I just found out last night that Emerald Passport is dead.
This was a company that was the dominant Top Tier Opportunity in 2005 (Liberty League aside.)
It was the company that Marie and I first hit a multiple-six figure income with.
I thought now would be a good time to explain why it failed, and if you are in Emerald Passport, what to do next.
Here is a screenshot of the home page from last night:
Now, what strikes me is that Emerald Passport is pointing to the “global economic downturn” as the reason for it’s failure. It’s not.
Sam Lajik, the “Master Distributor” and rumored owner of Emerald Passport always told me that economic downturns are great for home businesses. In fact, just about every successful network marketer knows that.
In fact, since I resigned from Emerald Passport in 2007, I have been selling an even more expensive top tier opportunity. And I have a higher close ratio!
It has been EASIER to sell. Not harder.
One of the myths about recessions is the fear that people aren’t buying things. Rule #1 in marketing is that people will always buy things they want. In fact, I just got a brand new iPhone, and I love it!
Now, the one thing I love about marketing information products is that once created, you have very low costs of doing business aside for marketing costs. How much would it cost Emerald Passport to pay their sales force? How about close to zero. Emerald Passport, like all business opportunities has a 100% commission-based sales force. And you could even make the point that they EARN money from having inactive distributors. There’s the yearly admin charge ($97), and I know they were making a substantial kickback from Profit Masters, which supplies the movie/contact manager system for Emerald Passport.
What kind of overhead is really at stake here?
Now Emerald Passport just wrapped up a conference in Punta Cana, and I think it was clear that they just couldn’t get people to the events.
It has nothing to do with an economic downturn, but rather with bad management.
Emerald Passport chased away top producers and their core leadership group – myself included.
They implemented draconian marketing policies that prohibited distributors from marketing online. In fact, they told me they didn’t want me teaching internet marketing to my team anymore, and told me to shut down my training site, and to speak on the conferences calls about how “it was easy, you just buy leads and take them to the conference call.”
I met over 1000 people at different events, and less than a handful were successful using the company tools.
Part of it had to do with marketing funnels and processes that were untested. Sam Lajik just created what appealed to him, and was not open to hearing about alternatives – even more marketers that had more experience on the internet.
Emerald Passport was slow to adapt to the internet. By now, most people know that people retain more info from video format, which is why company webinars that are visual, makes more sales than old-school audio teleconference lines.
But it was the decisions that were made at the top that ultimate broguht Emerald Passport down from great heights.
Just take a look at this chart from Google Trends:
It shows a steady decline.
Now, in my opinion, I think the reason Emerald Passport failed are these:
- The “You-can’t-market-anything-but-Emerald-Passport” rule
- The lack of transparency about seeing who was in your extended downline
- Untested marketing funnels and conference calls
- Slow to react to changes in the marketplace
- Fear of internet marketing (just look at how my old sites are still clogging up the first pages of google for Emerald Passport, Profit Masters, Profit Masters Team, adn other related terms)
- Too many calls and not enough leaders (just look at the repetition in the HBC magazine Ads.)
- Failure to attract top marketers from other companies
The #1 reason why companies fail is poor management.
It had nothing to do with the global downturn.
Agree? Disagree? let me know below
PS – You can watch my video review of Emerald Passport that goes into MORE detail here. It was recorded before I knew Emerald Passport was in such deep trouble, but you can see how uncanny my predictions are.
PPS – If you don’t understand what a top tier opportunity is, download the CFN report that I wrote. (No opt-in required)