Heartbar - A Network Marketing Horror Story!

We do a training called the "5 Pillars for Success".people. What amazing people that we've met!"
These are the pillars that YOU as an MLM"And that's going to have a big impact on our
distributor need to have in place for success. It'sdecision, if we ever decide to do away with the
not what a network marketing company needs.compensation plan and go to direct sales."
It's you, the distributor, and that is an importantDave & I looked at each other. We had the
difference to understand.same thought: "Whoa! Hard to believe that guy
The top company in the network marketingsaid that from the stage!"
industry does $10 BILLION in sales every year.The Reps Must've Been on LSD!
Company #2 does 1 Billion a year. And what'sWhen they took a break, Dave & I chatted
amazing is, Company #1 pays only about 10% ofwith some of the reps. We asked what they
the commission that Company #2 pays!thought about what the President said about doing
Company #1 is very profitable. But, aside fromaway with the compensation plan.
the old-timers, the distributors are not profitableNobody heard it!
at all.It was amazing. It was like they were on some
Do They Even Know How To Spell MLM?euphoria drug. We didn't talk to one single person
So company management experience withwho heard him say that!
integrity is Pillar #1. Has that CEO or managementSomething else those reps didn't know: Heartbar
team ever built a network marketing organization?created a product and was selling it to athletes.
A lot of these network marketing companyThey didn't think their reps would ever find out.
owners come from a Fortune 500 background.Of course, the reps did find out. And when they
They've never driven 4 hours one-way to do anrealized their own company was competing
opportunity meeting for 20 people, only 2 showagainst them, they raised a howl.
up, do the meeting, do the training, drive home,The "Dear John" Letter Arrives
fall asleep at the wheel, pull into a rest area andAnd right after this ruckus, the company sent out
sleep for a couple hours so they can get home,a letter of termination to every single Heartbar
get a shower, and go to work that day as arep.
secretary, a nurse, a carpenter, a doctor ...How could they do it? Because a clause in the
THAT is the truth about MLM that theseHeartbar Policies & Procedures said
pretty-boy hotshots will never know. Let me tell"Company may terminate the status of any
you a story.distributor at its sole discretion, without cause, by
My good friend Dave Cones came to Florida fromgiving 30 days written notice to the distributor."
Oklahoma, in 2002. We were invited as guests toAnd if you were unclear what they meant there,
an opportunity convention, because we wereyou just had to read down another couple
doing some consulting with these people. We satparagraphs. It said, "Termination results in the
in the audience. It was a 2-day event. Wedistributor's loss of his or her sponsored downline
watched the presentations & watched theorganization."
people there.So distributors built the organization, built the
The company - and I can mention their name, forgroup volume, & built the product sales. And
reasons which will soon be obvious - wasthe company cut the reps out of the profit
Heartbar, a publicly-traded network marketingpicture and went direct sales with it.
company. They were about 18 months old at theThis is EXACTLY what you can expect with a
time.management team of Fortune 500 guys who
President of the Company - Great, Fabulous Guy!never built an MLM downline. They have no
You couldn't have found a nicer guy ... but heunderstanding, no empathy for you. Their only
didn't know anything about MLM. His backgroundconcern is bottom line profitability.
was Fortune 500.So if you built their business for them, but it's in
So he's onstage doing a presentation, and he said,their financial interest to get rid of you - and they
"You know, I've just so enjoyed travelling thecan legally do so - you will be history.
world, travelling across the U.S., going to theHave you read YOUR network marketing
meetings, meeting such great, great awesomecompany's Policies & Procedures lately?