Liberty League - Use Caution

Intro - " The Liberty League" www.libertyleague.com A friend called tonight and wanted an opinion regarding this new found company he is considering jumping into.I checked the site out, and could not discover what products were being sold, and when I clicked 'products' it asked for MY info. Out of curiosity, I then went to the BBB. The report was disturbing, so I posted it to my journal. Maybe this will save someone a little heartache."

"The Better Business Bureau 4428 N. 12th Street Phoenix, AZ 85014-4585 602-264-1721 info@phoenix.bbb.org

LIBERTY LEAGUE INTERNATIONAL, LLC 14300 N. Northsight Blvd. #210 Scottsdale, AZ 85260

Principal: Brent Payne, Contact Phone Number: 480-636-7400 Fax Number: 480-595-5658 Web Site Address: www.libertyleague.com www.success1234U.com www.unlockyourfreedom.com Membership Status: no Type of Business: Business Opportunity Cos. Advertising-Direct Mail Pyramid Companies

The information in this report has either been provided by the company, or has been compiled by the Bureau from other sources.

Based on BBB files, this company has an unsatisfactory record with the Bureau due to unresolved complaints and a pattern of complaints. Complaints are concerning selling practices. Specifically, complaints allege misrepresentation of the products or services offered by the company and an inability to cancel the sale or service in accordance with the company's three-day refund policy. Complaints also state that significant fees are involved which are not communicated at the time of the sale. One complaint is unresolved.

This company is in an industry that may require licensing, bonding or registration in order to lawfully do business. The Bureau encourages you to check with the appropriate agency to be certain any requirements are currently being met.

Additional addresses for this company include: PMB 106, 8912 E. Pinnacle Peak Rd. #106, Scottsdale, AZ 85255.

The Bureau has requested basic information from this company. The Bureau has not received a response.

Prospective investors should carefully examine a multi-level sales program to be reasonably certain it is not a pyramid scheme which emphasizes recruitment of distributors rather than retail sale of the product. Investors should be wary of promises of high potential earnings, especially without effort, time and serious personal commitment. No more than a minimal initial inventory should be required to become a distributor, and a reliable firm will guarantee in writing that unsold products will be bought back for a certain percentage of the original price. Pyramid schemes are illegal in virtually every state. The fact that some underlying program is offered does not make them legal. Anyone who participates in these programs could also be subject to criminal prosecution. Consumers are advised to call their local Attorney General and the Federal Trade Commission for more information.

The Bureau's pamphlet, "Tips on Multi-Level Marketing," is available upon request.

If you are considering investing in a business opportunity, the Better Business Bureau suggests the following tips to help you avoid falling victim to a business opportunity fraud.

1] Ask the company where it is incorporated and whether it has an in-state office; ask for names of owners and officers, their backgrounds, and prior business experience. Verify the information with the BBB or another impartial outside organization.

2] If you will be selling a product, ask questions about it, what it will cost you, your source of supply, any performance claims and guarantees, the company's replacement and repair policies and procedures for handling complaints from you or your customers.

3] Ask about any initial fees you will be required to pay and what they are to be used for. If you will be marketing a service, verify all costs and ask for a detailed written agreement specifying the type and duration of assistance with start up procedures and obtaining clients.

4] Get written copies of the company's business and financial statements and other important documents. Ask an accountant, attorney or outside financial expert to review the materials.

6] Consult with people who know the particular product or type of business you may be entering. Review with them the selling company's claims conserning marketability of the product, pricing, projected profits, etc. You may want to review the contract and other documents with an attorney.

7] Independently contact some of the people who have already invested in the product or service about their experience.

8] If you decide to invest, get all promises in writing and the contract signed by an authorized agent of the company. If you suspect fraud, contact the Better Business Bureau.

As a matter of policy, the Better Business Bureau does not endorse any product, service, or company. BBB reports generally cover a three-year reporting period, and are provided solely to assist you in exercising your own best judgment. Information contained in this report is believed reliable but not guaranteed as to accuracy. Reports are subject to change at any time.

The Better Business Bureau reports on members and non-members. Membership in the BBB is voluntary. Members must meet and maintain BBB standards. If a company is a member of the BBB, it is stated in this report

Wall Street Finally Figures it Out
Jennifer Leigh

In the last few years Wall Street has finally figured out what we have known for years, that MLM companies have some tremendous advantages over traditional businesses.

This is good news to those who participate in the MLM industry. What’s the good news? Some of the world’s most successful investment firms have purchased well-established MLM companies for enormous sums. Why? Because they understand the value of a good investment. Who are these investors and what companies are they buying?

In September 2002, Warren Buffett, CEO of multi-billion dollar strong Berkshire Hathaway and the second richest man in the world, purchased Pampered Chef for $1.5 billion. According to Fortune Magazine, Buffett purchased Pampered Chef because it has no debt, high profit margins, a gung-ho management team, and world markets to conquer.

Then in May 2004, Ripplewood Holdings L.L.C. and Activated Holdings LLC acquired an 81% ownership of Shaklee Corporation for approximately $310 million. Activated Holdings was so excited about their investment of Shaklee that their managing partner Roger Barnett moved from New York to San Francisco to run the company. Barnett researched the industry and spent hundreds of hours talking to leaders and owners of 75 MLM and Party Plan companies, and decided buying Shaklee was the best long-term investment he could make. He believes MLM is the greatest business model ever invented. He also believes it will grow more in the next 10 years, than in its entire history combined.

Barnett cites four major reasons for his enthusiasm toward Direct Sales:

The network marketing business model has passed the acid test and is here to stay.
Network marketing does well in every economic cycle.
It has the potential of creating perpetual accelerating momentum.
Entrepreneurs and savvy business people around the globe are discovering the genius of this business model.

Another example of an MLM company being of value to investment firms is Jafra. Jafra is an MLM company that sells and distributes high-end cosmetics and fragrances internationally through more than 400,000 independent beauty consultants. Jafra was sold by Gillette in 1998 for $200 million dollars to Clayton Dubilier & Rice Inc. In 2003 CD&R took out a special dividend of $160 million dollars. In April 2004 Jafra was acquired by Vorwerk & Co. KG, a private Germany-based direct seller of household appliances. When the special dividend is added to the profit of the sale, CD&R profited approximately $360 million dollars in just over five years’ time.

These investment firms are finding out what MLM professionals knew all along. MLM companies gives people a chance to go out and not only sell a product, but instruct customers on how to use it and offer support to their customers. And what does this interaction between salesperson and customer mean to owner like Buffett and Barnett? It means they get instant and constructive feedback on their products. They can easily access information about their customer base, can find out what works and what doesn’t in their sales presentations as well as the value and efficiency of the products themselves.

As financial investments, MLM companies have much going for them. As with the sale of Jafra, it is clear that MLM companies can appreciate significantly with time.

Publicly traded MLM companies have also become more valuable. Recently, when MLM companies go public, their stock sales have skyrocketed. Whereas, in the past, companies that went public normally would be forced to buy back their stock and re-privatize the company.

Consider these numbers:

In January of 2003 Avon 's Stock was worth $8.30, now it is worth $31.80. In that same time period, Pre-Paid Legal went from $18.10 to $37.77, Usana from $16.80 to $64.56, Mannatech from $19.90 to $21.37, Nature's Sunshine from $8.50 to $19.77, and Nuskin went from $11.59 to $23.20. This means that to buy 1000 shares of each in January 2003 would have cost $49,310 and today it would be worth $168,850. To put that in to perspective, if $49,310 would have been invested into the S&P 500, today it would be worth $59,172. Those numbers speak for themselves.

So why does all this matter to owners, executives, distributors, and customers of MLM companies? When companies need to expand or when a company needs to maintain or increase their momentum when its visionary founder retires, a company often needs to look to Wall Street to provide the financing in order to achieve these goals. For many years, distributors and others in MLM have made it almost a point of pride to say, “we have a closely held company” or, “our company has no debt”. The success of some of these companies that have embraced Wall Street and the financial discipline that it often requires is causing some to rethink the value of having a strong financial backer behind their company.

The Direct Sales industry continues to gain public notoriety as Pampered Chef and Shaklee join 15 other public MLM companies now on Wall Street. These companies clearly enjoy the best of both worlds, public mainstream businesses, with the control and support that only MLM companies can provide.

Jennifer Leigh is MLM.com's new staff writer

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