In case you missed it, WakeUpNow recently announced the CEO, Kirby Cochran, has stepped down and COO Phil Polich has replaced him as the new CEO.
Former WakeUpNow CEO, Kirby Cochran
Kirby Cochran, Chief Executive Officer, had been a career venture capitalist with a long track record of helping lead companies to achieve explosive growth. A professor in the Finance department at the University of Utah, he shared a passion for the mission of helping people improve their financial lives and for building a technology platform capable of delivering outstanding value to consumers.
Kirby drives WakeUpNow’s vision for helping people live life better. His inspirational vision created an opportunity structure unique in the industry and poised to change the world.”
There have not been any official press releases by the company so it is not immediately known exactly why Kirby Cochran stepped down.
New WakeUpNow CEO, Phil Polich
Phil Polich, Chief Operating Officer started his career as a CPA with Ernst & Young, then transitioned to real estate eventually owning and directing one of the largest homebuilders in the Phoenix area, coincidentally one of the hottest construction markets in the U.S. at that time.
Phil understands the complexities that make a company run; he has built companies with staggering valuations and now brings his expertise as an operations executive to WakeUpNow, where his operational leadership is turning a bold vision into a reality each and every day.”
Is WakeUpNow in Trouble???
Here is what we do know about Wake Up Now:
According to the company, WUN actually states the financial survival of the company depends on recruiting affiliates.
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. If the company can’t successfully recruit more distributors, it may continue in the red.
In its SEC disclosure under the section, ‘Risks Relating to Our Direct/Network Marketing Methods’ it explained that:
If we are unable to retain our existing distributors and obtain additional distributors, our revenue will not increase and may even decline. Our distributors may terminate their relationship with us at any time, and, like most network marketing or direct selling companies, we experience high turnover among distributors from year to year. To increase our revenue, we must increase the number of and/or the productivity of our distributors.”
The Federal Trade Commission (FTC) goes after companies that primarily base their income operations on recruitment and not retail sales. They call that operating a Pyramid Scheme.
A pyramid scheme is when distributors sell more product to other distributors than to the public or if they make more money from recruiting than they do from selling.
Was this a move to avoid being shut down by the FTC?
Is this why they placed a retail minimum on receiving commissions?
The recent step down of Mr. Cochran, the company’s financial woes, none of this looks good for Wake Up Now’s long term future.
But perhaps with the recent change in leadership the company can recover.
Check out my WakeUpNow Business Opportunity Review if you want to know more about the company.
Your comments are welcomed below, if you are a WakeUpNow IBO please share your thoughts.