The Empower Network Files for Bankruptcy – Wood Apologizes
Back in 2014 I did a scam review on Empower Network, EN. Through research with people I know who were involved and using the logic of how online marketing should work, I knew that EN was going down, I just didn’t know when or how. Now the Empower Network files for Bankruptcy and David Wood explains why.
Why I will never join an MLM, Multi-Level Marketing Company
When I started making money online I was very skeptical of any MLM company because many are close to, if not pyramid schemes, which are illegal. Then I found a better and easier way to earn online revenue through affiliate marketing with major companies like Amazon, Best Buy, Apple and hundreds more.
The majority, if not all, MLM network marketing companies do not deal with well-known companies like those mentioned above. The reason is because these companies know multi-level marketing is not a sustainable model and does not create an even playing field for all involved.
This is why most of these companies, that you have spent money on their websites, will engage in online affiliate marketing. Not only is it an easier way to earn money online but it is a single level of income. What you make you keep 100%. There is no upline you have to share your income with, an even playing field.
Empower Network was an MLM Company
You will lose money quicker in an MLM than in Affiliate Marketing
It is far more difficult to make money in an MLM, especially with a company like EN, which really doesn’t have a product the majority of people know about or would want. This is the problem with a majority of network marketing companies and why some are really difficult to get ahead in.
Which do you think is easier? Getting someone to buy an expensive training program no one has heard of that teaches others to do the same, or why buying an iPhone 7 is right for them? With affiliate marketing you can choose any kind of product you desire and that others know of, promote it in your blog, and make money from it.
This blogging concept was, I believe, was what Empower Network was trying to get its members to do with its blogging platform. However unless you really know how to get traffic coming to your blog by using the concepts of SEO, Search Engine Optimization, you will not earn much money if any at all.
The problem with Empower Network’s approach was that they charged highly over-priced upsells for training that is available elsewhere on the internet for very little money. For example, you can learn all of this and run your entire affiliate marketing business at Wealthy Affiliate for only $49.00 per month.
The Empower Network files for Bankruptcy and David Wood Apologizes
I never really believed the whole concept of making money the way EN promoted it as. I firmly believe that it is easier to get people to buy from you if you offer them a product they know about, at least a little. But no one outside of EN had faith in what they were offering, which makes it hard to sell.
The writing was on the wall for a very long time, especially for those of us who actually do make a lot of money in online marketing of popular products, that Empower Network’s days were numbered. Unfortunately for many of its loyal members their guru leader David Wood did not abandon ship sooner.
There are so many members who are now owed a lot of money that they may never get back, though David says will take about two years to pay back. In the below video you will see and hear David apologize to the many people large and small that were a part of EN, which is now closed down for good.
I do not know if you can seriously blame most of the demise of EN on bad accounting. Like I said earlier the MLM, pyramid-shaped, business concept is not a sustainable model. If it were, why do so many high up in network marketing leave one company and join another? Because their income dries up from their current program.
Now I can understand why David Wood didn’t see the writing on the wall sooner. Besides the fact that he was mentally messed up with the medication and alcohol, he wanted to do whatever he could to save his sinking ship. But like he said, he should have closed down Empower Network sooner.
The bigger they are, the harder they fall
I do not rejoice in the demise of Empower Network in the way it happened. Yes, I did believe that it was more of a scam that promoted a belief in their brand of training for prices that were unnecessary. They were charging far too much for simple training that doesn’t cost much.
Like I said earlier, you can learn everything you need to know about how to make money with a blog and run your entire online affiliate marketing business at Wealthy Affiliate for only $49.00 per month. That is it! No other expensive upsells needed for success.
But when companies like EN and other MLM’s charge ridiculous upsell prices for training that is available elsewhere for less, that in my opinion is scamming those who are not in the know out of their money. The reason for most of these expensive upsells is to support the compensation plans, which offer too much to begin with.
Eventually everything will come crashing down but after many people would have spent hundreds and even thousands of dollars. To all of these people who lost money in EN, David Wood apologizes and wants you to share his video, so please share this post. I hope he makes right and pays everyone back. I cannot see how he can. Do you think he will?
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My first experience with MLM’s was years ago, when a co-worker took me to a home party where they were selling supplements of some kind. I do not even remember the name. My most recent was a family member trying to get me into Isagenix. Both times I was not impressed by the products and I did not feel comfortable investing in them.
It would be great if there were more big advertising when these companies go down, so that maybe they will stop trying. These people are the lowest form of scammer because they seem to actually believe that what they are doing is good, even though they only make money on the downline.
You are correct. If the product is that great, sell it on Amazon!
Hey Irma,
I often wonder how people in these MLM companies that actually offer a product like a supplement, makeup or some other form of a consumable, can enthusiastically promote it to others at higher prices than similar well-known products on the market that are less expensive?
I remember someone promoting this highly priced coffee through an MLM that claimed it was the freshest and most healthy brand of coffee on the market. I thought to myself, will it be easier for me to promote and sell Starbucks coffee or this unknown highly priced coffee?
Obviously I would make more with the Starbucks because the majority of people would already know of its quality, making it an easier sell. I know I would not buy a coffee I know nothing about just because it is supposed to be healthier.
This is one of the reasons why it is more difficult to make money in an MLM as opposed to Affiliate Marketing online. In affiliate marketing you promote products that people have heard about and cost no more than retail prices. The MLM products are mostly all hyped up.
Hopefully the news of the Empower Network bankruptcy will start to spread and wake people up that being in an MLM is quite risky. It is not a sustainable marketing model, whereas affiliate marketing is.
This is why major companies like Amazon, Sony, Apple, Starbucks and thousands more will never partake in MLM. These companies know that Affiliate Marketing is the only form of marketing that is beneficial for both them and us, the affiliate marketer.
Hey, Robert!
I was actually sucked into Empower Network in 2013. Did blog post after blog post using the EN’s blog platform, implemented SEO, and got some rankings in Google which was pretty cool. I also had a few leads from my efforts.
Unfortunately, Google soon gave EN the slap and my rankings (along with other members) slowly disappeared from Google, leaving a useless blog that was good for nothing.
After a good 8 months as a member of EN, my total expenses were over $1,300. And guess what… I didn’t make one single dollar! So I quit EN due to being scammed by useless and overpriced products.
I’ve actually been waiting for the day to come when EN finally went under. I’m so glad it happened because now folks can see that these high-ticket MLM programs aren’t just a rip-off, but aren’t sustainable business models, like you say.
Which now leads me to question whether Matt Lloyd from MOBE and Michael Force from Digital Altitude are next in line to file for bankruptcy.
I remember the days when both David Wood and David Sharpe were on top of the world because they “assumed” they had created the best business opportunity of all time.
But fast forward to today, and it sounds like David Wood is gonna be back sleeping in a camper van with only $25 to his name LOL.
I hope now that other high-ticket MLMs see this as a warning sign. Personally, I think the days are now numbered for MLM, in general.
Neil
Hi Neil,
Because of my experiences with another type of MLM before hearing about Empower Network, EN, I was very skeptical about it when a neighbor of mine tried to get me to join. According to him it was the best opportunity there was. Funny thing is that about a year after he had told me this he was no longer an EN member.
Now I am not someone who takes pleasure in seeing others suffer, but when it comes to these fat-cat MLM gurus who charge an arm and a leg for their so-called important marketing training which only benefits them, then seeing their demise after ripping their members off is a pleasure to see.
The Multi-Level Marketing, aka pyramid scheme model, is not only illegal in most countries but it is unsustainable. I feel sorry for people who join MLMs because they do not know this fact and then they spend all of their money thinking that they will earn it back. I hope people will learn from this Empower Network bankruptcy.
I agree with you in asking the question if the creators Michael Force of Digital Altitude and Matt Lloyd of MOBE = My Online Business Empire, now renamed My Online Business Education, will be next in line for bankruptcy. I find that when an MLM has to change their name, that is a clear indicator that they are losing sales and the end is near.
Time will tell because a majority of MLM companies that do not offer any tangible quality and affordable products, have gone out of business. I have had hundreds of comments on both of my MOBE and MTTB scam reviews, MTTB is another name for MOBE, from former members who say they were ripped off and scammed by the program.
If so many people are getting ripped off then these companies will eventually have to close down. Unfortunately it will take time because many of these companies, and EN was one of them, operate out of countries that do not have strict laws against pyramid schemes. But karma will catch up to them and they will be forced to close.
The problem for many will still be that they will get ripped off in an MLM, when they could have spent far less money and made back higher profits promoting real products at retail prices in online affiliate marketing. This is what has happened with me once I became a member of the online training program known as Wealthy Affiliate University.
I know what you mean. I also was a part of these MLM money making machine, if I can use that word. The good thing how ever was that the amount of money that I invested was a few hundred dollars. Lucky it was not thousands of dollars like some people invested.
I knew this system was not working for me so I got out after that and many others dropped out too. This is a very interesting post about the Empower Network bankruptcy. But the owner’s bit about paying persons back, well that is another story.
I agree Norman. I too dabbled in the MLM concept when I first started to make money online and it just was not for me. I invested hundreds of dollars and received very little in return, even though I worked like crazy to make it happen.
Then when I had people telling me how Empower Network could help me to make a lot of money online by just blogging, but yet it was another MLM company, I was very skeptical. I am so glad I did not join, it seemed too much like a scam to me.
But instead I am so happy I found Wealthy Affiliate and their training in how affiliate marketing is much better than MLM and easier to make money. Now I only invest about $49 per month and make at least 20 times as much every month.