Another One Bites The Dust – XELR8 Closes Door on MLM

Their company website contact page reads:

“No other opportunity even comes close to XELR8. If you’re ready to step up your health, your performance, and your income, contact XELR8—and fast. It’s time to start up your start-up.”

It should have read more like:

“We are a fad MLM company and we are hoping to ride the juice craze, we too have discovered some miracle fruit and hopefully we can make past (5) years as a high percentage of “start-up” companies will fail within this time period.” So get in now and get in early, devote your time, energy, integrity and talent and let’s all cross our fingers!”

Now, of course I am being facetious, I really am. The truth is thousands of very good people, passionate distributors and fellow network marketers are currently abandoned by their company which was founded in 2006. XELR8 mainly known for their “Bazi” Juice have decided to “pursue an alternative business model resulting in the discontinuation of our XELR8 Multilevel Marketing Program in its current form.”

As one whom is extremely passionate about my primary opportunity and product, I could not imagine the feeling of keeping up my end of the bargain and having the company quit on me. It would keep me up at night as I replay the amount of presentations that I had given from my heart to the several that have not only seen and heard it, but to those whom I have led into the opportunity as well. I am certain many former XELR8 distributors are currently dealing with these emotions days removed from the announcement.

Ultimately it is a business, and business decisions are no different with network marketing companies, as they are in the traditional corporations. The truth is the business model continues to work; it’s the company that does not always comply.

Although the top leaders will find new opportunity and will have several of their downline follow them to a new home, it’s important that these leaders realize: when one leads to a dead end, they will eventually stop following.

With new business opportunities, the idea of “getting in early” and “being one of the first,” “a huge downline being built automatically under you,” are just that; ideas. Again one must weigh the percentages of this business surviving past the initial (5) years. Is it worth it? I don’t think so. With specific Binary compensation plans, (especially those with great bonuses) it rewards productivity over timing. To date, I do not know of one major network marketing model company in which their very first distributor is also their #1 income earner.

Here are 7 things that one can be mindful of following the XLER8 debacle:

1. Brand yourself! That is all you ever really own. If you can successfully do this, you will never fear change.

2. Keep it safe: select a stable company with sustained history, with room for growth. Many start-ups compensation plan is based on hype and theory and not reality. Sustained companies show proof of sustainability of payouts. Not to mention proving that it is a trend and not a “fad.” There some amazing companies that have surpassed the 10-year mark that are continuing to grow.

3. Research management. This is the group that will determine the company direction and ultimate success. Note: Greed kills.

4. Select a company that has a balance of Baby Boomer, Gen X and Gen Y distributors. This provides balanced marketing culture and product development while keeping perpetual genealogy of future distributors. (I am weary of a company of all baby-boomers, or a company of mainly college students.)

5. Look for companies that have a fair amount of third-party studies, articles, journals, comparative guides, giving credibility to the product. Too many companies have only their own advertising materials that give “testimony” to the efficacy of their products. (c’mon, how many miracle fruits are left the most remote areas of our planet that will become the next juice? This also applies for every new nutritional company with a “unique” technique or selling point.)

6. Because health and wellness is such a tremendous field in this industry, one way to narrow it down is by researching companies that are founded by product, before being established as a company. In other words, many companies are founded by investors and management that look to purchase patents from scientists and doctors then creating a company only after the purchase and marketing “story” is fulfilled.

7. Avoid companies that pay for top distributors. I never thought that was fair for the new person enrolling today.

If you are former XELR8 distributor, my apologies, it’s unfortunate. If you would like direction in looking for a new home, team or  just looking for immediate support and clairty, place your information in the fields below and we will have someone contact you shortly. If you feel that you are involved in a company that has a soft foundation and are looking to be proactive in your long-term success plan, please do so as well:

To Success and Redemption,

Below is the actual email recieved by all XELR8 Independent Distributors:

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…

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7 Responses to “Another One Bites The Dust – XELR8 Closes Door on MLM”

  1. Ilka Flood Says:

    Hi Soomin,

    How sad! Another one gone. I have been in the industry for over 10 years now and had never joined a start up until 2007. It was founded by good people with integrity and good business sense. But then others joined the ranks at management and started to make changes. Unfortunately this company only lasted a year. I was heart-broken and swore never to join a start up again.

    Your 7 points above to look for when choosing a company are excellent. Thank yo for sharing!

  2. Soomin Says:

    Ilka- Thank you for sharing your experience. Unless the particular start-up is the first if its kind in the industry, I typically don’t look into them. I will for the fact of being informed (study it), but the statistics show that a very high precentage of these companies will fail within their first (5) years. I think “heart-broken” is the perfect description of what that must feel like when a company fails you. I have been fortunate enough to not have experienced this, which is one reason why I personally recommend a company’s stability over new-product hype.

    Stay connected Ilka!

  3. Thomas Chorny Says:

    Great, great advice!!! We all just want a company that we know is solid and will stand the test of time. The recognition and awards that a company receives is one of the best things to look at when determining stability. I am very grateful to be with a company that has amazing leadership and vision. For all of you who have been ‘let go’ don’t give up. Use this as a way to make a great and informed decision when picking a company and product to represent.

  4. Soomin Says:

    Thomas, looks like you found a GREAT company! I appreciate your attitude in encouraging fellow networkers to move on, after all noone can relate to another networker, than a another networker! Thanks for your input and stay connected.

  5. Thomas Lee Says:

    Hello Soomin,

    I couldn’t believe the News when I heard about
    XELR8 and the change. Well, personally I had
    looked at over 700 companies over the years…

    and only found ~ 40 or so that looked good on
    the front. However, after lots of work and testing
    them out… I only had a couple that stood up straight
    if you know what I mean.

    Well, by 2006 I was fortunate to be doing ~ 80,000
    or so per month… but then I really started to move
    in late 2008 when I was approaching 211,000 / month
    in business.

    However, my wife started to get fussy… as I was wayyy
    too busy.. and she was right. So what I did… was sit down
    and decide, I’ll just keep the Best company.. and let the
    others go.

    Well, that was a little harder than it sounded at first… as they
    all had something ‘special’ about them. So, I got a hold of a
    checklist from an expert in the industry, that literally knocked
    the list down pretty quick, as it only looked for the negatives.

    So, only ‘1’ company passed the test with absolutely NO
    negatives to be found.

    If you have any questions, don’t hesitate to give me a ring.

    Look forward to speaking with you soon.

    Thomas Latislaw

  6. Richard Says:

    Am I the only person up my tree… sure seems like it…. bummer on the company..

  7. Thomas Lee Says:

    Hello Soomin, YES it’s been 2-years now and it was the BEST decision I made.

    And, tell me, what country do you live in today!


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