eFusjon, which launched in September of 2008, has notified their distributors that as of September 1st, 2010 they are discontinuing their M.L.M. operation and all independent distributor agreements will be terminated.
See the email notice here:
http://tinyurl.com/eFusjonNotice
Commentary:
There are two comments within the eFusjon notice that are particularly interesting.
First, note the reference to Section 7 of their Distributor Agreement: "The Agreement shall continue in effect between the parties hereto until either party terminates the Agreement..." (emphasis added). This means that all along eFusjon has had the ability to terminate a distributor, group of distributors, or all distributors, at any time, for any reason. Most new distributors assume this means they can terminate their distributorship any time they want, for any reason (this assumes, of course, they have even read their Distributor Agreement). This clause, which is actually quite common within Distributor Agreements, is rarely used to dump a distributor without cause, but rather is added specifically to cover this very situation - the company abandoning the M.L.M. compensation model, or going out of business all together.
But here's the comment that was surely the most offensive to eFusjon reps:
"The goal was to market these products through independent distributors via the M.L.M. direct sales business model. Distributor performance, however, has been steadily declining for over a year now, and as a result, so has the Company's revenues. The Company can no longer maintain a marketing model that is not generating the funds needed to grow a viable business. In short, the Company's M.L.M. business model is no longer a sustainable marketing strategy."
So, eFusjon's decline has nothing to do with their experimental compensation plan that required several revisions, including at one point a significant payout reduction? Or the fact they based their plan on a forced matrix, which historically has had an almost 100% failure rate? Or the fact they entered the already saturated "exotic fruit beverage" and energy drink segments of the M.L.M. market on the downside of the curve? Or the fact that eFusjon management openly promoted the program as one that required "no training" and little effort? I was present on a conference call when eFusjon's CEO exclaimed "Don't sell it, don't pitch it... We get calls everyday from people who think they were overpaid because they didn't do anything. But that's how this company works." They promote a plan that requires little effort, then blame the distributors when they apply little effort?
It was also disturbing to peruse the net today and see all the still active eFusjon distributor websites with claims such as:
"Destined for Greatness!... Efusjon is completely self-sufficient and 100% debt-free. In its first year, Efusjon was one of the fastest growing network marketing companies, exceeding $30 million in sales, and we're still beating sales projections!"
They were clearly blindsided by this decision.
It's also odd that eFusjon management didn't attempt to merge the remaining distributor base into another company, which is a distributor income saving, if not face saving, measure that failing M.L.M. companies often take. This is only speculation, but the way this was handled would suggest they pulled the plug too late and there was no significant distributor base left to merge.
Founder & CEO
Magnetic Sponsoring™
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