XELR8 Closes
January 21, 2010
This just came across my desk today:
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. (read the rest of the letter here…)
This is precisely why you must choose your company wisely, be absolutely certain to be building your own list so you can recover quickly from such an occurrence, and create a cash flow program that pays up front. Now would be a good time to reach out to any XELR8 reps you may know and bring them into your current MLM!
Is it a Scam?
January 12, 2010
Let bring this right out in the open… I love network marketing both the direct sales side and the multi level marketing side. I will not be a guy that labels something a scam unless I honestly believe that it is.
There are way too many negative people in this world stuck in poverty mentality that label anything that offers a profit potential as a scam, or a pyramid (didn’t we get over that label decades ago?). To them if someone refers a friend to a product and makes a profit from them, then that’s a “scam”.
I beg to differ.
I’m a pure-bread home grown capitalist, and entrepreneur, and I run my business to make money. Hopefully you do too. I have both a direct sales company that earns me primarily on my own efforts and a traditional multi level marketing business that I earn on several levels of my team… and I love both.
To me, a real scam, when you boil it down, is when the business does not have a real, legitimate product or service. By definition it’s a fraud or confidence trick. A ponzi scheme is a special sort of scam that builds a house of cards based on the process of recruiting only… this is why they are illegal. They often mask it with what looks like you’re getting something of value, but if you peel it away, this turns out to not be the case. Ponzi schemes are profitable only if you get in early, and why they are illegal.
So if you are looking at an opportunity, here’s a real easy test to determine if it’s a scam, by my simple defintion:
- Are you receiving a product or service for the money you’ve invested?
- Is the value of the product or service at least in the ball park of comparable products? Realize that many times the products distributed through network marketing are of higher quality than comparable, and there is real value in that so don’t undervalue the uniqueness or quality.
- Is the compensation you’re receiving from the movement of the real products or services or is it really a front end game and you’re making money only for bringing people into the business?
So, there you have it, I’ll stick to these guidelines while I investigate the various network marketing companies. If you disagree with my definition, please let me know and we can have a discussion.
