Here is an ad written in for a MLM in the weight loss industry. Instead of giving it the regular look of an MLM, I gave it a news appeal. Sales people are now ‘weight loss hosts.’ The term multi-level marketing is redefined to Weight Loss 2.0.
Entrepreneur gambles fortune. Guarantees 90 day weight loss to new, online community.
updated 8:43 a.m. PT, Tues., Aug 18, 2009
San Diego, CA
Businessman Ray Gatsby announced Monday that he is putting his personal fortune on the line to help members in his online community, CORE4Base.com, lose weight.
Ray believes the community solves a problem where traditional programs fail–motivation & consistency. If successful, his company Cal Nutrasciences, could take a healthy bite out of the $35B weight-loss industry.
CORE4Base.com members start by setting a weight loss goal with their ‘host.’ Hosts are mentors who provide encouragement and support. Hosts get paid when their members successfully lose weight. Many bring home a part time income from their efforts.
The goal is to help like minded people press on together. Members can connect with each other in forums. They can also start weight loss teams.
“Other weight loss products expect you to follow up with yourself… by yourself. That’s incredibly difficult. I’ve also seen products that make you hire an expensive coach or trainer,” Ray said.
He added, “Follow up is built into our community for free. You get two people together. Both are going through the exact same thing. They really want to help each other win.” Ray nicknamed the concept, Weight Loss 2.0.
If members give the CORE4 weight loss system an honest try, they are guaranteed results in 90 days. If they don’t get results, they get a complete refund. (CORE4 launched early 2009 for $180.) Since the company is new, most of that money comes out of Ray’s pocket. Including the $200,000 Lamborghini that he put toward the company’s marketing budget.
Ray’s company, Cal Nutrasciences, financed the community and does not plan to charge for membership. It appears the site is supported by banner ads. Most of which point the company’s CORE4 weight loss system.
We asked if it’s possible to participate in the community for free without buying CORE4. Ray said, “Yes. Our community is about helping others lose weight. CORE4 makes it faster and easier. But, you can participate even if you don’t use CORE4.”
We searched the community to see what kind of results people were getting with CORE4. We found a member named Sandra who wrote, “I’ve lost 23 pounds… I’ve also lost 2 dress sizes from size 20 to size 16.” Most members reported losing 5 to 30 pounds in the 90 day period.
Critics are quick to point out that hosts get paid referral commissions on CORE4. And anyone who buys CORE4 can become a host. When asked about this possible conflict of interest, Ray pulled out a stack of testimonials from his desk. He said many are from ordinary members–not hosts.
Ray explains, “Our members are losing weight because they’re getting the support and encouragement they need from Hosts. It’s only fair that we pay our Hosts.”
He added, “This Weight Loss 2.0 concept is totally revolutionary. People willing to try something new may be pleasantly surprised by the results.” At least, that’s where Ray’s putting his money.