Multilevel marketing company Empower Network has filed for bankruptcy, according to a Facebook video posted by founder David Wood.
The company has experienced a dramatic freefall in recent weeks, going from $7 million of revenue per month to $300,000. The St. Petersburg, Florida-based company once counted big names like Lawrence Tan, Shaqir Hussyin, Vick Strizheus, and Justin Verrengia among its top leaders.
Empower Network was founded by David Wood and David Sharpe in 2011. The company used a multilevel marketing structure to encourage its members to make money online. Members could make money by recruiting other people to the platform, and then filled out their referral pyramid with more and more referrals.
The company was fueled by its viral blogging system. That blogging system was used by members to grow their businesses online. Members could use that blogging system to promote direct sales, engage in online marketing, or just expose their blog to the world.
After being founded in 2011, Empower Network grew from $1.5 million a month to $1.5 million a week in sales. At its height, the network claimed to have over 197,000 customers and over 105 employees. Their downfall, however, was swift.
Earlier today, founder David Wood announced the company’s bankruptcy in a video posted on Facebook. In that 45 minute video, David encourages his fans to “write something powerful you learned from Empower Network.” Viewers were encouraged to write what they were thankful for, or basically just praise David in any way possible.
In that video, David tells a bizarre story of a recent hospital visit. He claims he went to the hospital for a health problem, spent a few days in the hospital, and then tried to leave. He claims “three security guards” attacked him, and he fought back, eventually causing the hospital’s security team to use the taser on him “8 times”. It sounds like several of the security guards were seriously injured in the incident. David claims the video of the attack will hit the internet shortly, and he’s also going to be charged.
Obviously, there’s a lot of stuff going on with Empower Network right now. Stay tuned for more information about this issue moving forward. For now, all we really know is that Empower Network is bankrupt, and its co-founder David Wood appears to be in some type of legal trouble.