Empower Network Bankruptcy

A few years ago, I did an Empower Network Review explaining how it’s business model is the classic MLM (multi-level marketing). This is a program that I could never endorse because of how difficult it is to make money under that type of business model.

empower network review

What you need to remember about multi-level marketing is that you have to pay money upfront just to get into the program. Then you are expected to create your team by selling subscriptions to others. That’s before you even get to the product that your team is expected to sell. The amount of money you are paid depends on where you are in the chain and how well your team is doing. The money dries up quickly when people start leaving the team because they can’t get others to join. It can be a little complicated. I’ve explained it in more detail in my previous post, Why is Multi-Level Marketing Bad?

Empower Network Goes Bankrupt

The owner, David Wood, explained in a Youtube video how and why it all happened. It’s truly unfortunate that this company failed for a number of reasons. Some of the reasons have to do with accounting and some are personal. I had a link to that video but alas, it has been taken down so I had to remove the link.

This is a business model that was doomed to fail. It gives me no joy to see a company fail. But when it comes to MLM business models, I hate to see people throw down their cash for hyped up training. And then there were the upsells. Lots of upsells. Once you were a member, you were encouraged to buy all the products. Each time you bought a product, your commission rate would increase. But you can’t make commissions unless you are referring people to Empower Network! That’s really where the money lies. That’s why these models don’t work. In the end, you end up with too many chiefs! It looks a lot like a pyramid scheme and we all know how successful they are! NOT!

In the video, the owner talks about a new venture he is working on. He’s not revealing any details but I’m guessing it will be another similar product. And yet, I hope it’s not. These types of programs are designed to make the people at the top richer while the people below them throw down their money–money that goes into the pockets of the people at the top!

Bad Accounting?

David Wood has blamed part of this on bad accounting. Discovering a $1 million wire transfer long after the fact perhaps could be creatively construed as bad accounting. He mentions this in his video. He should have closed the doors sooner. If anything, this is a huge wake up call for this type of business model.

If you really want to make your own money online, why wouldn’t you check out a program that you can join for free? No strings attached. A program where you can create an account and check out all the training before deciding if it’s right for you or not? No upsells. If you decide to join, it’s a flat price each month for as long as you are a member.

I’ve said it before and I’ll say it again. Don’t put any money down on an online marketing program unless you can take it for a test drive for free. If it’s as valuable as the advertising says it is, you will find out yourself very early on. Anyone who believes in their program is not afraid of letting people try it out for free. I hope you’ll keep that in mind.

If you have had an experience with Empower Network, leave a comment below. I’d love to hear about your experience.

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