MLM Help Desk, no Troy Dooly, failed the XELR8 aka BAZI distributors by not publicity asking the hard questions. the information was public, yet none of us took time to stop, read and ask the hard questions.
Folks, I am a firm believer in taking responsibilities for me actions or the lack thereof. In this case because I had very close friends leading the field in this company, I did not publicly ask the hard questions. I put personal friendships above my gut instinct.
It is so easy to reveal and expose companies which are blatantly hurting distributors, or who have violated the rule of law. But, when issues are brought to out attention and it might mess with the status quo like XLER8/Bazi I did not follow through, and I must admit this error.
My goal in the future is to never let this happen again.
Here is the first video I posted yesterday.
Yesterday Sandy Greenburg reached out to me, and we talked on the phone. I asked some pointed questions, and he gave very heartfelt answers.
I’m just sorry it did not work the way it should have for everyone.
I respect the field leadership which grew XLER8 over the last few years, sharing the power of the Bazi juice with tens of thousands of people. It was the leadership of Tom & Denice Chenault, and Sylvia & Garrett McGrath. They were the true shot in the arm this company needed over the last few years. However, when you are focused on growing, you sometimes do not see the signs that there are bigger issues, until it is to late.
Marketers are not by nature going to review the annual reports of MLM companies, their focus is building. However, in my case I have been reviewing the quarterly and annual reports for close to 12 months, and yet I did not publicly ask the hard questions…
1. Why isn’t the company making changes to reverse the massive cash burn which caused them to be delisted from the American Stock Exchange?
2. Why is the company putting all their eggs in one basket, when they have such great legacy products?
3. Have you (The top leaders) slowed down enough to read the latest quarterly report, and see the red flags?
4. What is your long term plans with EXLER8, because based on the latest quarterly report, if you guys don’t get on the same page, there may not be an EXLER8 next year.
Page 14 of the FORM 10-Q dated November 13, 2009 for the period of September 2009 EXLER8 made it very clear what was on the horizon if financial issues were not taken care of.
“Our existing cash resources are currently insufficient to provide for our short term working capital requirements and fund the successful completion of our business plan of sufficiently increasing the number of distributors and revenue, and consequently achieving profitability. As a result, we are currently seeking additional financing to provide for the Company’s working capital requirements. Our current plan is to issue promissory notes convertible into shares of our common stock. While the Company is in negotiations with certain existing shareholders to provide for the issuance of such notes, we currently do not have any firm commitments. There can be no assurances that we will be successful in securing such commitments, or that such notes, or other securities issued by the Company to provide for its working capital requirements, will be available on terms and conditions beneficial to the Company. If management is unsuccessful in its plans to issue additional convertible promissory notes or raise additional capital, or otherwise improve its liquidity position, the Company will be required to pursue alternatives to continuing as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or to amounts and classification of liabilities that may be necessary if the Company is unable to continue as a going concern.”
This statement was made public two months prior to the statement yesterday…
“On January 19, 2010, the Company issued a letter to its independent distributors advising of a change in its compensation plan, effectively terminating the existing multilevel marketing program effective February 28, 2010. A copy of the letter is attached to this Current Report on Form 8-K as Exhibit 99.1. The Company intends to pursue a direct-to-market sales strategy whereby XELR8 products will be sold direct to consumers and through an affiliate program whereby compensation will be paid to individuals that sell the products directly to consumers.
The Company expects to incur restructuring costs associated with the changes to its compensation plan. Although the amount of the restructuring costs is being determined, it is currently anticipated that such restructuring costs will be between approximately $200,000 and $300,000. As a result of the payment of certain of these restructuring costs, the anticipated material decrease in sales as the Company transitions to a new sales commission plan and business model, as well as the Company’s current cash position, additional financing is required to continue as a going concern. Although the Company is currently seeking additional financing, no assurances can be given that such financing will be available.”
There is no way to remove the heartbreak and pain Bazi distributors are feeling today. However, taking from the story of the Boreyko family back in 1994, this is a time for growth. BK and his family turned a financial devastation into a financial legacy which has created over 40 millionaires.
Find a new company or start your own, and show the world how strong the Bazi distributors are collectively and on an individual level.
Leaders, never allow this to happen again to you or your team. Keep your eye on the ball and always ask the hard questions.
When you see attrition then fly to home office, call the founder on the phone do everything you can to protect your team.
Again, I am truly sorry to the Bazi distributors for failing to ask the hard questions when they first came to my attention.
Living An Epic Adventure,