If you have chosen to work from home in the network marketing industry where you pick ONE company and just focus on that, it’s not a sure bet for security.
You don’t own the company.
You’re just a 1099 affiliate.
You don’t make detrimental decisions.
You don’t pay their bills or staff.
You don’t have a say.
I recommend you do not put your financial security into one affiliate business program. That’s like putting your faith in your employer that your job will be there tomorrow. If you think I’m out to lunch, after you read this article you may feel differently.
I preach multiple streams of income but there are those in the industry who would disagree. Their idea of multiple streams of income is each downline member you have in your ONE organization is a stream of income. Ok, let’s argue that point right here and now.
Let’s say you were in IGlobalLearning on the morning of March 17th, 2010 and you considered each of your downline members a stream of income. Let’s say you had 400, 600, 2,000 in your downline and you had focused on building just this one company. Well, good for you! That’s 400, 600, 2,000 streams of income.
THEN, you get this notice in your email or mail box over morning coffee:
“While giving the networking model every possible chance to survive and thrive it simply is not working as a value either for customers or for marketers. The Board of Directors has determined that the best way for the corporation to achieve its goals of delivering transformational training to the world is to move to a more traditional retail and corporate sales model.”
“Per the Marketer agreement terms and conditions section five (5) and Policy and Procedures section 11.4, we are providing a 30-day notification of the termination of the network marketing model.”
“From Terms and Conditions Document point five (5) which is available at marketer.ilearningglobal.tv: “… iLG reserves the right to terminate all Marketer Agreements upon 30 days notice if the Company elects to: (1) cease business operations; (2) dissolve as a business entity; or (3) terminate distribution of its products and/or services via direct selling channels. Marketer may cancel this Agreement at any time, and for any reason, upon written notice to iLG at its principal business address. iLG may cancel this Agreement for any reason upon 30 days advance written notice to the Marketer.”
“From the Policies and Procedures section 11.4, which is available at marketer.ilearningglobal.tv under the doc tab: “…iLearningGlobal.TV reserves the right to terminate all Marketer Agreements upon thirty (30) days written notice in the event that it elects to: (1) cease business operations; (2) dissolve as a corporate entity; or (3) terminate distribution of its products via direct selling.”
True Story. This was breaking news March 17. 2010. Here’s the IGlobalLearing Announcement if you want to read it first hand in it’s entirety.
IGlobalLearning had to make changes to survive by doing away with network marketing compensation model that multile thousdands of affiliates came to rely on for income as their primary financial security. If I were to ask any of them about their multiple streams of income today, I’m a believer that they would say that not putting all your eggs in one basket with just one company is sound advice.
Again, we can all agree to disagree on whether it’s best to stick with just one primary business and focus on it solely, but you will always find at least 2 companies, maybe 3, in my wealth portfolio along with multiple affiliate products and resources. I don’t ever want to feel devasted if one of the companies I’m associated with have to send me this kind of notice. Is any one company immune to problems, the economy, disasters, poor management decisions, blah, blah, blah? No, life happens.
Would it be a blow for me to receive this kind of notice? Yes. Will it devast me? No, because I will have other strong income coming in and I will then search for a replacement of that lost company. Because I have built a strong loyalty through integrity and trust with my downline, it’s likely they will follow me into another program and we’ll all be up and running after a few months again.
I’m not just an affiliate for ABC company. I’m an entrepreneur. I’m an internet marketer. I market Debbie Turner, practicing the YOU, Inc. business model. The wealthiest people in the world have multiple businesses. Companies will come and go. I will decide to represent or bow out of a company affiliate program based on their decisions to best serve my customers. But I will always be me.
A guru in the network marketing industry and someone I look up to is Daegan Smith. He’s a man of integrity and has a huge heart to serve and teach. He knows what having the rug pulled out from underneath him feels like. When Daegan got the news, he sent out an email to those on his list and here’s a portion of what he said (completely unedited):
“Breaking News: iLearningGlobal turns
it’s back on it’s distributors
I just got a call from one of my good
friends and team mates Dave Strayer
alerting me to the situation.
Apparently in the last 24 hours on the
of the worlds premier personal
development network marketing
opportunities iLearningGlobal made the
decision to change their compensation
plan from a network marketing
compensation structure to a pure sales
I wasn’t surprised. For a long time I
felt like the writing was on the wall.
Traditionally personal development
network marketing opportunities have a
life cycle of rapid growth, a change in
compensation structure, and then finally
either closure or the complete removal
of a referral compensation structure all
I’ve had this scenario play out in my
own history twice.
The first time was about 5 years ago in
a company called the “Financial Freedom
Society”, first with the removal of the
network marketing compensation
structure, and then the complete removal
of any compensation, and finally the
closure of the business itself.
The second time was in my a company I
had grown a team of 8,357 people and was
receiving strong residuals. In fact, the
iLearningGlobal situation is completely
analogous in that both Success
University and iLearningGlobal were both
personal development based companies.
Out of the blue Success University
decided to merge with a company called
WorldVentures and with that change came
the complete dissolution of my personal
These situations are completely
unfortunate. I wouldn’t wish the Tsunami
of emotions that goes through the
distributor’s mind on anyone.
For me, first I was totally confused.
Second I didn’t believe it. Third, I
continued to believe the company line
that “it would all work out.”
Finally when the checks stopped coming
and my 3 years plus of hard work to
build that large team vanished before my
eyes and I realized that all the company
“propaganda” about how important we
distributors are was only secondarily
It’s “their” (the company and company
head’s) survival first and foremost
that’s most important. This angered me
to all ends and galvanized my resolve
and message that . . .
All network marketers and home business
entrepreneurs MUST protect their
financial livelihood first because no
one else is going to do it for us.”
The message to take away from this article is not to put your eggs in one basket. Get to a point where you are OK in participating in a couple of business opportunities. Market yourself. It your value, your unique self, your leadership, your personality that people want to partner with.
If you were with IGlobalLearning, I’m so sorry for your loss. If you are looking to dust yourself off (and I wish to be your biggest cheerleader for you to do that), and you desire to find another opportunity to grow and regroup, I would love to share with you what I’m doing and see if it resonates for a partnership. I’d like to help.
I would love to hear the opinions and comments of those who read this article. It’s fine if you disagree with me, but do share your thoughts. I always love to hear from my readers. And please retweet too!