Read Your MLM Policies and Procedures - The Myth of Willability



Read More: Legal News and Notices

You've worked hard at your MLM business for several years and have had the success you dreamed about.  You've fired your boss and retired your spouse.  You've bought a new car and you've bought a new house.  You've put a new roof on the church.  Congratulations!

You pick up your weekly check on Friday and head to the bank to set up a college fund for the kids.  Halfway there, you get hit by a bus.

The funeral is Sunday, your will is read on Monday, and your family takes over your business on Tuesday.

The kids go to the mailbox on Friday as usual to find ... NO CHECK!


What happened?

On Wednesday, your CEO realized that the company would be sending your commissions to your family who had no clue how to run the business and no intention of bringing in more customers or distributors.

On Thursday, the company lawyers went over your contract, found your family in violation of the policies and procedures and terminated them.  They notified payroll immediately to cancel your check.

On Friday, the mailbox was empty.

And all this time, you are looking down, cursing yourself for not reading your contract.  You remember going to your first business presentation at the hotel where they described the wonderful products and the lucrative comp plan.  You remember asking if you could bequeath your business to your family and you remember them saying, "Of course!  Just sign here."

Now you remember putting a check mark in that little box stating, "I have read, understand, and agree to the policies and procedures and terms and conditions of this contract."  And you now remember that you didn't read them and you didn't understand them, but you did agree to them.  Ouch.

What did the lawyers find to save the company hundreds of thousands of dollars?

17. Inheritance of Business - An Independent [Company] Business may be inherited by a single person, a married couple or a trust which complies with [Company]'s guidelines, pursuant to a valid will or other appropriate document, or in accordance with the intestacy laws of the state or province in which the Marketing Executive resides. A person who inherits an Independent [Company] Business must furnish [Company] with proper documentation that he/she is the beneficiary and is authorized to represent the estate. He/she must also execute a Customer Membership Agreement and an Independent Marketing Executive Agreement, fulfill all of the functions of a Marketing Executive and abide by the terms of [Company]’s Statement of Policies.

Well, that sounds reasonable, doesn't it?  Your family has to comply with the Company guidelines.  Wait a minute!  What are the company guidelines, and what happens if your family does not 'comply'?

Your family must prove you are dead and that they are indeed the heirs.  That seems okay.

Somebody in your family must become an affiliate.  That's okay, you guess, unless the kids are under 18 or does that matter?  Maybe your spouse could become the affiliate and the kids will still collect the check, but if you're a single parent, maybe Aunt Jean or your lawyer could do it.

And your kids have to fulfill all the functions of a distributor and abide by the company's Statement of Policies.  That seems okay, doesn't it?  Wait a minute!  You haven't read that Statement of Policies, so you have no clue what your kids have to do to keep collecting your commissions!  It's too late now, but let's read on, six sections later ...

23. Supervisory and Leadership Functions - Marketing Executives’ compensation is based on sales of product to the End Consumer. To qualify for this compensation Marketing Executives have the ongoing responsibility to promote the [Company] business opportunity, to support [Company]’s policies, programs and personnel, and to service, supervise, motivate and train the Marketing Executives in their Marketing Organization to sell and market [Company] products and promote the [Company] business opportunity.

And now you're really rolling over in your grave.

Your kids are now distributors who have an ONGOING responsibility to ...

  • Promote the opportunity
  • Support the policies
  • Support the programs
  • Support personnel
  • Service distributors
  • Supervise distributors
  • Motivate distributors to sell product
  • Train distributors to present the opportunity


And now you know what the lawyers found.  On Tuesday, your kids didn't promote the opportunity or support any policies or programs or personnel.  On Wednesday, your kids didn't service or supervise any distributors.  On Thursday, your kids didn't motivate or train any distributors to present the opportunity or sell any product.  On Friday, your kids found the mailbox empty.

For a guide to reading your contract, start here.

For an excellent list of ways to avoid the Empty Mailbox, get this free complete MLM Success Report.

Bob and Anna Bassett
519-371-1028
Skype bobbassett
bobandanna@togethertothetop.com

Login or register to post comments  |  Views Views: 359  |  Comments Comments: 4  

Member Since: 03/31/2009

I'm a Distributor For:: Vitamark International

Other Company: Together To The Top

Industry: MLM

Primary Web Site: http://www.TogetherToTheTop.com

Comments



WORK HARD FOR WHAT???

I guess that is why you need a 5 pillars company, Great post but scary to think a lot of companies are like that.

Ernie Giordano — Thu, 12/23/2010 - 4:08pm

We Have The Right To Know !

Thank You so very much for sharing this hidden truth with us,
this is information that needs to be known by networkers all over the world, so that people can know what they are up against.

Steven Squillace — Fri, 12/24/2010 - 5:01pm

Read The Small Print

Yes read the small print for sure.
While sooo many folks expect infallibility from
network marketing as a whole...and they should
not of course....but emotions take over when one is new
to the NWMing model.
But I will say the corporate model which many sell out to
for 30-50 years really sucks in a huge way.I think NWMing
is the best model for an average person to be not average.
I watch My wife and family and friends get
screwed constantly in their corporate head games...greed and
huge egos that come with their bosses nice little titles.
I am having trouble keeping my mouth shut with what they put my Wife through.
Look the crappy NWMing companies don't make it anyway
but they can and do take folks down with them.
Just like the broken corporate model has been doing for decades.
So read the small print folks.

The lowest form of success to me is a corporate job.

Nicholas Wind — Wed, 12/29/2010 - 3:44pm

BOHICA

Nicholas, you are absolutely right.

Many MLM companies are just as bad as, or worse than mainstream corporations.

Even knowing that, there's no sense in signing a contract that gives them permission to shaft us!

Are you familiar with BOHICA?

Thanks for your comment!

Bob and Anna Bassett — Wed, 01/19/2011 - 4:13pm