You won’t be able to make a lot of money with the Dynamic Essentials MLM opportunity.

Why? Because it’s out of business.

But there is plenty to learn in the Dynamic Essentials story that can help you evaluate other MLMs.

First, a quick recap of what happened to them.

Dynamic Essentials was a fairly standard MLM firm in the nutritional supplements segment. But it ran afoul of the FDA, which cited it for making false claims and ordered $2.7 million worth of Dynamic Essential products destroyed. The company later settled FTC charges against it with a $2 million civil penalty.

So, how did Dynamic Essentials end up where it did, and how do you avoid being associated with a Dynamic Essentials-type company?

Most MLMs share a few common traits. Dynamic Essentials was no exception.

The company was founded by MLM experts. The opportunity was built around a “tent pole” product that had a marketable benefit and under which a wider product array was assembled. Then a multi-level direct-sales approach was created around that.

For Dynamic Essentials, its tent pole product, a supplement based on Royal Tongan Limu, provided both the opportunity and the problem.

The opportunity was a good story to tell. Limu is a seaweed-based food additive that is said to offer many health benefits. Dynamic Essentials used the name Royal Tongan Limu for their product and wove a story around the beauty and health of the Tongan people.

In this regard, Dynamic Essentials was very much like any other MLM company.

However, Dynamic Essentials ran into problems when the FDA sent a letter challenging some of the claims of benefits from Royal Tongan Limu. That eventually resulted in the product destruction mentioned above. And eventually Dynamic Essentials ceased as an MLM opportunity.

What can you learn from their experience?

Well, first is not to let this sour you on the MLM experience. There was nothing wrong with the Dynamic Essentials’ opportunity. It was a traditional MLM entrepreneurial business.

Second, don’t let this sour you on the health and nutrition segment.

In evaluating an MLM like Dynamic Essentials, I always look for the angle around which sales can take place. And this angle is also how you’ll recruit downline sales teams. Regardless of the product, Dynamic Essentials was completely typical in this regard.

The problem wasn’t with Dynamic Essentials’ niche, structure, or product. The FDA cited problems with claims about the product.

So maybe the biggest lesson to learn is to look carefully at the claims of an MLM you want to associate with. Dynamic Essentials could be around today and you could be part of it if the claims had been in line with the product benefits.

Finally, direct-sales companies like Dynamic Essentials come and go regularly. Direct sales, network marketing, relationship marketing . . . whatever you want to call it, is a great way to start a business for only a little money and then get paid for exactly what you create. Dynamic Essentials provided that opportunity.

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