XEL8 Tanks & Fires ALL Distributors!

Posted on January 20th, 2010 in Skills Training, Critical Thiking, The 5 Pillars To Success, Companies/Opportunities, Policies and Procedures, Scams and Ripoffs, Compensation Plans by Tracey

It is a sad day in Network Marketing as we mourn for the Distributors of XEL8 the suppliers of Bazi and functional beverage, who have lost their livelihood. Yesterday XEL8 sent at letter to all its Distributors informing them that they Board of Directors have elected to change the business model & that they would no longer be in need of their Distributors services. In other words they told them they no longer had a business or means to generate money effective February 28th & that no new distributors are allowed to join the company, effective immediately! (A copy of the letter sent can be read here on Rod Cook’s MLM Watchdog)

WOW! Wouldn’t you hate to get a letter like that? Not sure what happened but there are numerous lessons to be learned here as well as indicators it was coming.

Perhaps the ticker tells the tale.

Being a publicly held company (XELR) on the OTC BB, the company truly has a conflict of interest to all Distributors. The primary goal of all publicly traded companies is to pay the shareholders first and foremost. So where does that leave the Distributors? Second in line? Well, no not really. The company also has a profit it must make as well as meeting its overhead, you know like paying its employees, owners, the electric bill, the mortgage on the building, cost of product to be manufactured all those expenditures. After all these are met then the distributors! Wow, depending upon the list of expenditures on the company ledger Distributors/Independent Contractors can be far down the list. LESSON ONE; THINK AT LEAST TWICE BEFORE PARTNERING WITH A PUBLICLY HELD COMPANY!

Were any of the distributors keeping an eye on the stock value?

http://chart.finance.yahoo.com/c/my/x/xelr.ob

This graft is from Yahoo finance and shows the activity of the company from late 2003 when at that time the stock was valued at $15 a large discrepancy from its value today at $0.15 and going down. Read the 8-K filed with the Security & Exchange Commission as required by SEC law.

I am not sure if 2003 is when they went public or merged or changed their name or what, but as you can see it has been a downward slide ever since. So is it really that surprising that the Board of Directors voted to restructure and fire the distributors? Any distributor who was watching this would surly knows the jeopardy their positions were in since the strength of the company was heading to an all time low.  SECOND LESSON; IF YOU ARE GOING TO PARTNER WITH A PUBLICLY HELD COMPANY YOU NEED TO KEEP APPRISED OF THE STOCK VALUE & TREND.

Thirdly, did anyone read the contract? There had to be provisions in the contract, also known as the Policies & Procedures, to allow the Board of Directors to do this; or they would have major lawsuits on their hands, which they obviously can’t afford! LESSON THREE; ALWAYS READ THE POLICIES & PROCEDURES! This document clearly shows the integrity as well as intent of the Owner & Management. In the future make sure the contract fairly protects the interest of not only the company but of you as a distributor!

What saddens me most? Most people in our industry today still don’t know how to evaluate a company. This all could have been avoided if the Distributors did their due diligence prior to partnering with XEL8 or at the very least keep an eye on the numbers. All they needed to do was read a little book, which would have pointed them in the direction of obtaining all the knowledge they needed to prevent them from being in this situation today.

Learn what you need to know BEFORE you enter into a partnership with ANY company. Please for the sake of your future & your dreams take the time to read ‘Success in 10 Steps’ & take advantage of the information Mentoring For Free can teach you so you don’t find yourself in this situation ever again.

What is Mentoring For Free? It is a community of Network Marketers from various companies who work together to learn & teach the necessary information & skills needed to find success in our industry.

Take the steps necessary to have control of your destiny & to own your life, download your book today!

Your Compensation Plan

Posted on August 12th, 2007 in Compensation Plans by Eagle

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I wanted to give you insight into figuring out how your MLM company is paying you. These are some general but, Oh So important questions to ask, and get answers to about YOUR money!

Is Your Compensation plan set up for recruiting or retail sales? If Your plan is focused on recruiting you’re just building a paycheck, you’ll get no residual income from recruiting and you’ll never be able to retire….Isn’t that what we’re doing this for? Your plan should be focused on retail sales.

How many people do you need in your organization to make your desired amount of income per month? Ask yourself…How much do you make per distributor? per spot? and divide that into your desired monthly income. That will tell you how many people you need to make that amount of money each month. Then ask yourself….Is this do-able for me? and how long will it take me? You just may be surprised at the answers you get!

How is the money transferred? Does your new distributor send YOU the check, then You take your share and send the rest to the company? Can you only pay with cash? a money order? or a check? If You’re taking the money then, taking your share and sending the rest to the company, who owes who the 1099 tax form at the end of the year? That company is only going to claim the amount of money that they received. If Your company does not accept credit cards ,they have NO merchant account! Why?

What product is your company promoting? If Your company has NO product ,or NO retail sales, then you are in an illegal pyramid scheme. This company will eventually get shut down and all the time, hard work and money that you have invested will be gone forever!

Ask Yourself, would I buy this product with no business opportunity attached to it? Did you know that 72-74% of a downline are product users only! Not everybody wants in on your business!

Have you done a search on Ebay for your companies product? What’s it selling for? If I can go to Ebay and buy your product for $2 a bottle and you’re trying to sell it to me for $19.95, which one do you think I’m going to buy? Also….If there is an over abundance of your companies product for sell on Ebay I would want to know why?

Is your company Publicly Traded? Publicly traded companies have a high overhead, the higher the overhead the less you will be paid! The cost of maintaining the fancy building, the vehicle fleet, and the CEO’s extravagant vacations 4 times a year will continue to rise and the Compensation plan will continue to be adjusted taking money from YOU, the distributor, each and every time.

Does your Compensation plan pay part-timers? This is important because when we first start our business it is often necessary to keep our full time employment until we are established and making money. The only time we have left is “part time” to work on our business. If the Compensation plan is designed to pay part timers then we will be in profit much sooner and able to own our own lives…..Isn’t that what we’re doing this for?

In summary,

People, take a good long look at the compensation plan before you join any company, get the answers to these questions and make an educated decision on if you really want to join this company and if You will ever be able to make any money with it. The answers are easy to find, you can get a great start in my FREE ebook here;

Success Ebook

Thank You for spending your time with me today,

Tina Gregory

tina@eagleslog.com

Compensation Plans, Pro’s & Cons

Posted on August 1st, 2007 in Compensation Plans by Tina

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What I have done here is made a list of some of the most popular Compensation Plans and then given some of the advantages as well as the disadvantages of each one. You can also do an extensive search on Google for the specific Compensation Plan that you are looking for if it is not listed here. If you are not comfortable with that you can always contact me and I will do the research for you…free! So, look these over and educate yourself.

Stair Step Break Away

One advantage to the Stair Step plan is that you can go very wide and you don’t have to place your members. Some disadvantages are ending up with a heavy hitter under someone who doesn’t sponsor and of course…THE BREAK AWAY, which means that you will only get paid a certain amount of Money up to a specific level and you lose volume, sometimes completely.

Matrix (fixed width and fixed depth, ex. 2×10 or 5×12 ect. ect.)

An advantage could be that if you got placed on a super sponsor monsters front-line you could get spillover and get your organization built for you. A disadvantage would be that this is “welfare minded” behavior and you could most likely end up with a “dud” on your front-line who expects you to build his business. So, in summary reserve your front-line positions for your business builders if you want to maximize this compensation plan.

Aussie 2-up (your first 2 personally sponsored people go to your sponsor)

I can’t really think of any advantages to this plan! Except maybe if you are a sponsor monster yourself you would get the first 2 personally sponsored of all your members! Now we come to the disadvantages… This plan is actually based on recruiting, there is NO residual income and it’s really just a one time sale. What happens to your income when you stop recruiting, or your members stop recruiting?? Did you know that it is against the law to make money from recruiting? You are only supposed to be able to make money from product sales!

Binary Plan (2 legs)

An advantage to this plan is that you may just luck up and get a runaway leg. It pays on volume and there are no levels which means that it goes all the way down. Some disadvantages are that it only pays you on the weaker leg. The leg that you personally build. This plan drives the behavior of “fear of loss” They will advertise..”Get in Now!!” Please don’t fall for this and remember that if it’s a good opportunity it will still be there and you’ll still be able to get in once you have done your homework and research.

Uni-level Plan (you can sponsor wide and down)

This type compensation plan does very well for those who are in direct sales. You also get a higher percentage rate on your first levels. A disadvantage would be the “breakage” which is usually hidden in the plan, more than likely in the cost of the product.

I will be adding and up-dating this information as it comes in and more is discovered. Thank you for your interest and remember…Your time and money are valuable, invest wisely. Do your homework!

This free Ebook “Success in 10 Steps” is a great place to start!

Have an awesome day!

Tina Gregory

tina@eagleslog.com

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