G'day gang

Shelly raises some very telling questions that I haven't yet seen answered:
- Companies that won't allow distributors to use the company name or trademarks.
- Companies that won't allow you to work with any other MLM companies.
I address both of these issues (and more) in my FREE Insight Report
"Is Network Marketing REALLY Dead? (Or does it just smell that way?)" (
Get your FREE copy here.)

It's
not unreasonable for companies to restrict use of their brands and trademarks. These are typically the company's most valuable asset, and they can risk losing control and ownership of their intellectual property if they permit unrestricted use by distributors: this can be used by others as precedent in a legal defence in court cases.
It
IS unreasonable — and in many countries
illegal — for MLM companies to try to prevent their distributors from representing other MLM companies. It's classed as restraint of trade, unconscionable conduct and a variety of other names, depending on local laws. (Example: under Australia's Trade Practices Act (1974) a company can be fined
AU$1.1 MILLION per incident — that is, per distributor! — for attempting to do this.)
In most cases, this restriction is nothing more than a BLUFF by the MLM companies. What they CAN prohibit you from doing is promoting OTHER MLM opportunities to your downline with THEIR company. This is not unreasonable.
How do they get away with it?
Usually, they rely on the
ignorance,
gullibility and
fear of their distributors.
If that doesn't work, they'll create a
formal dispute with you and
suspend your bonus payments, stopping your cashflow.
They'll drag this dispute out to starve you of money needed to mount a legal challenge. If you do instigate legal proceedings, they'll pull out the
mandatory arbitration clause hidden in almost all MLM distributor contracts.
This means YOU agreed (on signing the contract) for forfeit your rights to court action in favour of mandatory arbitration before an arbitrator. Their rulings have the same binding legal power as a court judgement and are MUCH less expensive than paying court and legal fees.
BUT…
who appoints the arbitrator? The MLM company, who pays their fees and keeps them regularly employed.
This is not to suggest that professional arbitrators are corrupt or unduly influenced. It just means that any arbitrator who rules
against a company is unlikely to be appointed by that company in future cases.
Any network marketer who doesn't protect themselves against this kind of action by MLM companies — and it happens far more often than you'd believe,
especially to heavy hitters raking in BIG dollars with companies that get resentful of paying out those massive bonuses every month — has a death wish for their business.
For just $50 a year, you can enjoy excellent information and support from the
Distributor Rights Association.
Hope this helps!


John Counsel
CEO,
The Profit Clinic