Breaking News- ILearningGlobal.tv Terminates Distributors

by Tricia Bard on March 18, 2010

Per a notification letter to distributors on their website today, March 17, 2010, ILearningGlobal.TV is terminating their MLM business model, including all their distributors, effective in 30 days.

The iLearningGlobal Faculty includes Brian Tracy, Alex Dey, Dr. Tony Alessandra, and Sandy Botkin.

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…

Functioning within a network marketing model makes pricing and value changes difficult due to the compensation plan…

We are providing a 30-day notification of the termination of the network marketing model…

…we recognize the effort you have put into building your business and wish to show our gratitude for your efforts by providing the following:

  1. You will have been paid your regular commission for the February earning period on March 15th.
  2. You will also be paid for the March commission period. (If you remain an active marketer through March)  The commissions for March, which would normally be paid on April 15th, will actually be paid 15 days early on a special commission run March 31st.  This is simply a courtesy to you and reflects our desire to assist you as you begin to move forward.
  3. You will also be grandfathered into the company’s new offering (which brings together DailySuccessStream, EDGE and Premium – currently $180 per month) The new retail price will be $59.95, but you will receive all of this for $39.95 for as long as you remain an active member of iLearningGlobal.  Your new price structure of $39.95 per month will be charged on your regular anniversary/billing date during the month of April.

Also, see  our iLearningGlobal overview.

Be Sociable, Share!

{ 19 comments… read them below or add one }

Laura Jo Richins March 24, 2010 at 10:08 am Thumb up 0 Thumb down 0

As a founding member of iLearningGlobal, I was saddened by the announcement. After months of broken promises and company leadership that seemed to think they knew what they were doing and weren’t open to counsel from industry experts, it comes as no surprise.

For those of us that were on the corporate call in August 2009 when they first talked about offering an affiliate program in addition to the MLM model, red flags went up. Running an affiliate program in conjunction with an MLM model would certainly dilute the network marketing program. We knew then that it was over. There were many other signs as well.

With that in mind, we started looking in September 2009 for a quality company with a “tangible” product. We found it. We’ve since moved on to a company that has been a night and day difference from our iLG experience–experienced and proven leadership with men who under promise and over deliver and a proven product. Yes, it’s another start up, which is very exciting, but with their launch conference in April, we find ourselves at a much better place than we were with iLG.

I am grateful for my iLG experience in that it reintroduced me to network marketing. Even more, I am grateful to great team leadership that taught me network marketing skills that I can use in any NM business.

I hope that other iLearningGlobal distributors will not quit NM but will take what they’ve learned, both good and bad, and move on to more positive experiences like we have.

Reply

jack carlson March 21, 2010 at 9:36 pm Thumb up 0 Thumb down 0

Many industries pay commissions in depth or up the food chain on their sales.
The fact the Melaleuca pays in depth and does not require all the other hoops to jump through clarifies its MLN/NM attitude.

Like any business….you are being paid to bring in new sales and rewarded with a 95% reorder rate residual. Quality products with management with character.

Reply

Jeremy Reece March 19, 2010 at 7:23 pm Thumb up 2 Thumb down 0

I was one of those marketers at iLG. Fortunatly, my team and I had an infrastructure in place and are going to weather the storm. iLG was awesome! They had no idea what was getting ready to happen, we had buzz and groups forming around the world. (Makes me wonder if we were just to close to actually empowering the common man.)

Instead of looking at the 20% that were doing something right. They focused on the 80% that were not producing. I personally feel that the decision makers in the company did not fully appreciate what network marketing is and did not have the patience or the skills to build momentum. I did not see the numbers they were looking at, so I cannot judge.

In the end they lost any type of trust I had in the leaders. They broke a promise then flashed a contract saying they could.

This was not a network marketing or MLM thing. It was a short sighted Wall Street suit thing. Of all the people you would naturally trust as a professional these guys would have been it. I cannot believe that with all that talent they could have not figured out a more graceful way to exit from their position.

To the team at iLearningGlobal, you really, really disappointed me. I wish your company success….I guess.

–Jeremy Reece

Reply

Lionel March 19, 2010 at 9:20 am Thumb up 1 Thumb down 0

I agree with all of the posts that state people who are involved with NM/MLM should begin looking at this as a profession. We should not be ”putting all our eggs in one basket” by being loyal to a particular company. The fact is with any company (not just NM/MLM companies) things could change literally over night and leave those who have worked hard to build incomes with nothing. I shifted my focus from “traditional” NM/MLM a little over a year ago to do more internet and affiliate marketing and to diversify into various financial markets. I think more eyes will be opened as a result of this news concerning ILG and NM/MLM’ers will become more independent.

Reply

Stephen March 19, 2010 at 7:47 am Thumb up 1 Thumb down 0

My heart goes out to all the iLG people, many of them I know well, who just lost significant income based on a decision that I thought was well overdue. I love Brian Tracy and all of the other Mentors involved with iLG and have been a user of the product since it started but it always had flaws as a business model and those that got involved should have seen this as many of us were telling them since day one.

I find the discussion on MLM interesting as I do not believe there are any MLM Companies at all. We are in the Direct Sales Industry and the companies we represent are Direct Sales Companies, not MLM companies. Multi Level Marketing or Network Marketing is a business model that one can, or can not, elect to pursue after joining a Direct Sales Company. I have many people, especially medical practitioners that only have customers and do not talk about the “business” side of the industry at all. These people are NOT involved in network marketing or MLM. The business model of MLM is to recruit people to duplicate your efforts and these MD’s are not doing that.

As far as Tom goes there are many people like Tom who were not able to make it in our industry and quit. The reason they didn’t make it because like Tom they quit. Now Tom has developed his new system that will most likely have an even bigger failure rate because people like him will get involved, won’t make money and they will quit. The same sad stats can be applied to people who set out to lose weight….why don’t they succeed, because they quit. What about anything else in life….people fail because they quit!!! So people like Tom should be very careful when they challenge an industry that they could not be successful at, as many of us are by the way, because all it will do is expose them for what they actually are….quitters!!!!

Continued success to you all….follow your dreams!!!

Reply

Maggie Kress March 19, 2010 at 1:08 am Thumb up 1 Thumb down 0

Knowledge is Golden, Hindsight is better than Foresight. Both of the these pharses apply when we look back at what we should have done. It is very sad that the ones that build the business with intergrity, are the ones that are hurt.

One of the most important things that we can do is evaluate the management. Management does drive the behavior in the field. I have heard that a company that decides to to public with their company pays about 1 million upfront fees to the legal staff. That million dollars could be a part of the companies pay plan. We are led to believe that a public owned company is much safer but it is just the opposite. When a company goes public, their focus goes from the distributors to the investors. They must satisfy the investors first. The distributors go on the back burner and pushed to work harder and recruit more.

I was with Avon, that is number one direct marketing company in the world and has been in existence for over 100 years. I tried to build a business with them and found it almost impossible. I went to another company that is much younger but I know the upper management is looking out for me. I can make money on less volume than I was able to make with Avon. I am not putting Avon down. They are a good company but imposible for a person that does not live in a large city to make it. They must recruit, recruit in order to satisfy their investors.

I found my company through educating myself what makes up a good, ethical and reliable company.

One of the first things to do is read and know your comp plans, terms and conditions and policy and procedures. Evaluate your management. This can be done by Google their name. If they have been involved with several previous companies and show no longivity, then I would suggest moving to another one. You want a company that you can build and it will be lasting after you are no longer able to work it. It is called Royalty Income. None of us mind working hard but we want know that we are not working in vain.

If there are words such as ongoing, run because this means that you must stay personally involved with the business to be paid. Some companies require you to constantly recruit and if you cannot you will not be paid. If your comp plan, terms and conditions or policy and procedures mentions it can change without you being notified, I would take a second thought about signing up with such a company. I have heard the statement that it is only legal jargon and all commpanies have it built in their plans.. Let me just say this, if they do not intent to use it for their own use, why is it there?

This reply started out with Knowledge is Goldnen. That is what each one of us have to do for ourself. We cannot depend on the company or upline to inform us this. It is our responsiblity. If your company does not offer support to you after you sign up, they just want you to fail. Success of a company is a team effort. One person cannot build a buisness alone.

Let me know if I can help you with finding this Knowledge. I will share it with you and will not charge you one cent. The only cost is your time and willing to be coachable. Success is for all of us if we just go about it the right way.

As I have said in the past, Lou Abbott is one the greatest source to start this knowledge. Keep following him because he gives you the Whole Truth. Sometimes we do not like hearing the truth but it will save us a lot of heartache later.

Let me know how I can support you in your travels to success.

Thanks and God Bless
Maggie Kress
417-426-5931

Reply

Terrance Brandon March 19, 2010 at 12:51 am Thumb up 1 Thumb down 0

Nutrilite (forerunner of Amway and considered by many the great-grandaddy of all MLMs) also only paid out on one level. In my opinion, ANY company that sells through independent distributors and permits/encourages those distributors to recruit other distributors and earn commission on their sales fits the definition of MLM/Network Marketing. Its HOW the products are advertised/sold that makes a company MLM, NOT the details of the compensation plan.

Reply

louabbott March 19, 2010 at 7:20 am Thumb up 2 Thumb down 0

Thanks for the comment Terrance, but…

I think your statement that it is “HOW the products are advertised/sold that makes a company MLM” confuses rather than clarifies the important definition.

Your statement before that actually best describes what a multilevel compensation plan is, at least from a legal standpoint:

ANY company that sells through independent distributors and permits/encourages those distributors to recruit other distributors and earn commission on their sales

How they are advertised, for example, really makes no difference.

Of course, whether any company calls their model an MLM or not is certainly irrelevant to the truth of the matter. You know the old saying, “If it looks like a duck, walks like a duck, and quacks like a duck… it’s probably a ……..”

Reply

Terrance Brandon April 21, 2010 at 4:30 pm Thumb up 0 Thumb down 0

Lou:

Of course, I agree with you. Thanks for the input. The key is that NWM needs to stop shooting its own wounded and do all it can to uphold the highest standards.

Reply

Tricia Bard March 18, 2010 at 7:01 pm Thumb up 4 Thumb down 0

Interestingly enough, I just checked the DSA- http://www.DSA.org- Melaleuca’s Compensation is listed there as Single Level (one of only 4 companies in the DSA listed as Single Level).

Other MLM companies that I checked are listed as Multi Level.

I bet all the distributors in Melaleuca would be surprised to know that they only get paid on a single level! 😉

Reply

Tricia Bard March 18, 2010 at 5:05 pm Thumb up 7 Thumb down 1

Peter and Lou, I couldn’t agree more. When companies fail in this industry, it not only hurts the distributors and their families but it hurts our industry reputation.

Tom, I have been a Melaleuca customer for years and love the products.

I beg to differ with you, however. I know that Frank Vandersloot and Melaleuca distributors say that Melaleuca is not an MLM. However, IMHO, it is an MLM because distributors are compensated through multiple levels of pay-out.

Mr. Vandersloot would do the whole industry a huge favor if instead, he would say that ‘we want to be a hero to the MLM industry’ and lift up the industry that you are a part of, rather than trying to separate yourself. It’s like saying every other MLM company is a scam or not viable.

Are there some illegal schemes and scams? Of course! Are there some great companies? Absolutely!

I have made a full-time living in the MLM industry for the past 15 years, and I am proud to be a professional MLMer/Network Marketer.

In fact, I believe that it is deceptive to say that Melaleuca is not MLM.

Melaleuca has some great things going for it, but why try to hide behind the term ‘Consumer Direct Marketing’? Why not showcase the things that do make you different? Why not be a ‘hero’ to the industry?

Reply

Andries Johannesen March 18, 2010 at 5:01 pm Thumb up 2 Thumb down 0

Gee ive been looking at this program closely as personal development is essential in our industry and this program could have made a difference. Yuk we have been scammed again. Thanks Lou for all you do thanks for getting this news out. its essential that we as an industry work together and treat network marketing as a Profession and work together to prevent things like this and reduce the damage where this happens.
I expected more from people like Brian Tracey but then again a lot of trainers have been prostituting themselves in using their data bases and their fans just for financial gain and not practicing some of the universal laws they pretend to promote.
when this kind of thing happens in franchising the governments generally provide some protection and the contracts provide some options. we should be no different just because we provide sweat equity instead of money equity does not mean we should not be treated with respect and that we should allow these company owners to abuse our industry.

Reply

Tom Sparrow March 18, 2010 at 4:31 pm Thumb up 2 Thumb down 7

This is the exact reason I no longer do any MLMs! Melaleuca does not pattern itself after MLMs and has the track record to prove it! For 20 years full time I put myself in trust to these meat grinder MLM companies to try & help them build an empire only to watch greedy owners trash all my work! Whether is it owners, stock holders, investors, or the like…they all have one goal, to make money! They do this at the expense of those who also need money to survive, better known as their distributors! This is why the MLM model does not work and people never realize it until later after all their hard work & efforts go down the tubes!

We then wonder why so many people fail in MLM! As soon as a company goes public and they have to answer to investors or stock holders, the distributors are the first to suffer! What really baffles me is why privately held MLMs do the same idiotic things to destroy their distributor base! Things like changing the comp plan to cost distributors money, increase product prices, use terms like BV, CV, GV so they can manipulate the numbers to increase their profits! Don’t they know that the people will leave? I personally am done with young MLMs or for that matter any MLMs forever and will stay with Melaleuca for the rest of my career! I have seen way to many companies shaft their distributors including myself! I hope people wake up…

Reply

Andries Johannesen March 18, 2010 at 5:57 pm Thumb up 2 Thumb down 3

Hi Tom good to read your post, but im sorry Melaleuca is not a good example they mistreat people terminating members having unbelievable rules ( slave like, the worst in the industry) and denying they are mlm when most of their leaders all come from mlm, by them misrepresenting the industry they are not helping the profession and im speaking from personal experience. Its good your working a solid company but lets ask them to become truthful

Reply

Lane Romero-Reiss March 19, 2010 at 11:45 am Thumb up 2 Thumb down 0

Hi Andries,

What slave-like rules with Melaleuca are you referring to? I also don’t see the logic in your statement claiming that Melaleuca is an MLM because most of their leaders come from MLM. It could be they were sick of the typical MLM game, as Tom was, and migrated to Melaleuca because they were different.

I am not saying Melaleuca is perfect. No company is. However, they do have a long-standing history of success, an A+ rating with the BBB, a 95% re-order rate, and over 60% of their customer base are NOT doing the business. I believe this last point is crucial for long-term stability and sustainable residual income.

Lane Romero-Reiss

Reply

Annemarie March 18, 2010 at 3:12 pm Thumb up 3 Thumb down 0

The visionary genius behind Own Your Channel becomes increasingly clearer. Why not build an independent home-based team outside of any network marketing company with the proper infrastructure? Then, when the unthinkable happens with any one company, you still have your team in place to work with another company. Some people have referred to this plan as an insurance policy.

Reply

Peter Arnold March 18, 2010 at 2:11 pm Thumb up 2 Thumb down 0

Hi Lou:

Well, here we go again…

A “beauty” of a company – iLearning Global (Brian Tracy and others) –
has decided to go “main stream” — it suddenly announces that it’s no longer
a Network Marketing business model!

And they have every right to do this, of course – as per their P&Ps (Policies & Procedures)!

Once again – the tragedy is that those who have “worked their hearts out” –
with great expectations for a successful future – namely, the Reps – are
traumatized by this – both financially and emotionally. And iLG brought in
some BIG names over the last couple of years.

This was a good company – a brilliant idea behind it – but now it’s ‘closed’
to the very people that built it.

http://Marketer.iLearningGlobal.tv/?page_id=1349

It reminds me of another beauty of a company – “BookWise” – by Robert Allen
and his partners. Much the same story — with a very BAD ending.

This points out the real danger of connecting with “start-up” M.L.Ms — their
history has not been good (awful, in fact).

We in the DRA (now ANMP – Association of Network Marketing Professionals – http://www.TheANMP.org ) – have taught this for some time — there are just too many good people “getting hurt” with start-ups in our industry!

ALERT – This only reinforces the urgent need for Network Marketers to pursue SELF BRANDING – and income DIVERSIFICATION, for their own protection.

Those who tend to “wrap their identity” around their MLM become far too
vulnerable in today’s world, unfortunately.

Let’s hope that the iLG people (many who came over from ‘BookWise’!) will
find a way to cope with this – and recover – from this very SAD news.

Sincerely / Peter A.

Peter Arnold, CLU, CFC / Founder
Business Achievers Academy / Canada

Reply

louabbott March 18, 2010 at 2:33 pm Thumb up 6 Thumb down 0

There’s another key problem that the iLearning closure points out. It is expressed in these words from their announcement:

Much has changed in the marketplace during the past two years. When we began, streaming HD quality video was a unique and distinct advantage, public perception of online video training and higher end pricing was the norm, speakers continued to protect most of their content and the global economy was still perceived as strong.

While we have continued our quest to be the cutting-edge leader in our industry, we find ourselves facing a vastly different environment. HD video streaming is more common, authors and speakers are giving away a great deal of content, online communities are low-cost or no-cost and discretionary spending is at a record low. All of this has challenged our pricing structure, particularly under our network marketing model.

I discuss the criteria in more detail in the new 2010 edition of MLM The Whole Truth, but when choosing a company, you have to look a lot of things.

In this case, a close examination of the Timing/Trends affecting the industry that the company is in would have been a red flag long ago. It was long before mid-2008, when iLearningGlobal opened, that speakers started giving away good quality information for free or very low cost.

Secondly, a sustainable MLM comp plan requires good products that can support a healthy markup long term. That poses a challenge to many companies, not just those selling information. Anytime competition can radically undercut a companies pricing, the end of that company, or sometimes industry, will not be far away.

My sympathy and empathy go to the people who built businesses with iLearningGlobal. Unfortunately, I have walked a mile in those shoes.

Reply

Alan Eames May 10, 2010 at 12:27 am Thumb up 0 Thumb down 0

Hi Lou,

As always, very on-point response! It goes back to the 12 critical success factors, if people haven’t read them, they really should. Otherwise, they could be shooting themselves in the foot and not even know it.

Keep on keepin’ on,

Alan

Reply

Leave a Comment

Thoughtful and constructive comments that benefit network marketing professionals and the industry will be accepted and published after review.
We will not publish rude or insulting comments, plugs for your company or product, or generally non-helpful or self-promoting content.


Previous post:

Next post: