22 Feb Direct Sales Distribution Channel Update



Dear Friends, Family, and Partners of Zenergy:


I had previously mentioned in a recent blog to our esteemed shareholders that I wanted to answer and provide updates on several items that were either announced or elaborated on sometime in 2017. In this blog, I will give you an update on the entire topic of Direct Sales, otherwise known as “Network Marketing.”


Today, I would like to update you on a vendor/client relationship that we had announced back in the middle of 2017. If you recall, we talked about a national company that we were proud to be in a relationship with for distributing our products and services (to see that previous news release, please click here). However, due to a series of external factors having nothing to do with us, that company ended up attempting to reorganize its business, but then eventually decided to halt their operations. Some of those executives have started a new business entity, under a new name and different ownership. Note that this new entity is not in any type of client/vendor relationship with Zenergy or any of our affiliates. While we did conduct a minimal amount of business and our contractual relationship remains in place as of the date of this posting, the performance was not even a fraction of what we had been hoping for or anticipated.


As a result of our disappointing experience in that entire ordeal, we went back to the drawing board, exploring all options, including but not limited to, acquiring another similar distribution channel, exploring new partnership opportunities, and launching a direct sales distribution channel of our own. After identifying a couple of critical factors such as the potential of our innovative B2B services offering and realizing that our target demographic for our Smart Home Services really is middle to upper-income households, it became quite evident to our management team that we would a need a smart, sophisticated direct sales distribution channel. This channel would be in alignment with what we feel is a soon-to-be prestigious and refined brand, Zenergy. The right decision became clear for us; we would take our destiny into our own hands by launching our own “Associate” program instead of trusting and hoping in third parties, whom may or may not come through.


To that end, over the past 6 months now, we have been developing the software and infrastructure and putting all the necessary regulatory requirements in place to support this initiative. Moreover, we recently formed a new company called Zenergy & Associates, Inc., which is currently a wholly-owned subsidiary of Zenergy Brands, Inc. We plan for this new entity to serve as the vehicle to establish a Zenergy-controlled, sophisticated direct sales distribution channel. This channel will allow individuals to participate in a revenue plan whereby they can build a portfolio of income for themselves by bringing in new customers and executing all sorts of transactions. I feel that we have a created a plan that will allow entrepreneurial-minded professionals to build a portfolio of income for decades to come. I liken the entire offering to a franchise opportunity, however, without the significant upfront investment required. We are calling it a “micro-franchise opportunity.”


Right now, we intend to move into what we call a “pre-launch” phase on Monday, April 2nd, and this phase would run through the end of August, after which point we would transition into a “soft launch” phase on or around September 1st, 2018. Next, we would commemorate the first year sometime in March 2019 and officially declare our Grand Launch. We believe that this is a best practices approach, that will enable us to test all systems, programs and plans, make respective adjustments and build out a great support team as well.


Over the coming weeks, you may expect one more blog from me and possibly an official news release about this new channel with more details on how the program works.


Yours sincerely,


Alex Rodriguez

CEO & President

Forward Looking Statements: This communication may contain statements that involve expectations, plans or intentions (such as those relating to future business or financial results) and other factors discussed from time to time in our Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as “may,” “should,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan” and other similar expressions. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the Company. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.



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