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Lifemax Document about Prefontaine Resignation

Hi Everyone,

Kim and I have received hundreds of emails and text messages asking us to please respond to the letter Lifemax issued about our resignation.

We appreciate your curiosity and support but we left that energy and environment for a reason and will not be addressing the accuracy of the letter at all in any communications unless for some reason we do not receive our last check owed to us for our very last week of our 3 1/2 year career with Lifemax.

It's time for all of us to just go about our business and wrap up professionally.

Thank you again for your concerns and support.

Chris and Kim Prefontaine

Chris and Kim Prefontaine Resign from Lifemax

Reasons for Resigning (PDF)

BREAKING NEWS: Chris and Kim Prefontaine Resign from Lifemax

BREAKING NEWS: Chris and Kim Prefontaine Resign from Lifemax

Chris & Kim Prefontaine are forced to resign as #1 global earners of Lifemax.

Kim and I were taught what elements make up a great Network Marketing company by two (2) industry experts who have each to date earned in excess of $20 million in the profession.  I wrote about those elements in a 2008 article titled “How to Do a Proper Due Diligence on a Network Marketing Company.” 

On July 19, 2008, we found them all to be in place when I visited Lifemax and met Jim and Sherri Wear, along with the head of operations at that time- Mike Batistelli, and the other staff at Lifemax.  About 10 days later we launched the first of five Launch Events for our new Lifemax business and did so not only with our sponsor Paul Caldwell, but also joined by our CEO at that time Paul Rogers and our VP of Sales Jerry Yerke. 

We were ecstatic that there was a team in place that we could build with and founders who would support that team.  We considered Lifemax to be our home and built very hard as if that would be the case with no turning back.  We had an amazing few years. 

Kim and I, however, are now saddened to tell you that we can no longer speak, teach, educate & inspire about Lifemax and the elements that make a great company relative to Lifemax.  Many of these attributes have changed which makes it uncomfortable for us to morally or ethically support it because it’s not the same opportunity.  We have officially resigned – just 3 days after our 3 ½ year anniversary and many long days of building.

As a present distributor, it is imperative that you understand why we left.

Before addressing the elements, you can review a video blog entry I did in summer of 2011 titled “The Right Vehicle.” 

In it I state how important it is to be in the right vehicle.  The three components are:

1.    One that has room in the driver’s seat (room for more leadership).  Lifemax still does so that is in place!

2.    A vehicle that is going in the right direction.  Lifemax IS NOT as you will learn below, so that changed.

3.    A vehicle that is going the right speed or the speed you need it to go.  Lifemax is not, so that has changed as you will learn below.  Since command has changed our sales have come to a screeching halt.

When we say that the elements have changed, let me be more specific.  As you know from reading my “How to Do a Due Diligence…“ article about the necessary elements, they are primarily Company, Product, Compensation & Timing.  The only thing that has not changed is the timing, but remember, I’ve always taught that timing is considered last because without the others in place- timing is irrelevant.

Ø  Company

§  When Kim and I started the CEO had a plan and he communicated that to us relative to sales projections, markets to open, how to accomplish that, etc..  Kim and I have asked our current CEO and founder to share with us the Strategic Plan several times since taking over as CEO and have still not received anything and during that time our sales have slowed to a slow crawl if not flat.  The #’s don’t lie and our income reflects exactly that – flat from 2010 to 2011.  The years when there were experienced team members in place there was predictable growth.

§  When we joined decisions were made involving leaders with experience and staff with experience.  Decisions are now being made based on pure emotion and religion and it’s quite scary.

§  Communication with the field is critical.  When we joined it was almost daily with Corporate.  Kim and I have not spoken to the founders live but twice since our Shine conference and one of those was them calling me to tell me I should not include my sponsor in any phone calls that I do with the field.

§  There is no longer a VP of Sales or a CEO or a president. With our President, CEO, head of communications and VP of Sales gone there is little to no field support.

Ø  Compensation

§  I remember telling Jim and Sherri numerous times throughout 2008, 2009 & 2010 that a change to the compensation plan in a negative way (meaning taking money out of the pay plan) is death to a company in our profession.  The initial compensation plan that Kim and I started with totally changed after the second Diamond was achieved so quickly in fall of 2009.  It was bearable and still fine for new people joining.

§  With the experienced corporate members all fired, the founders and their new operations manager and CFO (all four having zero experience in the field and zero experience in the profession at all) began to make changes to the compensation plan all in an effort to retain more dollars for corporate.

·         I used to say that there was no breakage and that was a huge advantage.  There is breakage everywhere in our plan now.

·         We used to get the Product Activation Bonus 100%.  It’s now 50% and you may pick up the other 50% if you get your people qualified quickly if not – breakage to the company.

·         EAQ Maker Bonus – previously the mentor bonus – same, we used to get it and now it’s timed to break to the company after 60 days.

·         We had a large leg stabilizer component that dictated how Kim and I built for 3 ¼ years and this has changed effective 2/1/12.  This single change in and of itself was the item that pushed Kim and I out.  We told the founders as #1 earners when we met with them in May 2011 that if they do take away that component of the compensation plan, we would be forced to leave.  We told them again on 2 live conference calls with other leaders listening and we told them again in a live meeting.  The reason we told them this is because any compensation plan will cause us all as distributors to build a certain way.  After 3 ½ years of building it’s not possible for the most talented in his profession to simply change that direction in a month or two or even 6.  Sherri told us more than 5 times not to worry and that they would never take away that quickly and would give us time to adjust-2 to 3 years.  They announced in December that effective 2/1 that would change and the change will result in approximately $2000-$4000 weekly reduction in our check and many others – you just don’t know it yet.

·         As #1 earners in the company and responsible for building the entire training system, tools system and webinars for the company that today exist as the core training system, we received support & marketing dollars measuring between $3000-$7500 monthly between 2009-2011.  We were told this would not go away and then 3 days before our support payment was due in December (with it already allocated to a trip that following week) we were told we would not receive it that week and not ever again.

§  IF YOU TAKE THE REDUCTION OF $2000-$4000 WEEKLY AND THE CANCELLING OF OUR SUPPORT TO HELP THE FIELD, THAT AMOUNTS TO A POTENTIAL $21,500 REDUCTION IN MONTHLY EARNINGS.  NOT POSSIBLE FOR KIM AND I.

·         When we joined you received three business centers at platinum and that was taken away one year later.  That would not be that bad except those that paid $4000 (cost at the time for platinum) were grandfathered and allowed to keep them.  To date, they have not allowed those that rightfully own those to open them and recently decided that they couldn’t unless they met certain criteria.  So understand this:  Those of you that paid $4000 as an enticement to buy platinum now have new rules that changed 3 ½ years later.  That is bordering if not directly a fraud and there will more than likely be a lawsuit because of it.  Bad press.

·         Senior Leadership Bonuses are the 8^th bonus published by the company.  We were told in 2008 that they were not to start until Diamond Rank-we told the field that.  When we reached it quickly, we were told they would start at Double Diamond.  Sherri told us she would announce them starting at Double Diamond at the Shine Conference.  When we asked post conference why she didn’t, she responded “…I heard you guys may hit Double Diamond soon and that means we’d have to pay them if we announce and we’re not ready to…”  When we reached Double Diamond in fall 2011 we were told they would start at Presidential Diamond Director.  Really?

·         At the end of 2009 and the beginning of 2010 when we still had Paul Rogers as CEO, for our efforts in traveling the world, setting up systems, etc we were to receive a % override of U.S. Sales and Sherri promised on many occasions that that would not go away without plenty of notice.  In February of 2010 I received an email that that would end that month.

·         Forget the technical aspects of compensation for a moment.  When we had three verbal commitments broken by the founders, we started to second guess our instincts and our involvement:

¨       Verbal commitment to maintain travel and support dollars…cancelled.

¨       Verbal commitment to not change large leg stabilizer without plenty of notice…45 day notice given during Holidays.

¨       Verbal commitment to maintain % override bonus…cancelled.

Ø  Product

§  No one can argue that Mila is amazing.  It’s a great flagship product and will continue to be so and has helped and will continue to help so many people.  By itself, it’s wonderful.

§  One of the reasons that sales are flat is that the plans to introduce new products (that almost happened in 2010 and again in 2011) were halted by our current CEO and a decision made to have no further product line extensions.  This has proven to be very limited and will continue to stunt growth which will stunt the growth of your checks.  This was quite frankly the very least of our concerns and would not in and of itself cause for a departure after 3 ½ years of hard work because the strength of Mila – if everything else was still in place – can sustain moderate growth.

Have any of you noticed that the core leaders since 2008 have all left.  The company has not been able to retain ONE leader from the beginning of the launch.  Kim and I tried to weather the storm and support the company but it has simply crossed the line of acceptable as of the end of 2011.

Have any of you noticed that the President, CEO, head of communications and 2 VP of Sales have all been fired?  Are they all bad?  All but the head of communications had extensive careers in the network marketing profession and have gone off to continue their success.  All have been portrayed as failures by Lifemax as if they’re all bad – are they really?

Kim and I love you guys and have built simply amazing relationships.  We will not be calling all of you as we don’t want to let our decisions affect your business, but wanted you to know what happened. 

In the coming days we don’t know what will be said or how many people will feel threatened by our decision.  There may even be some that repurpose this letter and twist it into something it is not.   We are shocked at this, and encourage you to beware of why some might do this.  For this reason we want to spread the message that if you have any questions about this matter please consider contacting us directly instead of assuming anything that you hear or read.  Most important is to know that we are making this decision for our family and future and not to tear down or hurt anyone else. 

For the past 3 plus years, we have enjoyed building a great business with all of you.  In that time we have achieved Double Diamond Director and helped thousands of people earn millions of dollars.  And as you know, our hearts, and energy were directed toward helping as many people as possible.  There have been thousands of people that have come into our team and we have been fortunate to get to know many of you very well and care about you and your families.

We wish all of you the best and hope that our paths cross again soon.

Repost: How to Do a Proper Due Diligence on a Network Marketing Company

I. COMPANY. Within the company element there are four areas to review.

(1) Funding: Is the company privately funded by the owners. In the real estate world it would be crazy to expect financing on a deal that you had no personal capital in- especially in these times. The bank wants to see "skin in the game." Well, why would we treat network marketing any differently?

(2) Global Vision: Does the company have a global vision? With the global trends taking place and the information age making that easier than ever, make sure the global vision is present and clearly articulated.

(3) Executive Team: Does the executive team have experience in the field and in the corporate arena? If they have experience in the field (specifically, have been in the field with the company or in another company) they will make decisions that will benefit you, the distributor in the field. You'll also want to make sure this Executive team has a good reputation in the industry so that you're not dealing with any of their baggage.

(4) Does the corporate culture allow payments or up front bonuses to leaders in the industry in order to entice them to join the company? That may sound good if they do but it's completely disingenuous and creates a bad culture because it's simply not fair. All distributors should join the company on a level playing field. How would you like it if the top leaders in the company were receiving payments from the company while telling you how to build your business from scratch. Ask this question to the owners and top leaders. Some companies allow it and some don't.

II. PRODUCT LINE

(1) There are many different products and services available in the industry. How can you tell which will be the best and sustain long term growth? The product line must have emotional appeal, meaning - it must have the ability to cause you to feel better about yourself, look better or in some measurable (not just anecdotal) way improve your health. When it does that, people will consume the product regardless of your involvement. 

(2) This pretty much rules out any of the companies that have technology based, service based or one time sale type products. More specifically, if you are caught in a technology based product, where do you think the price pressure is on technology? Always downward? Where do you think price pressure is for food or personal care? Always up! If price pressure is downward, the company will have to change its compensation plan DOWNWARD when that happens. There is always improvement in technology and downward price pressure. Don't kid yourself that it won't happen in your company.

(3) It must also be highly consumable and not one that causes people to change their buying habits. How many times would you purchase an alarm, water system or trip away? Once a year? A few times a year? How many times will you purchase a product that has the ability to make you look good, feel good or improve your health? - Monthly! In network marketing we create webs of self consumption that do not require your provocation and we do that very well when we participate with the exactly correct product line.

III. COMPENSATION PLAN

(1) The compensation plan must have the possibility for distributors from every background to experience immediate, transitional and long term passive income. I'm an advocate of the industry and many companies do a good job having a compensation plan in place that has the ability to create nice long term passive income, but the challenge is- how do you earn while you're building that because it takes time.

If, instead, the compensation plan has the ability to create immediate weekly income, income that pays you well in the transition to a larger organization and developing teams...and then a large long term passive potential - you have the perfect compensation plan. You also want to ask about the track record so far of new distributors.

If, for example, you ask and find out that no new distributor in the company has earned over $1000 monthly in the last few months or in their first few months - find out why. You should be able to find proof of income from some of the top and some of the new distributors.

IV. SUPPORT

Align yourself with a company that is investing their own capital and resources in great tools for you, not in a company that relies solely on the leadership (distributors) to create tools and then sell them to you. Also, if the executive team (described above) has field experience, they'll help you in the field, on phone calls and in every aspect of your business. This is perfect support and should be in place for you.

V. GLOBAL TRENDS

Is the company and product line positioned in front of some of the Global Trends taking place? For example, the Baby Boomer generation is concerned incredibly about their health. Are you in front of this Baby Boom generation that is literally a bulge moving through society and has created millionaires since they were babies. Gerber Baby Foods, the hula hoop, personal computers, golf and International Travel, for example, have all flourished in front of the Baby Boomers.

VI. TIMING

(1) If all of the above elements are in place so that you know the company is solid, you can then position yourself in front of a company that is fairly new. What does "fairly new" mean? You'll want to be in what's called the formation or concentration stage, prior to the company hitting momentum. This will enable you not only to participate but to be one of many causal factors that will push the company into momentum.

(2) You have the ability to experience a true breakthrough income when you do this. In addition to company timing, the timing of your product line in front of Global Trends is important as described in #5 above. Now, can you earn income in a stable company that has been around for years? Sure. In 2001-2004 I earned in excess of $30,000 monthly in a company that I joined that was over 18 years old and very stable. Can you create true wealth and enormous breakthrough six or seven income months in an older company?

I've yet to see it. So, if your goals are somewhat modest in the industry ($2,500 monthly or below, for example), then just make sure that the other five elements are in place and you'll be fine. If, on the other hand, you want to create huge wealth, you'll want element #6 - timing, to be in place.

1/24th Of the Year is Gone - What Now?

How many of you made 2012 goals and 2012 resolutions?

Are you 1/24th of the way there?

Are you on track?

Why or why not? Explore why or why not with your upline.

This is about stringing together 24-2 week periods that will create an outstanding 2012 - you all can do that.

How?

Use the Power of One Daily Discipline Chart

Ensure No One Quits Your Business

Jennifer Aniston on network marketing.

Okay, she was really talking about acting, but close enough.

Here is her quote:

"I was told to avoid the business altogether because of the rejection. People would say to me: 'Don't you want to have a normal job and a normal family?'

"I guess that would be good advice for some people, but I wanted to act."

-- Jennifer Aniston

How many of you are told not to participate in this profession? Well, when someone tells you that or tells you no - simply ask them - which are you not comfortable with- (1) the unlimited income and wealth potential, or (2) the improved health? Just curious..........

Do you Want to Be A Diamond?