eFusjon to go out of the MLM business

by louabbott on August 31, 2010

In the email below, the eFusjon multilevel marketing company today announced the ending of their distributor model:

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 www.efusjon.com.

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 the part that would irritate me if I were one of their distributors:

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.

So, it’s the distributor’s fault? Perhaps one of the problems is that leadership at the company level fails to take full responsibility. Perhaps all the changes to the comp plan discouraged the distributors?  Whose fault is that?

eFusjon was a relatively new MLM company that was just launched in 2008 with an experimental matrix compensation plan with “community overlap.”  They had some initial success until their hype about a revolutionary “Facebook Application Launch” in July of 2009 failed miserably.

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{ 19 comments… read them below or add one }

Brian Downie September 26, 2010 at 11:30 am Thumb up 1 Thumb down 0

Always difficult when this sort of thing happens but no need to blame the industry.
Many main stream businesses close their doors every day.
Many with a long history of success in their respective industry that couldn’t keep their head above water for a myriad of reasons.
Many people that dedicated 20 or 30 years of their lives to a company were let go.
What now? Pick yourself up, brush yourself off and rebuild.

Brian Downie

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ATIF SHOAIB September 3, 2010 at 2:49 am Thumb up 0 Thumb down 0

Hi lou.

it is really painful for the distributors of e fusion all around, the negitivety is already woundering all around the world. how people faith on the companies ..

TAKE CARE.
Atif shoaib

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Ding Neng September 3, 2010 at 2:14 am Thumb up 1 Thumb down 0

It came as a shock to me when I heard this news. I came across eFusjon in 2008, when they are just having their pre-launches, show casing their powerful drinks. However, I didn’t join then. But in just 2 short years, now, I heard they went out of business.

When Lou brought up and highlighted the sentence about ‘Distributor Performance’. I think this is seriously annoying and probably the last thing eFusjon distributors want to hear. Distributors work so hard to move the eFusjon products to consumers, and building their sales force, and now they get informed that it is because of them that the company folded.

eFujson said that the company cannot sustain the marketing model to generate funds for their business. Seriously, it is the eFusjon marketing model that has failed, not the network marketing business model.

One advice I would give to ex-eFujson distributors is that eFujson has failed you, but the network marketing industry has not. As collapse of eFujson news broke out, there are many network marketers out there trying to recruit you, ex-eFujson distributors. I saw this happening in everywhere now, on social media platforms like Facebook and Twitter.

I am not saying these network marketers are unethical or trying to rope you into their companies. However, I would recommend you take some time to go back and learn how to evaluate MLM companies all over again. There’s really no point in you joining any MLM company immediately right now, without proper evaluation of it. You may end up in the same position as you’re in right now, if your ‘new’ MLM company folds again.

And 1 thing I like to recommend is Lou Abbot’s MLM The Whole Truth Site (this website). He seriously covers all the MLM companies that went bust before, and he truthfully lay out all the things you need to know before joining a MLM company.

Thanks Lou for this wonderful Super-site :)

Take care my friends here, and all ex-eFusjon mates.

Ding Neng

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Annemarie September 2, 2010 at 6:31 pm Thumb up 0 Thumb down 0

Another example of why the new way is to own your channel. Build an independent team without a mlm company. When ready, now you can plug into a good company and another and another. Reverse equation. The time has come.

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Nick Bello September 2, 2010 at 10:59 am Thumb up 1 Thumb down 1

After being in this industry for 14 years and currently being a master distributor for a company, this stuff always bothers me. It gives the industry a bad name. No matter what industry, companies will always fail, but the audacity to blame it on the distributors in unreal. I hope other distributors in our industry treat eFusjon’s former reps with respect. There will be many people trying to recruit them. Please be professional and do not become the crazy distributor that thinks you have just found the goldmine. People will be attracted to you for your professionalism. I will do everything I can to help anyone in this industry. Never hesitate to look me up.

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Mous Brooks September 2, 2010 at 10:12 am Thumb up 0 Thumb down 0

Dear Lou,

Six years ago when I started in MLM I undertook your 7 day program about MLM’s.
One of the key no no’s was not to enrol into a company that had not passed the test of time and gone through the critical mass stage. I think it was 5-6 years at least. I so see the wisdom in that key point.
I feel for the distributors that were discarded but here is proof yet again one needs to consider the company track record, growth and performance for many years before committing to some thing very green no matter how exciting.

MOUS BROOKS

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Jeff September 1, 2010 at 7:56 pm Thumb up 0 Thumb down 0

Hate to see good companies end of like this. You definately have to do your research on any new company that you sign up with. After reading this I feel very fortunate to be with such a well funded company. I wish the best of luck to all the eFusjon reps.

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Jon R. Patrick September 1, 2010 at 7:28 pm Thumb up 1 Thumb down 0

Wow.
Heard the news yesterday, and am completely shocked.
As one who had a ‘gold’ MLM closed down on me and lost a check supposed to be coming my way, I know it’s easy for those distributors to feel jaded, let down, and many will be totally ready to GIVE UP on MLM!
My advice! DON’T! One bad experience does not mean the Network Marketing Model doesn’t work! It just means you got one bad apple.
Take 5 minutes – get a cup of coffee, and then jump back in and earn your next check!

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Damien Smith September 1, 2010 at 7:12 pm Thumb up 0 Thumb down 0

Show once again that no matter how miraculous your product is, if the leaders don’t understand what a real system is and how to put one together for your distributors faiulure is imminent. I am so sad to hear this cause it did not have to happen. And you’re right it was not the distributors falt.

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Betty Newbold September 1, 2010 at 4:07 pm Thumb up 0 Thumb down 0

Another reason not to put all of your eggs in one basket, i.e., limiting oneself to one product. So sorry for the reps.

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Steve Bilenky September 1, 2010 at 3:41 pm Thumb up 1 Thumb down 0

It’s unfortunate for those who worked hard were put out of business in an instant. It’s not the first time this has happened and unfortunately it will not be the last time. What I found out is most people enter this industry with very little knowledge and few skills. My new mission is to mentor people on what to look for when they are considering mlm or are in mlm and wonder why they are not reaching their goals without mentioning any products or companies. Would it be OK if they contact me for some generic information?

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Stephen Clarke September 1, 2010 at 1:30 pm Thumb up 0 Thumb down 0

Hey Lou,

Always a shame for the industry when this happens and I feel for the Distributors. Hopefully lessons will be learnt that these “Start-Ups” are often a high risk proposition. The reality is that every industry has companies that fail, why would our industry be any different?

I also thought the announcement was very poorly done but I guess the easiest people to blame are the Distributors…..after all they were able to get them involved with all the Hype about a “new” Matrix Plan and silly Facebook applications!!!

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Jason Buckner September 1, 2010 at 12:50 pm Thumb up 0 Thumb down 0

I agree with Lou on Leadership, and as John Maxwell says “everything falls and rises on Leadership”. I hope that all those involved in this company from a mlm stand point take this as a great learning experience and go and grow. In fifteen years I’ve seen this happen in various ways, but the one thing I have found is those that never stop and keep searching and learning are always better off down the road. I would use the commits from this company if I were one of the distributors to go out and have massive success with a company that will appreciate you, that in my book spells revenge. Best of luck to each of those involved!

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Diane Aksten September 1, 2010 at 12:41 pm Thumb up 0 Thumb down 0

This is so unfortunate for the distributors who have put their heart and soul into this company. Lou, I agree with you; to blaim the distributors for the company’s declining revenues is a travesty; if the company’s pay plan is fair and generous, I guarantee you you won’t have to worry about the decline of distributor performance.

I’m very fortunate to be affiliated with a company that has integrity and pays their distributors very generously.

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Mike Gunn September 1, 2010 at 11:43 am Thumb up 0 Thumb down 0

I find it very distressing that the good people who put thier faith in the company have been let down. I just hope they will not give up on MLM. There are really good companies out there that they can trust.

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Alan Eames September 1, 2010 at 11:35 am Thumb up 0 Thumb down 1

Hi Lou,

Your email this morning is the first I had heard about Efusjon ceasing mlm operations. I was struck by the same thing as you, distributor performance?? Distributors fail to perform because the product isn’t all it’s hyped up to be, or the compensation plan doesn’t properly reward the people doing the work, or the company is actively undercutting the field by changing things too frequently.

Keep telling it like it is,

Alan

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Tom McKinney September 1, 2010 at 11:29 am Thumb up 2 Thumb down 1

This is a hard blow for eFusjion reps., I feel for them. MLM is tough enough with all the negative attitudes of the public and media. Then when the company that you have committed your self to, pulls the rug out from under you. It really hurts.

I know from experience. I have been there twice. I own the tee shirts. That is why I no longer join any company with less than 5 years track record. In my opinion at 5 years there is more opportunity than a new start up. There is a track record of success to build on. Much better then “Ground floor Opportunity”.

Also, I recommend you brand and build you and your marketing system. Not the MLM company. I have learned this the hard. After starting over re-building a couple of times.

I wish the Best of Success to eFusjon Reps.

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Sherry Smith September 1, 2010 at 11:13 am Thumb up 1 Thumb down 0

It’s very sad when this happens. It seems I have seen this quite frequently in the last year or so, where companies terminate their mlm marketing plan.

At least they are refunding those that came in in August.

I wish all the distributors good luck, I am sure they will all find a good home. There so many good networkmarketing companies with excellent management and a few with uncomplicated pay plans.

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James Kinney September 1, 2010 at 6:18 pm Thumb up 0 Thumb down 1

There is a strong reason a person should not jump into start up companies and should look for companies that are 2 1/2 – 3 years old. They should also scrutinize all compensation plans by searching for the structure and learn what the “Pit Falls” and “Traps” are that will allow money to be left on the table, which will reward the “Heavy Hitters” at the top at the expense of the part-time distributors that are just starting a business.
Network Marketing should be anhonorable profession, but it will not become the profession it should be untill we clean up the industry!

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