In June 2006, RBC Life Sciences, Inc., a Nevada corporation, changed its name from Royal BodyCare, Inc. to RBC Life Sciences, Inc. We changed our name to more clearly identify our name with the products we sell, to reflect the advanced level of biotechnology that is incorporated into our product lines and to improve the direct marketing opportunity for our Associates. We are principally engaged in the marketing and distribution of nutritional supplements and personal care products (collectively "Nutritional Products"). This product line is marketed under the RBC Life Sciences brand and can be divided into four broad categories: (i) wellness products, (ii) weight loss products, (iii) fitness products and (iv) skin care products. The product line includes herbal formulas, vitamins, minerals, antioxidants and skin, hair and body care products.
In certain markets, primarily the United States and Canada, we market Nutritional Products through a network of independent distributors that we refer to as "Associates." We also market Nutritional Products in certain international markets through license arrangements. The licensees are third parties who are granted exclusive rights to distribute Nutritional Products in their respective territories and, for the most part, distribute these products through an independent distributor network in a licensed territory.
Associates are independent contractors who purchase products for personal use, purchase products for resale to retail customers and sponsor other individuals as Associates. Associates can derive compensation both from the direct sales of products and from sales generated by sponsored Associates. The marketing effort of our Associates involves person-to-person communication of information related to our products and the system by which they are marketed. We believe this feature makes network marketing a more effective means of marketing our products than in-store retail sales where there is little or no direct explanation of product benefits. Network marketing provides financial opportunity to a broad cross-section of people, including those seeking to simply supplement other income, as well as those who desire a full-time home-based business.
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