One of the most important documents a Network Marketer will see is your Policies and Procedure of the company you have joined. This document is your contract between you and the company. It is also your guideline of what is expected of you. In short this document tells you what you can and cannot do while you are an independent distributor for the company. If you don’t take the time to read and study your PnP’s you may find you have become a Frustrated Network Marketer–You Thought You Could Say… type independent distributor.
One of the areas dealt with in your policies and procedures is compliance. Exactly what do we mean by compliance? There are 2 bodies of the government that are dealt with when it comes to selling products to the public and they are the Federal Trade Commission (FTC) and the Food And Drug Administration (FDA). These 2 bodies have rules and regulations regarding selling products to the public. Being compliant simply means that you are within the guidelines of the FTC and FDA.
If you are not in compliance it may cause you trouble that could lead to discipline and possible termination from the company you. An example of being non compliant would be making a claim that a product will do certain things for you without actually having the evidence or proof that it will actually do what you are saying it will do. The FDA and FTC are the ones that rule on what you are allowed to say or not allowed to say so false claims are not used to lure the public to buy a product. If you sell nutritionals you cannot claim that a product cures cancer when in fact there is no substantial data to prove such. The product may aid in the prevention but even then there will be a ruling stating what you will be allowed to say regarding the product.
Why do companies have clauses in their Policies and Procedures dealing with compliance? The distributor may be disciplined by the company but the company is disciplined by the FTC and the FDA. The penalties companies receive from the governing bodies can be very serious even to the point of being shut down. It is up to the company to make sure the distributors are in compliance with the regulations put forth regarding the sales of products or services. The clauses in the PnP’s are there to ensure distributors are aware there are rules and regulations they need to follow.
What is your responsibility as a distributor? First you will need to make sure that your actions are compliant. You will need to make sure your downline is trained properly so their actions are compliant also. If you train your team properly they will also train their people properly etc. Second you must be on the outlook for non compliant actions by other distributors and report it to the companies compliance department. If the company has integrity they will contact the non compliant distributor and work with them to teach them the proper way of conducting their business to be compliant with the FTC and the FDA.
In the above paragraph it may seem you are a tattletale but the truth is you are protecting your interests as well as the companies. If there are too many non compliant distributors the FDA and or the FTC could rule to have the company shut down and all of your hard work will be lost and you will need to start all over again with a new company. Would you want to be one of the non compliant distributors that caused the company to be shut down? Would you want to be responsible for others losing their income and possibly their livelihood. There is more than just making a fast dollar by making false claims and shoddy business practices. There are others depending upon each other to be and remain compliant for the good of all.
Just remember before you act on your own Frustrated Network Marketer–You Thought You Could Say… you are not alone in this venture there are others to consider. So work with your company’s compliance department and protect your interest as well as others.
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Dave and Darlene Mills
Leadership With A Vision
"You cannot teach a man anything. You can only help him discover it within himself." — Galileo