my fruit shop owner try to educate me on the biology of rats.

Dave's comparison of our digestive system to the root of a tree looks like it came from his buddy's article Digestive Wellness - The Ultimate Health Article!, who references himself as a source, and has a 'What's up Doc' achievement (which you gain from having an article accepted in the health and fitness category). Thanks but no thanks 'health coach' Adam Zaks, I'll get my information from qualified professionals. 

Surprise surprise! Right after Dave suggests we need to 'invest' in our digestive health, he let's us know about the great products YOR Health have for us. Fix your tree roots with YOR Health!

FOURTH SLIDE


The next slide can be summarised with my previous notion: thanks Dave, but I will not be taking health advice from someone with no qualifications who also has a vested interest in my pocket.

FIFTH SLIDE


Aaah, the acid v alkaline argument. The 'smoking gun' of the YOR Health claims. Dr. Gabe Mirkin, a practicing physician of over 40 years writes a pretty interesting article titled Acid/Alkaline Theory of Disease Is Nonsense. Dr. Mirkin's website  offers broadcasts and reports on thousands of topics, and is a qualified professional on the subject. Dr Mirkin asserts:

"You should not believe that it matters whether foods are acidic or alkaline, because no foods change the acidity of anything in your body except your urine. Your stomach is so acidic that no food can change its acidity. Citrus fruits, vinegar, and vitamins such as ascorbic acid or folic acid do not change the acidity of your stomach or your bloodstream. An entire bottle of calcium pills or antacids would not change the acidity of your stomach for more than a few minutes. 

All foods that leave your stomach are acidic. Then they enter your intestines where secretions from your pancreas neutralize the stomach acids. So no matter what you eat, the food in stomach is acidic and the food in the intestines is alkaline."


So when it comes down to it, I guess I would take the advice of Dr Mirkin over say, Miranda Kerr (who is frequently referenced by the YOR Health subordinates). I certainly would take his advice over Dave Nelson, who is basically telling us that everything we eat today is 'acidic', so the best thing for us to do is BUY THE PRODUCTS!

Sunday, March 24, 2013

Multi-Level Marketing Network Exposed


 "Expert's Discussion of the Perils, Tricks, and Myths in MLM... Cult expert Steve Hassan of the Freedom of Mind Center leads a wide ranging discussion on multi-level marketing with MLM expert Robert L. FitzPatrick author of False Profits and creator of Pyramid Scheme Alert, and also Attorney Douglas M. Brooks, expert on franchising, MLMs and business opportunity solicitations.

Steve Hassan: http://www.freedomofmind.com

Robert FitzPatrick: http://pyramidschemealert.org

 The discussion covers endless chain pay plans, the realities of consumer losses in MLMs, the persuasion and mind control techniques used by some MLM network scammers..."

MLM-The Truth - you decide whether this is consistent with what we have seen from YOR Health

While the bigwigs at YOR Health have been busy updating their presentations with sources/more questionable graphs/lies, I've been doing lots and lots of reading. Dr Jon Taylor is a legitimate expert in the field of researching MLM's. He has written books and numerous analytical reports on profitability, viability, ethics, and abuses of what he has labeled “product-based pyramid schemes.” I highly recommend taking some time to thoroughly read the information on his incredibly comprehensive website. See below an exert on common misrepresentations from said website, MLM-The Truth:


Typical MLM MisrepresentationsThe Truth                      
1. MLMs are often presented as a great "business opportunity," with huge incomes reported for many1. MLM's nearly always lead to certain loss for new recruits. The founders and a few are at the top of their pyramids of participants are enriched at the expense of a multitude of downline participants, approximately 99% of whom lose money.
2. "Everyone can do this" – and earn a good income.2. Holding up top earners as examples of what others can do is deceptive. It is unfair to sell tickets on a flight after the the airplane has already left the ground.
3. Products can be resold at retail prices for a handsome profit.3. MLM products must be priced high enough to support a bloated network of distributors, so prices are seldom if ever competitive with alternative retail outlets. (See "High Prices of MLM Products.") MLM products are sold primarily to recruits to "do the business," rather than to persons outside the network of participants. People who shop around and are not buying products for the "opportunity" are not likely to become customers.
 4. Every MLM Is presented as a legitimate business – "not a pyramid scheme" 4. MLMs, or product-based pyramid schemes, have been found to be the most harmful and extreme of all the types of pyramid schemes, by any measure - loss rates, aggregate losses, number fo victims, and degree of leverage. MLM loss rates (approximately 99.6%) – are far worse than for no-product schemes, or even than most games of chance in gambling casinos. (See shocking statistics.)  
5. MLM offers true "time freedom." For those who work at it, MLM can provide an income that is reliable, leveraged, residual, long-term – even permanent income. This will allow you the "time freedom" to quit your job and to spend more time with your family or to do whatever you want. 5. These catchwords are used by MLM promoters to appeal to the desires for "easy money" that keeps on growing and providing for the comforts of life – and the resources to do what we want, when we want. However, one of the stark realities of MLM is an extremely high attrition rate. Available statistics suggest that 90-99% of recruits terminate or are inactive within a few years of joining. Those who do "succeed" must be constantly recruiting others to replace a revolving door of hapless victims of these deceptions. This can become totally consuming, leaving little time or energy for anything else.
And for those who choose not to do MLM, is there anything immoral about hard work for honest rewards? 
6. Work for only an hour or two a day to supplement your income to help meet expenses or pay down debt.6. To profit at a recruiting MLM, one must work long hours and be willing to continue to recruit to replace dropouts. One must also be willing to deceive large numbers of recruits into believing it is a legitimate income opportunity. New recruits seldom profit, but are instead only fattening their upline's commission checks and enriching founders  and the "first ones in." They are, in fact, being sold a ticket on a flight that has already left the ground.
7. With MLM, you can just work seasonally, such as for Christmas or vacation money.7. Since MLM compensation plans primarily reward downline recruitment, and one cannot maintain resultant "residual income" on a seasonal basis, this is an empty promise – about as empty as they come.
 8. "The job market is terrible." The stock market is even shakier. MLM offers reliable, leveraged, long-term, permanent, residual income."8. MLM is far more risky than either the stock market or the job market. It even makes gambling look like a safe investment by comparison. With over 90% attrition within a few years, long-term residual income from recruiting a downline is a myth for almost all MLM recruits.
9. Standard jobs are not rewarded fairly. In MLM, you can set your own standard for earnings. 9. Fair? Most MLM compensation plans are weighted heavily towards those who got in early or scrambled to get to the top of a pyramid of participants. MLM is the epitome of an unfair and deceptive practice. 
10. "If not legal, the program would have been shut down long ago." MLM's have survived legal challenges. The fact that they are still around tells you they are legitimate.10. Consumer protection officials are typically reactive, not proactive. Since victims of endless chain schemes rarely file complaints, law enforcement seldom acts against even the worst MLM schemes. Victims don't complain because they blame themselves, and they fear self-incrimination or consequences from or to their upline or downline – often close friends and family. (See Law Enforcement)
11. If you fail at this program, it is because you failed to properly "work the system."11. The system itself dooms nearly all participants to failure. MLM is built on an endless chain of recruitment of participants as primary customers. It assumes both infinite markets and virgin markets, neither of which exist. It is therefore inherently flawed, fraudulent, and profitable only for founders and those at or near the top of their respective pyramids of participants. Even with their best efforts, the vast majority will always lose money. (See 5 Red Flags-summary. To be more fully informed download and read the full report.)
12. "In any business, one must invest time and money to be successful." Like anything else, you can expect to get out of it what you put into it. 12. Independent research, supported by worldwide feedback, suggests that the more a person invests in an MLM in time, effort, and money, the more he/she loses – which is true of any scam. Committed MLM participants may continue investing thousands, and even tens of thousands of dollars, over many years before running out of money or giving up.
Conversely, in legitimate companies, sales persons are not expected to stock up on inventory or subscribe to monthly purchases. But in MLM, incentivized purchases (required to participate in commissions and/or advancement) are merely disguised or laundered investments in a pyramid scheme.
13. Average earnings statements on official reports make MLM's appear highly profitable for participants. For example, one MLM company report of "actual income" of distributors may state that ".16% of active distributors have achieved the level of Blue Diamond," whose average earnings exceed $500,000 a year. This is made to appear to be respectable odds of success13. This is a mathematical trick MLM promoters play on unsophisticated recruits. MLM reports of average income of participants are full of such deceptions. When statistics are presented without deception, the "opportunity" is not so attractive. The ".16%" is 0.16% - or 0.0016 (dropping the % symbol). This is equivalent to odds of one in 625. And for statistical integrity, ALL who signed up as distributors should be factored in, but MLMs eliminate dropouts in their statistics – a huge deception. With less than 10% remaining after five years (the minimum time those at the top in the pyramid have been in the scheme), the number should be reduced by at least 90%. This leaves odds of0.00016 of reaching the top level where the money is made, or odds of 1 in 6,250! This looks far worse that ".16%" (See the book "How to LIe with Statistics.")
14. Company payout to participants is reported as "earnings" to them.14. The fact is that every MLM requires "pay-to-play" or a quota of minimum purchases in order to qualify for commissions and/or advancement in the scheme. In addition, in order to climb the ladder in the hierarchy of distributors to a level where actual profits are realized, one must recruit aggressively. In a one-year test of the cost of conducting a successful recruitment campaign, I found the operating expenses to be significant – just like for any recruitment-oriented business. The combination of "pay-to-play" and operating expenses raises the breakeven bar such that it is extremely rare for any MLM recruite to actually earn a profit after subtracitng such expenses. Again, see full "5 Red Flags" report.
15. MLM is the "wave of the future." In fact, "Our MLM is experiencing phenomenal world-wide growth," etc. "So get in on the ground floor of this great growth opportunity." 15. MLM'rs have been saying this for over thirty years, but MLM still accounts for less than ½ of 1% of consumer purchases - in spite of the fact that the number of MLM companies has totaled in the thousands. MLM's come and go, as do new recruits, over 90% of whom drop out. Significant long-term MLM industry growth is a myth.
16. Saturation – and the resultant market collapse – never happens with MLM. Many MLMs have been around for over 20 years, and the market is far from saturated, with less than 1% of all sales nationally coming from the MLM industry. 16. The issue is not TOTAL saturation as MLM apologists suggest, but MARKET saturation. In a town of 10,000 people, the notion of 10,000 distributors to serve them is absurd. Realistically, the MARKET could be saturated with 5 or 10 distributors. Each added distributor would reduce the opportunity for existing distributors, and resistance would build up for those who have been approached several times. In fact, market saturation occurs rather quickly. And the fact that such a small percentage of sales nationally are through MLM, after over 30 years of promising to be a major player, should tell you something. (Again, read the "5 Red Flags" – especially "The 8 Rs of MLM Durability" in the full report report cited above.)
In MLM, market collapse is manifested in CONTINUOUS COLLAPSE, meaning that the market is constantly collapsing, requiring contintual recruitment to replace those continually dropping out at a very high rate. If the MLM could not find new recruits in new markets, or recycle through old markets with new generations of prospects, or with new products, it would collapse entirely.
17. Turnover, as in any business, is a reality that assures an ample supply of available prospects. 17. Again, with few real customers, MLM products are sold by recruiting a revolving door of new "distributors" who buy products to "do the business." And since people perceive the opportunity as dwindling with each new "distributor," market saturation requires promoters to recruit elsewhere. So MLM's quickly evolve into Ponzi schemes, requiring the opening of new markets in foreign countries and/or new product divisions to repay earlier investors, as has happened with Amway (now Quixtar) and Nu Skin (which became IDN, then Big Planet and Pharmanex). It's not turnover, but continuous churning of new recruits to replace dropouts.
18. The demand for these MLM products is growing at a rapid rate. "They literally sell themselves."18. The sale of products is distributor-driven, not market driven. Most products are sold to new participants to get in on this "ground floor opportunity."
19. MLM is direct selling, which has a long history of independent selling by door-to-door selling and of selling to friends, neighbors, and family members. It is this person-to-person relationship selling that is one of its great strengths.19. MLM should more properly be considered chain or pyramid selling, as few sales are made to customers outside its network of distributors. MLM promoters have sought legitimacy by joining the Direct Selling Association (DSA), which lobbies to promote the interests of MLM. It is like a farmer marching his pigs into a horse corral so he can sell them as horses to get a better price. He then advertises them as horses because they are in the horse corral. We should not accept an MLM as a legitimate direct selling company when compensation plans reward recruiting a downline far more than selling to non-participants – even if the MLM is a member of the DSA. (See DSA page.)
 20. "It takes time to build any business." "This is not a get-rich-quick scheme, but a 'get-rich-slow' program." "While the potential rewards are great, don't expect instant success," etc. 20. MLM promoters sell recruits on their programs as a business opportunity that takes time to build, but to get around business opportunity regulations, they present it to authorities as a "direct selling" opportunity (see above). However, In legitimate direct sales programs, sales persons earn commissions right away and don't have to wait months or years for commissions to exceed expenses. 



NOTE: This is just a taste of the many misrepresentations used in MLM recruitment. For a list of over 100 misrepresentations, read Chapter 8 of the eBook The Case (for and) against Multi-level Marketing. The chapters can be downloaded in sections – or the whole book can be downloaded free of charge. 

CONCLUSIONS

After studying the compensation plans of over 400 MLMs, I can say with confidence that virtually all MLMs are dependent on deceptive recruitment of an endless chain of participants as primary (or only) customers. Incentivizing endless chain or infinite recruitment within a finite marketplace, MLM is not only inherently flawed, uneconomic, and fraudulent; but is also extremely viral and predatory - rapidly expanding and deluding the most vulnerable among us. While many or most participants are not deliberately deceiving recruits, they are unwittingly drawn into the complex web of deceptions listed above - since to tell the truth would lead to failure in their recruiting efforts.

The appeal in MLM promotions and the typical MLM reports of earnings of participants are dependent on a host of misrepresentations and deceptive sales practices. To be successful in MLM, one must not only work hard, but one must also –
1. Be deceived
2. Maintain a high level of self-deception
3. Go about deceiving others
4. Maintain denial of the harm done to those recruited into the chain or pyramid of participants.
 The degree of deception (and even total amounts in aggregate damages by MLMs as a group) exceeds the deceptions reported in the Bernie Madoff scandal and in the Enron stock scandal (;plus WorldCom and Global Crossing). However, in the case of MLM, participants engage in self-deception as much as in any deliberate misrepresentations. In short, the typical MLM is a composite lie, dependent on an endless chain of recruitment into a pyramid of participants who unwittingly engage in massive theft by deception.

The typical MLM is a composite lie, dependent on unlimited recruitment of a network of endless chains of recruits into pyramids of participants who unwittingly engage in massive theft by deception.

Friday, March 22, 2013

Brainwashing 101 with Dave Nelson (YOR Health)

Update 27/03/13 - it seems Dave didn't want anyone to see the delightful video that was the focus of this post, it has now been removed. A happy day for all




Yet another interruption to my main analysis, this video simply could not hide in the shadows. The difficulty with this investigation is that there are just so many interesting aspects of this company, I can barely decide which part to expose and when! YOR Health cronies have decided that I am obviously unsuccessful, and should really focus my efforts on becoming as successful as they all are. However I can assure you, dear entrepreneurs, that the reason I have time to write this educational blog, is because my employment allows me the personal freedom that doesn't require me to spend the majority of my time exploiting friendships.

So, enough about me, today I wish to share a video of Dave's that is so indicative of the tactics these people are using to ensure complete obedience of their followers. This type of mind control suppresses logic and critical thinking, and by planting this mentality early on prepares the gullible listeners for the unavoidable criticism they will soon face.

Dave mentions that in his experience over the past year, those people with negative opinions are the 'brokest' people out there. Expert opinion right there from Dave himself. Now, I really want to refrain from swearing on my blog, because unlike Dave, I believe swearing in a business context shows unprofessionalism, not passion, but Dave's eloquent "fucking strange that" quote is nothing short of disgusting.

We then gain a little insight on human nature; it's natural for naysayers to want to bring successful people down, and successful (I use the term incredibly loosely here) people want to help those below them. This is apparently the way life works. So to clarify, anyone who criticises MLM is a broke, unsuccessful 'shit talker', but anyone involved in MLM are humanitarians who only want to help others. The irony is simply delightful.

Dave seems to really know the intentions of even some of your closest friends. They want you to fail. They don't want to see you succeed! It's subconscious, they don't even know that they are doing it. But Dave does. Dave, and your 'team' are your only friends. The reason your friends want you to fail is because it highlights, and this is a direct quote right here, their piece of shit life. If I can just interrupt here for a moment; there have been times during my short time in the blogosphere where I have felt more sad for Dave than contempt. I have felt sorry for someone who is obviously so lost that he truly believes that he is a part of something great. I believe Dave isn't lying to his people, I believe he is lying to himself. But when he suggests that concerned friends of those caught up in this company are simply parasite, simply pieces of shit that they need to sift through, I remember that nothing I say can be worse than the lies spun by this guy.

Convincing as he may seem (these speakers are usually incredibly electrifying to listen to, aiming to mesmerise and engage your feelings to cloud your judgement), all Dave seems to be doing is rambling off some emotionally provoking statements, which without any critical thinking, hypes people up to inspire them. Keeping in mind that this is posted on the internet, imagine what goes on behind closed doors! I can only imagine there would be an abundance of cheering, encouragement, fist-pumping, and motivational speeches. In a group setting, this serves to cement the bonds between 'friends' (or business partners), keeping them all on a high and increasing belief that they are really a part of something truly important. The 'new era'.

Now I want to end my review with a video which I believe sums Dave's video up quite nicely:

http://www.youtube.com/watch?v=RPpv9lAtr8M

Thursday, March 21, 2013

Should you be worried about a friend/loved one involved in an MLM situation?


EVALUATION CHECKLIST
Change of prior commitments
1. Education.
“He had one term to complete to get his college diploma and he walked away. We can’t believe it! No amount of rational argument will convince him to finish.”
2. Career / Goals
“She was planning to become a doctor. Now she stands on street corners recruiting new members.”
3. Significant relationships
“They were going to be married and he broke off the engagement.”
Financial
1.Surrendering Assets
“She gave all her money to the group and her stereo and her car!”
“He is using his life savings on cult sponsored classes and events.”
2. Dependency Issues
“He has to ask the group for bus fare. He has no money of his own even though he works twenty hours a day.”
Radical Personality Change
1. Physical appearance
Change in clothes, hair, weight, diet
Spaced out expression, glassy stare
2. Personality
Change in speech patterns, facial expressions, or mannerisms
Decreased sense of humor
Secretive, evasive, or defensive behavior
Judgmental attitude towards family members
Fanatical always proselytizing
Change from extrovert to introvert or vice versa
Change from analytical to magical-thinking
Change from lazy to industrious
Change in level of honesty
Lack of interest in former hobbies
3. Personal habits
Change from irresponsible to responsible (and vice versa)
Change from sloppy to clean (and vice versa)
Change from tardy to punctual (and vice versa)
4. Communication style
Evasiveness
Defensiveness
Difficulty in communication
Use of “buzzwords,” canned speeches, “tape-loops”
5. Relationships
Change in key relationships
Family and friends preached to as though they need to be saved
Pressure for money for personal reasons or group donations
Loss of contact with family and friends (in person, via telephone, mail)
Decreased physical contact fewer or no hugs and kisses
Self imposed isolation
Family events (unattended or unacknowledged births, birthdays, baptisms, Confirmations, Bar/ Bas Mitzvahs, engagements, weddings, anniversaries, illnesses, deaths)
Majority of time spent with new group or organization
6. Philosophy
Change in political beliefs
Change in religious beliefs
Change in current education (changed from full to part time, changed major, dropped out of school)
7. Career
Abruptly ends career
Gives away money
Spends large sums of money
Radical change of goals
8. Medical
Ignores symptoms
Doesn’t go to doctor
Ignores advice of doctors
Goes to free clinics
9. Change in living conditions
Move to new residence (group house, commune)
Move to new location
Move in with “strangers”
Health
1. Is (s)he eating properly?
2. Is (s)he getting enough sleep?
3. Does (s)he have health insurance?
4. Would (s)he receive good medical care if sick or injured?

Chapter 4 EVALUATING THE SITUATION, RELEASING THE BONDS Empowering People to Think for Themselves! (as cited in http://freedomofmind.com/Services/WarningSigns.php)

Evaluating Reliability and Validity

Now I did promise in my previous post to have a quick look into YOR Health's Scientific Advisory Board. Two of these board members came up with something worth sharing.

Heading up the board is one J. Stephen McColgan, M.D, M.B.A. An impressive bio is dedicated to Dr. McColgan, he is considered to be a leader in the field of Laparoscopic Gastric Bypass. A quick search on google finds this. To summarise (quoted directly from http://www.nh.gov/medicine/aboutus/actions/2006.html):


'Stephen J. McColgan, M.D. - Long Beach, CA 10/09/06 - The Board of Medicine issued a Settlement Agreement for Stephen J. McColgan, M.D. The Medical Board of California, Division of Medical Quality, issued a final administrative order regarding the disposition of disciplinary matters relating to repeated negligence, incompetence, violation of drug statutes, and failure to maintain adequate records during the treatment of his ex-wife and of his minor child. Accordingly, the New Hampshire Board has taken reciprocal action. Dr. McColgan is reprimanded and shall provide documentation to the New Hampshire Board of his compliance with the terms of the California Board's order no later than August 21, 2007.'

Now, I'm no lawyer, nor am I a doctor, but I do understand the meaning of 'negligence', 'incompetence', 'violation of drug statutes'. This is public literature, and very interesting in my point of view.


The second member of the advisory board I wish to discuss is John R. Bookwalter, M.D. WELL, in February 2007, a jury in U.S. District Court delivered a $1,160,000 judgment against Dr Bookwalter in a medical malpractice case. Now, I am fully aware that doctors that are sued for malpractice are not necessarily bad doctors, they are human, humans make mistakes, but the further I dig into the depths of YOR Health, the more I question the ethical standards of this company.


ANYWAY, without further adieu, here is the second instalment of my analysis of YOR Health's product information video. We left off with YOR Health's very own Australian legend. An inspiration to many, Dave Nelson has reached Royal Blue Diamond in a mere 2 years! Dave's YouTube video continues:

INTRODUCTORY SLIDE (CONTINUED)

"30 Day Money Back Guarantee! THAT is how much belief they have in the product strength and the results you guys are gonna feel by taking this"


This is a very manipulative way of persuading customers into a false sense of security. First of all, the Registered Retail Customer Return/Refund Policy states that customers may return the product to the Independent Representative from whom the product was purchased, or to YOR if purchased directly from YOR Health Website, within thirty (30) days from the date of purchase for a replacement, exchange, or full refund of the purchase price. Thirty days from the date of purchase? Is this 30 business days? How long does it take to arrive? How quickly do you have to decide whether or not the products are right for you/effective? If a product was ordered on a Thursday and it took 4-5 business days to arrive, does this mean you have already used 7 days of your 30? The policy also states that 'the Thirty (30) Day Money Back Guarantee applies to any consumable item any customer purchases for the first time (limited to one open container per product). Does this mean if your 'autoship' (see http://www.yorhealth.com/downloads/legal/SC-Policies.pdf - autoship) sends you your next package before you decide you dislike the product, you are unable to refund the first? What about shipping costs? Oh, nope: 'less shipping and handling if applicable'. Shipping prices are not displayed on YOR Health's website, and are only calculated in the final stages of purchasing, but one customer informed me that the postage price for around 8 products was somewhere around $50. This means that not only do you not get a refund for the postage, but you have to pay shipping fees twice to refund! It's just so messy.

SECOND SLIDE



Dave's second (first slide, according to Dave who is betrayed by his numeracy skills, or lack thereof) is another attempt at some health advice. Dave believes that we simply cannot get everything we need from our food anymore. His graph really shows the proof behind his claims. Dave's graph. The graph that is missing two things. Reliability and validity. For a source to be reliable we must evaluate the ability of the source to provide the information. Hang on, where is the source? This graph here, which claims to have important statistics from 1914 - 1997 doesn't even have a source? We can't even begin to evaluate the credibility of such a source. To demonstrate this, see my graph below:




See how silly it seems? Although, I have a sneaking suspicion I did more research during my study...

To be continued..

Wednesday, March 20, 2013

YOR Health's Questionable Documents

Good afternoon! I decided to do a quick post before I continue on my analysis of the aforementioned video on the Independent Representative Important Disclosures document which is found on the YOR Health website. Now, this is a very important document indeed. So important, in fact, that all text is printed in very squashed, very tight capital letters. Now, this makes it very difficult to read, as the normal visual cues are missing (such as the start of sentence or a proper noun). In design, the use of all capital letters is a sign of bad readability; it discourages the reader. So why, is one of the most important, informative legal documents on this company's website presented in this way I hear you ask? Well, it might have something to do with this:


Now, this is straight from the Independent Representative Important Disclosures document, on page 2. Let me break it down for you.

'As of 01/2013 the number of current YOR Independent Representatives who have not received any commissions, bonuses or overrides is 6391 or 45.26% of such independent representatives.'

This is nothing new, I did mention it in the previous post, however I wanted to draw attention to the lack of references. Who conducted this study? 6391 out of how many? Is this just in the U.S or worldwide?

'As of 01/2013 the median amount of commissions, bonuses and overrides received by all Independent Representatives in YOR is $0.00. 63.52% of all Independent Representatives have received, in the aggregate, less than or equal to this amount. 36.48% of all Independent Representatives have received, in the aggregate, more than this amount.'

Ok so this is incredibly concerning. First of all, we use median when data is skewed. Skewed data means the distribution is unbalanced. Here is a basic example of skewed graphs:



Skewness refers to a lack of symmetry. The median marks the 50th percentile. Fifty percent of the scores are above the median and fifty percent fall below the median. Now, the median amount of commission, bonuses and overrides received by YOR Health Independent Representatives is $0.00. Fifty percent of Independent Representatives earn above $0.00, and fifty percent earn below. BUT, if 63.52% of all Independent Representatives have received, in the aggregate, less than or equal this amount, and 36.48% have received, in the aggregate, more than this amount, how much are those lucky enough to actually make any money, earning? Well:

'As of 01/2013 the average amount of commissions, overrides and bonuses that have been received by all Independent Representatives is $582.30.'

The average amount? As of 01/2013 would lead me to believe that that figure is total amount up to 01/2013. TOTAL amount received by ALL (36.48%) Independent Representatives averages $582.30. That's less than the average weekly income earned by Australian adults through traditional employment (Click here for ABS statistics).


Needless to say, it's important to take the time to thoroughly read things like this. I'm curious to know whether any of the Independent Representatives did take the time to examine this document? I shall leave you to ponder on a quote from the very top of the YOR Health disclosure statement:



Tuesday, March 19, 2013

Part One: A Critical Analysis of YOR Health

Ah internet. How I love the way you satisfy my need to investigate those issues that somehow worm their way into my life and manage to get right under my skin. You are always ready to provide a wealth of knowledge. But the key, my friends, is to understand just how difficult it is to separate fact from fiction in this day and age.

One might use the analogy of a needle in a haystack when describing the frustration of investigation online. Sometimes it seems only too easy to search for what you need and accept it as truth. However it has become incredibly difficult to decipher which information comes from credible, trustworthy sources.

It came to my attention last week that there is a company (or, movement) that goes by the name of 'YOR Health', and they have been making some pretty incredible claims of "cutting edge, premium health products" that are backed by actual science! Of course I was intrigued. I am the first to admit I will often try the latest products that claim breakthroughs in health and nutrition. So, true to my naturally inquisitive nature, I begun an investigation. After a week of some pretty thorough research, I felt the need to start this blog. I shall post more and more findings as they come about, but today, my focus will be on the following video:


I plan to deconstruct this 'Product Information' video in a logical sense, in multiple posts. I will start with the first 2 slides with screenshots included, however I also encourage you to follow along with the video, to allow an unbiased analysis. 

INTRODUCTORY SLIDE



So we have David Nelson. David is a Royal Blue Diamond Director at YOR Health Australia. Now, a Royal Blue Diamond Director is a very big honor indeed! As stated on under the YOR Health Compensation Plan:

"To help you succeed and maximize the multiple streams of income that YOR Health has to offer, we have set minimum requirements and milestones for the various compensations and rank achievements. This structure will not only help you attain success, but to also maintain success in the long run. However, as with every business, one’s own success is dependent on the successful implementation of hard work, diligence, commitment and leadership.

As the YOR Health Opportunity revolves around the successful sales of YOR Health products and teaching your downlines to do the same, you must be a maintained IR in order to earn any YOR Health Commissions (with the exception of Retail Profits). To be maintained means to accumulate at least 100 Customer Product Volume (CPV)1 or Retail Product Volume (RPV) 2 by products sales every 28 days."


Sounds pretty good doesn't it? But what on earth does it mean? Well, careful to only include credible information in this article,  I decided to quote multi-level marketing (MLM) expert, Dr. Jon M. Taylor, who has 18 years of research under his belt (see http://mlm-thetruth.com/) on what exactly MLM is:

"Multi-level marketing (MLM) is a purported income opportunity, in which persons recruited into a network of participants make ongoing purchases of products and services, and recruit others to do the same, and they still others, etc. – in endless chains of recruitment and personal consumption, in order to qualify for commissions and bonuses and to advance upward in the hierarchy of levels in a pyramid of participants. Product purchases become the means of disguising or laundering investments in a sophisticated pyramid scheme.

Typically, prospects are lured into an MLM with exaggerated product and income claims. And because the pay plan is heavily stacked in favor of those at the highest levels in the pyramid, the vast majority of participants spend more than they receive and eventually drop out, only to be replaced by a stream of similarly misled recruits, approximately 99% of whom are likewise destined to experience loss and disappointment."


Now, it is important to make a distinction here; YOR Health is NOT a pyramid scheme. Pyramid schemes are illegal, and YOR Health wants to be very clear that you may call them a 'Direct Sales/Network Marketing/Multi-Level Marketing/Referral Marketing' company, that really only has four basic methods of moving products (retailing, direct sales, multi-level marketing, and FREE WITH 3 - get 3 products for referring friends and family). Sorry for the mouthful, but there it is.


Back to our friend David Nelson. So David Nelson begins by letting us know about the products, and what they can do for YOU, which is the most important part (of, the presentation). David Nelson will be taking us through the finer details of how the products actually work inside the body.


FIRST SLIDE








The first slide presents some pretty attractive claims. Headed up with 'THE YOR HEALTH DIFFERENCE', David explains that the difference between YOR Health and the rest, is that they have what's called 'YOR NDS', which, David goes on to explain is the government patented, sorry, patent protected nutrition delivery system. Now, for those of you who don't know what patent protected means:


"A patent is an intellectual property right granted by the Government of the United States of America to an inventor “to exclude others from making, using, offering for sale, oWith the combined experience of its diverse Scientific Advisory Board, YOR Health is equipped with the proper expertise to uphold the highest standards of scientific integrity, product safety and premium quality selling the invention throughout the United States or importing the invention into the United States” for a limited time in exchange for public disclosure of the invention when the patent is granted"

(http://www.uspto.gov/patents/index.jsp)

This means that patents encourage innovation, and offer inventors recognition for their creativity. Now, patent owners are obliged to publicly disclose information on their invention with the intention of enriching the total body of technical knowledge in the world. A list of web-based database searches can be found: http://www.wipo.int/wipogold/en/. I failed to find anything under 'yor health' 'yorhealth' 'nds nutrition delivery system' 'nutrition delivery system' OR 'yor NDS'. I would encourage everyone else to search and would be pleased if someone manages to find something.


David Nelson then goes on to mention that NDS is the result of nearly three years of research and development. I have searched high and low on not only the YOR Health website, along in many online databases (including a number of university libraries, along with Google Scholar), and I have failed to find a single peer-review (or otherwise) study conducted on NDS. Further, I have not found a single research paper on YOR Health products. This is concerning to say the least, especially as a clinical study is said to have taken place on the YOR Health website (http://www.yorhealth.com/science/yor-nds.aspx), conducted by scientists from Obirin University in Japan, in partnership with the Tokyo Metropolitan Institute of Gerontology. I have spent countless hours trying to locate such a study to no avail. There are a couple of loosely related studies, however the number of participants (24) never correlates. I highly doubt the study is a fabrication, however it is quite unusual for any research not to be cited. I did check the 'Reference Listing' on the YOR Health site, but to add to my confusion, not one of the studies listed even mentions YOR Health. I did come across this statement on the YOR Health website:


'With the combined experience of its diverse Scientific Advisory Board, YOR Health is equipped with the proper expertise to uphold the highest standards of scientific integrity, product safety and premium quality'  


But surely the need for third-party research data is clear? Any information on where to find a legitimate peer-reviewed journal paper would be most welcomed. Dave Nelson does mention that he has read the studies in his video, so perhaps some light could be shed on this?

 The next stage of the presentation is a little background on Dave's expertise. Dave mentions he has been in the fitness industry for a number of years, so I was curious to know his credentials. That's not to say you don't gain on-the-job knowledge, however I believe it's important to have some academia behind you when you are advising others on health. So Dave has "done a lot of nutritional seminars and written for several magazines", which would no doubt give him quite a bit of knowledge on the scientific properties of enzymes. A little digging found that Dave also has an ABN (Australian Business Number), RSA (Responsible Service of Alcohol), First Aid Level 2, an international passport, and a drivers license. He has experience in modelling, acting, body painting, runway, has featured in a few DVD's, video clips, and starred in some school plays (see http://www.starnow.com.au/daven1).

Dave then goes on to mention testimonials. This is something I feel particularly uncomfortable with, because it's quite common knowledge that testimonials are a very convincing marketing ploy. The truth about testimonials are that they are an easy substitute for statistics. It's quite something to see 50+ real life people (just like you and me!) giving glowing testimonials of a product/company..... until you remember that those are the only 50 people out of say, 500 that love the product/company, rendering those claims worthless. How many customers/representatives does YOR Health have again? Well, according to their Income Disclosure Statement, as of 01/2013, the number of current YOR Health Independent Representatives who have not received any commissions, bonuses or overrides is 6391 (and that isn't including those who have made ANY money). I wonder how many of those representatives have their testimonials up on the website? Now I do realise Dave is referring to testimonials given by medical professionals, however after a quick look into some of the members of the YOR Health Scientific Advisory Board, I wouldn't be so quick to take their word as gospel (more on that in my next post).


In my next post I shall explore legitimacy of sources, graphs, images, literature, and of course, Dave Nelson.


Until then.