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Eiro Research went out of business. Lesson learned for network marketers?
Written by Jerry Chen on Jan 20, 2011 4:01 pm
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So it was brought to my attention today by a certain 6-figure-monthly leader that Eiro Research is officially out of business as of yesterday (Wednesday, January 19th, 2011).
(I attached at the bottom of this post the official letter now seen on the company's website.)
While it was an unfortunate situation, it wasn't an isolated incident... and I wasn't surprised.
I read the letter attached below, what I saw was the company looking after the company first, their distributors SECOND... that they must pay back the creditors as the No. 1 priority, which would consume all remaining resources of the company.
In 2010, we saw SEVERAL companies that had similar situations happen to them.
- iLearningGlobal (cut off its MLM operations completely),
- Success University (shut down the company, merged with World Ventures and caused MANY people to lose their team),
- eFusjon (ceased its MLM/Direct Sales side of its business)
Again, these situations are utterly unfortunate.
The emotional roller-coaster ride that these distributors must have experienced or are still experiencing is something I'd wish upon NO ONE.
2 1/2 years ago, I personally went through a similar saga...
moving from one company to another... which essentially caused me to lose my entire downline that was earning me a full-time income in my first and only network marketing company prior to my current business.
The reason for it was the company making major changes to its P&P and compensation plan, which caused a tidal wave of distributors (by my estimation, over 30,000) leaving the company for another opportunity.
At first I was totally confused.
And then I was in DENIAL.
And I even thought about "sticking it out" and getting back to the old business because I had been singing the company song and doing the company dance for almost 5 YEARS.
But when my diminishing checks eventually dried up, and 5 years of hard work simply evaporated... it was a RUDE awakening, to say the least.
Fortunately for me I had saved every penny I earned from that business up until that point, and I made a clear and conscious decision to get out into the industry, make new friends... 6, 7 or even 8 figure field leaders such as Tom Challan, Mike Dillard, Ann Sieg, Mike Klingler, Diane Hochman, who have all come before me in this industry and learn from them.
I've finally come to realize that the company TOP concern is its own survival, not the distributors as many company executives like to tell us.
When I realized that fact, it actually gave me a stronger than ever resolve to remain in the industry to help more people build their businesses, but with a distinctively different perspective.
There has long been a baby-sitting cutlure which partially came as a by-product of wanting to making everything 3rd grade duplicate-able in the industry.
Making money is not "hard," but it certainly requires some skills, technical or otherwise.
Home business entrepreneurs/Network Marketers/Multi-level Marketers/Direct Sales affiliates MUST realize that their financial well-being is in their own hands and no one else's.
This is not about Online vs. Offline...
This is not about Old-school vs. New-school...
This is not about Ford vs. Chevy...
This is about doing everything in your power to get it done!
Whatever it takes.
That's the reason why Tom Challan and I invested the past YEAR researching companies, visiting companies, sitting down with top leaders and company owners, investing in training, experimenting and testing to create Priority Team Pro to teach our friends in the industry how to become stronger by learning and applying skills that they can take with them anywhere and make money, regardless what the company decides to do.
Feel free to chime in in the comments section below regarding Eiro Research or this type of situation in general.
I look forward to hearing from you and turning this into a massively positive and productive discussion for all to see and learn from.
Remember, you're doing this FOR YOURSELF, but NOT BY YOURSELF.
(Even if you and I are not in the same company, my friend.)
DREAM ENORMOUS,
Jerry Chen
About the Author: Jerry Chen
Member Since: 10/10/2007
I'm a Distributor For:: The LIFE Business
Industry: Marketing and Advertising
Primary Web Site: http://www.whatsen.com
Twitter: jerrycchen
Facebook: http://www.facebook.com/whoisjerrychen
How very sad!
Hi Jerry,
I just read about this minutes ago in MLMWatchdog. It's so sad to see this and you're right, unfortunately this is not an isolated incident and certainly not the last MLM company to go out of business.
My heart goes out to those who worked so hard to build a business and life with this company and who are now left out in the dust. I hope they have the strength and belief to go on and start over again.
I have been there myself a couple of times and situations like this one are exactly the reason why it is so VITAL to promote YOURSELF and not your company.
Wishing all of you who are affected by this tragedy the very best for a bright and successful future!
Ilka
This Is Another Sad MLM Outcome
Wow... I am sort of shocked... at the short letter to distributors... that is just awful. Talk about feeling like you have been left out to dry!! Thank you Jerry.
Just another day in the office
While it's unfortunate it happened the way it did... that's just part of the reality in this industry.
We are powerful people and capable of doing great things in business.
Recognizing the company is really just a part of the plan, but not the entire plan. The company is not the mother ship.
The relationships we build and the skills we gain are the currencies of this industry.
MD talked about being on a even keel 70% of the time as the key to building up consistent actions that produce results, ESPECIALLY through times like this. I can't agree more.
It is a must for these distributors to keep there heads up!!!!
Our prayers are with each one of those families that have been affected by the closing of this company.
Business can be hard and unforgiving at times. It is the ability to bounce back that matters at this time....
Again our prayers are with you all...
Danny & Laura
I was in Eiro
I just got the email today with a link to the letter. This was such a shock to me.
I was involved with EIRO for a short time. I even had them as my company on Better Networker. But the weight loss products just didn't agree with my digestive system. I know they worked for a lot of people.
I feel so sorry for the people who are affected by this event. The people who sponsored me in the business were the nicest people I think I have ever met. And even though it didn't work out for me, I wished them well in their business.
I hope they are not soured on the network marketing business model because it can work with a company that truly cares about their distributors.
I am grateful that I am now involved in a company that is backed by great brand recognition and who's owners are professional people (doctors) who really don't need the money! They have a great product and recognize that they can get it to the most people through the direct sales business model and enrich lives in the process.
My sympathies go out to all the EIRO distributors here on Better Networker!
Eunice
This is truly a risk that
This is truly a risk that anyone especially newcomers in the industry will have to recognize and find ways to mitigate by diversifying with multiple sources of income. -County Line Nissan