Another Network Marketing Company Bites The Dust
If you’ve had your ear to the ground in the last week, you more than likely have heard that yet another major network marketing company, Eiro Research officially closed its doors this week.
Just in the recent past, we’ve seen major companies, such as ILearningGlobal, Success University, and Efusjon either close their doors entirely, or shut down their MLM distributor arms, and go for a direct sales model of business.
Sad, but true, is that this is becoming all the more frequent with dozens of MLMs popping up every year, only to shut down very quickly.
As you can see from their main website, Eiro, it only took two months of low sales for them to call it quits, showing just how close to the brink of going out of business many network marketing companies are.
I urgue you to really think about this, and how you are building YOUR business.
It’s pretty apparent to me that in today’s day and age, you absolutely need to build your business around YOU first, and establish the relationships with your customers with you, rather than simply the company, showing the plan, or handing out the product brochures.
Incorporate multiple stream of income, centered around what you have to offer, rather than simply your company offers.
Instead of simply thinking about what you are selling….think about how you can offer your customers and potential clients more of what THEY want.
Be a true resource for people, instead of simply a vendor for your company products.
So…if you are marketing the products, what kinds of supplemental materials can you offer your customers? If your company is a healthy juice company, what health related ebooks from clickbank or amazon can you offer your list of subscribers? Are there any related health programs that you could offer your list of subscribers?
This would be a win for you, since you will get something to help grow your business…..and put money in your pocket, while at the same time give your customers something that will help them as well.
As I talked about in a previous post “The Death Of Network Marketing, Again?” I see this as just part of the slow, painful death of the “company first” network marketing business model, and acceleration to a “You First, Your Company And Products Second” model of business.
Just keep showing the plan? Umm…no…
You’ve gotta show people what YOU have to offer to them, whether it is in the form of how you can help them build a business, achieve better health, lose weight, get inspired or whatever, but your offering first, and your network marketing company as one of several vehicles and forms of income to help achieve that for your customers.
{ 10 comments… read them below or add one }
Anybody who enters the MLM industry without building their own skills and marketing what they have to offer to the people they build relationships with will not be able to protect themselves from things like this. Great post and great message.
Absolutely Dominick. Its all about protecting what you are building for your future.
very well written and absolutely the truth in this business modell
GREAT POST
Glad you liked it Marko.
Great post, Kurt.
I’ve been involved in network marketing since 1979… teaming up with the grand-daddy of them all that started in 1959. Never made a dime but liked the products and people that I associated with. I fortunately was very successful in a few conventional brick and mortar businesses that I didn’t need the MLM income to live well.
I’ve always known that it was important to develop strong relationships with your distributors and customers for long term viability but it has never hit home more today than ever before.
A few years ago, my upline decided that it was necessary to make a change. The company was beginning to make changes that were not particularly good for the distributor force… so individuals began to exit and switched to a new outfit. When I discovered what was happening, I decided to exit as well and join them in their new endeavor. No one asked me to do this or forced me in any way.
What I discovered was the company, products, and comp plan don’t matter. It’s important to be a part of a sound well managed company but what’s most important is to stay connected to the people who you’ve worked with and trusted over the years… that makes all the difference.
You can re-asssemble your team with another outfit and continue your journey to success together.
Relationships make all the difference!
Thank for your post.
Keep the good information coming!
JFB (John from Boston)
John,
You are so right. Relationships do make all the difference. Even in today’s digital age, the internet is simply a way (although much more leveraged and targeted) to connect with more like minded people.
Kurt
I’m predicting a “network marketing winter” coming to the U.S. very soon and stories like this will become more and more common for the next several years – lasting through the rest of the decade. China will continue to experience NM growth, as well as markets in Australia and Brazil but the heydays in the U.S. & Canada are closing.
With the Direct Sales Association having 33,500 companies listed, I wouldn’t be surprised if half that number was wiped out by 2017.
It’s an industry fact that most startup MLM
companies rarely last longer than maybe 2-3 years.
It’s not worth putting all of your time and energy
into a startup company, or one with a short track record.
I generally tell people to only pick a company with
a long track record and one in which has sales
growth from one year to the next.
5-10 years minimum I’d say a company should be in
business, than you are safer starting out.
Interesting comment here Dan, and definitely goes against the grain that quite a few people go for in MLM. I know quite a few people who go for the “quick buck” and start-ups to get in on the “ground floor”.
Personally, I am all for staying with longer lasting companies.
If you will note, quite a few of the Eiro distributors went to one very well established company in particular.
The Problem with MLM companies is that they focus too much on recruiting telling their consultants that sales will happen naturally. this reasoning could not be further from the truth.
an MLM company is like any other business. it needs revenue. think of having a McDonald’s packed of employes but no customers ever come to buy anything. how long do you think any business will last with out sales.
no surprise most MLMs crumble!