5 Shocking Truths about the Modere Closing and Network Marketing

Special episode and the lessons we can learn from the recent Modere Closing and the future of network marketing.

Episode Overview

In this episode, I dive deep into the recent shocking news of Modere shutdown without any prior notice, leaving thousands of distributors and the entire network marketing community shocked.

I share not only the implications of the Modere shutdown but also the essential lessons that network marketers must learn to protect their futures and build resilient businesses.

Modere: What Exactly Happened?

On Friday, April 11th, 2025, Modere closed without any warning or notification.

I was hanging out with my mom who was visiting from NYC when my friend Ian Farrar text me about it.

I felt “sick to my stomach,” knowing friends and colleagues who had built significant incomes were suddenly left with no commissions and no clear path forward.

Notable leaders like Justin Prince, Marina Simone, and others had previously left, signaling underlying issues.

Still, the abrupt closure was entirely unexpectedly, making what happened to Modere even more devastating.

Immediate Impact on Leaders and Distributors

I highlighted the stark reality faced by many top earners and everyday distributors in Modere:

• Incomes ranging from $1,000 per month to $100,000 per month vanished overnight.
• Unlike previous cases (such as Beachbody or Rodan + Fields shifting models), Modere provided no transition, leaving no “Plan B”.
• Final product orders were delivered, but beyond fulfilling refunds, everything else ceased abruptly.

Is Network Marketing Still Worth It After Modere Shutdown?

I addressed this question…

Is residual income still viable in network marketing?

I emphasize that:

• Any industry carries risk. Even large corporations like Kodak have vanished over time.
• I personally still earn network marketing residual incomefrom a business I built over two decades ago, proving that stability can exist but requires both skill and luck.

I underscore that Modere’s closing doesn't represent the entire industry—many companies continue to thrive.

Lessons Learned From Modere

1. Entrepreneurship Involves Risk

Entrepreneurship, including network marketing, involves ups and downs. Companies may close, and markets fluctuate. I reassure listeners that risk is universal, not exclusive to network marketing.

2. Network Marketing Residual Income Requires Smart Choices

Network marketing residual income exists but requires choosing stable companies and products with lasting demand.

I share insights from my own success, acknowledging the element of luck but also highlighting the importance of market research and strategic planning.

3. Personal Development and Growth

The true benefit of network marketing isn't solely financial but personal.

I share my journey from being a shy, quiet Asian kid from Brooklyn, New York, to someone confidently impacting thousands through speaking and coaching.

I describe network marketing as a “personal development university with a pay plan.”

Why Personal Branding Yourself is Essential

I stress that the Modere shutdown underscores the critical importance of personal branding:

• Individuals overly associated with a single company risk losing their identity if the company fails.
• Leaders who built strong personal brands (such as Tony and Sarah Zolecki, John and Nadia Melton, Michelle Barnes) transitioned smoothly to new ventures due to their personal following.
• Building your personal brand through consistent value-driven content ensures your community follows you beyond any single company’s fate.

Characteristics of Network Marketing Companies That Last

I draw from my 22 years of industry experience to highlight characteristics common to enduring network marketing companies:

• Avoiding Hype: Companies built on solid, valuable products rather than short-lived excitement tend to last.
• Steady Growth Over Rapid Expansion: Companies that grow steadily rather than explosively typically sustain longer.
• International Expansion: Successful, long-lasting companies eventually expand internationally, maintaining a fresh influx of ambitious leaders.
• Homegrown Leadership Development: Companies that develop new leaders internally, rather than recruiting high-profile leaders from other companies, achieve lasting growth and resilience.

Protecting Your Future After Modere Closing

Focus on Core Business Activities

I advise listeners to concentrate on income-producing activities and avoid excessive distractions such as overly focusing on industry news or social media scrolling.

Implementation Over Information

The Modere closing illustrates the importance of action.

Instead of just consuming information about industry events, I emphasize the need for practical implementation:

• Improve customer service and community-building.
• Offer intangible value (personal support, accountability, recognition) that competitors like Amazon can't replicate.
• Reinforce your unique value to customers to prevent loss to cheaper alternatives.

The Importance of Investing and Diversifying

In business there's always uncertainty. I emphasize financial responsibility:

• Invest network marketing income into diverse assets (stocks, real estate, health, family time).
• Diversify your financial portfolio to buffer against unexpected industry downturns.

Why I Still Recommend Network Marketing

Despite the Modere closing, I firmly believe in network marketing’s value:

• Provides unmatched business education (selling, marketing, time management).
• Skills gained are highly transferable, beneficial for careers and businesses beyond network marketing.
• I passionately recommend network marketing to my children for these invaluable life and business skills.

Final Thoughts: Resilience and Growth

I offer powerful encouragement for those affected by Modere’s closure:

• Leaders who built successful businesses can rebuild and often become stronger through adversity.
• Challenging times amplify personal and leadership growth, setting up future success.
• Network marketing residual income remains possible but requires adaptability, personal branding, and strategic financial management.

Implementation always beats information alone. Take action today, and go positively impact someone’s life.