Lessons Learned: What Modere’s Downfall Teaches About MLM Sustainability
After 23 years in business, Modere, a leader in clean living products, has officially closed down. The news shocked many in the direct selling industry, where Modere was known for its health, wellness, and beauty products that focused on safe and sustainable lifestyles.
In a statement released on April 11, 2025, the company thanked its community: “After 23 wonderful years of serving our cherished community, we’ve made the difficult decision to close our doors. We’re incredibly grateful for your support, trust, and loyalty over the years. Whether you’ve been with us from the beginning or just discovered us recently, thank you for being a part of our story.”
While the message was carefully worded, it left many wondering what really happened, and whether the outcome could have been prevented.
Behind the Collapse: More Than Just Market Conditions
According to industry reports, Modere’s closure stemmed from a complex mix of financial pressures, shifting consumer behaviors, and regulatory challenges. In the post-COVID economy, many direct selling companies have struggled to maintain momentum, and Modere was no exception.
A significant factor in Modere’s decline was the emergence of competitive wellness startups offering similar or better quality products at lower prices, alongside the growing dominance of e-commerce giants. Despite operating in the trending wellness space, Modere found itself outpaced by innovation-driven companies focusing on digital marketing, product customization, and influencer outreach.
The Hidden Cost of Solely Relying on the Field
Beneath all the outside pressures—leadership changes, lawsuits, financial strain—lies a deeper systemic issue that we at NexLaunch see again and again in the direct selling space: the cost of relying entirely on the field.
Modere’s collapse wasn’t just about a few leaders walking away; it was about the ripple effect that happens when a company’s entire momentum depends on top distributors. When high earners leave (or get pushed out), they don’t just take their own sales volume—they take the belief of the downline, the energy of the network, and often entire teams.
This is why having the power to generate leads, promote products, and create sales pipelines internally is no longer optional—it’s survival. A company needs to feed its field, not depend solely on the field to feed the company.
When you have steady internal lead generation, strong marketing systems, and omnichannel promotion, you not only stabilize your corporate revenue—you also empower the field by delivering qualified leads and fresh opportunities into their funnels. It’s a win-win: the company builds resilience, and the distributors can focus on what they do best—selling and building relationships—without carrying the full weight of brand growth on their backs.
Some of the most resilient companies in the direct selling space have shown impressive staying power by embracing innovation—not just in product development, but in their operations. They invest in internal lead generation, build marketing systems that scale, and adopt flexible models that help them stay agile in a rapidly changing market.
The NexLaunch Approach: How Fractional Marketing Can Help Reduce Risk
At NexLaunch, we’ve designed our services to address many of the challenges that companies like Modere face. While no single solution can guarantee success in today’s changing market, our fractional marketing approach offers powerful tools that can help direct selling companies build stronger marketing operations.
Here’s how our approach can help address key vulnerabilities similar to those that contributed to Modere’s situation:
1. Flexible Scaling Without the Big Costs
When companies try to build everything in-house, they lock themselves into fixed costs that often outpace their needs. Our fractional model provides flexibility—letting you scale resources exactly when and where you need them. Launching a new product? We can bring in extra design and content support. Running a seasonal promotion? We can add paid traffic and funnel expertise—without the overhead of permanent hires.
2. Building Lead Gen and Marketing Systems That Work
We go beyond providing talent; we help you build the marketing infrastructure that consistently generates leads and drives product sales. This includes:
- Automated marketing funnels
- Consistent content that feeds both B2C sales and distributor recruitment
- Data-driven lead generation methods
- Marketing strategies across multiple channels
These systems ensure the company isn’t just waiting on the field to perform—they actively push sales and deliver qualified leads that fuel both corporate revenue and distributor success.
3. Supporting Growth from Multiple Angles
Many direct selling companies put all their focus on recruiting and activating distributors, but they forget that the company itself needs to generate momentum too. Our approach creates parallel revenue streams by combining field-driven growth with internal marketing engines. That means even if a top distributor exits, your company still has steady sales, lead pipelines, and marketing momentum keeping the business moving forward.
4. Injecting Innovation and Fresh Strategy
Our fractional teams work across industries, bringing diverse experience and new ideas to your business. That cross-pollination helps you stay ahead of market trends and avoids the stagnation that often creeps in when teams operate in isolation. We help you adapt fast and innovate when it matters most.
Learning from Modere’s Story
Despite its closure, Modere’s legacy of promoting healthier lifestyles and sustainable products is worth remembering. For 23 years, they provided economic opportunities and championed clean living before sustainability became popular.
The most valuable lesson from their story is that even established brands must constantly evolve their systems and distribution models. No company is too big to fail when they neglect marketing infrastructure and adaptability.
Building a More Resilient Direct Selling Company
Modere’s closure wasn’t just about external pressures like lawsuits or market shifts—it revealed a deeper vulnerability in the direct selling model: overreliance on top distributors and lack of internal marketing infrastructure.
Too often, companies place the entire burden of customer acquisition on the field. But Modere’s story is a cautionary tale: when top leaders leave, momentum vanishes, teams unravel, and growth stalls.
To succeed in today’s market, companies must invest in their own marketing engine. That means building robust, scalable systems like:
- Digital marketing campaigns
- Paid media funnels
- SEO-driven organic traffic
- Conversion-optimized e-commerce
- Retargeting and customer nurturing flows
These systems don’t replace the field—they empower it. They stabilize corporate revenue and generate qualified leads that help distributors win.
Resilient brands don’t wait for growth to come from the outside—they build it from the inside out.
Recognizing Early Warning Signs
Modere’s closure didn’t happen overnight, it followed a period of growing challenges that, looking back, offered warning signs. These included relying too much on key personalities, rigid internal systems, and marketing infrastructure that couldn’t adapt to changing conditions.
For companies in direct selling, now is a good time to look at your own operations and identify areas where more flexibility and support might strengthen your position. Building more resilient marketing systems today can help you handle future challenges with greater confidence.
Let’s discuss how NexLaunch’s fractional marketing approach might complement your existing strategies. Our team brings industry experience and fresh perspectives that could help your company adapt and thrive through changing market conditions.
Contact NexLaunch today to schedule a conversation about how strategic fractional marketing can strengthen your business for the long term.
Sources:
- Direct Selling News (April 11, 2025): “Modere Announces Closure After 23 Years”
- TNJ (April 12, 2025): “Modere Shuts Down After 23 Years: What Really Happened?”
