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 email@example.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,