Wednesday, May 19, 2010
The most amazing stupid tricks network marketing companies do is letting some legal department enforce their policies and procedures.
Give this some thought. If a network marketing company has a legal team that writes the policies and procedures and oversees the legalities of the company, the network marketing company has generally spent about a quarter of a million dollars retaining this legal department.
So now the legal department has to justify their existence, since they just added a quarter of a million dollars overhead to the company. So the legal department writes Policies and Procedures so convoluted, so confusing - it's just legalese.
And you have to read chapter 7, and remember 7.C. Then down in 19.D, they talked about it again, and you have to pull those 2 together. They talked a little bit about it up here. Now they add the rest of it down here.
But if you don't connect the two, you don't know what they're talking about.
Lawyers LOVE Writing All This BS!
Example: in some companies, the P & Ps say you are responsible to monitor your downline organization's activities. If THEY do something illegal, then YOU are responsible for that.
A friend of mine got terminated because one of his downline members recruited somebody who was in another deal sideline, which was cross recruiting. But they held the sponsor responsible, and they terminated him, so they could steal his check. Real simple. Real simple.
And your person signing the bonus checks needs to have built a downline themselves. MLM CEOs who have never built a downline do not have a clue about MLM distributors.
Network Marketing Companies Would Be NOTHING Without Distributors!
CEOs who have built a downline know that. They know that companies are nothing without the distributors.
Sure, they need a product. Yeah they have to ship a product. Yes, they have to send a bonus check. But who built the company? Who built the volume?
Answer: The distributor. And if the CEO realizes that, then they treat the distributors like gold. They don't have some legal department trying to terminate their distributors.
Stupid Trick #2
And the other stupid thing that network marketing companies do is, they don't listen to the field. The reps are in the trenches everyday. Companies need to know what their reps see, what they do, what they hear, what they say.
We tell people all the time, "Read your Policies & Procedures." I got a call the other day from the COO of a company. Actually, his secretary called me to ask some questions about why I am telling people to read their Policies & Procedures. because they have a bunch of people doing it and it ticks them off!
This company, based out of Texas, has the most ruthless Policies & Procedures you've ever seen. They are unbelievable.
Want To Sell¬ The Business YOU Built? Fuhgeddaboudit!
For example - if you wanted to sell your downline, sell your business, you have a 10-page document that you have to fill out. And before you offer the business to anybody, you have to offer to the company first.
And when you mail your request for them to buy it, you have to include a $100 nonrefundable fee. And then they can say yes or no!
Next step is, when the company says "No", they will then send you 3 upline people that you can sell your business to. You have to offer it to each of them one at a time. And the P & Ps stipulate that to buy YOUR business, they must resign their own business.
So usually, they say "No". And after all 3 have turned you down, one at a time, then you have to offer your business to somebody in your downline. And they make it so clear - they say "if you circumvent any part of this procedure, you are terminated."
so I told the secretary to have the COO call me and we could visit about the situation. And the secretary said that he does not talk to people directly!
And I said well, "Well, he talked to YOU!" So she told me he doesn't return phone calls, doesn't talk to any reps directly.
I was stunned. I sat in my chair thinking, "Wow! This is unbelievable!" Now this guy wants to talk to me to find out why I am telling people to read their policies and procedures. Now that was amazing.
P.S. - Have you read YOUR P & Ps lately?
To Your Success and Freedom!
"Be A Mentor With A Servant's Heart!"