WakeUpNow recorded $3.3 million in losses during 2012, followed by another $4.5 million loss in 2013, according to the company's own disclosure statement. These figures highlighted a significant financial challenge for the multi-level marketing firm.
The cumulative $7.8 million in losses over two years stemmed from a lack of genuine retail sales. WakeUpNow's business model relied heavily on affiliate recruitment rather than product purchases by customers outside the compensation plan. This structure made sustained profitability difficult.
Seeing the mounting losses, WakeUpNow management introduced mandatory retail quotas in late 2013. The new requirements met a mixed reception among affiliates. Many had focused almost entirely on signing up new members and meeting minimum personal volume expenditures themselves. They were not accustomed to selling products to external buyers.
WakeUpNow's corporate office later deployed its public relations agency. A press release, issued within 24 hours of financial reporting, announced that "WakeUpNow passes 100,000 customer milestone." This claim did not specify how many of these customers were retail consumers, distinct from affiliates purchasing products for personal qualification.
The reported customer count also raised questions about the company's stated financial performance. A business with 100,000 customers, even with small average purchases, would typically generate substantial revenue, making the $7.8 million loss difficult to reconcile. The press release offered no clarity on whether these customers were currently active or if the figure represented a cumulative total over time.
Mike Scerbo of Rose Moser Allyn Public Relations, representing WakeUpNow, later sent an email containing a press release to ScamTelegraph. The release aimed to highlight "A Bright Future For A Different Type Of Direct Sales Company."