Liberty League International

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[edit] The Company

Founded in 2001, Liberty League International LLC (LLI) is a corporation headquartered in Scottsdale, Arizona. The State of Arizona refers to LLI as a Multi-level marketing corporation. LLI specializes in the sale of Personal development products, more specifically a home study course and two live events. Liberty League International offers three products that are designed to assist people in attaining their full potential in various aspects of life, by creating a positive mindset to achieve their personal goals. The products are sold via a network of "advisors" or "associates" who market the products and the income opportunity. LLI was banned from conducting business in the state of South Dakota. The ban came after one LLI associate falsely told an investigator posing as a potential prospect over the phone, that a product purchase was required in order to participate in the Liberty League program. No product purchase is required to participate and market the program at any level. As a result, members of LLI are not supposed to place newspaper ads in any South Dakota newspaper. LLI asked any of it's associates who might have South Dakota newspaper ads running to remove them, and offered to refund it's costs back to the associates. LLI prohibits the use of an Autodialer as a marketing method by it's associates, as well as any participation or posting on Internet message boards discussing LLI. The corporation has done over $20 million in annual revenues and currently has a roll-out plan to do business in 26 countries around the world. All profits come from product sales only. No money is made solely by enrolling others into the program. LLI participants are not required to pre-purchase, stock, or warehouse any products. There are no weekly, monthly, quarterly or annual sales quotas to meet. This corporation has chosen not to be a member of the Better Business Bureau (BBB).

[edit] The Founders

Brent Payne and Shane Krider are the co-founders and visionaries of LLI. Together they founded LLI in 2001. Both have been in the work at home/personal development industry for numerous years. The founders are also the two co-authors of the company's flagship product, the Beyond Freedom Personal development home study course.

[edit] The Products

[edit] Beyond Freedom

The flagship product, Beyond Freedom, is a 90-day Personal development home study course. It is only offered in the English language. It presents and brings together many of the positive mindset ideologies, ideas, concepts, and techniques from other existing self-help publications consolidated into one 90 day program. The course consists of 3 DVDs, an audio CD, a workbook, a journal, a set of goal cards, a pen, a marker, note paper, a wrist band, and ongoing support through a community of other students via a tele-conference bridge which costs $99 quarterly, or about $33 a month to have access to. The authors of the Beyond Freedom home study course are the company founders, Brent Payne and Shane Krider. The retail cost of "Beyond Freedom" is $1,495. In keeping with the U.S. laws, the course comes with a 3-day right of rescission, beginning from the time the package is received and signed for by the customer upon delivery. During this time, the customer is entitled to receive a full refund, if requested. The qualified advisor at the "Beyond Freedom" level who makes the sale keeps $1,000 of the $1,495 as profit. The remainder is sent to the company for the wholesale cost of the course. The company then ships the course directly to the customer's door.

[edit] Liberty Conference

Their second product is the Liberty Conference. This is a 3-day Personal development seminar held in an exotic resort location every several months throughout the year. It presents the principles of the Beyond Freedom program live on stage, and features guest speakers. The all inclusive cost for one adult to attend the "Liberty Conference" is $7,995. The qualified advisor at the "Liberty" level who makes the sale keeps $5,000 of the $7,995 as profit. The remainder is sent to the company for the wholesale cost of the ticket. Airfare and any activities outside the resort is not included.

[edit] Summit Conference

Their third product is the Summit Conference. This is a 5 day training seminar held in an exotic resort location once a year. The "Summit Conference" is a 5 day financial planning and development seminar given by guest speakers. The all inclusive cost for one adult to attend the "Summit Conference" is $12,995. The qualified advisor at the "Summit" level who makes the sale keeps $8,000 of the $12,995 as profit. The remainder is sent to the company for the wholesale cost of the ticket. Airfare and any activities outside the resort is not included.

Past guests to these events have included such renowned world class speakers like Andy Andrews, author of The Traveler's Gift;, Bob Proctor of Life Success Productions; Stephen J. Dubner (best-selling author of "Freakonomics"; Patrick Combs, Michael Losier, author of "The Law of Attraction"; Bill Phillips of (best-selling author of "Body for Life"), and others.

No product purchase is required to participate and market the program at any level. When a new associate decides to purchase the products, the qualification process becomes shorter. No commissions are earned solely on enrolling others into the program. The sales all come from product purchases and not enrollments. No money is made if no products are sold.

[edit] Business Model

Liberty League International’s business model is a hybrid based model combining direct sales and Network Marketing. A 2up compensation plan which at the "Beyond Freedom" level requires the first two sales made by a new associate who decides to purchase the products themselves, to pass those two sales up and pay his/her enrolling advisor, before earning money themselves. These are called "Referred Training Sales". These sales must come from the new associates own marketing efforts. Once this qualification is met, the new associate is now qualified as a Beyond Freedom advisor, and earns profit from each personal sale he/she can make from their own marketing efforts there after. The process repeats over again with each new associate brought on board duplicating the same thing over and over. If a new associate decides not to purchase the product for themselves, he/she must pass up their first 5 Beyond Freedom sales instead of only 2, which pay his/her advisor before then becoming qualified. LLI refers to its new independent distributors as associates. Qualified associates become advisors. Independent associates and advisors market Liberty League International's three personal development products at $1,495, $7,995, and $12,995 each.

[edit] Corporate Governance/Compliance

Liberty League International has implemented a Compliance Department to deal with monitoring proper Associate conduct in addition to interpreting rules and regulations that affect the direct selling and Network Marketing industry. The department is run by the Chief Compliance Officer, Nadine Boisnier. The company has also implemented a Chief Financial Officer, Tony Thomas, to run the business operations of the company. The company has a Compliance Guide which provides guidelines to help ensure all Associates have the same equal opportunities. Compliance initiatives help ensure proper Associate conduct as well as procedures for solving potential problems. Other attributes of compliance include enhancing and maintaining the reputation and image of the company to help build an environment of goodwill, service and integrity. The Compliance guide is updated annually. Certain sections of the compliance guide include: Code of Ethics, Associate Practices, Prohibited Activities, Advertising and Promotion, and Field Enforcement Procedures.

[edit] State of Arizona vs Liberty League International

In May 2006, Brent Payne and Shane Krider received a $115,000.00 fine from the Arizona Attorney General.

The Arizona Attorney General obtained a consent judgment against Liberty League International and its principals, Brent Payne and Shane Krider. The judgment against Liberty League was a result of an investigation by the Attorney General that was prompted by numerous consumer complaints. Liberty League International is a multi-level marketing company that sells "personal development" products. The State alleged that the defendants tricked customers into spending substantial amounts of money by promising "sizable commissions" if they recruited new participants into the program who were willing to purchase the products. As with many, if not most, multi-level marketing companies, recruitment became continuously more difficult as more and more individuals joined the program. The vast majority of Liberty League participants earned little or no income from the business.

In addition to the civil penalties, attorney’s fees, and restitution, the defendants are also required to:

  • Refrain from making unsubstantiated income claims.
  • Advise potential customers of the correct percentage of participants who have made a profit through their participation in the Liberty League program.
  • Refrain from making any false or deceptive statements in their marketing materials.

The terms of the Consent Judgment require Liberty League to comply with the Arizona Consumer Fraud Act and the Pyramid Promotional Schemes Statute. Defendants are prohibited from marketing unsubstantiated income claims and any false or deceptive statements. Defendants are also required to advise potential customers of the correct percentage of participants who make a profit through the promotion of the program.

The Consent Judgment requires defendants to pay the Attorney General civil penalties in the amount of $100,000.00 as well as costs and fees in the amount of $15,000.00. The civil penalties and costs and fees were placed in the Consumer Revolving Fund. Additionally, defendants will make partial restitution to approximately 60 consumers who had filed complaints before June 17, 2006.

[edit] See also

[edit] Corporate Websites

[edit] Other Websites

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