This has kinda been the trend with other companies like iLG (ILearning Global).
This usually happens when the companies lose their top reps and can no longer
fund their business operations & commission structure. This is kinda old news
but I kept getting questions from Networkers as if this was really true.
(Editors Sidenote: Keep an eye on Arbonne. They have all of the signs of
an MLM company that could possibly follow that trend. I could be totally
wrong, hopefully I am. However they’ve lost an enormous amount of top
reps, especially after they filed bankruptcy due to their $700+ million
debt that went public. I know some heavy hitters in Arbonne and I hope
that I am wrong about this. However, a red flag is a red flag no matter
what you call it.) [here’s the official letter that was sent out to all
My stomach turns reading this. I’ve ready waay to many letters like this
in the industry and know exactly how it feels to have your dreams come
crashing down just like this…personally.
The truth is this, everyone thinks that it’s easier for companies to stay in
business and turn a profit in the MLM industry. That used to be the case.
However, with the fierce competition in the MLM world with comp plans,
branding, strong corporate infrastructure, flashy tools, flashy products,
flashy conventions (which costs sometimes hundreds & hundreds of thousands
of dollars), and product competition, it’s becoming harder and harder
for start up companies to maintain a smiling face if they either don’t
“buy” top dog MLM pros or attract them early on.
Not to mention the increase in FTC, DSA, and FDA regulations don’t help.
To top it off, you have the government trying to step in with
the ridiculous tax fiasco and take their cut as well.
Just think, with over 3,400 MLM companies competing in the
health & wellness product based industry, you know there must be more
to the story than just “Believe in our products and share the story”.
Back in the day, you could start an MLM business with little to no
money from your garage (case in point: Shaklee, Amway, etc..)
but not anymore.
The demand for serious competitive edge from the distributor force
to go toe to toe with other reps from competitor companies
is getting harder and harder to please.
Not to mention, most distributors don’t like hearing about “outside
investors”, “going public”, and “Venture Capitalists” taking their
cut of the comp plan. Getting word of this, reps are threatening to quit
and take their entire organization with them overnight.
This would obviously leave even bigger problems on the table for
companies being that the MLM business model needs to cater
to the distributors because they know that without the sales force,
The underlying message is this…give your company a break.
I know people who have quit (even in my organization) because
they were on “hold” with customer service longer than 5 minutes!!!
They aren’t helping anything! The upline suffers. The company suffers.
And the industry suffers.
We as network marketers need to step up our game and start sending the
message to the world that we are joining forces as entrepreneurs in the
“New Profession” of Network Marketing as one of the last great stands
in the world of Free Enterprise.
I love this industry. I know you do too. We obviously have a better
way than slaving away at a time clock for 35+ years with nothing
to show for it in the end. Let’s prove it.
Prove it by becoming wildly successful. Prove it by joining a good
company you can trust 110% and stand behind through thick
& thin. I’m glad I did. It is such a big burden off your shoulders
to know that you don’t have to worry about your company stabbing
you in the back while you’re out there working yourself to death
for them promoting for them.
Get out there and ….Kill it!!