Background: Eniva Corp. was founded in May of 1998 by two brothers Andrew and Benjamin Baechler; it is based in Anoka, MN and had moved to a 435,000-square-foot building in 2008. It would seem that the chapter 11 filing was precipitated by an eviction proceeding brought about by the court-appointed receiver for this building.
Business Opportunities: Eniva is a company that builds upon residual income. Eniva's unilevel "Trinary" hybrid compensation plan offers 10 ways to earn income within the company with varying rewards and perks but a lot of people in the multi-level marketing business don't realize how big a commitment in time and money is involved in keeping new distributors constantly coming in, keeping them motivated and going.
Eniva Products: The company manufactures a comprehensive line of advanced nutraceuticals, dietary supplements, and body-support products for humans and companion animals. Eniva have a great range of products and a selection of very affordable books but probably their most notable range is the Eniva Vibe, all in one liquid nutrition, the downside is that it has to be refrigerated after opening and has to be consumed within 40 days.
The Eniva Compensation Plan: You can earn customer over rides when you enroll someone in the Eniva Wholesale Club Membership and you'll receive a $40 bonus on the products included with their membership. Achieve the different ranks offered and you will receive the applicable credit for each position. There is the Area Manager builder bonus, each time a Personally Enrolled Member achieves AM, you earn a $200 from their product sales. Then there is the team commissions where you receive commissions based on the volume of purchases in your team placement tree. You can receive up to 7 levels of pay based upon your qualifying rank position, to name just a few. Phew! Eniva has many requirements for advancement with various distributorship tiers, based on increased sales and team size. In general, the specifics of advancements are rather complicated for those who prefer simplicity.
Eniva Bankruptcy: So what contributed to Eniva's Chapter 11 filing and what can be learnt from it?
As mentioned earlier the filing was precipitated by eviction proceedings from the landlords and a spokes person for the company said Eniva was the victim of predatory lending practices and unscrupulous business behavior, which had prompted the bankruptcy filing. A Chapter 11, is the reorganization chapter of bankruptcy, so with some business restructuring, Eniva has every possibility of renewing itself. Unlike many other supplement companies Eniva has its own research and development team and Eniva's products are developed in their own pharmaceutical-grade facility.
3 Factors I Believe Could Hinder the Recovery
* In my opinion, a product that is sold as a luxury add-on, in to-days climate such as Eniva's Vibe which has to be consumed within a short period of time, forces people to keep reordering and will naturally see declines in sales as household incomes dwindle. When we find out that we have to trim our budgets, food and housing will always come before wellness products.
* If consultants were taught how to brand themselves on the internet with the necessary online marketing tools they would be able to generate more profit and create a name for themselves, not just the company. It is a known fact that people follow people they like and trust, and if you brand yourself in such a way that gives you a great reputation, then you could survive the struggles of the parent company.
* Eniva's consultants use the company's personal replicated web sites to brand themselves, but there are limits to the variety so after a while you could be looking like a good many others and you would struggle to be seen as an individual. I think that this is a major downfall of Eniva, and many other similar MLM companies.
So What Is The Solution? Well like a good many companies in difficult times it just takes one small slip to unsteady the mother ship so the lesson here is to make sure that you are in control of your financial future and the best way to do this with a home business is to market yourself online. Get some excellent tutoring and you will never look back. I think that the Eniva bankruptcy along with Eiro Research earlier this year and Arbonne last year will have made many who work in the MLM business ponder their futures and they may now be looking for a new, recession proof opportunity. The Internet offers a good option since it does not rely on a single economy to survive. By having an online business you will be tapping into a global market that operates day and night all year round in a world that never sleeps with billions of potential consumers out there everyday!
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