As Direct Cellars closes, I’m thinking about this wine club that followed a Network Marketing model. Corporate leadership announced on a call Sunday, that the company would close its doors Monday.
I was a member of Direct Cellars for a little more than a year and was sad, though not entirely surprised, to see this announced.
They had good products.
They had a compensation plan that would allow a person to make a good living marketing those products. (Technically distributors sold a membership to the wine club, rather than selling the wine itself).
I know some good people that stuck with Direct Cellars to the end and those folks are hurting right now.
As distributors for Network Marketing companies, we don’t control what corporate does. Hard-working distributors suffer when a company closes through no fault of the field team. Their hopes and dreams take a beating.
Sometimes they pick up and start over with a new company. Sometimes, sadly, they leave the industry and blame their misfortune on the Network Marketing model as a whole rather than seeing this as one of the sad things that sometime happens in business.
Failure happens.
As Network Marketing distributors, what lesson can we take from Direct Cellars closing?
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The biggest lesson from this story is that business is risky and start-ups are more so.
When you invest the time into building an asset income from a Network Marketing business, you need some certainty. You need to be as sure as you can be that the company will be here in 10, 20, 40 years and more. The goal is to build your business once and earn forever.
Getting paid forever is easier if your company stays in business.
There is a myth in Network Marketing that the key to wealth is getting in early. “Get in on the ground floor!”
The truth is that most companies, including Network Marketing companies, fail within their first five years in business. That won’t be part of the presentation when you’re learning about that exciting new start-up, but it’s still the truth.
It takes several years for a company to find its market and its message. Searching for and retaining top corporate talent also requires time. To develop systems and iron out the logistics of moving product is another project that doesn’t happen overnight.
Because of this, I’m convinced that the best time to join a Network Marketing company is after it’s been around for five years or more.
By this time the company has proven that they have a viable product and will honor their promises to the field distributors. They can be better trusted to be around for the long haul.
It’s no guarantee, but it sure is a great place to start the search for your Network Marketing home.
So tonight, as Direct Cellars closes theri doors for good, I will open a bottle of wine and raise a glass to my friends who were still fighting the fight in the end.
When the dust settles and they’ve had a chance to heal, I hope they get back into the battle of building an asset income for themselves and their families.
I also hope they take a close look at the companies that have proven themselves in the industry to give them a better chance of building their business and getting paid forever.
I’m rooting for them.
