In this episode of the Modern Direct Seller Podcast, we’re tackling a tough but important topic—what to do if your direct sales company closes or restructures. I know this isn’t the conversation anyone wants to have, but it’s happening more and more, and I want you to be prepared. We’re breaking down exactly what to do in those first 24 hours, how to communicate with your team and customers, and what to consider before making your next move. Plus, we’re sharing why building your personal brand is the best way to future-proof your business. If you’re facing a transition or just want to be ready for anything, this episode is packed with practical advice and encouragement to help you move forward with confidence!

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Time based notes:

• 0:52 Navigating a Not-So-Happy Topic
• 6:05 Download, Redeem & Process
• 9:16 Team First, Customers Next
• 11:31 What to Expect from Others
• 14:40 Direct Sales Pep Talk
• 17:26 How to Show Your Support to Others
• 21:10 Advice for Corporate Leaders
• 24:24 Safeguard Yourself
• 28:20 Sponsor Message

What to Do If Your Direct Sales Company Closes or Restructures

Let’s be real—this isn’t a topic we love talking about, but it’s an important one. If your direct sales company suddenly announces major changes—whether it’s closing its doors, restructuring, or eliminating parts of its compensation plan—you need to know what to do next. We’ve seen a lot of shifts in the industry recently, and while it can feel overwhelming, there are steps you can take to protect yourself, your business, and your future opportunities. So, let’s talk about exactly what to do if you find yourself in this situation.

Step 1: Take Immediate Action

The moment you hear about major changes within your company, the first thing you should do is download every report you can from your back office. This includes:

• Customer lists
• Team reports
• Commission history
• Any rewards or credits you’ve earned
• E-wallet funds or product credits

Even if the company says they’ll be open for a few more months, don’t wait! Get everything saved before systems start shutting down or access is restricted.

Step 2: Give Yourself Time to Process

Hearing that your company is closing or restructuring can feel like a gut punch. Before jumping into action, take a moment to process what just happened. It’s okay to grieve and sit with your emotions before making any big decisions. Avoid reacting out of stress or fear—this is a time to be thoughtful about your next move.

Step 3: Communicate with Your Team and Customers

If you’re a leader, your team is looking to you for guidance. Even if you don’t have all the answers, check in with them and let them know you’re there for support. Stick to the facts, be honest, and provide reassurance where you can.

Once you’ve connected with your team, reach out to your customers. They’ll likely hear the news and wonder what’s next. Keep it simple—thank them for their support, let them know you’ll keep them updated, and remind them that your relationship isn’t just about the products—it’s about the community you’ve built together.

Step 4: Don’t Rush Into Your Next Move

The moment a company announces a closure, the offers will start rolling in. Other companies will reach out, people will invite you to join their teams, and it might feel like you need to make a decision fast. But don’t rush it! Take time to evaluate your options:

• Do you truly love the products and mission of another company?
• Does the compensation plan align with your goals?
• What’s the company culture like?
• Will this decision set you up for long-term success?

If you’re a top leader, you may even have leverage to negotiate things like direct-to-company placement or bridge income. But no matter your situation, don’t make a move just because others are—choose what’s best for YOU.

Step 5: Lead with Empathy

If you see others in your network going through a transition, reach out with kindness. A simple “Thinking of you” message goes a long way. Avoid the sales pitch—this is about relationships first, business second. The last thing someone needs after losing their business is a hard sell.

Future-Proof Your Business

Even if your company is thriving, now is the time to safeguard your business. Here’s how:

• Own Your Contact List: Use a CRM, email marketing system, or text platform to store customer info so you’re not reliant on a company’s back office.
• Build Your Personal Brand: Make sure people connect with YOU, not just the products you sell. That way, if you ever need to pivot, your audience will follow you.
• Diversify Your Income Streams: Whether it’s affiliate marketing, coaching, or other revenue streams, having multiple ways to generate income adds stability.

You’ve Got Options

If you’re navigating a company closure or big transition, know this—you have options. There are great opportunities out there, and direct sales is still a thriving industry. Take your time, make smart moves, and remember that when one door closes, another opens.

If you need an outside perspective as you weigh your options, send me a message. I’m here to help, no strings attached! And if you’re looking for more resources to build a sustainable business, check out Modern Direct Seller Academy. You don’t have to navigate this alone—we’ve got your back!

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