It never ceases to amaze me that some network marketing companies distrust their distributors so much that they want to control aspects of a distributor’s life that have nothing to do with the company. They want control that is far beyond reasonable.
They want to control their distributors far more than any employer would control their employees. Controlling your actions is not enough. Some MLM companies even want to control the actions of your family. It’s truly amazing – companies actually want to control people who are not even in the business.
Not only that, some of them want to control your actions after you have left them too! They actually have policies that govern your interactions with other distributors after you leave. They want to suppress your right of free speech. My question is WHY?! Why would you want to work with a company can limit your rights in such a way?
In order to maintain status as a distributor, the distributor, spouse, family, household member, or distributor’s business partner are required to not actively participate in any other network marketing or direct sales company.
I can’t help but laugh in disbelief when I read some of these clauses. Is this a dictatorship or what?
Picture this. You’ve worked hard to build an income that has allowed you to go from full time employment to part time employment. All of a sudden you get a call from a cousin who you haven’t seen for a year telling you she’s just joined XYZ MLM company.
You’re toast. You stand to lose your business because your cousin, who’s in your family, is participating in another network marketing company. Imagine telling her “Stop, you can’t do that, you better quit because I’m going to lose my business if you build that company.”
How about this one…
If a family member acts in a way that would violate policies if they were a representative, the company will regard such action as an action of the representative, and the representative will be subject to termination.
Hey, you have to get all of your family members to read and adhere to the policies and procedures too, even if they have nothing to do with the business! Absolutely ludicrous!
In keeping with the Company rule that a husband and wife cannot hold separate sponsorship positions, they must choose which one of them will transfer to the distributorship of the other, while leaving the transferring spouse’s sponsorship group behind. If for some reason a dispute should arise over the choice of sponsorship lines, the company reserves the right to decide each case independently.
What this company is saying is if you were to fall in love with another distributor, you can’t live together or get married. If you did get married, one of you would have to give up your entire downline. What if both of you had worked hard to build large successful businesses separately, before you were entangled in your fantasy whirl wind of romance?
According to this policy, you would only have two choices… 1) stop loving each other or 2) give up one of your businesses. What moral right does any company have in dictating these choices to you?
This is just another way for a company to steal a paycheck that a hard working distributor has built, and an evil way that is.
The distributor must fully, at all times, disclose the fact of ongoing income being received from any other network marketing or direct sales company.
When did your last employer ever ask you to disclose any income from a secondary job you were taking? Are you getting it yet? Some of these companies want to control you in ways that an employer would never imagine.
By the way, the only “entity” that can legally make you to disclose your income is your government tax department. No person, company, bank, real estate agent can make you do it – legally. Therefore, if this company is saying you have to do it, it is breaking the law.
Distributors are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “network marketing”). However, during the term of this Agreement, and for one year thereafter, regardless of the reason for termination or cancellation, Distributors may not recruit other [Company] Distributors or Customers for any other network marketing business.
The term “recruit” means actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either directly or through a third party, another [Company] Distributor or Customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity. This conduct constitutes recruiting even if the Distributor’s actions are in response to an inquiry made by another Distributor or Customer. Distributors may not offer the [Company] opportunity, products or services to prospective or existing Customers or Distributors in conjunction with any non-[Company] approved program, opportunity, product or service. Distributors may not offer any non-[Company] approved opportunity, product or services at any [Company]-related meeting, seminar, convention, or immediately following such event.
See, companies even want to control you after you have left them!
It’s obvious why you would leave a company – you’re making no money. It’s natural to make permanent friendships with other distributors because this industry is about helping other people. Let’s say you go to another company and you’re beginning to have great success.
Well, if your friends from your old company ask you what you’re doing to make all the money that you couldn’t before, you can’t tell them! Not for an entire year after you left the company. If you do, the company can sue you. Ridiculous! Imagine trying to prove you didn’t have any contact with other distributors or customers about another business.
If a company has to put this in the policies and procedures, they know that they’re offering you a second rate opportunity. After all, why would you go to another company if you’re getting rewarded fairly for your business building efforts?
Thanks to MLM mentors, Bob and Anna Bassett for their work in uncovering MLM policies and procedures and inspiring this post.
For more insights, listen to Bob and Anna Bassett’s coaching call on MLM policies and procedures.
To your MLM success,
Wayne Wu
P.S. I would love your input! If you have an opinion that would contribute to this discussion, please leave me a comment below.
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Related posts:
- Deadly MLM Policies and Procedures (Part I)
- Deadly MLM Policies and Procedures (Part VI) – Can You Fight Back?
- Deadly MLM Policies and Procedures (Part IV) – Making You Responsible!
- Deadly MLM Policies and Procedures (Part II) – How Long Is Yours?
- Deadly MLM Policies and Procedures (Part III) – Termination and Renewal
- What is “Breakage”? Every Network Marketer Needs to Know (Part I)
- What is “Breakage”? Every Network Marketer Needs to Know (Part II)
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