10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

[X]	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2012
[ ]	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from __________ to __________
Commission File Number: 333-165961

DM Products, Inc.

(Exact name of registrant as specified in its charter)

Nevada	45-0460095
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

P.O. Box 2458

Walnut Creek, CA

(Address of principal executive offices)

925-943-2090

(Registrant’s telephone number)

_______________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days [X] Yes [  ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [ ] Yes    [X] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

[ ] Large accelerated filer Accelerated filer	[ ] Non-accelerated filer
[X] Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [ ] Yes   [X] No

State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 273,339,011 common shares as of November 5, 2012.

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	TABLE OF CONTENTS	Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	19
Item 4T:	Controls and Procedures	19
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	20
Item 1A:	Risk Factors	20
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 3:	Defaults Upon Senior Securities	20
Item 4:	Mine Safety Disclosures	20
Item 5:	Other Information	20
Item 6:	Exhibits	20

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PART I - FINANCIAL INFORMATION

Item 1.     Financial Statements

Our financial statements included in this Form 10-Q are as follows:
F-1	Consolidated Balance Sheets as of September 30, 2012 and December 31, 2011 (unaudited) ;
F-2	Consolidated Statements of Operations for the three and nine months ended September 30, 2012 and 2011 (unaudited);
F-3	Consolidated Statement of Stockholders’ Equity as of September 30, 2012 (unaudited);
F-4	Consolidated Statements of Cash Flows for the nine months ended September 30, 2012 and 2011 (unaudited); and
F-5	Notes to Consolidated Financial Statements.

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q.  In the opinion of management, all adjustments considered necessary for a fair presentation have been included.  Operating results for the interim period ended September 30, 2012 are not necessarily indicative of the results that can be expected for the full year.

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DM Products, Inc. And Subsidiaries
Consolidated Balance Sheets
(Unaudited)
	September 30, 2012			December 31, 2011
ASSETS
Current Assets
Cash and cash equivalents	$	17,362		$	26,089
Royalties Receivable		10,826			15,835
Prepaid Expense		0			10,656
Total Current Assets		28,188			52,580
Property and Equipment - net		503			728
TOTAL ASSETS	$	28,691		$	53,308
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts Payable	$	52,070		$	45,321
Accrued Expenses		263,653			173,653
Sales Tax Payable		2,424			2,424
Total Current Liabilities		318,147			221,398
Total Liabilities	$	318,147		$	221,398
Stockholders' Equity (Deficit)
Preferred Stock, $0.001 par value, 30,000,000 shares authorized, 0 shares issued and outstanding		-			-
Common Stock, $0.001 par value, 400,000,000 shares authorized, 273,339,011 shares issued and outstanding (282,720,684 - 2011)		273,339			282,721
Additional Paid In Capital		642,345			632,963
Accumulated Deficit		(1,496,052	)		(1,356,080	)
Total DM Products, Inc. Stockholders' Equity (Deficit)		(580,368	)		(440,396	)
Non-Controlling Interest		290,912			272,306
Total Stockholders' Equity (Deficit)		(289,456	)		(168,090	)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)	$	28,691		$	53,308

See accompanying notes to financial statements.

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DM Products, Inc. And Subsidiaries
Consolidated Statements of Operations
(Unaudited)
	For the 3 months ended			For the 3 months ended		For the 9 months ended			For the 9 months ended
	September 30, 2012			September 30, 2011		September 30, 2012			September 30, 2011
Revenues
Royalty income	$	39,928		$	113,087	$	79,868		$	165,545
Total revenues		39,928			113,087		79,868			165,545
Operating expenses
Professional Fees		6,480			10,419		19,081			49,656
Salary & Wages		30,000			32,000		90,500			97,663
Consulting		268			10,298		12,768			19,527
General & Administrative expenses		28,138			15,002		78,885			49,460
Total operating expense		64,886			67,719		201,234			216,306
Income (Loss) from operations and before non-controlling Interest		(24,958	)		45,368		(121,366	)		(50,761	)
Less: Income Attributable to non-controlling interest		9,484			27,782		18,606			39,901
Income (Loss) before income taxes		(34,442	)		17,586		(139,972	)		(90,662	)
Provision for income taxes		-			-		-			-
Net Income (Loss)	$	(34,442	)	$	17,586	$	(139,972	)	$	(90,662	)
Net Income (Loss) per common share-basic and fully diluted	$	(0.0001	)	$	0.0001	$	(0.0005	)	$	(0.0004	)
Weighted average common shares outstanding-basic and diluted		276,283,624			239,937,352		276,283,624			239,937,352

See accompanying notes to financial statements.

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DM Products, Inc. And Subsidiaries
Consolidated Statements of Shareholders' Equity (Deficit)
(Unaudited)
	Common Stock						Additional Paid In Capital			Non-Controlling Interest		Accumulated Deficit			Total Shareholders' Equity (Deficit)
	Shares			Amount
Balance, December 31, 2011		282,720,684		$	282,721		$	632,963		$	272,306	$	(1,356,080	)	$	(168,090	)
Shares surrendered per settlement and release agreement		(14,863,337	)		(14,864	)		14,864								-
Shares issued per settlement and release agreement		5,481,664			5,482			(5,482	)							-
Net income (loss) for the period ended September 30, 2012		-			-			-			18,606		(139,972	)		(121,366	)
													-
Balance, September 30, 2012		273,339,011		$	273,339		$	642,345		$	290,912	$	(1,496,052	)	$	(289,456	)

See accompanying notes to financial statements.

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DM Products, Inc. And Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
	For the 9 months ended			For the 9 months ended
	September 30, 2012			September 30, 2011
Cash flows from operating activities
Net Loss	$	(121,366	)	$	(50,760	)
Adjustment to reconcile net loss to net cash provided (used) by operating activities:
Depreciation		225			300
Changes in operating assets and liabilities:
Royalties receivable		5,009			(37,706	)
Employee Advances		-			5,000
Prepaid Expenses		10,656			(4,445	)
Accounts payable		6,749			10,378
Accrued Expenses		90,000			90,000
Net cash provided (used) by operating activities		(8,727	)		12,767
Cash flows from financing activities
Net decrease in credit card balances		-			(7,632	)
Net cash (used) by financing activities		-			(7,632	)
Net increase (decrease) in cash		(8,727	)		5,135
Cash at beginning of period		26,089			2,714
Cash at end of period	$	17,362		$	7,849
Supplemental disclosure of cash flow information:
Interest paid	$	734		$	776
Taxes paid	$	3,550		$	5,250

See accompanying notes to financial statements.

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Note 1: Summary of Significant Accounting Policies     

Nature of Operations

DM Products, Inc. (the Company) was incorporated on March 1, 2001 as Effective Sport Nutrition Corporation. Subsequently, on April 11, 2005, the Company changed its name to Midwest E.S.W.T Corp and on December 14, 2005, it changed its name again to DM Products, Inc.

On July 18, 2005, the Company acquired Direct Success, Inc. a California Corporation in exchange for 70% of the Company's Common Stock, making Direct Success, Inc. a wholly owned subsidiary of the Company. Midwest E.S.W.T agreed that a total of 114,851,043 shares of Restricted Common Stock were to be issued to shareholders of Direct Success, Inc.

The Company operates from Walnut Creek, California and it wholly owns Direct Success, Inc., which owns 75% of Direct Success, LLC 3, a limited liability company formed on or about August 16, 2002. Direct Success, Inc. entered into a joint venture with Buena Vista Infomercial Corporation which owns the remaining 25% of Direct Success, LLC 3. The purpose of Direct Success, Inc. is to market products through direct response television infomercials. The companies obtain the distribution, production and licensing rights to products in exchange for royalty agreements based on the sales of the products.  The Company sets up the production, marketing and the distribution of the products.

On July 14, 2010 the Company incorporated a wholly owned subsidiary corporation, Aliano, Inc., dba Aliano Westlake Village. The purpose of this fragrance and personal care division is to create, manufacture, distribute and sell prestige fragrances and beauty related products. Effective as of July 26, 2010, Aliano Inc. entered into an agreement with Portia Entertainment Group LLC for legal services described in the agreement. As per the agreement, Portia Entertainment Group LLC is entitled to receive a fee of 5% on the Net Income earned by Aliano Inc. for celebrity endorsees introduce by Portia.

On April 8, 2010, a Form S-1 Registration Statement was completed and submitted to the Securities and Exchange Commission. The registration filing was declared effective on October 15, 2010. On April 21, 2010, an Information Statement Form 211 was submitted to the Financial Industry Regulatory Authority (FINRA) for active trading on the Over the Counter Bulletin Board (OTCBB). The filing was approved on November 09, 2010.

On December 27, 2011 the Company dissolved Aliano, Inc., dba Aliano Westlake Village since the corporation has been unsuccessful  in raising sufficient capital to commence operations. As a result of this dissolution the intercompany loan between the Company and Aliano, Inc. were written off in the respective books with no effect in the consolidated balance sheet and in the consolidated statement of operations.

On April 11, 2012, Articles of Incorporation were filed with the California Secretary of State for the creation of a new division, ELK Films, Inc. This division has been established for both film production and distribution.

Basis of Consolidation        

The consolidated financial statements include the accounts of DM Products, Inc., Direct Success, Inc., Aliano, Inc. and the accounts of its 75% owned subsidiary Direct Success LLC 3. All material inter-company transactions have been eliminated.

Basis of Presentation           

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

Accounting Basis           

The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted a December 31 fiscal year end.

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Cash and Cash Equivalents        

All highly liquid investments with maturities of three months or less are considered to be cash equivalents.  At September 30, 2012 and December 31, 2011, the Company had cash balances of $17,362 and $26,089, respectively.

Fair Value of Financial Instruments        

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, prepaid expense, accounts payable, sales tax payable, and other current liabilities. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates, unless otherwise disclosed in these financial statements.

Income Taxes           

Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax, assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of September 30, 2012, there have been no interest or penalties incurred on income taxes.

Use of Estimates           

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Revenue Recognition           

The Company records revenue in accordance with ASC Topic 605 - Revenue Recognition. During the period  ended September  30, 2012  revenues came from royalties from the contract Banjo Minnow the fishing lure with TriStar Products, Inc. Revenues derived from the Company license sales are recognized when (1) there is evidence of an arrangement, (2) collection of our fee is considered probable, and (3) the fee is fixed and determinable.

Direct Success entered into a manufacturing, marketing and distribution agreement with Banjo Buddies, who is the inventor of Banjo Minnow, a fishing lure which Direct Success LLC 3 had a license agreement to market the product since Oct 2002. The Company entered into a modification of said agreement in April 2005. On September 30, 2011 the Company exercised their option to extend the Banjo Minnow agreement until June 30, 2012. On or about May 11, 2005,  Direct Success LLC 3, subcontracted the manufacturing and distribution rights to TriStar Products, Inc.  In March 2007, Direct Success granted back to Banjo, the right to license and privilege for internet sales and small parts sale of the product. Under the agreement, Banjo will pay Direct Success 4% royalty on all gross sales of product. As of date of settlement, effective January 1, 2010, Direct Success no longer receives the 4% royalty for internet and part sales from Banjo Buddies. The revenues are strictly based on the contractual obligation contained in the agreement with Tristar Products, Inc., which are the royalties received from the sales of the Banjo Minnow. These royalty arrangements with Tristar provide the Company with a flat $4.00 (for unit sales under $18) and $5.00 (for unit sales over $18), per unit sold domestically, and $2.50 per unit sold internationally. The present retail price for the Banjo Minnow is $19.95.

Concentration of Risk           

The Company is earning (over 90%) the majority of the royalty income from Tristar Products, Inc. Since the Company is depending on Tristar Products, Inc., the inability of Tristar to perform in the future may have a material adverse effect on the Company’s financial condition.

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Advertising Policy           

The Company recognizes advertising expense as incurred. The advertising expense for the three and nine month periods ended September 30, 2012 and September 30, 2011 are $0 and $150 respectively.

Basic Income (Loss) Per Share        

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of September 30, 2012.

Stock-Based Compensation        

The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation – Stock Compensation, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. In 2011, 19,999,999 common shares were issued at the fair market value of $0.0015 per share totaling to $30,000. There was no stock-based compensation granted during the period ended September 30, 2012.

The Company follows ASC Topic 505-50, formerly EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees.  In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined.  The fair value of the equity instrument is charged directly to operating expense and additional paid-in capital over the period during which services are rendered. In 2011, 22,783,333 common shares were issued at the fair market value of $0.0015 per share totaling to $34,175. There was no stock-based compensation issued to non-employees during the period ended September 30, 2012.

Recent Accounting Pronouncements        

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

Note 2: Property & Equipment        

Property and equipment are carried at cost. Major expenditures and those which substantially increase useful lives are capitalized. Maintenance, repairs and minor renewals are charged to operations when incurred. When property and equipment is sold or otherwise disposed of, the asset account and related accumulated depreciation account are relieved, and any gain or loss is included in operations. Once placed in service, depreciable assets are depreciated over their estimated useful lives using both accelerated and straight-line methods.

Depreciation expenses totaled $225 and $300 for the nine month periods ended September 30, 2012 and  September 30, 2011, respectively.

10

Note 3: Prepaid Expenses        

Prepaid expenses consisted of the following at September 30, 2012 and December 31, 2011:

	2012		2011
Prepaid insurance	$	0	$	10,656
Total Prepaid Expenses	$	0	$	10,656

Note 4: Non-Controlling Interest        

The Company has owned 75% of Direct Success LLC 3 (LLC 3) since 2002. The assets and liabilities of Direct Success LLC 3 have been included in these consolidated financial statements. The 25% of LLC 3 not owned by the Company has been presented as a non-controlling interest in these financial statements.

Note 5: Accrued Expenses        

Accrued expenses consisted of the following at September 30, 2012 and December 31, 2011:

	2012		2011
Accrued Wages	$	255,653	$	165,653
Accrued Directors' Fees	$	8,000	$	8,000
Total Prepaid Expenses	$	263,653	$	173,653

Wages are accrued under an employee agreement entered into on the 20th day of April, 2007 by and between the Company and its President. According to the agreement, employee's starting salary is $6,000 per month during the first 90 days following execution of the agreement or until $500,000 in capital is raised. After such period of time, employee's salary shall be increased to $10,000 per month. Should the company determine it in the best interest not to pay employee's entire monthly compensation, at any time, any such compensation shall be treated as deferred compensation and will accumulate on the books and provided to employee, at employee's sole discretion, taking into consideration the funds available and the best interest of the Company.

The accrued wages owed under the employment agreement as of September 30, 2012 and December 31, 2011, respectively, were $255,653 and $165,653.

Salary expense to the related party was $90,000 and $90,000 for the nine months ended September 30, 2012 and September 30, 2011, respectively.

The Board of Directors passed a resolution on October 15, 2011 to compensate Directors, Secretary, Treasurer, CEO, President and Board Chairman by issuing common stock annually. This policy is retroactive with an effective date of January 1, 2010. Per the policy the Company owed Kurtis Cockrum who is a Director, CEO, President and Board Chairman $6,000 worth of common stock, James Clarke who is a Director, Secretary and Treasurer $2,000 worth of common stock as of December 31, 2011. This amount has been recorded as director fees at December 31, 2011.

Note 6: Related Party Transactions        

The Company has entered into  a consulting contract with Michael DeBenon, Esq., a stockholder of the Company, for $6,000 per month on a month to month basis for general counsel. Legal expenses to the related party were $0 and $18,000 for the nine months ended September 30, 2012 and September 30, 2011, respectively.

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Note 7: Common Stock           

The Company has 430,000,000 shares of capital stock, consisting of 400,000,000 shares of $0.001 par value common stock,  and 30,000,000 shares of $0.001 par value preferred stock. The Company had 273,339,011 shares of common stock issued and outstanding as of September 30, 2012 and 239,937,352 shares issued and outstanding as of September 30, 2011.

On March 26, 2012, 3,390,834 shares of $0.001 par value common stock owned by Celecia Family Trust were surrendered per a Settlement and Release Agreement.

On March 26, 2012, 3,390,834 shares of $0.001 par value common stock owned by Koontz Family Trust were surrendered per a Settlement and Release Agreement.

On March 26, 2012, 8,081,669 shares of $0.001 par value common stock owned by K & B Kerry Living Trust were surrendered per a Settlement and Release Agreement.

On March 26, 2012, 5,481,664 shares of $0.001 par value common stock were issued to Tony L. Kerry and Erika D. Kerry Revocable Trust per a Settlement and Release Agreement.

Note 8: Commitments and Contingencies        

The CEO and employees of the Company work from their homes. The fair market value of rents contributed by the related parties are estimated to be $50.00 per month, which is immaterial to the Company's financial statements, and has not been recorded on the Company's books.

Note 9: Income Taxes           

As of September 30, 2012, the Company had net operating loss carry forwards of approximately $1,472,067 that may be available to reduce future years’ taxable income through 2032. Future tax benefits, which may arise as a result of these losses, have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

The provision for federal income tax consists of the following for the nine months ended:     

	September  30, 2012			September 30, 2011
Federal income tax benefit attributable to:
Current Operations	$	41,264		$	17,258
Less: valuation allowance	$	(41,264	)	$	(17,258	)
Net provision for Federal income taxes	~			~

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

	September  30, 2012			December  31,  2011
Deferred tax asset attributable to:
Net operating loss carryover	$	502,331		$	461,067
Less: valuation allowance	$	(502,331	)	$	(461,067	)
Net deferred tax asset	~			~

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Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $1,472,067 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, the net operating loss carry forwards may be limited as to use in future years.

Note 10: Going Concern        

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has sustained substantial losses since inception, has a working capital deficit, and is in need of additional capital to grow its operations so that it can become profitable.

In view of these matters, the ability of the Company to continue as a going concern is dependent upon growth of revenues and the ability of the Company to raise additional capital.  Management believes that its successful ability to raise capital and increases in revenues will provide the opportunity for the Company to continue as a going concern.

Note 11: Subsequent Events        

There are no subsequent events to report.

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Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.   These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions.  We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions.  Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.  Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.  We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.  Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

Executive Overview

We, through our wholly owned subsidiary, Direct Success, Inc., develop, finance, produce, market and distribute beauty, fashion, fitness and other products for sale through infomercial marketing and distribution channels. Profits are derived from inbound sales, outbound sales, up sells and retail distribution. Our primary objective is to penetrate this rapidly expanding industry by introducing consumer products to national and international markets through a series of infomercial campaigns. We intend to aggressively develop, finance, produce and market various new products for television infomercials. We intend to systematically expand our product list using a direct response model.

Our operational strategy consists of employing one of three distinct business alternatives for each product/infomercial:

· Complete Project Funding - The Company would obtain the exclusive licensing rights to products and pay a nominal royalty (2-5%) of gross sales to the product developer;

· Joint Venture Projects - The Company would share costs of production, marketing and distribution and would share revenues with product developers; and

· Straight Royalty Arrangements - The Company would partially finance the infomercials in exchange for a fixed royalty on gross sales.

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Of course, the key to our ability to continually attract new products and new product developers will, in large part, determine our success. As part of our strategy, we intend to, and have developed, strategic alliances with strong companies that are established operators in the infomercial and advertising industry.  These companies include TriStar Products, Inc. and Script-to-Screen.

Our business is focused on improving shareholder returns with a particular emphasis on profitability and capital productivity.

Economic and market conditions have been, and continue to be, disruptive and volatile.  The availability and cost of credit and currency volatility have obviously contributed to diminished expectations for the economy.  These conditions, along with reduced consumer confidence and increased unemployment, have contributed to reductions in consumer spending, particularly on discretionary products such as the ones offered by DM Products.

Although we continually adjust our procurement, marketing and production schedules, together with an acute awareness of production costs, it is still uncertain as to when the economy will recover, and it is not clear that our current activities will sufficiently offset the impact of the poor economy on our net sales.

Plan of Operation

Since its acquisition of Direct Success, Inc. in July, 2005, we have focused primarily on the manufacturing, marketing, sale, and distribution of the Banjo Minnow Fishing Lure System (“Banjo Minnow”), via a direct marketing campaign, primarily promoted through the production and airing of a thirty minute infomercial.  The exclusive rights to the Banjo Minnow were acquired through a Manufacturing, Marketing and Distribution Agreement entered into between Direct Success, LLC#3 and Banjo Buddies, Inc., dated October 10, 2003 (prior to the company’s acquisition of Direct Success, Inc

Direct Success, Inc., on or about August 16, 2003, entered into a joint venture with Buena Vista Infomercials, Inc. and formed Direct Success, LLC #3 (a Delaware Limited Liability Company) for the purpose of acquiring the exclusive manufacturing and distribution rights to the Banjo Minnow.   Direct Success, LLC #3 is 75% owned by Direct Success, Inc, while the remaining 25% is owned by Buena Vista Infomercials, Inc.

On or about October 10, 2003, Direct Success, LLC #3 entered into an agreement with Banjo Buddies Inc. (the owner and inventor of the lure) in which Banjo granted to Direct Success, LLC #3 the exclusive rights to manufacture, use, distribute, sell, advertise, promote and otherwise exploit the Banjo Minnow.  Direct Success, Inc. produced and financed the current infomercial featuring the Banjo Minnow and invested substantial capital in its promotion.

On or about May 11, 2005, Direct Success, LLC #3 subcontracted the manufacturing and distribution rights to TriStar Products, Inc.  Pursuant to this subcontract, Direct Success, LLC #3 receives a royalty, based on sales generated by TriStar.

Our rights under the Manufacturing, Marketing and Distribution Agreement terminated on June 30, 2012.  However, we expect to receive royalty payments from Tristar for several months following the contract’s termination.

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Diversification

We realize the need to expand on the products offered to consumers, thereby diversifying our commitments and attracting new customers.  Our directors and officers are consistently approached with ideas for new products from various individuals and companies. It is expected that our officers and directors will continue to be “pitched” for new product ideas and that our referral sources will grow as we gain recognition in the infomercial industry. As opportunities arise, our officers and directors will present potential product ideas to our Board of Directors for its discussion and review.

In deciding which products to pursue, our Board will consider, among other things, the product's viability, costs of development and marketing, acceptable sales price point per unit, as well as the product's overall likelihood of success. In some instances, our Board may retain an outside consultant to evaluate such things as the product's likely market appeal or the product's optimal price point. Although we expect that our directors and officers will continue to be approached by inventors with viable products without any solicitation, the Board of Directors may decide to solicit product pitches or ideas in the future if the Board believes that such a strategy would be in the our best interest.

If the Board approves a product for further development, we intend to retain outside parties to produce the infomercial, assist in the design, the overall marketing campaign and sales process, and source and manufacture the product for competitive rates. When determining what parties to retain for these services, our Board of Directors will consider several factors, including a proven track record, cost and the ability to meet our timetable. We do not intend to retain any one service provider exclusively, and, instead we intend to seek competitive bids from numerous potential providers for each infomercial campaign.

Motion Picture Production and Distribution Division

On April 11, 2012, the Board of Directors of DM Products, Inc. (“DMP”) entered into a resolution for the formation of a wholly owned subsidiary corporation, ELK Films, Inc. (“ELK”), a California corporation. Articles of Incorporation were filed with the California Secretary of State on April 12, 2012. The subsidiary has been established to become a film distribution and production company in the motion picture industry.

Our pursuit of this line of business is, however, conditioned upon our ability to raise capital to fund this new line of business.

16

General

Our results of operations may vary significantly from period-to-period.  Our revenues will fluctuate due to the seasonality of our products, customer buying patterns, product innovations and competition, our ability to meet customer demand, media and advertising campaigns, and our ability to attract new customers and renew existing sales relationships.  In addition, our revenues are highly susceptible to economic factors, including, among other things:  the overall condition of the U.S. economy and economics of other countries where we market our products; and the availability of credit, both in the U.S. and abroad.

Results of Operations for the three and nine months ended September 30, 2012

Our revenue was $39,928 for the three months ended September 30, 2012, a decrease of $73,159 for the same period ended September 30, 2011, respectively. Our revenue was $ 79,868 and for the nine month periods ended September 30, 2012, a decrease of $85,677 for the same period ended  September 30, 2011, respectively. For all periods mentioned above, our revenues were solely based on royalty payments, thus, our cost of goods sold during this period was zero. The contractual term of our rights concerning the Banjo Minnow terminated on June 30, 2012.  However, we anticipate receiving royalty payments for the next several months.

Revenues during the first quarter of our fiscal year are traditionally low due to the seasonality of the fishing industry.  Since our sole source of revenue, at this time, is based on sales of the Banjo Minnow Fishing Lure, management is not surprised with the amount received.  It has been the company’s experience that revenues increase during the second and third quarters of each fiscal year.

We have incurred an operating loss in the amount of $24,958 and net loss in the amount of $34,442 for the three months ended September 30, 2012 as compared to an operating profit of $45,368 and net profit in the amount of $17,586 for the nine month period ended September 30, 2012 and September 30, 2011, respectively.

Factors contributing to the increased expenses during this same period were primarily the result of our forming ELK Films and our due diligence in investigating the possibilities of this motion picture production and distribution division.   

17

Liquidity and Capital Resources

As of September 30, 2012, we had total current assets in the amount of $28,188, consisting of $17,362 in cash, $10,826 in Tristar Receivables, and $0.00 in Prepaid Expenses.  Our current liabilities as of September 30, 2012 were $318,147.  We had a working capital deficit of $(289,959) as of September 30, 2012.

Our current monthly fixed expenses (“Burn Rate”) are approximately $30,000.  Since the termination of our rights concerning the Banjo Minnow, and the cessation of royalties, we will shortly be faced with depletion of funds should we not manage to raise additional capital or put in place new revenue streams.

We expect to launch our film distribution and production division (ELK Films, Inc.) once sufficient capital is acquired for this purpose.    The expected short term cost associated with developing this line of business is roughly $ 100,000.  This money will be used to pay our management team, consultants, and to secure immediate distribution rights to targeted and completed films.

As of September 30, 2012, our cash reserves were $17,362 and we do have a line of credit which enables us to access $45,000.   If we need to and cannot raise additional capital, we would be forced to discontinue operations.

Off Balance Sheet Arrangements

As of September 30, 2012, there were no off balance sheet arrangements.

18

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

A smaller reporting company is not required to provide the information required by this Item.

Item 4T.     Controls and Procedures

Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2012.  This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, Kurtis Cockrum.  Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2012, our disclosure controls and procedures are effective.  There have been no changes in our internal controls over financial reporting during the quarter ended September 30, 2012.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Limitations on the Effectiveness of Internal Controls

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving our objectives and our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective at that reasonable assurance level.  Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

19

PART II – OTHER INFORMATION

Item 1.     Legal Proceedings

We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

Item 1A:  Risk Factors

A smaller reporting company is not required to provide the information required by this Item.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

There were no sales of equity securities during the period ended September 30, 2012.

Item 3.     Defaults upon Senior Securities

None

Item 4.     Mine Safety Disclosures

None

Item 5.     Other Information

None

Item 6.      Exhibits

Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

20

SIGNATURES

In accordance with the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	DM Products, Inc.
Date:	November 14, 2012
	By:       /s/ Kurtis Cockrum                                                                                                               Kurtis Cockrum Title:    Chief Executive Officer and Director

21

EX-31.1

CERTIFICATION

I, Kurtis Cockrum, certify that;

1.  I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2012 of DM Products, Inc. ( the  “registrant”);

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statement s were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15€ and 15d-15€ and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

a.  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidate subsidiaries, is made known to us by others within thos entities, particularly during the period in which this report is being prepared;

b.  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statement s for external purposes in accordance with generally accepted accounting principles;

c.  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s first fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or person performing the equivalent functions):

a.  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  November 14, 2012

/s/ Kurtis Cockrum

By:     Kurtis Cockrum

Title:  Chief Executive Officer

EX-31.2

CERTIFICATION

I, James Clarke, certify that;

1.  I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2012 of DM Products, Inc. ( the  “registrant”);

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statement s were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15€ and 15d-15€ and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

a.  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidate subsidiaries, is made known to us by others within thos entities, particularly during the period in which this report is being prepared;

b.  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statement s for external purposes in accordance with generally accepted accounting principles;

c.  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s first fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or person performing the equivalent functions):

a.  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  November 14, 2012

/s/ James Clarke

By:     James Clarke

Title:  Chief Executive Officer

EX-32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND

CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C  SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly Report of DM Products, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2012 filed with the Securities and Exchange Commission (the “Report”), I, Kurtis Cockrum and James Clarke, Chief Executive Officer and Chief Financial Officer, respectively, of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.  The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2.  The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated result of operations of the Company for the periods presented.

By:           /s/ Kurtis Cockrum

Name:                      Kurtis Cockrum

Title:           Principal Executive Officer and Director

Date:           November 14, 2012

By:           /s/ James Clarke

Name:           James Clarke

Title:           Principal Financial Officer and Director

Date:           November 14, 2012

XML

Note 6: Related Party Transactions (Details) (USD $)	3 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Consulting contract payment, per month	$ 6,000
Accrued consulting expenses, related party		18,000
Investor
Accrued consulting expenses, related party	$ 0

XML

Note 1: Summary of Significant Accounting Policies: Advertising Policy (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Advertising Expense	$ 0	$ 150

XML

Note 9: Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Current Income Tax Expense (Benefit)	$ 41,264	$ 17,258
Less: valuation allowance	(41,264)	(17,258)
Net provision for Federal income taxes

XML

Note 3: Prepaid Expenses

3 Months Ended

Sep. 30, 2012

Note 3: Prepaid Expenses:

Note 3: Prepaid Expenses

Note 3: Prepaid Expenses        

Prepaid expenses consisted of the following at September 30, 2012 and December 31, 2011:

	2012	2011
Prepaid insurance	$0	$10,656
Total Prepaid Expenses	$0	$10,656

XML

Note 5: Accrued Expenses: Schedule of Accounts Payable and Accrued Liabilities (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Accrued Salaries	$ 255,653	$ 165,653
Accrued Directors' Fees	8,000	8,000
Total Prepaid Expenses	$ 263,653	$ 173,653

XML

Note 3: Prepaid Expenses: Schedule of Prepaid Expenses (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Prepaid insurance	$ 0	$ 10,656
Total Prepaid Expenses	$ 0	$ 10,656

XML

Note 5: Accrued Expenses (Details) (President)	59 Months Ended
	Mar. 31, 2012
President
Description of employment contract	According to the agreement, employee's starting salary is $6,000 per month during the first 90 days following execution of the agreement or until $500,000 in capital is raised. After such period of time, employee's salary shall be increased to $10,000 per month.

XML

Note 5: Accrued Expenses: Accrued Expenses: Salary Expense (Details) (USD $)	3 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Salary expense to the related party	$ 90,000	$ 90,000

XML

Note 2: Property & Equipment

3 Months Ended

Sep. 30, 2012

Note 2: Property & Equipment:

Note 2: Property & Equipment

Note 2: Property & Equipment        

Property and equipment are carried at cost. Major expenditures and those which substantially increase useful lives are capitalized. Maintenance, repairs and minor renewals are charged to operations when incurred. When property and equipment is sold or otherwise disposed of, the asset account and related accumulated depreciation account are relieved, and any gain or loss is included in operations. Once placed in service, depreciable assets are depreciated over their estimated useful lives using both accelerated and straight-line methods.

Depreciation expenses totaled $225 and $300 for the nine month periods ended September 30, 2012 and  September 30, 2011, respectively.

XML

Note 5: Accrued Expenses: Accrued Expenses: Director Fees (Details) (USD $)	12 Months Ended
	Dec. 31, 2011
President
Directors fees	$ 6,000
Director
Directors fees	$ 2,000

XML

Consolidated Balance Sheets(Unaudited) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Current Assets
Cash and cash equivalents	$ 17,362	$ 26,089
Royalties Receivable	10,826	15,835
Prepaid Expense	0	10,656
Total Current Assets	28,188	52,580
Property and Equipment - net	503	728
TOTAL ASSETS	28,691	53,308
Current Liabilities
Accounts Payable	52,070	45,321
Accrued Expenses	263,653	173,653
Sales Tax Payable	2,424	2,424
Total Current Liabilities	318,147	221,398
Total Liabilities	318,147	221,398
Stockholders' Equity (Deficit)
Preferred Stock, $0.001 par value, 30,000,000 shares authorized, 0 shares issued and outstanding
Common Stock, $0.001 par value, 400,000,000 shares authorized, 273,339,011 shares issued and outstanding (282,720,684 - 2011)	273,339	282,721
Additional Paid In Capital	642,345	632,963
Accumulated Deficit	(1,496,052)	(1,356,080)
Total DM Products, Inc. Stockholders' Equity (Deficit)	(580,368)	(440,396)
Non-Controlling Interest	290,912	272,306
Total Stockholders' Equity (Deficit)	(289,456)	(168,090)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)	$ 28,691	$ 53,308

XML

Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities
Net Loss	$ (121,366)	$ (50,760)
Adjustment to reconcile net loss to net cash provided (used) by operating activities:
Depreciation	225	300
Changes in operating assets and liabilities:
Royalties receivable	5,009	(37,706)
Employee Advances		5,000
Prepaid Expenses	10,656	(4,445)
Accounts payable	6,749	10,378
Accrued Expenses	90,000	90,000
Net cash provided (used) by operating activities	(8,727)	12,767
Cash flows from financing activities
Net decrease in credit card balances		(7,632)
Net cash (used) by financing activities		(7,632)
Net increase (decrease) in cash	(8,727)	5,135
Cash at beginning of period	26,089	2,714
Cash at end of period	17,362	7,849
Supplemental disclosure of cash flow information:
Interest paid	734	776
Taxes paid	$ 3,550	$ 5,250

XML

Note 8: Commitments and Contingencies (Details) (USD $)	Sep. 30, 2012
Fair market value of rents contributed by related parties	$ 50.00

XML

Note 1: Summary of Significant Accounting Policies: Nature of Operations (Details)	Mar. 31, 2012	Jul. 26, 2010	Jul. 18, 2005
Business acquisition, percentage of ownership acquired			70.00%
Business acquisition, share exchange			114,851,043
Ownership percentage of subsidiary by company	75.00%
Ownership percentage of subsidiary by related party	25.00%
Equity distribution for services rendered, percentage		5.00%

XML

Note 9: Income Taxes (Details) (USD $)	3 Months Ended
	Sep. 30, 2012
Operating Loss Carryforwards	$ 1,472,067
Effective Income Tax Rate, Continuing Operations	34.00%

XML

Note 1: Summary of Significant Accounting Policies: Revenue Recognition (Details)	3 Months Ended
	Sep. 30, 2012	Mar. 01, 2007
Royalty fee percentage of gross sales		4.00%
Royalty Fee Description	As of date of settlement, effective January 1, 2010, Direct Success no longer receives the 4% royalty for internet and part sales from Banjo Buddies. The revenues are strictly based on the contractual obligation contained in the agreement with Tristar Products, Inc., which are the royalties received from the sales of the Banjo Minnow. These royalty arrangements with Tristar provide the Company with a flat $4.00 (for unit sales under $18) and $5.00 (for unit sales over $18), per unit sold domestically, and $2.50 per unit sold internationally. The present retail price for the Banjo Minnow is $19.95.

XML

Note 1: Summary of Significant Accounting Policies

3 Months Ended

Sep. 30, 2012

Note 1: Summary of Significant Accounting Policies:

Note 1: Summary of Significant Accounting Policies

Note 1: Summary of Significant Accounting Policies

Nature of Operations

DM Products, Inc. (the Company) was incorporated on March 1, 2001 as Effective Sport Nutrition Corporation. Subsequently, on April 11, 2005, the Company changed its name to Midwest E.S.W.T Corp and on December 14, 2005, it changed its name again to DM Products, Inc.

On July 18, 2005, the Company acquired Direct Success, Inc. a California Corporation in exchange for 70% of the Company's Common Stock, making Direct Success, Inc. a wholly owned subsidiary of the Company. Midwest E.S.W.T agreed that a total of 114,851,043 shares of Restricted Common Stock were to be issued to shareholders of Direct Success, Inc.

The Company operates from Walnut Creek, California and it wholly owns Direct Success, Inc., which owns 75% of Direct Success, LLC 3, a limited liability company formed on or about August 16, 2002. Direct Success, Inc. entered into a joint venture with Buena Vista Infomercial Corporation which owns the remaining 25% of Direct Success, LLC 3. The purpose of Direct Success, Inc. is to market products through direct response television infomercials. The companies obtain the distribution, production and licensing rights to products in exchange for royalty agreements based on the sales of the products.  The Company sets up the production, marketing and the distribution of the products.

On July 14, 2010 the Company incorporated a wholly owned subsidiary corporation, Aliano, Inc., dba Aliano Westlake Village. The purpose of this fragrance and personal care division is to create, manufacture, distribute and sell prestige fragrances and beauty related products. Effective as of July 26, 2010, Aliano Inc. entered into an agreement with Portia Entertainment Group LLC for legal services described in the agreement. As per the agreement, Portia Entertainment Group LLC is entitled to receive a fee of 5% on the Net Income earned by Aliano Inc. for celebrity endorsees introduce by Portia.

On April 8, 2010, a Form S-1 Registration Statement was completed and submitted to the Securities and Exchange Commission. The registration filing was declared effective on October 15, 2010. On April 21, 2010, an Information Statement Form 211 was submitted to the Financial Industry Regulatory Authority (FINRA) for active trading on the Over the Counter Bulletin Board (OTCBB). The filing was approved on November 09, 2010.

On December 27, 2011 the Company dissolved Aliano, Inc., dba Aliano Westlake Village since the corporation has been unsuccessful  in raising sufficient capital to commence operations. As a result of this dissolution the intercompany loan between the Company and Aliano, Inc. were written off in the respective books with no effect in the consolidated balance sheet and in the consolidated statement of operations.

On April 11, 2012, Articles of Incorporation were filed with the California Secretary of State for the creation of a new division, ELK Films, Inc. This division has been established for both film production and distribution.

Basis of Consolidation        

The consolidated financial statements include the accounts of DM Products, Inc., Direct Success, Inc., Aliano, Inc. and the accounts of its 75% owned subsidiary Direct Success LLC 3. All material inter-company transactions have been eliminated.

Basis of Presentation           

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

Accounting Basis           

The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted a December 31 fiscal year end.

Cash and Cash Equivalents        

All highly liquid investments with maturities of three months or less are considered to be cash equivalents.  At September 30, 2012 and December 31, 2011, the Company had cash balances of $17,362 and $26,089, respectively.

Fair Value of Financial Instruments        

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, prepaid expense, accounts payable, sales tax payable, and other current liabilities. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates, unless otherwise disclosed in these financial statements.

Income Taxes           

Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax, assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of September 30, 2012, there have been no interest or penalties incurred on income taxes.

Use of Estimates           

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Revenue Recognition           

The Company records revenue in accordance with ASC Topic 605 - Revenue Recognition. During the period  ended September  30, 2012  revenues came from royalties from the contract Banjo Minnow the fishing lure with TriStar Products, Inc. Revenues derived from the Company license sales are recognized when (1) there is evidence of an arrangement, (2) collection of our fee is considered probable, and (3) the fee is fixed and determinable.

Direct Success entered into a manufacturing, marketing and distribution agreement with Banjo Buddies, who is the inventor of Banjo Minnow, a fishing lure which Direct Success LLC 3 had a license agreement to market the product since Oct 2002. The Company entered into a modification of said agreement in April 2005. On September 30, 2011 the Company exercised their option to extend the Banjo Minnow agreement until June 30, 2012. On or about May 11, 2005,  Direct Success LLC 3, subcontracted the manufacturing and distribution rights to TriStar Products, Inc.  In March 2007, Direct Success granted back to Banjo, the right to license and privilege for internet sales and small parts sale of the product. Under the agreement, Banjo will pay Direct Success 4% royalty on all gross sales of product. As of date of settlement, effective January 1, 2010, Direct Success no longer receives the 4% royalty for internet and part sales from Banjo Buddies. The revenues are strictly based on the contractual obligation contained in the agreement with Tristar Products, Inc., which are the royalties received from the sales of the Banjo Minnow. These royalty arrangements with Tristar provide the Company with a flat $4.00 (for unit sales under $18) and $5.00 (for unit sales over $18), per unit sold domestically, and $2.50 per unit sold internationally. The present retail price for the Banjo Minnow is $19.95.

Concentration of Risk           

The Company is earning (over 90%) the majority of the royalty income from Tristar Products, Inc. Since the Company is depending on Tristar Products, Inc., the inability of Tristar to perform in the future may have a material adverse effect on the Company’s financial condition.

Advertising Policy           

The Company recognizes advertising expense as incurred. The advertising expense for the three and nine month periods ended September 30, 2012 and September 30, 2011 are $0 and $150 respectively.

Basic Income (Loss) Per Share        

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of September 30, 2012.

Stock-Based Compensation        

The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation – Stock Compensation, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. In 2011, 19,999,999 common shares were issued at the fair market value of $0.0015 per share totaling to $30,000. There was no stock-based compensation granted during the period ended September 30, 2012.

The Company follows ASC Topic 505-50, formerly EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees.  In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined.  The fair value of the equity instrument is charged directly to operating expense and additional paid-in capital over the period during which services are rendered. In 2011, 22,783,333 common shares were issued at the fair market value of $0.0015 per share totaling to $34,175. There was no stock-based compensation issued to non-employees during the period ended September 30, 2012.

Recent Accounting Pronouncements        

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

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Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Common Stock, par or stated value	$ 0.001	$ 0.001
Common Stock, shares authorized	400,000,000	400,000,000
Common Stock, shares issued	273,339,011	282,720,684
Common Stock, shares outstanding	273,339,011	282,720,684
Preferred Stock, par or stated value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	30,000,000	30,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0

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Note 11: Subsequent Events

3 Months Ended

Sep. 30, 2012

Note 11: Subsequent Events:

Note 11: Subsequent Events

Note 11: Subsequent Events

There are no subsequent events to report.

XML

Document and Entity Information	3 Months Ended
	Sep. 30, 2012	Nov. 05, 2012
Document and Entity Information
Entity Registrant Name	DM Products, Inc.
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Entity Central Index Key	0001485029
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		273,339,011
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

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Note 1: Summary of Significant Accounting Policies (Policies)

3 Months Ended

Sep. 30, 2012

Policies (Detail level 2):

Nature of Operations

Nature of Operations

DM Products, Inc. (the Company) was incorporated on March 1, 2001 as Effective Sport Nutrition Corporation. Subsequently, on April 11, 2005, the Company changed its name to Midwest E.S.W.T Corp and on December 14, 2005, it changed its name again to DM Products, Inc.

On July 18, 2005, the Company acquired Direct Success, Inc. a California Corporation in exchange for 70% of the Company's Common Stock, making Direct Success, Inc. a wholly owned subsidiary of the Company. Midwest E.S.W.T agreed that a total of 114,851,043 shares of Restricted Common Stock were to be issued to shareholders of Direct Success, Inc.

The Company operates from Walnut Creek, California and it wholly owns Direct Success, Inc., which owns 75% of Direct Success, LLC 3, a limited liability company formed on or about August 16, 2002. Direct Success, Inc. entered into a joint venture with Buena Vista Infomercial Corporation which owns the remaining 25% of Direct Success, LLC 3. The purpose of Direct Success, Inc. is to market products through direct response television infomercials. The companies obtain the distribution, production and licensing rights to products in exchange for royalty agreements based on the sales of the products.  The Company sets up the production, marketing and the distribution of the products.

On July 14, 2010 the Company incorporated a wholly owned subsidiary corporation, Aliano, Inc., dba Aliano Westlake Village. The purpose of this fragrance and personal care division is to create, manufacture, distribute and sell prestige fragrances and beauty related products. Effective as of July 26, 2010, Aliano Inc. entered into an agreement with Portia Entertainment Group LLC for legal services described in the agreement. As per the agreement, Portia Entertainment Group LLC is entitled to receive a fee of 5% on the Net Income earned by Aliano Inc. for celebrity endorsees introduce by Portia.

On April 8, 2010, a Form S-1 Registration Statement was completed and submitted to the Securities and Exchange Commission. The registration filing was declared effective on October 15, 2010. On April 21, 2010, an Information Statement Form 211 was submitted to the Financial Industry Regulatory Authority (FINRA) for active trading on the Over the Counter Bulletin Board (OTCBB). The filing was approved on November 09, 2010.

On December 27, 2011 the Company dissolved Aliano, Inc., dba Aliano Westlake Village since the corporation has been unsuccessful  in raising sufficient capital to commence operations. As a result of this dissolution the intercompany loan between the Company and Aliano, Inc. were written off in the respective books with no effect in the consolidated balance sheet and in the consolidated statement of operations.

On April 11, 2012, Articles of Incorporation were filed with the California Secretary of State for the creation of a new division, ELK Films, Inc. This division has been established for both film production and distribution.

Basis of Consolidation

Basis of Consolidation        

The consolidated financial statements include the accounts of DM Products, Inc., Direct Success, Inc., Aliano, Inc. and the accounts of its 75% owned subsidiary Direct Success LLC 3. All material inter-company transactions have been eliminated.

Basis of Presentation

Basis of Presentation           

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

Accounting Basis

Accounting Basis           

The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted a December 31 fiscal year end.

Cash and Cash Equivalents

Cash and Cash Equivalents        

All highly liquid investments with maturities of three months or less are considered to be cash equivalents.  At September 30, 2012 and December 31, 2011, the Company had cash balances of $17,362 and $26,089, respectively.

Fair Value of Financial Instruments

Fair Value of Financial Instruments        

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, prepaid expense, accounts payable, sales tax payable, and other current liabilities. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates, unless otherwise disclosed in these financial statements.

Income Taxes

Income Taxes           

Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax, assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of September 30, 2012, there have been no interest or penalties incurred on income taxes.

Use of Estimates

Use of Estimates           

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Revenue Recognition

Revenue Recognition           

The Company records revenue in accordance with ASC Topic 605 - Revenue Recognition. During the period  ended September  30, 2012  revenues came from royalties from the contract Banjo Minnow the fishing lure with TriStar Products, Inc. Revenues derived from the Company license sales are recognized when (1) there is evidence of an arrangement, (2) collection of our fee is considered probable, and (3) the fee is fixed and determinable.

Direct Success entered into a manufacturing, marketing and distribution agreement with Banjo Buddies, who is the inventor of Banjo Minnow, a fishing lure which Direct Success LLC 3 had a license agreement to market the product since Oct 2002. The Company entered into a modification of said agreement in April 2005. On September 30, 2011 the Company exercised their option to extend the Banjo Minnow agreement until June 30, 2012. On or about May 11, 2005,  Direct Success LLC 3, subcontracted the manufacturing and distribution rights to TriStar Products, Inc.  In March 2007, Direct Success granted back to Banjo, the right to license and privilege for internet sales and small parts sale of the product. Under the agreement, Banjo will pay Direct Success 4% royalty on all gross sales of product. As of date of settlement, effective January 1, 2010, Direct Success no longer receives the 4% royalty for internet and part sales from Banjo Buddies. The revenues are strictly based on the contractual obligation contained in the agreement with Tristar Products, Inc., which are the royalties received from the sales of the Banjo Minnow. These royalty arrangements with Tristar provide the Company with a flat $4.00 (for unit sales under $18) and $5.00 (for unit sales over $18), per unit sold domestically, and $2.50 per unit sold internationally. The present retail price for the Banjo Minnow is $19.95.

Concentration of Risk

Concentration of Risk           

The Company is earning (over 90%) the majority of the royalty income from Tristar Products, Inc. Since the Company is depending on Tristar Products, Inc., the inability of Tristar to perform in the future may have a material adverse effect on the Company’s financial condition.

Advertising Policy

Advertising Policy           

The Company recognizes advertising expense as incurred. The advertising expense for the three and nine month periods ended September 30, 2012 and September 30, 2011 are $0 and $150 respectively.

Basic Income (loss) Per Share

Basic Income (Loss) Per Share        

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of September 30, 2012.

Stock-based Compensation

Stock-Based Compensation        

The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation – Stock Compensation, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. In 2011, 19,999,999 common shares were issued at the fair market value of $0.0015 per share totaling to $30,000. There was no stock-based compensation granted during the period ended September 30, 2012.

The Company follows ASC Topic 505-50, formerly EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees.  In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined.  The fair value of the equity instrument is charged directly to operating expense and additional paid-in capital over the period during which services are rendered. In 2011, 22,783,333 common shares were issued at the fair market value of $0.0015 per share totaling to $34,175. There was no stock-based compensation issued to non-employees during the period ended September 30, 2012.

Recent Accounting Pronouncements

Recent Accounting Pronouncements        

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

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Consolidated Statements of Operations(Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues
Royalty income	$ 39,928	$ 113,087	$ 79,868	$ 165,545
Total revenues	39,928	113,087	79,868	165,545
Operating expenses
Professional Fees	6,480	10,419	19,081	49,656
Salary & Wages	30,000	32,000	90,500	97,663
Consulting	268	10,298	12,768	19,527
General & Administrative expenses	28,138	15,002	78,885	49,460
Total operating expense	64,886	67,719	201,234	216,306
Income (Loss) from operations and before non-controlling Interest	(24,958)	45,368	(121,366)	(50,761)
Less: Income Attributable to non-controlling interest	9,484	27,782	18,606	39,901
Income (Loss) before income taxes	(34,442)	17,586	(139,972)	(90,662)
Provision for income taxes
Net Income (Loss)	$ (34,442)	$ 17,586	$ (139,972)	$ (90,662)
Net Income (Loss) per common share-basic and fully diluted	$ (0.0001)	$ 0.0001	$ (0.0005)	$ (0.0004)
Weighted average common shares outstanding-basic and diluted	276,283,624	239,937,352	276,283,624	239,937,352

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Note 6: Related Party Transactions

3 Months Ended

Sep. 30, 2012

Note 6: Related Party Transactions:

Note 6: Related Party Transactions

Note 6: Related Party Transactions        

The Company has entered into  a consulting contract with Michael DeBenon, Esq., a stockholder of the Company, for $6,000 per month on a month to month basis for general counsel. Legal expenses to the related party were $0 and $18,000 for the nine months ended September 30, 2012 and September 30, 2011, respectively.

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Note 5: Accrued Expenses

3 Months Ended

Sep. 30, 2012

Note 5: Accrued Expenses:

Note 5: Accrued Expenses

Note 5: Accrued Expenses        

Accrued expenses consisted of the following at September 30, 2012 and December 31, 2011:

	2012	2011
Accrued Wages	$255,653	$165,653
Accrued Directors' Fees	$    8,000	$    8,000
Total Prepaid Expenses	$263,653	$173,653

Wages are accrued under an employee agreement entered into on the 20th day of April, 2007 by and between the Company and its President. According to the agreement, employee's starting salary is $6,000 per month during the first 90 days following execution of the agreement or until $500,000 in capital is raised. After such period of time, employee's salary shall be increased to $10,000 per month. Should the company determine it in the best interest not to pay employee's entire monthly compensation, at any time, any such compensation shall be treated as deferred compensation and will accumulate on the books and provided to employee, at employee's sole discretion, taking into consideration the funds available and the best interest of the Company.

The accrued wages owed under the employment agreement as of September 30, 2012 and December 31, 2011, respectively, were $255,653 and $165,653.

Salary expense to the related party was $90,000 and $90,000 for the nine months ended September 30, 2012 and September 30, 2011, respectively.

 The Board of Directors passed a resolution on October 15, 2011 to compensate Directors, Secretary, Treasurer, CEO, President and Board Chairman by issuing common stock annually. This policy is retroactive with an effective date of January 1, 2010. Per the policy the Company owed Kurtis Cockrum who is a Director, CEO, President and Board Chairman $6,000 worth of common stock, James Clarke who is a Director, Secretary and Treasurer $2,000 worth of common stock as of December 31, 2011. This amount has been recorded as director fees at December 31, 2011.

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Note 1: Summary of Significant Accounting Policies: Income Taxes (Details) (USD $)	Sep. 30, 2012
Interest or penalties incurred on income taxes	$ 0

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Note 3: Prepaid Expenses (Tables)

3 Months Ended

Sep. 30, 2012

Tables/Schedules (Detail level 3):

Schedule of Prepaid Expenses

Prepaid expenses consisted of the following at September 30, 2012 and December 31, 2011:

	2012	2011
Prepaid insurance	$0	$10,656
Total Prepaid Expenses	$0	$10,656

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Note 9: Income Taxes

3 Months Ended

Sep. 30, 2012

Note 9: Income Taxes:

Note 9: Income Taxes

Note 9: Income Taxes           

As of September 30, 2012, the Company had net operating loss carry forwards of approximately $1,472,067 that may be available to reduce future years’ taxable income through 2032. Future tax benefits, which may arise as a result of these losses, have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

The provision for federal income tax consists of the following for the nine months ended:     

	September  30, 2012	September 30, 2011
Federal income tax benefit attributable to:
Current Operations	$ 41,264	$ 17,258
Less: valuation allowance	$(41,264)	$(17,258)
Net provision for Federal income taxes	~	~

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

	September  30, 2012	December  31,  2011
Deferred tax asset attributable to:
Net operating loss carryover	$ 502,331	$ 461,067
Less: valuation allowance	$(502,331)	$(461,067)
Net deferred tax asset	~	~

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $1,472,067 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, the net operating loss carry forwards may be limited as to use in future years.

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Note 7: Common Stock

3 Months Ended

Sep. 30, 2012

Note 7: Common Stock:

Note 7: Common Stock

Note 7: Common Stock           

The Company has 430,000,000 shares of capital stock, consisting of 400,000,000 shares of $0.001 par value common stock,  and 30,000,000 shares of $0.001 par value preferred stock. The Company had 273,339,011 shares of common stock issued and outstanding as of September 30, 2012 and 239,937,352 shares issued and outstanding as of September 30, 2011.

On March 26, 2012, 3,390,834 shares of $0.001 par value common stock owned by Celecia Family Trust were surrendered per a Settlement and Release Agreement.

On March 26, 2012, 3,390,834 shares of $0.001 par value common stock owned by Koontz Family Trust were surrendered per a Settlement and Release Agreement.

On March 26, 2012, 8,081,669 shares of $0.001 par value common stock owned by K & B Kerry Living Trust were surrendered per a Settlement and Release Agreement.

On March 26, 2012, 5,481,664 shares of $0.001 par value common stock were issued to Tony L. Kerry and Erika D. Kerry Revocable Trust per a Settlement and Release Agreement.

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Note 8: Commitments and Contingencies

3 Months Ended

Sep. 30, 2012

Note 8: Commitments and Contingencies:

Note 8: Commitments and Contingencies

Note 8: Commitments and Contingencies        

The CEO and employees of the Company work from their homes. The fair market value of rents contributed by the related parties are estimated to be $50.00 per month, which is immaterial to the Company's financial statements, and has not been recorded on the Company's books.

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Note 10: Going Concern

3 Months Ended

Sep. 30, 2012

Note 10: Going Concern:

Note 10: Going Concern

Note 10: Going Concern        

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has sustained substantial losses since inception, has a working capital deficit, and is in need of additional capital to grow its operations so that it can become profitable.

In view of these matters, the ability of the Company to continue as a going concern is dependent upon growth of revenues and the ability of the Company to raise additional capital.  Management believes that its successful ability to raise capital and increases in revenues will provide the opportunity for the Company to continue as a going concern.

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Note 7: Common Stock (Details) (USD $)	Sep. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Mar. 31, 2011	Mar. 26, 2012 CeleciaFamilyTrustMember	Mar. 26, 2012 KoontzFamilyTrustMember	Mar. 26, 2012 K & B Kerry Living Trust	Mar. 26, 2012 TonyLKerryAndErikaDKerryRevocableTrustMember
Capital share, authorized	430,000,000
Common stock, shares authorized	400,000,000	400,000,000	400,000,000
Common stock, par value	$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares authorized	30,000,000	30,000,000	30,000,000
Preferred stock, par value	$ 0.001	$ 0.001	$ 0.001
Common stock, shares outstanding	273,339,011	273,339,011	282,720,684	239,937,352	239,937,352
Common stock surrendered per settlement and release agreement						3,390,834	3,390,834	8,081,669	5,481,664

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Note 9: Income Taxes (Tables)

3 Months Ended

Sep. 30, 2012

Tables/Schedules (Detail level 3):

Schedule of Components of Income Tax Expense (Benefit)

	September  30, 2012	September 30, 2011
Federal income tax benefit attributable to:
Current Operations	$ 41,264	$ 17,258
Less: valuation allowance	$(41,264)	$(17,258)
Net provision for Federal income taxes	~	~

Schedule of Deferred Tax Assets and Liabilities

	September  30, 2012	December  31,  2011
Deferred tax asset attributable to:
Net operating loss carryover	$ 502,331	$ 461,067
Less: valuation allowance	$(502,331)	$(461,067)
Net deferred tax asset	~	~

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Note 1: Summary of Significant Accounting Policies: Stock-based Compensation (Details) (USD $)	12 Months Ended
	Dec. 31, 2011
Stock-based compensation granted	19,999,999
Share-based compensation, fair market value price	$ 0.0015
Share-based compensation granted, total fair value	$ 30,000
Stock-based compensation issued to non-employees	22,783,333
Stock-based compensation issued to non-employees, fair market value price	$ 0.0015
Stock-based compensation issued to non-employees, total fair value value	$ 34,175

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Consolidated Statements of Shareholders' Equity (Deficit) (Unaudited) (USD $)	Common Stock	Additional Paid In Capital	Non-Controlling Interest	Accumulated Deficit	Stockholders' Equity, Total
Stockholders' Equity at Dec. 31, 2011	$ 282,721	$ 632,963	$ 272,306	$ (1,356,080)	$ (168,090)
Shares, Outstanding at Dec. 31, 2011	282,720,684
Shares surrendered per settlement and release agreement, value	(14,864)	14,864
Shares surrendered per settlement and release agreement, shares	(14,863,337)
Shares issued per settlement and release agreement, value	5,482	(5,482)
Shares issued per settlement and release agreement, shares	5,481,664
Net income (loss)			18,606	(139,972)	(121,366)
Stockholders' Equity at Mar. 31, 2012	$ 273,339	$ 642,345	$ 290,912	$ (1,496,052)	$ (289,456)
Shares, Outstanding at Mar. 31, 2012	273,339,011

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Note 4: Non-controlling Interest

3 Months Ended

Sep. 30, 2012

Note 4: Non-controlling Interest:

Note 4: Non-controlling Interest

Note 4: Non-Controlling Interest        

The Company has owned 75% of Direct Success LLC 3 (LLC 3) since 2002. The assets and liabilities of Direct Success LLC 3 have been included in these consolidated financial statements. The 25% of LLC 3 not owned by the Company has been presented as a non-controlling interest in these financial statements.

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Note 2: Property & Equipment: Property & Equipment (Details) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Depreciation expense	$ 225	$ 300

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Note 9: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Net operating loss carryover	$ 502,331	$ 461,067
Less: valuation allowance	(502,331)	(461,067)
Net deferred tax asset

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Note 5: Accrued Expenses (Tables)

3 Months Ended

Sep. 30, 2012

Tables/Schedules (Detail level 3):

Schedule of Accounts Payable and Accrued Liabilities

	2012	2011
Accrued Wages	$255,653	$165,653
Accrued Directors' Fees	$    8,000	$    8,000
Total Prepaid Expenses	$263,653	$173,653