On August 6th, eFusjon announced the company would be changing their compensation plan so that all distributors would receive 1.25% commission on community overlap. (Distributors would continue to receive 4.25% on all personally enrolled and their downline.) According to eFusjon, the change is a raise of .25% for approximately 80% of the company. However, for the distributors who joined eFusjon prior to May 1, 2009, the change represented a pay cut for many. I have heard Rob Towles say that only about 3,900 distributors were actually affected.
The change represents the 4th adjustment to eFusjon's compensation plan since its inception. The first compensation plan ran from September 2008 thru December 31st 2008 (read about it here). In January 2009, eFusjon adjusted the compensation plan so that distributors were paid 4.25% on their entire downline, including community overlap. On May 1st 2009, eFusjon adjusted the compensation plan for the third time by reducing the commission on community overlap to 1%. However, all distributors that joined eFusjon prior to May 1st continued to receive 4.25% on community overlap -- effectively the distributors were "grandfathered" in. And while the 4th adjustment on August 6th provided the majority of the company with a pay raise, eFusjon stripped the distributors who were "grandfathered in" of their 4.25% commission on community overlap and made all distributors in the company equal at 1.25% for community overlap.
Now, let's get one fact straight, eFusjon's decision to reduce the commission on overlap for some of its distributors sent shock waves through the company. In my humble (but accurate) opinion, those entering a business or an investment in the early stages take on more of the risk and therefore should be paid out at a higher level than those entering the business or investment in the later and more secure stages. While I have not changed my belief regarding the distributors who shouldered the burden in the early stages reaping more rewards, I do accept the decision eFusjon was forced to make to support the longevity of the company.
More and more details continue to emerge surrounding the decision to level the playing field and ultimately make all distributors equal. The catalyst for the change came down to eFusjon being sharply watched by a number of State Attorney Generals and on the brink of being forced to close for an investigation. Why? Because a handful of distributors were advertising the massive amounts of money they were making to potential new distributors, but not disclosing the fact that the massive amount of money being made was due mostly to the "grandfathered" compensation plan -- sort of a bait and switch tactic. Of course, I do not believe this was being done by most maliciously, but the fact remained that the new distributors would (likely) not be able to make anywhere near the kind of money being advertised. Potential distributors were being lured under false premises, which lawmakers do not take lightly.
Now, the truth is many companies use "grandfathering" and eFusjon (in my opinion) would have likely fared well in court. But, the investigation would have forced eFusjon to shut its doors for months (or years) likely, and as a young company, eFusjon likely did not have the capital reserves nor the reputation (yet) to hunker down for a long battle. So, eFusjon's founders and legal team ultimately made the decision to make all distributors equal and give the majority of distributors a raise.
I cannot be sure why Rob Towles and eFusjon corporate have not yet come out and said all of this "officially". (And honestly, I do not agree with their choice.) I can only surmise that eFusjon did not want to scare its distributors with the thought of a lawsuit. While veterans of the network marketing industry know lawsuits are common place, eFusjon has brought in many new faces to the industry who might not be so comfortable with the thought of the company being sued.
Ultimately though, as Rob Towles has stated, a level playing field in compensation is more in line with his personal vision and will be better for the company over the long-term.
The change represents the 4th adjustment to eFusjon's compensation plan since its inception. The first compensation plan ran from September 2008 thru December 31st 2008 (read about it here). In January 2009, eFusjon adjusted the compensation plan so that distributors were paid 4.25% on their entire downline, including community overlap. On May 1st 2009, eFusjon adjusted the compensation plan for the third time by reducing the commission on community overlap to 1%. However, all distributors that joined eFusjon prior to May 1st continued to receive 4.25% on community overlap -- effectively the distributors were "grandfathered" in. And while the 4th adjustment on August 6th provided the majority of the company with a pay raise, eFusjon stripped the distributors who were "grandfathered in" of their 4.25% commission on community overlap and made all distributors in the company equal at 1.25% for community overlap.
Now, let's get one fact straight, eFusjon's decision to reduce the commission on overlap for some of its distributors sent shock waves through the company. In my humble (but accurate) opinion, those entering a business or an investment in the early stages take on more of the risk and therefore should be paid out at a higher level than those entering the business or investment in the later and more secure stages. While I have not changed my belief regarding the distributors who shouldered the burden in the early stages reaping more rewards, I do accept the decision eFusjon was forced to make to support the longevity of the company.
More and more details continue to emerge surrounding the decision to level the playing field and ultimately make all distributors equal. The catalyst for the change came down to eFusjon being sharply watched by a number of State Attorney Generals and on the brink of being forced to close for an investigation. Why? Because a handful of distributors were advertising the massive amounts of money they were making to potential new distributors, but not disclosing the fact that the massive amount of money being made was due mostly to the "grandfathered" compensation plan -- sort of a bait and switch tactic. Of course, I do not believe this was being done by most maliciously, but the fact remained that the new distributors would (likely) not be able to make anywhere near the kind of money being advertised. Potential distributors were being lured under false premises, which lawmakers do not take lightly.
Now, the truth is many companies use "grandfathering" and eFusjon (in my opinion) would have likely fared well in court. But, the investigation would have forced eFusjon to shut its doors for months (or years) likely, and as a young company, eFusjon likely did not have the capital reserves nor the reputation (yet) to hunker down for a long battle. So, eFusjon's founders and legal team ultimately made the decision to make all distributors equal and give the majority of distributors a raise.
I cannot be sure why Rob Towles and eFusjon corporate have not yet come out and said all of this "officially". (And honestly, I do not agree with their choice.) I can only surmise that eFusjon did not want to scare its distributors with the thought of a lawsuit. While veterans of the network marketing industry know lawsuits are common place, eFusjon has brought in many new faces to the industry who might not be so comfortable with the thought of the company being sued.
Ultimately though, as Rob Towles has stated, a level playing field in compensation is more in line with his personal vision and will be better for the company over the long-term.
2 comments:
First, matrix plans do NOT work! Of the 30,000-50,000 opportunties that have launched over the past 6 decades, only 1 has experienced any signficant, long term success with a matrix pay plan-one! Whenever something only works once, we call that a fluke!
Nobody in their right mind would get involved with something that has only worked once! (Owners looking for a short term cash grab like matrix plans because they know that their company is not likely to be around 2-3 years from now and matrix plans pay out less money than any other pay plan due to all the breakage that occurs, regardless of whether it’s a forced matrix, has compression, etc.)
Furthermore, the one particular company that has had some success launched 25 years ago, when there were far fewer opportunties available. Today that same company probably wouldn’t survive 10 years.
No experienced or knowledgeable network marketing professional with an understanding of the history of our industry and compensation plans would ever work a matrix plan, no matter what typical wrinkle you add such as forced matrix, compression, or some new fangled idea!
Spillover? The potential for spillover is less as you progress down each level. If you want maximum potential spillover, work a binary program! They also far more lucrative!
Additionally, regulators consider matrix pay plans gimmickly and they’re most often associated with “money games.”
The Facebook angle has been one big hype job! In fact, Facebook itself is not real happy! Furthermore, driving traffic and attracting eyeballs is one thing-whether or not they stick once they sign up for the long term is another matter, and in fact, due to having a matrix plan, that virtually assures they won’t stick long term.
In terms of the product, VEMMA has a far superior energy drink called Verve, both in terms of ORAC value, ingredients, and its formula has clinical studies, Efusjon’s doesn’t!
In addition, Verve was just recently named 2009 Product of the Year by a leading fitness/health publication whose judging panel included fitness experts, doctors, and anti-aging specialists, and it’s the official energy drink of 4 U.S. pro sports teams.
Finally, Efusjon is relatively new, and that’s the 3rd major strike against! 98% of new companies fail in the first 2-3 years, and only 1 company out of every 300-500 that launch survive 5-10 years! One! You can get better odds than that in Las Vegas.
People jumping on the Efusjon bandwagon definitely need to read “The 6 Keys to MLM Success in the New Millennium-How to Make a Smart Decision and Put the Odds of Success in Your Favor!” If they knew the 6 keys, they wouldn’t be doing Efusjon!
By the way, this whole “position yourself to be an expert” mantra is doing more damage than good! I talk to more people who do this who have no experience, no track record of success, and all of a sudden they’re an expert! Please! They lose all their credibility when they come across people like ourselves who are experts. It’s a bill of goods being pushed by alleged “internet gurus” so that you’ll buy their stuff with promises of making you an internet marketing star and expert.
Learning how to effectively market online doesn’t make you an expert in network marketing! Just because you can do one well doesn’t mean you know what you’re talking about when it comes to the other. In fact, without knowing “the 6 Keys,” I can virtually guarantee you that you’ll fail in the network marketing opportunity you’re looking at, regardless of how great you are at marketing online, unless you get lucky, and no smart entrepreneur bets their success on luck!
For a free copy, send an email to:
themlmdreamteam@hotmail.com
Use subject: Send Me the 6 Keys!
Include your name, city/country, phone number, and a brief description of your background.
"MLM Dream Team" uses the same text and cuts and pastes it on every blog he can find about Efusjon. It is nothing more than a tactic to get people into his other opportunity. If you don't believe me just take a paragraph from his text and paste it in Google search. You'll see all the pages where he has used this to try and recruit people to his other business.
Efusjon is moving forward and is in a better position now because of the changes being made. They wanted to get the compensation plan right moving into international launch and that is where we are right now. For those that stick with it and use a proven system to build their business, they are in for the ride of their lives.
Post a Comment