Efusjon Closed Their MLM Operation. What Can We Learn From It?

by Ket-Sang Tai

First of all, I want to make it clear I am not trying to rub salt into Efusjon distributors’ wound. I was in the exact situation 5 months ago when my previous company, iLearningGlobal closed their MLM operation. Another of my previous MLM, called Tiscali, also closed their MLM operation after being taken over by their competitor. I know the feeling and it can’t be described in words.

For those who do not know what is going on, below is the letter the company sent to their distributors.

“Dear eFusjon Distributors:

It is with great sadness that we announce today that we must cease the direct sales multi-level marketing business of eFusjon, Inc. as of September 1, 2010.

The independent contractor distributor agreements will terminate as of this date.See Distributor Agreement, Section 7 (“The Agreement shall continue in effect between the parties hereto until either party terminates the Agreement…”).Qualified distributors will receive their last compensation check for the month of August, less offsets against any amounts that are owed to the Company, on September 10th. Any commissions due will be available in your “Hyperwallet” account until October 31, 2010, after which date you will need to contact the corporate office (to access your “Hyperwallet” account.

Please go to www.efusjonpay.com, or contact customer service for assistance). The Company will send refunds of the $30 membership fee to those distributors who became members in August 2010..

This was a very difficult decision for the Company and not one we had hoped to make. When the owners started eFusjon in 2008, we envisioned a unique and successful MLM business with healthy and unparalleled beverage products. The goal was to market these products through independent distributors via the MLM direct sales business model. Distributor performance, however, has been steadily declining for over a year now, and as a result, so has the Company’s revenues. The Company can no longer maintain a marketing model that is not generating the funds needed to grow a viable business. In short, the Company’s MLM business model is no longer a sustainable marketing strategy.

With a certain level of optimism, we also announce today our decision to explore other opportunities for the eFusjon product many of you have come to love. For some period of time, you may continue to enjoy eFusjon products through purchases (without compensation) on the eFusjon website.

Lastly, we extend a sincere and heartfelt thank you to all of you for your dedication to eFusjon over the years and for standing by our product and the Company during the height of our success as well as through more recent challenging times. We share your disappointment about the recent turn of events, but are cautiously optimistic about the future of eFusjon and eFusjon’s unparalleled, healthy beverages.

With gratitude,

The eFusjon Corporate Officers”

This is also not to say that all MLMs are bad because there are a lot of companies doing very well and many distributors are making a lot of money. However, there are a few lessons we can learn from this story, and also my own experience with my previous companies.

1. Companies’ Commitment To MLM

This is one thing many people overlook when they do research on a company. It is very important that a company shows commitment to MLM as its main distribution channel. I am always wary of joining a Public Listed company because the fate of the company is decided by a bunch of shareholders who are there for their own interest. Usually companies like this will be absolutely fine when they are doing well. However, as soon as there is any sign of lack of growth, these shareholders will be likely to turn their back on MLM. Private companies have their downside too because they do not have to disclose their performance and you are left in the dark. However, it is easier to tell if a private company is committed to MLM or not just by getting to know more about the owners. As the owners have more control over the companies, there are less variables to consider. I know it is difficult, but do make sure you learn as much as you can about the owners, their background, financial situation, their reputation in the industry and how committed they are in MLM.

2. Losing a Company is No Big Deal

This is easy to say, but it is hard to get over it if you have been working on it for a while, especially when your own team is growing. However, you have to remember that the knowledge you gained, the skills you learned, the friendship you made and the network you built will never go away. You can easily bring those with you  to a new venture and have a good start.

After iLearningGlobal closed their MLM, I joined Vemma after extensive research. I bring my knowledge, skills and connection with me and I am now building my business 2-3x as fast.

3. Turning Negatives Into Positives

It is not what happens to you that matters, it is how you deal with it. Michael Jordan has a famous quote “I’ve failed over and over and over again in my life and that is why I succeed.” So do not lose faith in MLM or your ability to build your financial freedom with it because of one company who has disappointed you. You should keep your head up and move on!

I hope you all learnt something, whether you are Efujson distributors or now.

To Your Success,

Ket-Sang Tai

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  • Dereckarreguin

    Good Stuff Ket Sang!

    Thanks for placing this post and for some people in efusjon, this is a set back but a minor one.

    But it's also a harsh reminder that people really need to invest in themselves and build their own brand.

    There is now doubt that the power of the You Inc business model is where the majority of this industry is turning to.

    I've also wrote a report on the issue found on my blog http://bit.ly/c2Bntk

    Thanks for the great post and I'll be coming back thats for sure. 🙂

    -Dereck
    http://www.dereckarreguin.com

  • Bill in Ocala

    There was really only three problems with eFusjon: the product, the comp plan and the management team!

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