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 operations in 2009. It 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 to you, if you are an Eiro Research distributor?

Why did Eiro’s research as a multi-level marketing (MLM) company fail?

Multi-level marketing, or commonly known as MLM, has a significant strength, but unfortunately, it is only a strength for the company itself, not for the individual Distributor trying to build a profitable business. MLM is one of the most effective ways for a startup 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 possesses a substantial network of family and friends, and MLM companies take advantage of this fact. They just get you excited about their product and, more importantly, the business opportunity they offer, so that you come out happy and promote your products to everyone around you. This advertising method is spreading like wildfire! Not only that, but MLM companies make you pay 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 are making money when you buy their Distributor Kits, along with the requirement that you sign up for their monthly shipping programs. automatic. So even if you are not making money, they are still taking products off their shelves and shipping them to your doorstep on a monthly basis. In the case of Eiro Research, they simply needed to recruit some great hitters, and they were ready for the races and growing at exponential rates.

However, with many newer MLM companies, this MLM concept cannot sustain this level of growth or momentum. Why is this? Simply put, MLM does not work for the individual Distributor who is working like a dog to build their business. MLM companies fail miserably at teaching their Distributors how to “MARKET” and grow their individual businesses effectively. They are sure to get you excited and talk about the wonders that are making 6 or 7 figures a year through living room performances, house parties and recruiting loved ones. However, these methods do not 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 businesses. If everyone is failing, companies like Eiro Research are not making money. Sure, everyone has a large network of family and friends, but in many cases, your friends and family don’t share your entrepreneurial spirit, or maybe they can’t afford to buy a $ 40 bottle of juice or a $ 100 bottle. lose weight, etc. MLM businesses require an unlimited number of consistent leads and new interest, 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 multibillion dollar companies suddenly shutting down. With only 3% of their distributors successfully pulling products off their shelves, their growth and profitability cannot be sustained. A company can make the best products in the world, but if they are not training their Distributors to sell their products effectively, those products will collect dust on their warehouse shelves. This is the reason why Eiro Research has closed its doors. As with most MLM companies, Eiro Research failed its Distributors.

What does this mean for the individual Eiro Research 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 the remaining resources of Eiro Research. Eiro Research is trying to find a third party to buy its trademark, website, and remaining inventory. If a purchase is successful, Distributors may have the opportunity to become Distributors in 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 built 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 from scratch, hoping that they have not joined another MLM company that will file for bankruptcy tomorrow.

The downfall of Eiro Research is very unfortunate, and my heart breaks for those distributors who have seen their hard work, commitment and determination come to nothing, only to start over. When MLM companies fail, unfortunately, it is 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 closing their doors, leaving their Distributors with nothing but tough decisions for their future.