I joined my first NetworkMarketing company in spring 1989 because I wanted to satisfy my curiosity abouttheir high income stories. A promoter of this company claimed that it ispossible to make as much money per month as people earn per year in traditionalwork. In the first training session they told us to buy products and bring newprospects in order to build our own downline. At the end of 1989 my downlinehad 200 people.

I recorded all downlinebuilding activity in my business report. I noticed that promoters glorifiedmotivation and sponsoring new product users as the main strategy to grow ourdownline. After a few months I realized that ‘motivational strategy’ doesn’twork for us any longer. My downline did not grow and suddenly people started todisappear. At the beginning of 1990, a company stopped regular motivationalsessions and ‘excited’ promoters vanished. A few weeks later we learned thatcompany closed its downline and all activities. It was a horrifying time forall distributors and my first ‘Network Marketing School-of-Hard-Knocks’experience.

Having gone through it myselfI can understand the feelings of pain, bitterness and cheating thatdistributors experience in Network Marketing. I know what it means when theybuilt up your hopes and dreams to a level of big homes, luxury cars, expensiveyachts, exotic vacations, and later suddenly close a company. Obviously, ourpromoters cheated us for the whole year. Their job was to clean warehouse fromproducts of a company by motivating us to buy a lot of it. They knew thatcompany will be closed in a few months. It was a real shock for us but theydidn’t care   about ‘cheated’distributors! The most important conclusions from “the story of cheating” are:

1.     Network Marketing companies go out of business every year. Statistic shows that yearly 10,000companies are in a declining zone of sales called the RED ZONE. From this group about 3,000 companies go out of business per year.

2.     Negative trend of sales in the Red Zone is a disaster in ‘the best’ Network Marketing. Red Zone s always hidden by companies because it is a shameful end of their ‘motivational’ long term glorious future.

3.     All downlines disappear in the Red Zone disaster. Distributors are treated as enemies of a company and have no chance to do anything positive in this downline tragedy.

4.     Practical advice:YOU SHOULD NEVER JOIN any RED ZONE company. You should recognize all Red Zonesand avoid them at all cost. We will teach you how to do it.

In 1989 I joined the Red Zonecompany but we had no idea about it. Promoters cheated us for the whole yearbefore they vanished for good. Obviously, you never hear from any promoterabout the Red Zone where all downlines are destroyed by a company.        

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