MLM News Alert: XELR8 aka BAZI Terminates ALL Distributors and Exits MLM Forever

XELR8 aka BAZI terminates ALL distributors and exits MLM Forever. This notice will hit all distributors this morning, and was made public by Morningstar January 19, 2010.

Here is a link to Rod Cook’s aka MLM Watchdog take on all this. Read Here.

According to Morningstar…

“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.”

I have just received a copy of the termination letter and there is one good sign…

” Although the current XELR8 Compensation Plan remains in effect until February 28, 2010, please be advised that no new Distributors may be enrolled as of the date of this letter. While you will no longer be able to enroll new Distributors, you, and your customers (both existing and new customers) may continue to order XELR8 products. Commission and bonus payments earned prior to the date of this letter will be paid according to the current XELR8 Compensation Plan. Commission and bonus payments earned after the date of this letter through February 28, 2010 will be paid on or about March 15, 2010. Following the payment of these commissions and bonuses, no further bonuses or commissions will be paid to any XELR8 Independent Distributor under the current XELR8 Compensation Plan.

Although the Company has elected to terminate the current multilevel marketing program, XELR8 products will continue to be available through Independent Distributors through February 28, 2010, and other direct marketing channels to be announced on our national call on February 3, 2010. If you are enrolled in our AutoShip program, you will continue receiving your monthly AutoShip order until such time as you elect to cancel your participation in the AutoShip program. Preferred Customers will also continue to receive their automatic monthly orders until such time as they choose to cancel their Preferred Customer Agreements. If you wish to cancel your monthly AutoShip order, please send your notice of cancellation to us at 480 South Holly Street, Denver, Colorado 80246. Alternatively, you may fax or email your notice of cancellation to us at (303) 316-8078 or support@xelr8.com. Please include your Distributor ID Number in your notice of cancellation.”

Tom Chenault was the founding distributor at BAZI and a top leader. Garret McGrath was the #1 distributor in BAZI and over the last couple of years had set the company on fire. These two men provided some of the best field leadership I have seen in a long time.

But leadership starts in the corner office, the Founder and CEO of the company. In this case a publicly traded company where the Board of directors did not have any MLM experience and listened to little to late to their field leaders.

Living An Epic Adventure,

Troy Dooly

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6 thoughts on “MLM News Alert: XELR8 aka BAZI Terminates ALL Distributors and Exits MLM Forever”

  1. Holly is correct – I applaud you – Market Yourself the product (every product is #1) The company (Every company is the best) The comp plan – (every plan the best in the business). Check the Rules real good. Be a leader of your team. Build a true business – you will be successful.

  2. It is sad that many folks will get hurt with this decision (I am NOT an xelr8 distributor)…the sad fact of the matter is that this happens every day in this industry–and I see so many folks who "tout" the best comp plan; best product, etc…

    Folks need to be taught that marketing the themselves is the way to go–not the product or company.

  3. Scott,

    Thanks for coming by and commenting. However it seems you are a little premature in your conclusion. The company was very clear they are staying in the direct selling arena, not going retail. the new management of the company all have huge success in direct marketing.

    As a MLM advocate I hate to see this happen, but anyone who puts 100% of the blame on the company has not read the financial statements.

    I do agree 100% with you that the functional beverage niche is full and if a company doesn't have deep pockets it will be an uphill climb. But in the case of XLER8 read the financials everyone has to take responsibility, this is not just a company issue.

  4. HAte to say it, but predicted this a long time ago. Too many companies doing the same thing. Generating Sales through MLM and then taking a name that MLM's help build and cashing in for the Cosco or Walmart Orders so they can get rich and get out. How will the indipendents who were selling this program to others ever have any credibility again when the price of Bazi is less than half of what they were charging their clients and you can pick it up next to the rest of the soft drinks at your local dioscount store.

  5. I really feel bad for the reps at XELR8…both the little folks and the top leaders. Things like this give the network marketing industry a black eye. This business is like dating, there are nice men and women out there, but you might have to date a few losers to find a good one. Remember what Mel Gibson supposedly said, "I never lost money on an investment…I simply paid tuition." Learn long and prosper! 🙂

  6. Be careful out there kids, and read your distributor agreement. Typically an MLM company can do anything they want and you have no recourse. It's usually ok when you're a little guy but when you put your heart and soul into a business and the company does this, it is absolutely devastating. Best to negotiate your own contract.

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