Privately Owned Companies vs. Publicly Owned Companies: Does YOUR Opportunity Company go the Distance?
Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.
Recent news in the Network Marketing arena has once again shown us that some companies just don’t “get it” when it comes to Leadership and Longevity. As most of you have ascertained over your experience with multi-level marketing, there is no shortage of excellent products that have been developed for the purpose of direct marketing and network marketing. As a professional network marketer, you may have felt the pain and frustration of not being valued by your MLM Company. For this reason, it may be difficult for you to realize this, but the fact remains: we distributors are the lifeblood of our chosen companies.
XELR8 Holdings has made what I believe to be a grave error in firing their distributor force.
What is it that possesses a company to go from MLM to a publicly traded company? Did they run out of money? Did they adopt a compensation plan that was destined for failure? I suspect that both of these things may have been the case in the example of XELR8.
What I do not like is that it appears that XELR8 has, for all intents and purposes, poached the customers that so many hard working distributors sought out. I don’t know about you, but when I get a loyal customer who is buying product on an ongoing basis, that’s a great thing! That is what we distributors are in business for! It’s pretty disgusting to me that some companies will cut off their distributors, giving them a finite timeline to receive commissions that they rightfully earned from product sales to customers that they worked for in order to gain trust, and then abandon the distributor.
I do not have a crystal ball to rely on, but instinct tells me that we will continue to see more of this very kind of activity as time goes on.
Here’s a copy of the “Dear John” letter that XELR8 sent to its loyal distributors:
“XELR8 has closed, notifying Distributors of their termination via email.
To: XELR8 Independent Distributors
Re: XELR8 Multilevel Marketing Program
After careful consideration, the Board of Directors of XELR8 has determined to pursue an alternative business model resulting in the discontinuation of our XELR8 Multilevel Marketing Program in its current form, and has asked me to inform all XELR8 Independent Distributors of this decision. As a result, the current XELR8 Compensation Plan will be terminated effective February 28, 2010, and you will be offered the ability to participate in a program to be announced on a national call on February 3, 2010. At that time you will be offered an attractive incentive for you to continue to enjoy XELR8 products as well as compensation for existing and new customers that you introduce to Bazi.
Although the current XELR8 Compensation Plan remains in effect until February 28, 2010, please be advised that no new Distributors may be enrolled as of the date of this letter. While you will no longer be able to enroll new Distributors, you, and your customers (both existing and new customers) may continue to order XELR8 products. Commission and bonus payments earned prior to the date of this letter will be paid according to the current XELR8 Compensation Plan. Commission and bonus payments earned after the date of this letter through February 28, 2010 will be paid on or about March 15, 2010. Following the payment of these commissions and bonuses, no further bonuses or commissions will be paid to any XELR8 Independent Distributor under the current XELR8 Compensation Plan.
Although the Company has elected to terminate the current multilevel marketing program, XELR8 products will continue to be available through Independent Distributors through February 28, 2010, and other direct marketing channels to be announced on our national call on February 3, 2010. If you are enrolled in our AutoShip program, you will continue receiving your monthly AutoShip order until such time as you elect to cancel your participation in the AutoShip program. Preferred Customers will also continue to receive their automatic monthly orders until such time as they choose to cancel their Preferred Customer Agreements. If you wish to cancel your monthly AutoShip order, please send your notice of cancellation to us at 480 South Holly Street, Denver, Colorado 80246. Alternatively, you may fax or email your notice of cancellation to us at (303) 316-8078 or support@xelr8.com. Please include your Distributor ID Number in your notice of cancellation. “
Do you have an opinion about this? I’d love to hear it. Sound off below!