XanGo, Direct Selling Provide Answers in Economic Downturn

Tuesday, November 4, 2008 General News
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LEHI, Utah, Nov. 3 The news appears grim. 9.5 millionjobless. 84,000 jobs cut in September alone. A five-year unemployment ratehigh of 6.1 percent. And yet, as virtually every job category is making cuts,at worst, or being extremely cautious, at best, direct selling and XanGo, LLC,are thriving. In fact, so much so, that XanGo recently hit its 1 millionthdistributor.

"In what many may see as a void of options in this economy, there is avery real and lucrative opportunity, and that opportunity is direct selling,"said XanGo Chief Executive Officer Robert S. Conlee. "If you believe in theproduct and are prepared to work hard, you will succeed. I've seen it timeand again. As a matter of fact, we've seen it 1 million times at XanGo."

An estimated 15 million Americans participate in direct sellingtotaling more than $30 billion in sales, according to the Direct SellingAssociation (DSA), where the majority are independent business people or"micro-entrepreneurs" who sell the products or services of a company theychoose to represent. The wellness product category, in particular, has beenexperiencing gains as reflected in the latest full-year sales results.

"Direct selling companies like XanGo offer a number of advantages," saidprofessor of business ethics Larry Chonko, Ph.D., University of TexasArlington. "They have a proven business model, know what works in the field,have great products, know their markets and provide everything an entrepreneurneeds to be successful."

By way of example, the XanGo compensation plan provides for 50 percent ofeach XanGo product sold going straight back to commission payments fordistributors. Qualified distributors also benefit from a global bonus poolpaid quarterly. And in a time of off-the-charts rising costs, distributorsget tax write-offs for expenses such as gas, meals, cell phone and homeoffices.

"XanGo represents a recession-proof job," said Dwayne Dwyer, a six-yearXanGo distributor and the very first of XanGo's 1 million distributors."People get out of it what they put into it. The return on your timeinvestment shows, and it shows quickly."

XanGo distributors typically range in age from 21 to 65 with men and womenequally represented. Couples, singles and families are all part of the mix asis everyone from people switching careers to people formerly in other directsales companies. And while XanGo's distributor ranks mostly include thesekinds of everyday people looking to supplement or replace their existingincome, they also include celebrities such as Carl Lewis and NatalieImbruglia.

As the creator of the mangosteen supplement category, XanGo counts amongits roster of products its signature XanGo(R) Juice, which it began sellingsix years ago. More recently XanGo introduced the 3SIXTY5(TM) whole foodnutrition multi-vitamin brand in May 2008 and will be introducing Glimpse(TM)Intuitive Skin Care in November 2008.

All together, XanGo's cumulative sales total more than $1 billion in justsix years. According to the DSA, U.S. direct sales totaled $30.8 billion in2007, with more than 74 percent of the American public having purchased goodsor services through direct selling. Worldwide sales are estimated at more than$112 billion.

"As effective as the direct sales model is and as much as it can drivesignificant income to hard-working participants, ultimately a long-term,stable business opportunity relies on products that work and resonate withpeople," Conlee said. "No person, no pitch, no packaging can overcome amediocre product. It has to be something that provides real value and benefitto the consumer."

About XanGo

A leading global nutrition company, XanGo, LLC is a recognized categorycreator as the first company to market a premium mangosteen beverage, XanGo(R)Juice, to consumers worldwide. XanGo continues to lead the category by drivingthe research, development and advancement of functional mangosteen products.It has expanded its roster of premium, functional products to include3SIXTY5(TM), a whole food nutrition multi-vitamin, along with Glimpse(TM),Intuitive Skin Care, coming in fall 2008. XanGo is privately owned and poweredby a global network of 1 million independent distributors in the U.S. and morethan 20 international markets such as Canada, Mexico, Japan, Germany andMalaysia. For details, visit http://www.xango.com.


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