Eiro Research has just announced that it is filing for bankruptcy and has officially ceased all operations. Eiro Research is a very popular multi-level marketing (MLM) business that started operating in 2009. This is a company that gained extreme momentum and very quickly became a multi-million dollar company. Less than two years later, they are closing their doors. Why did this popular MLM business fail and what does this mean for you, if you are an Eiro Research distributor?
Why Eiro Research Failed as a Multi Level Marketing (MLM) Company?
Multi-Level Marketing, or commonly known as MLM, has great strength, but unfortunately, it is only a strength for the company itself, not for the individual Distributor who is trying to build a profitable business. MLM is one of the most effective ways for a new business to gain popularity and momentum, allowing them to quickly achieve early growth and profitability. Companies that employ an MLM business model know that the general population has a substantial network of family and friends, and MLM companies exploit this fact. They just get you excited about your product, and more importantly the business opportunity they offer, so you happily go out and promote your products to everyone around you. This method of advertising spreads like wildfire! Not only that, but MLM companies make you pay them for the right to promote their products. So, companies like Eiro Research not only don’t have to spend advertising dollars to grow their name, they also earn money when you buy their dealer kits, along with the requirement that you sign up for their monthly shipping programs. automatic. So even if you’re not making any money, they’re still pulling products off their shelves and shipping to your doorstep on a monthly basis. In the case of Eiro Research, they simply needed to recruit some heavy hitters, and they hit the ground running and grew at an exponential rate.
However, with many newer MLM companies, this MLM concept cannot sustain this level of growth or momentum. Why is this? Simply put, MLM doesn’t work for the individual Distributor who works like a dog to build their business. MLM companies fail miserably to teach their Distributors how to effectively ‘MARKET’ and grow their individual businesses. Sure, they’ll get you really excited and talk about the prodigies who are earning 6 or 7 figures a year through salon performances, house parties, and recruiting their loved ones. However, these methods don’t work for most of those who are desperately trying to build their business. In fact, it is a proven statistic that 97% of distributors fail in MLM business. If everyone is failing, companies like Eiro Research aren’t making any money. Sure, everyone has a great network of family and friends, but in many cases, their friends and family don’t share their entrepreneurial spirit, or they may not be able to buy a $40 bottle of juice or a $100 bottle of weight loss. pills, etc. MLM businesses require an unlimited amount of constant leads and new interests, and this cannot be achieved through friends and family alone. Eventually you will run out of new prospects to talk to. Simply put, MLM companies don’t teach you what it takes to be successful.
This is why you see multi-million dollar companies suddenly close their doors. With only 3% of their distributors successfully removing products from their shelves, their growth and profitability cannot be sustained. A company can make the best products in the world, but if it isn’t training its Distributors to sell its products effectively, those products will gather dust on its store shelves. This is the reason why Eiro Research has closed its doors. As with most MLM companies, Eiro Research failed their Distributors.
What does this mean for the Eiro Research individual distributor?
At this time, Eiro Research is in the process of completing all orders and compensating Distributors for those orders. These payments will consume the rest of Eiro Research’s remaining resources. Eiro Research is in the process of trying to find a third party to purchase its trademark, website, and remaining inventory. If the purchase is successful, Distributors may have the opportunity to become distributors of the new company. However, many Distributors will jump ship to find another MLM company. This will be a simple process for many of the top producers who have created downlines of hundreds or thousands, as they will convince many of their team members to follow them. However, for those who were still in the process of building a substantial organization, this will not be so simple. Many will simply need to start over from scratch, hoping they haven’t joined yet another MLM company that will file for bankruptcy tomorrow.
The fall of Eiro Research is most regrettable, and my heart breaks for those distributors who have seen their hard work, commitment and determination go to waste, only to start anew. When MLM businesses fail, unfortunately, it’s their Distributors who will ultimately suffer. If MLM companies don’t change the way they train and support their Distributors, we will see many more MLM companies like Eiro Research close their doors, leaving their Distributors with difficult choices for their future.