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This is really not something that anyone wants to think about, but network marketing companies DO go out of business, all the time. There is nothing revolutionary about that, of course. Brick and mortar businesses…mom and pop shops, melt down, in a metaphorical heap of flames, on the daily. So then, why do so many people freak out and get all bent out of shape when a network marketing company goes out of business?


The truth is, the reasons are many. So with that being said, let’s take a look at this issue a little more closely to determine what we should do, if it happens to us.

When a network marketing company fails, it actually negatively impacts a whole lot of people.  Our industry is subject to far greater scrutiny than most, due to it’s prior reputation (that is still hard to shake) for being ‘scammy’.  Though it is wholly unfounded, the nonsense persists. As a result, any ‘bad’ news, affects us doubly hard.




Potentially, when a network marketing company goes under, thousands of reps lose their incomes and customers lose out on getting beloved products. Incidentally, whole communities can be impacted when so many families are dealt a blow like this. Let’s face it..it can take years for reps to build up their teams, and hence, their incomes and as such, it’s totally devastating when the rug gets pulled out from under.

I bring this up, because I feel it’s important to understand why so many people feel so heartbroken when their network marketing company goes out of business.


I’ve got 7 important things you should do, if you’re network marketing company crashes and burns….


Whatever you do…don’t panic, throw your hands up …and totally quit the profession! Besides being completely irrational, quitting will NOT make you feel any better. You will always wonder, ‘what IF I had stuck it out? Where would I be, today?’

I promise you, after a period of mourning, you will pull your sorry ass out the fetal position and move on with your life. THAT I can all but guarantee. Remember, businesses of every kind go under, everyday. It’s a normal part of the evolution of our marketplace.

The Network Marketing Profession Works!

Most importantly, keep in mind that The Profession of Network Marketing works! We see thousands of examples, all the time, of people who have freed their families, and become completely financially independent, whilst also taking their time back. 

So many people are creating legacies that will forever change the nature of their families’  futures, going forward. How many professions do YOU know, that can do that? Do you know of even a single other profession, outside of network marketing that can create total freedom in a matter of several years… for anyone, no matter where they come from, or what their circumstances have been, if they are willing to work the system??? I don’t. 

This profession is THAT powerful! So why would you quit?


Long reddish brown sign saying 'Sorry We're Closed' used for the blog post entitled "What To Do When Your Network Marketing Company Goes Out Of Business!"



In spite of what you may be thinking, nobody worth their salt, thinks that you knew it would happen. People aren’t assuming that you intentionally misled them or brought them into a company that was doomed to fail.

That story that is spinning around inside your head is ..just that…a story. It’s not truth. It’s not your fault…plain and simple. Don’t own it. That’s not on you. Network Marketing companies go under..it happens and it sucks but again…it’s not your fault. OK?


It sucks for them too! I can assure you, your up line doesn’t want the network marketing company going out of business, any more than you do. Incidentally, It effects their pay cheque just as much as yours, and often, more so. For that reason alone, you should resist the urge to rage at people who, first of all, aren’t to blame and secondly, can’t do anything about it.


Commonly, when someone feels like the rug was just pulled out from under them, they feel a bit lost. It would not be unusual to feel tempted to dive right in to the ‘next big thing’. I encourage you NOT to do that. 

Take a step back and breathe. Consider what you truly loved about your now defunct network marketing company and what you freakin’ hated about it. Come on now..I know there was something that didn’t jive with your core values.



Ok…maybe not..but my point is, diving into another opportunity on the heels of something like this is NOT the best idea. Remember, it’s a loss. You’ve suffered a loss….so allow yourself the time to mourn it.

In actual fact, this is the perfect time to do some research, collect information and learn about other opportunities. If you approach it sensibly, and really vet the leaders you’ll be working with, you stand a much better chance of being truly satisfied in your new venture.

By the way, THIS may not be the best time to get involved in a start-up! When you’re feeling raw and somewhat vulnerable, getting into a super high risk, potentially low yield situation, may not be the best idea.


Tow truck illustration used for blog post entitled: What To Do When Your Network Marketing Company Goes Out Of Business!"

This is for all the OTHER reps out there, who witness the demise of a network marketing company, and start salivating like a carnivore in a steak house! It’s so tacky….it’s gross…it’s rude and it makes me want to hurl. Use the smarts God gave ya..and don’t be ‘that guy’!

When a network marketing company folds, it’s people are sad and may feel betrayed and angry. THAT is not the time to swoop in and try to recruit them. Simply reach out with words of encouragement and support. Additionally, you can offer to lend an ear. That’s all.

To do anything more would be like bringing flowers to your buddy's girl right after she dumps him. Gnarly…. Or as my husband likes to say..”Don't be the tow truck on the MLM highway!”


“Don't Be The Tow Truck On The MLM Highway!” ~ Greg Hall  (Click to Tweet)




Sometimes, like any business, network marketing businesses will go under because they simply end up on the wrong side of math. Not much you, as a rep, can do about that. Often though, network marketing companies find themselves in hot water, due to inappropriate behaviour on the part of it’s reps, leaders or company heads.

THOSE things CAN be avoided.



First of all, do your inviting and presenting properly and in accordance with your company’s instructions. The more you stray…the easier it is to screw up and get into trouble. Avoid being hypey or making bloated income claims of any kind. Do NOT make promises to people. THAT is a recipe for disaster.

Remember, your product, service or opportunity is totally amazing on it’s own merit. So why would you feel the need to hype it up?


If someone insists on knowing how much money they can make..show them your income disclosure statement. THAT tells the tale..straight up. If they balk and complain and make comments about how few people hit the top ranks. You pretty much KNOW what you're dealing with. Very likely, THAT person will not do the work required. 

Those that focus on possibility instead of probability, are the ones you really want, anyways. The point is..you don’t need to lie, embellish or hype. The truth is amazing enough on it’s own.

NOTE: Make darn sure that you are familiar with your specific company’s compliance rules. Follow them without deviation and call out those who do not. Protect your house! Doing so will avoid a lot of the problems that often face network marketing companies today.



… telling people to go ‘all in’ and quit their jobs. NOT smart… Ideally, you should encourage people to get the point of replacing their current income before they quit their jobs. It's far more important to learn to have results within the time you DO have than to quit everything else before you have any momentum to build from.

As my mentor Ray Higdon says:


“If you can’t build your business part-time, you also can’t build it full-time.”  ~ Ray Higdon  (Click to Tweet)



…and last but not least..


Listen up. If you brand yourself on the front end, INSTEAD of branding your company, it won’t matter a lick WHAT happens to your network marketing company, or two..or twelve! Branding yourself, positions YOU as the go-to person that people will want to join and by from…just because it's YOU..regardless of the company you are in. 

Put YOURSELF out there as your brand and stop mentioning your company name. Stop mentioning the product name. Additionally, stop posting pictures of the company logo and your darned BoGo sales! Treat your links like they are sacred and stop throwing them out everywhere like beads at Mardi Gras!  Seriously, STOP!

No Spam pictures for the blog post entitled "What To Do When Your Network Marketing Company Goes Out Of Business!"WHAT DO I DO THEN?

Decide to be an authority on something that you are passionate about. Think about other people who are passionate about the same thing but know less than you do about it. What are their pains and problems? What keeps them up, worrying at night? Solve those problems through teaching. Create content to post on social media that solves problems and you will attract a huge tribe of people TO YOU!

That’s called Attraction Marketing! When you do that, nobody even knows, at the outset, WHAT company you are with and it doesn’t matter. People join people. Trust me when I tell you…they’ll reach out and ASK you what you do! 


See, when you brand yourself, YOU control the conversation….always. So, God forbid your network marketing company goes out of business. Ultimately, it’s not going to matter. You then have the freedom to shift direction and your people will just follow..and nothing else needs to change.

Pretty epic, right?!!?


I truly hope that you got value from “What To Do When Your Network Marketing Company Goes Out Of Business!” If you did, feel free to share this post on your Facebook Page. Sharing is caring babes, and that makes YOU awesome!

Now go and MAKE YOUR MARK!


P.S: If you don’t really understand Attraction Marketing or how to use it to build a wildly successful online business, check out the system, tools and community I leverage in my own business….RIGHT HERE.



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