WakeUpNow blow through almost $8 million in two years
Despite the retail offering of third-party products and services, WakeUpNow had to force affiliates to focus on retail sales by introducing mandatory retail subscription quotas late last year.
This was done due to the evident complete lack of retail focus within the company.
As per WakeUpNow’s July 2013 Income Disclosure Statement, 80% of the company’s affiliates failed to generate a $10 or more commission payout that month. With $10 being the minimum commission payable on a single retail subscription, that means 80% of the company’s affiliates failed to make one retail subscription sale (or earn a commission of an existing one) for the month of July.
Things haven’t gotten much better since, with WakeUpNow’s December 2013 statement revealing that 82% of the company’s commission qualified affiliates failed to earn any commissions at all.
Even more revealing, is that according to the statement, it appears there’s only one affiliate in each of the top 5 affiliate membership categories (monthly averages and high and lows are the same).
These five affiliates walked away with a combined $1.9 million dollars in commissions. How much of those payouts was derived from retail activity within the company is not disclosed.
Filed on December 31st 2013 but only published last month, WakeUpNow’s Annual Disclosure Statement reveals that the above has translated into a net-loss of $4.5 million dollars for 2013.
Coming off the back of a $3.3 million dollar loss in 2012, WakeUpNow’s combined operational loss over the past two years is $7.8 million dollars.
Though the Company’s current financial condition may cast doubt on its ability to continue as a going concern, management believes that its plan of operation, if successfully implemented, will generate sufficient earnings to both restore a stable financial condition and provide adequate returns to its shareholders.
Well alright. Let’s give WakeUpNow corporate the benefit of the doubt for a moment. What have you got up your sleeves gentlemen?
Management’s plan of operation is based on three primary objectives:
(1) further development of its products with specific emphasis on its affiliate network,
(2) continued domestic growth of its distributor base, and
(3) expansion into international markets.
So introduce more third-party offers and deals, recruit more affiliates and enter into new (non-saturated) markets?
Oh dear. More of the same, different result? Yeah…
I don’t mean to be the party-pooper, but isn’t that what you guys have been doing for the past two years? Take a look at the Alexa traffic estimates over 2012 and 2013 below:
If anything, an increase in affiliate activity has only resulted in bigger losses for the company.
Underscoring this is the focus on retail activity within the company, the mention of which appears once in WakeUpNow’s 2013 Disclosure Statement:
WakeUpNow is attempting to build a significant direct selling distribution network consisting of participants , while personally consuming our increasing number of portfolio products, focus on profiting from the sale of our products to millions of consumers and preferred customers who are not a part of our distributor compensation plan.
Now contrast that to the repeated emphasis on attracting distributors (recruitment), as the key to WakeUpNow’s success going forward:
Management believes that its efforts to develop a robust product offering with a compelling value proposition will continue to attract distributors both in the United States and abroad.
By simultaneously growing the Company’s distributor base while adequately containing its fixed costs, management expects to have positive growth in earnings.
Management believes that its efforts to develop a robust product offering with a compelling value proposition will continue to attract distributors both in the United States and abroad.
By simultaneously growing the Company’s distributor base while adequately containing its fixed costs, management expects
to have positive growth in earnings that will in turn create value for current and prospective shareholders.
We primarily distribute our products through our direct selling distributors and we depend on them to generate almost all of our revenue.
We experience high turnover among distributors from year to year. As a result, in order to maintain sales and increase sales in the future, we need to continue to retain existing distributors and recruit additional distributors.
To increase our revenue, we must increase the number of and/or the productivity of our distributors.
We rely primarily upon our distributor leaders to recruit, train, and motivate new distributors.
Our operating results could be harmed if we and our distributor leaders do not generate sufficient interest in our business to retain existing distributors and attract new distributors.
The “vision” WakeUpNow present clearly doesn’t reflect their reality.
Eye-brow raising to sat the least, WakeUpNow are quite candid about their reliance on distributor recruitment, citing it as a primary “risk” for the company:
Laws and regulations may prohibit or severely restrict our direct sales efforts and cause our revenue and profitability to decline, and regulators could adopt new regulations that harm our business.
A number of government agencies regulate direct sales practices. These laws and regulations are generally intended to prevent fraudulent or deceptive schemes, often referred to as “pyramid” schemes, that compensate participants for recruiting additional participants irrespective of product sales, use high pressure recruiting methods and/or do not involve legitimate products.
The laws and regulations in our current markets often:
- impose order cancellations, product returns, inventory buy-backs and cooling-off rights for consumers and distributors;
- require us or our distributors to register with government agencies;
- impose caps on the amount of commissions we can pay; and/or
- require us to ensure that distributors are not being compensated based upon the recruitment of new distributors
If we are unable to continue business in existing markets or commence operations in new markets because of these laws, our revenue and profitability may decline.
So if your affiliate’s cant continue to earn recruitment commissions due to pesky regulatory laws, you’re toast?
That’s not exactly confidence inspiring.
Call me cynical, but I’m predicting WakeUpNow is going to walk away from 2014 incurring even bigger losses than in 2013. You don’t reverse losses from a recruitment orientated business by trying to recruit more distributors in different markets, you do it by generating actual retail sales to retail customers.
If the Company is unsuccessful in these efforts and does not attain sufficient sales to permit profitable operations or if it cannot obtain sufficient additional financing, it may be required to substantially curtail or terminate its operations.
Now a bit of optimism never hurt anybody much but uh… might be time “wake up” and think about calling it a day guys.
I read that entire financial report. NO WHERE in that report does it say or reflect that their “mission” is to make their distributor base profitable. In fact it says the opposite, listing them as a liability.
This report shows their BOLD and CLEAR purpose which is to make the corporate entity profitable with ZERO regard for its promoters. Its an absolute slap in the face to its promoters AND affiliates.
In their defense, (which isnt much of one) MOST direct sales companies are like that. They have very similar reports, (although I dont recall reading one as gloomy as this one) yet the average person doesnt even know what one is, let alone how to read and decode one. NOR do they know they should.
My particular favorite passage from the 2013 annual report is this gem:
They’re $15 million in debt, had just $4.5 million in revenue in 2013 and have about $2 million in net assets. It’s a sinking ship. They’re not even sure they’ll be able to continue operating through 2014 at all.
This video responds to these claims, you guys fail to mention our CEO and President raised Billions in the past, Teaches business, and wrote a book on business, and that theyre executing everything they said they would.
(Ozedit: generic marketing spam video that fails to address anything relevant in the article above removed. Do not post it again.)
What does any of that (if it’s even true) have to do with running a failing recruitment-driven MLM company that is blowing through millions of dollars every year?
Did they announce they were going to “execute” a failing business prior to launching WakeUpNow?
Are you referring to Phillip Polich? The same Philip Polich who was president of Emerald Homes when it was prosecuted (and convicted) for hiding over $25 million in assets in relation to the Lincoln S&L debacle of the early 1990’s?
From http://articles.latimes.com/1992-09-23/business/fi-1249_1_emerald-homes at the LA Times:
The same Phillip Polich who was investigated for (and determined to be guilty of) violating federal campaign finance laws?
From http://www.fec.gov/pdf/record/1996/feb96.pdf (pp. 10):
The FEC let the investigation languish for a couple of years before closing it due to budget cuts to the commission. It did still determine he was in violation, though.
Real upstanding guy. You must be proud to have such an accomplished criminal at the helm of WakeUpNow.
No im talkin bout Kirby Cochran and Jason Elrod, Our CEO and President, not our COO.
This guy who focuses more on not breaking rules…
Why dont you guys add that we added new countries, new Discount app, and new vacation deals like Cancun for 5 days at a 5 star hotel for 4 for only $180, or our Awaken thunder product which we are adding more flavors, or Line Max that prevents a pyramid scheme and promotes network marketing team work…
Hah! So it’s okay for your chief operations officer to be a long time fraud? Seriously?
So ignore the fact that mostly affiliate-funded scheme + third-party products = $7.8 million in losses over two years… and rely on a YouTube video?
They Also added 20+ famous people, we wont have any problems growing our distributor base and customer base..
Because adding more third-party merchant affiliate deals probably isn’t going to work. Any more so than it has over the past 2 years.
If you want PR spam head over to Facebook and the spam-release websites. None of the above has anything to do with WakeUpNow blowing through $7.8 million and that figure being likely to increase.
No idea what that is, but I imagine it can’t be any more effective than forced mandatory retail quotas.
Yes, every business has a bumpy ride..how much losses did they sustain in the last 5 months, during our Momentum…Jason Elrod and Kirbys bank account alone can cover that 4 million..Jason raised over 70 million and Kirby helped a company raise billions in equity.
Famous people… yeah, that’ll get that retail revenue pumping.
Because none of it is relevant, nor does any of it prove you’re not running a pyramid scheme. A “Line Max” only helps ensure greater profits for the company — it does nothing to stop the scam from being a pyramid scheme.
Also, nobody cares about a no-name brand of energy drinks or coffees, and those “amazing vacation packages” can easily be found online via Travelocity, Expedia and Orbitz — just do what your overpriced “vacation club” search engine does and look for last-minute cheap deals.
As for new countries being added, that just means you’re turning your greedy gaze to nations where perhaps the MLM and pyramid scheme laws aren’t quite so stringent.
And here’s me thinking a successful MLM company is one that generates positive cashflow by selling products and services to retail customers…
Line Max allows for a person to not “lock in your spot” an get paid from people under you.
it makes it so if one guy under refers a million people, you get nothing, an he can surpass you in income and rank..Learn Line Max before you shout pyramid scheme.
No you cant, I challenge anyone to find me Cancun for 5 days for only 180 for a family of 4 at a 5 star hotel..watch the critics debunking vid cuz you guys are just in denial
Sounds like the typical “we’re not a pyramid scheme because people under you can earn more than you” bullshit. Please don’t waste my time quoting “scams 101”.
If you’re primarily paid on the recruitment of new affiliates (however it’s set up and whatever it’s attached to), you’re in a pyramid scheme.
Like I said — it’s just an earnings cap that draws more profit into the company’s pocket away from the victims. Doesn’t stop it being a pyramid scheme, though.
And heres me thinking Referral Marketinf meant the disteibutora are also Retail customers…Gee I wonder what Referral means
Haha Wilfe! Look who showed up! The 40 year old gaming virgin who thinks every MLM is a scam 🙂
At the end of the day guys, WakeUpNow submits to the FTC Quarterly and are pending approval from the DSA..last I checked, Pyramid schemes dont come near. those agencies…and since the bottom guy all the way 20 levels deep can move up an make more money then the whhole company..its obviously not a pyramid, doesnt even look like it
WakeUpNow does no such thing. The purported “letter from the FTC” wherein the regulatory agency gushes praise for the company proved to be a fraud. The FTC doesn’t conduct company-requested audits or issue “totally not a pyramid scheme, guys!” letters upon request.
The company has been a “pending” member of the DSA for years, and honestly, who cares what a cartel of direct selling companies claim about themselves?
Sorry what? You’re failing to make any sense.
Not every one.
Just those which have lost just shy of eight million bucks in under two years, have no retail focus and are being pimped by people who thinks that “Scams 101” is a legitimate handbook.
Heh. Yeah. Spam gets deleted. Go figure.
I also issued a takedown on a Youtube video that was just the contents of two of my videos debunking the scam, with an insulting voice commentary added. That sure steamed ol’ Greg’s beans. Copyright’s a bear sometimes, but it seems you boys don’t really like playing by the rules, so the spanking was necessary.
I suppose that proves “fear” on my part rather than lies from the scammers, though, eh?
None of which has anything to do with their business model or seemingly lack of retail activity going on within the opportunity.
You’re really going to try to pull the “we’re legit because of XXX agency/organisation”?
You and I both know the DSA do not endorse member companies (WakeUpNow is not a member for what it’s worth in any case). Nor does the FTC.
Again, how much money someone can make or where they are has little relevance to anything.
A company’s business model and how it pays its affiliates determines whether or not it’s a pyramid scheme.
For me the author seems to be writing looked into researched stats. Numbers don’t lie I’ve read a lot of terribly done similar blogs but this doesn’t seem like one.
Assuming the numbers are true. Which going by a lot of the other blogs… This person does his homework.
I do hope WUN stays open (no I’m not a member). Simply because it does offer people a chance of getting away from there 9-5.
But if they ARE in millions of debt. Then it’s not going looking good. ESPECIALLY since the debt is rising.
There COA seems to be doing the same thing that got them into debt in the first place :/ ?… You don’t need a diploma in biz to see the problem there. But for now this is all speculation. Time will tell.
To those alarmed by this review & in WUN, I suggest not having all your eggs in the one basket IN CASE things go south.
Be prepared for the worst and maybe look into other bizs. 🙂
(Ozedit: Offtopic derail attempts are not permitted here. First and last warning.)
I dont you guys ever encountered a true pyramid…in a pyramid you lock your spot in an get paid a percentage of everyone who joins after you…
wakeupnow pays like a network marketing company, if you dont work an sell the product, which has a language learner that kills rosetta, you dont get paid a dime
So when did Kirby and Jason take over Wake Up Now?
Was it already at a Defecit?
So Wake Up Now didn’t just sell out of their new product Thunder?
This is nothing more than the “we have a product, we’re not a pyramid scheme argument”.
How the product is sold (specifically who to) counts in MLM. If WUN is full of affiliates earning commissions on the transfer of money from a recruited downline, with little no retail activity taking place, then there’s a problem.
Said problem is compounded by the fact that WUN has no products and services of its own, meaning the busness opportunity could be coupled to anything really.
Wakeupnow has products..Awaken Thunder (which everyone so far said is better then redbull), Coffee, and Trivani skin care..and A language learner better then rosetta and taxbot and more…
our Affiliates are referral marketers, so we’re also customers because this is a financial solutions company that can be used by anyone and in referral marketing, the customer refers the product…smh
But not retail customers, which is where the problem lies.
Attach whatever third party products and services you want to the opportunity, as long as the lack of retail exists all you have is a recruitment scheme.
A lack of retail viability is precisely why Wake Up Now has blown through almost $8 million dollars these past two years.
Not a recruitment scheme, a word of mouth referral marketer who markets for an online package with online products that requires a FREE membership, isnt recruiting…
how else is someone supposed to use the products without having a Login/Password…the same way a Mary Kay marketer sells make up, I sell the Platinum package an get commission off any referrals..
(Ozedit: Offtopic derail attempt removed)
Spare me the marketing bullshit.
A recruitment scheme by any other name is still a recruitment scheme.
When nobody but recruited affiliates are buying “Platinum Packages”, you have a problem.
And what is a Platinum Package anyway? Access to other company’s products and services – another red flag.
WUN’s 2013 annual report claims (pp. 39) that Kirby Cochran and Jason Elrod both started in their current positions (CEO and President, respectively) in 2011.
That’s three years of losses they’ve overseen.
At the end of 2011, the company’s accumulated and stockholders’ deficits totalled $4.9 million.
At the end of 2013, the deficit total climbed to $15 million. So in just the past two years alone, your heroes added another $10 million to the company’s deficits.
It’s also worth noting these junk products aren’t manufactured by WakeUpNow — they’re outsourced to whatever cheap beverage maker they could find. The products are manufactured and shipped on demand. There is no inventory to “sell out.”
None of these is developed, produced, manufactured or distributed by WUN, and practically nobody outside the scheme has ever even heard of them, much less bought them.
Does it have retailable products = products WITHOUT the opportunity attached? Just like products normally are sold to retail customers?
I’ll give you the benefit of the doubt, here. Please show me, in black and white (no videos) the details about this vacation offer, including dates, hotel name, etc.
I would like to review your financial numbers on WUN. I just searched the SEC website for filings on Wake Up Now to verify info I had on file.
I still do not see any current SEC filings since Kirby Cochran and Jason Elrod, took control of the company from the former management team, which was in my records.
I know that the current management team has refused to sign off on any of the old financials until their outside accounting team has fully audited the books.
Can you guide me to where you are seeing the current loses, so I can review?
Yes we have Retailable products that we receive in wholesale to sell to the public…
and the Cancun Trip, we’d have to look more into it. all I know is, its exclusive to WUN reps, at wholesale to be able to sell to others, and its 100% fact..I will provide links later wheb Im on my computer.
DSA is not an agency. It’s a lobby group composed of MLM companies and direct sales companies. And let’s not forget Equinox?
http://m.imgur.com/MmKDfPV here’s a trip from ourvacationstore (the website WUN pulls it’s deals for). It has all the things you asked for at 129 dollars and you get an extra 2 days.
So yeah, WUN sucks.
Rick can you also explain why you skipped over the fact that the so-called FTC letter you claim praises WUN is fake?
History has proven that people will defend a scam/ponzi/pyramid scheme as being legit until proven otherwise. Then those same defenders are never to be heard from again when the pyramid co. is forced close up shop or the feds bring it down.
LMAO how is it fake if its in the OTC DOCUMENTS YOU GUYS PROVIDE! CHECK PAGE 32 GUYS!Income Disclosure section.
Net revenue 12.2 million, $12,180,866
Sales costs 11.2 million, $11,167,523 (91.7% of revenue)
Gross margin 1.0 million, $1,013,343
Administration 5.6 mill., $5,561,848 (45.7% of revenue)
Net loss 4.5 million, $(4,548,504)
Bugger. That’s the second time in as many days that I’ve gotten their 2013 net loss and total revenue mixed up in my head. Thanks for catching that.
A $4.5 million net loss certainly means they’re not exactly in good shape to be trying to reduce that growing deficit.
The figures come from WakeUpNow themselves. Their 2013 Annual Disclosure Statement is linked in the article.
That’s not retail. You don’t “receive” anything, you pay WakeUpNow (who pay the actual owner of the product) for it. Money going into WakeUpNow is from affiliates.
What you do with the product or service after you’ve paid for it as an affiliate is irrelevant.
The 2013 annual report we’re discussing is available from the OTC Markets page at http://www.otcmarkets.com/stock/WORC/profile — the direct link to the report is http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=118605.
The report bears the electronic signatures of both Kirby Cochran (CEO) and Nathan Lord (CFO).
I’m not saying the document is fake or otherwise (it’s irrelevant to me), but you do know that filing was made by WUN, and is unaudited right?
Furthermore I don’t recall seeing and attached documents from the FTC in said disclosure statement either.
You’re kidding, right? There’s no endorsement letter from the FTC anywhere in the 2013 annual report document. Page 32’s “Income Disclosure Policy” states only that the company issues its income disclosure statement “quarterly” (which, incidentally, it has failed to do — it hasn’t been updated since October 2013).
The famed FTC endorsement letter declaring WUN “not a pyramid scheme” was a fake. The FTC doesn’t review and “certify” or endorse companies at the companies’ behest.
Silence. To everyone in WakeUpNow…back to the grind
Nothing about retail (non-affiliate customers) there. Spammy misleading press-releases can’t fix the issue of negligible retail activity taking place.
If WUN actually had 100,000 retail customers on top of their affiliate-base, they likely wouldn’t be almost $8 mill in the hole.
starting to think this site is just afraid that this company can and will succeed. Tell if it doesnt collapse and years later is still around….how are you gonaa feel? And if it does fold what is that gonna personally do for you. The problem I have with this article is that it does seem like its written to try and write off the company. How can this Pro Wreslting company here TNA/Impact
Still be around, granted they are backed by Panda Energy but still. I mean its 8million, do you think Google, Microsoft, Apple, ATT, Verizon and various other companies havent lost big money on there rise to success. I mean 8 million over 2 yrs aint the end of the world, if it was 6-8months or less I would be worried.
All i’m saying is don’t write off something so soon. Utlimately this company has done alot of good for people.
Yeah… that’s it.
It couldn’t possibly have anything to do with the loss of $7.8 million dollars and a lack of retail activity.
But uh please, continue on with the irrelevant waffle about pro wrestling, Google, Microsoft, Apple, ATT and Verizon – all of which mind have genuine retail customers purchasing their own products or services.
(Ozedit: Offtopic derail attempts removed. Verizon, Google, Microsoft et al are not MLM companies.)
“Starting to think” is probably a good alternative for how to use your brain. 🙂
We have 3 articles about WakeUpNow, in 2012, 2013 and 2014 (1 per year).
Here’s the list:
no one is mentioning the shit at the top as the CEO Cochrane whored out to the biggest scammers from MCA:
Wake Up now is the largest scam on the internet right now. It is led by young individuals that use FEAR AND Intemidation to make people join. I have seen first hand Gregory Perdriel and Eric Turner call out people on social networking sites and even threatin them.
The Glorified affiliate marketing company ACTUALLY pays these guys (UNDER THE TABLE) to do what they do. Wake up now recently made changes to insure the FTC stayed off their back but it has only fueled the backlash from GREGORY (KASHIZ KING) AND Eric.
LOL … the marketers are lying assclowns such as Damar “Kashed Out” Lumpkin, Darryl “YG” and Branden “Diehard” Stringer … all ex MCA scam artists who are now touting in videos they are all cranking down 20k per month …
100% bullshit and there is a good reason WUN can’t attract any real players into this opp as the shit at the top is the worst in the industry.
So what companies aren’t a pyramid scheme in the current MLM climate??
Ones that don’t pay on the recruitment of new affiliates (directly or indirectly).
(Note: BehindMLM isn’t the place to solicit personally tailored MLM company recommendations)
@Oz I’m guessing that’s them all…..You’re going to be busy for a long time with this site then.
Yeah, I’ve bumped into ol’ Greg on Youtube a few times. His “callouts” and threats are unimpressive (to say the least). He’s not very good at what he does. I’ve already had one of his videos removed and several others flagged as scams.
He can’t handle being questioned or challenged. He just thumps his chest in response, to no effect. He’s not even bright enough to delete “unfavorable” comments from his own videos or block critics from commenting.
It delights me that WUN is being ripped off by paying this idiot to shill for them — they deserve each other. It’d be great to see him face criminal charges for the fraud he’s helping to perpetrate.
“Greg” is a cocaine dealer out of Miami who used the handle “Kazhiz King” over at MCA with his buddy “Seemore Green” … Green’s current marketing “advice” for folks with Wake up Now is to flash pictures of money on facebook …
WUN has no big players and never will and their ads are classic as here is one recent on Craigslist … notice how all of these folks are “retired” at age 21?
96% of Wake up Now folks are losing money
WUN has ZERO trainers … just a bunch of uneducated punks that specialize in cheap ass videos with rental cars they are trying to claim as their own and announcing that they don’t work
WUN is MCA II as all the shit at the top is shit from MCA
Oh, it’d be delightful if that were actually true. Do you have a citation or any links about his drug dealing?
@Bobby I think you’ve made your point.
Those figures I posted there (in post #47) don’t make much sense.
WakeUpNow has $10 monthly payment, for the right to participate in the opportunity. The $10 per month is similar to That Free Thing’s monthly payment = too low for anyone to make a living, except for the few near the top.
That’s being reflected in the Income Disclosure Statement from December 2013. The few near the top are the only ones making any significant amount of money.
WUN has 3 membership packs:
People should normally be able to earn commissions selling those membership packs. That’s what the business normally should be focusing on.
Then at least SOME people (near the bottom) should be making SOME money without recruiting anyone (into the $10 per month opportunity), but 82% of the participants haven’t sold a single membership pack in December 2013. It looks like those Silver / Gold / Platinum don’t exist at all (don’t generate any commissions).
82% earned NOTHING (IBO, Director 1, Director 2).
14% earned $100 per month (Director 3)
4% earned $420 – $1,000 per month (Founder 3)
This is probably a minor quibble, but it’s actually $100 per month to participate, not $10.
That really means those 14% who “earn” $100 per month are really just breaking even. Only the top 4% actually make a profit. 14% are getting a “free ride” (as long as they continue to qualify) and the remaining 82% are losing money outright.
Laughing my butt off at post #30.. “If you dont sell anything you wont get paid”.
What a freaking joke when you know damn well that every crackhead hoodlum in WUN is running around the hood telling people that all you have to do is recruit 3 who recruit 3 and you get paid $600 a month.
Here is another one “20+ famous people” ha ha.. Yes, more like a group of wanna be rappers and thugs that are legends in their own mind.
Guess what?. NO ONE that matters, NO ONE with any social standing or business influence has ever heard of them. All you are doing (if you even had a leg to stand on to begin with) is chasing good people away.
It totally amazes me that someone would think that kind of person ads credibility to a BUSINESS. No one outside of the “thug life” wants to have anything to do with that nonsense.
The company may have had a shot at one point but now its totally polluted with no class and no professional influence. The “thug persona” might be good for selling rap records and making MTV videos but its not what anyone outside of that bubble would want to present as a business.
Your limited market is already saturated. You have totally alienated MOST of your POTENTIAL market. Give it up. The company WILL be closed within 18 months. Tops.
Thats not just because of the financial issues its because of the people in it. NO ONE that matters takes you seriously. TRUST ME.
If its $100 a month and they have 50,000 reps as ive seen claimed. That is $60Million a year in income. Even if they only had 10,000 reps at the time that report came out (they showed $12Mil for 2013) that still reflects ZERO sales on average.
Whats up with that? The hard facts of the math show its an illegal pyramid deal, plain and simple. Its not opinion, just math. The more one tries to argue that FACT the dumber they look.
The true tell is to find out exactly how many distributors they have and multiply that by the autoships/monthly payment. THEN compare that to the reported overall sales. For a company to be viable for ANYTHING more that a signup game, buying club or pyramid selling deal, the overall sales needs to be at least 3 times what the autoships add up too.
I completely agree. My intention was to point out they’re charging people even more for their worthless membership than the quoted comment was using for the math. That makes the math even more painful for anyone trying to argue that this thing isn’t a scam.
I’m not convinced WUN has anywhere near the number of members they claim to have. The reported revenue just doesn’t support those claims.
Not surprising. I have not seen an honest word coming out of ANYONES mouth there yet.
I have a guy telling me he has 15,000 in HIS organization alone. He first said this back in around September/Oct. Says he is making $15k per month which is possible if there is $15,000 in the organization BUT the pieces dont add up and he comes off as VERY FAR from believable.
You have to at least PRETEND to be a little professional if you are making that kind of money, because, at that point, have people looking up to you. The examples set in this company are horrendous.
I found that $10 per month in the 2012 WakeUpNow review.
The figures in the annual report didn’t make much sense, so I tried to identify some of the details. But the 2012 review is probably outdated.
But my point about “nobody seems to be selling anything other than memberships” should still be valid. I used the data from the December 2013 IDS as a source.
The other source I have used is the 2013 Annual Report:
Ah, I see. That makes sense.
Certainly. Not one of the shills I’ve ever bickered with about this scam has ever focused on the products the scheme supposedly offers its customers. Many can’t even name anything the WUN affiliate market actually sells. It’s always been about making money via recruiting.
Has this site ever done a review on Vemma? They have just changed there wording to affiliate marketing and trying to shift away from MLM.
As far as I can see, NO. I used the Search function (upper right side), and I found one Vemma article.
My intention was to post a link, but COPY / PASTE failed. Use the search function yourself?
Ummmm…..can you please tell me where I can find proof of these millions in losses you claim. I am a member of Wake Up Now and simply want the truth. So please link me to the evidence.
Linked in the article and in comment #51 (you did actually read the article, right?).
Thanks M-Norway…..looks like they might be safe because of acquiring customers more so than distributors….thanks
Post #76 is the closest. The first source is the December 2013 Income Disclosure Statement, the second one is the Annual Report for 2013 (and 2012, 2011). Here’s the disabled links to the PDF documents:
Normally we don’t analyse financial reports. I have analysed a few, e.g. when I have been looking for something specific, but I don’t do it on any “regular basis”.
Yeah we only have “Thugs” in our company and nobody takes us serious…thats why we have Movie Actors, Football Players, and Eric Worre is speaking at our next Convention.
I wouldn’t say “nobody” takes GUN seriously.
Certainly the get-rich-quickers and serial pyramid players are serious about what they are doing.
WUN has NO serious players and NEVER will … reason?
Try the folks that CEO Cochrane paid around $150,000 to: that is Seemore Green – google in Seemore Green Rip off Report – and his buddy “Greg” out of Miami who goes by the handle of “Kashiz King” over at MCA.
wow? Celebrities such as the felon named “Solder Boy”???
Too many lowife scammers with fake videos going viral is why WUN can’t attract any serious names in this industry.
Name the “movie actors and football players” that ANYONE outside of the Projects has heard of.
Eric Worre will speak anywhere he is paid to speak. That means NOTHING except the fact that there are no credible people INSIDE of the company that can train.
Are you saying that they do nothing unique to the point ANYONE can come in and train? He has never built a WUN business, so whats the point in bringing him in? If WUN are just like all the rest, to the point HE adds something of value, why would “I” want to be associated?
Eric is a smart guy. He is branding HIMSELF to sell his training material, and capture the fallout or “leadership” from companies when he is ready to partner with a company or start his own. He does a great job of positioning himself.
So, in short. You are going to brag about an experienced, successful guy that has to come in and do the things you CANT, that would not join your deal if his life depended on it? BRILLIANT MARKETING!
I can promise the list of successful people that WONT associate with WUN is FAR bigger than the ones that will, and the ones that will, have to be paid to do it? Probably not a great idea to advertise that and shout it from the rooftops.
“Soldier Boyz” is a felon … a rapper that no one that leads a normal life has ever heard of
their NFL player is a white dude who was a role player with the Chicago Bears.
bottom line: the shit at the top named “Seemore Green” from MCA is why MCA can’t attract any real players
here is Wake up Now’s “star celebrity”:
No wonder these guys have no retail sales or profitability. 90% of them are stuck at home with ankle bracelets on.
Well, it looks like they’ve noticed this article.
(Ozedit: see here)
Their “defense” is comically bad. Guess you’ve gotten under their skin a bit. Bravo!
Again silence…have a nice day:
I’m sorry but this is an embarrasingly new low for Troy Dooly:
Are you serious? OUTSIDE SALES = RETAIL SALES! Bloody hell, trying to argue against retail sales by any other name, is that what MLM consultancy is about?
He even goes on to re-define what is accepted as retail sales in MLM. Shopfronts? Flea markets? WTF?
Not even a month ago the SEC shut down TelexFree and the US Attorneys Office have since filed criminal charges against the company’s owners. In both the SEC (civil) and US Attoreney’s Office (criminal) complaints, one of the recurring themes was a lack of retail sales.
The SEC pegged TelexFree’s retail revenue at 0.25% percent of the company’s revenue, with the US Attorney’s Office specifically calling out TelexFree owner Carlos Wanzeler for lying about retail figures (he was making claims that pegged retail way above the 0.25% SEC figure (calculated from TelexFree’s financials)):
Additionally, a source regularly cited here on BehindMLM is the FTC:
And here, in 2014 we have Troy Dooly is making public statements about how retail doesn’t matter?!
Why are WakeUpNow affiliates and consultants so determined to “silence” the issue of retail sales?
Can someone correct me if I’m wrong but if WUN was investing into itself like they claim wouldn’t there be a increase in its assets? Because I’m not seeing it….
An answer to that question will require more knowledge than I have.
WUN had some additional investments / secured loans in October 2013.
Some footnotes to Share Issuance History (page 4, Annual Report).
44 million shares was sold to a secured lender / equity investor, for appr. $2 million.
Cash assets have increased with $400,160 from Dec. 31 2012 to Dec. 31 2013. Total assets have increased from $573,000 to $2,093,000. Additional Paid-In Capital $2,582,837.
“More knowledge than I have”
I’m not able to identify each and every detail, so I shouldn’t try to analyse it either.
Assuming that what you describe as “investing into itself” means retaining earnings or investing in capital assets then yes. You should see an increase in cash, investments, equipment, good will, or something.
If all they are doing is paying expenses then you would not see an increase in assets but only cash flowing in and then back out.
From the brief and not particularly revealing Share Issuance History supplied above the cash provided by COO Ochs was under “exigent circumstances” which I think means out of necessity. Whatever that really means in this context is unknowable but it might suggest something to you.
The company appears to be reporting an increased cash asset balance of roughly $1.5 million during the periods mentioned and a lot of stock was apparently issued to Ochs and to five unnamed employees as well.
I am a little fuzzy on this but retained or non vested company stock is accountable as an asset, but if there is no market value its of no balance sheet significance since it is a zero value asset.
Bottom line: an “exigent” cash infusion was required from the COO of $2 million but the current cash position is only $1.5. This indicates the company is spending more cash than it is bringing in. If you don’t see an increase in any other asset class besides the additional $1.5 in cash then it suggests they are not ploughing anything back into the company but only paying expenses.
WUN is 5 years old. How many 5 year old’s do you know that got is all together as though they were 20 years old?
WUN was taken over by Kirby and the others to fix problems that the old managers was messing up. Its called fixing up other people’s shit.
Amazon, Microsoft and Apple all went through he same things in their beginning stages. Just because they were loosing money didn’t mean people in their company was not getting paid and there was no money to be made.
People are still joining WUN because its a growing company and its beneficial to their lives.
No it doesn’t get you to quit your job right away, its not designed to do that. But it helps you recognize the mind set you are in as an employee, to prepare you to think like a rich person and learn the habits and the structure of self employment to invest in WUNself instead of working for the next man all your life to make him rich and not you.
It helps you spend money wisely and understand what assets and liabilities are. Yes you can read a book on this stuff but who has time when they are at work 8-14 hours a day, then come home, cook for the family, get some spouse time, help the kids with homework and try and get 2 hours to yourself.
Bathtub is calling your name at that point and all you want to do is close your eyes and try not to think of anything, just to do is all again the next day.
WUN helps you get out of those habits so no one is read a dame book. No time because of the way the system is set up now days for you to try and survive. The majority of a persons time it to work to pay bills.
Now you can keep mentioning the 8 million dollars being blown off but consider this. AMERICA have trillion of dollars in debt but people are still getting new jobs, and becoming millionaires and the rich are still getting richer.
America is a company just like wun only they have been here longer. How about you be quiet, try out the produces and services for awhile and see what happens instead of trying to steer people away from a good opportunity. It may not be for you but its good for others.
This new baby is learning how to walk and talk, stop playing the uncle butch and be quiet and let the baby learn to walk and speak for its self. WILLife…
^^ Fuck me sideways, that’s some major-ass horseshit right there.
Here we go…
You’re gunna sit there and compare an MLM company to a human being? Oh dear.
And how’s that worked out? Not too well I hear.
are not MLM companies are thus entirely irrelevant.
Additionally, they all focused on selling actual products they made to actual retail customers.
No doubt. And with affiliate recruitment commission payouts listed as the largest liability dragging the company down, it’s the very fact that people are getting paid that has resulted in $8 million in losses.
See above. Too many affiliates, not enough retail customers.
Has WUN corporate gone over their own training material then? How do you market their BS with a straight face when the company continues to incur record losses.
Yo, I’m no accountant but taking financial advice from people running companies that are drowning in debt doesn’t seem like a smooth move.
Barf. This gump’s a riot.
No thanks. Pouring fuel onto an inferno and calling it savings isn’t my thing.
I can tell you the money are NOT going to the affiliates, since according to WUN’s own income disclosure (as of December 2013), 82% of all affiliates earn ZERO dollars in commissions. 14% made about 1000 a year, and 4% made about 7000 a year.
Yes, that adds up to 100%, so any remainder, who are making the really big bucks (up to 600K a year) are basically as rare as lottery big winners.
Ask yourself… Where did all that 8 million dollars went… If it’s NOT paid out to most affiliates?
Post#90 (common sense) thank you for the laugh, I literally cried laughing from what you said ROFL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
They’ve lost another $1.5 million just in the first half of 2014 according to their latest released financial report: http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=125411
A real winning company there, eh?
Thanks for the heads up William.
My thoughts here: https://behindmlm.com/companies/that-free-thing/wakeupnow-recovery-in-second-half-of-2014/