XEL8 Tanks & Fires ALL Distributors!
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?
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!
