It has been of great concern to me lately, as I accept friendships on Facebook and on other social network sites, that I see people are “Employees” of a certain MLM or network marketing company of which they are a distributor. To come right out and say that you are an employee of “Widget Marketing Juice” is in direct violation of your company’s Policies and Procedures.
This tells me a couple of things.
- As a new distributor they either did not read their company Policies and Procedures and fully understand them
- As a new distributor the Policies and Procedures were never provided to you before you joined your business opportunity to give you a chance to read and understand them
- As a distributor you have read your Policies and Procedures but have decided not to abide by them or feel that you will not be held responsible for being in violation of the contract
There are many clauses, gotcha clauses and dream stealer clauses in many company Policies and Procedures that are cause for termination of you by your “oh I love the products” company.
There is a group of volunteers who have had the opportunity to analyze over 300 company PnP’s. I think we have seen a few of these “dream stealing”, “gotcha clauses” and the “what the *&#)( was that clauses”.
It would be inexperienced and naive to believe that the company that you are associated with does not know that you are promoting yourself as an “employee” of “Widget Marketing Juice”. By doing so they KNOW that you are in direct violation of your Policies and Procedures. If you are not making money right this minute you are simply at arms length from them. You are not on their radar yet. You are not the “Big Shot Distributor” yet. So you probably will not hear a word from them at this point. My warning here would be that once you are making some big money, the company begins to take notice of you.
Never list yourself as an “employee” of ANY network marketing company. Keep your residual income coming in to YOU! Instead just be “Self employed”.
Proof is in the pudding, read below to see what one company wrote in their PnP’s (contract). There is similar verbiage in all contracts.
5. Distributors are independent marketing representatives of the [Company] and are not to be considered purchasers of a franchise or a distributorship. The agreement between the [Company] and its distributors does not create an employer/employee relationship, agency, partnership, or joint venture between the [Company] and the distributors. Each distributor shall hold harmless the [Company] from any claims, damages or liabilities arising out of distributor’s business practices. [Company] distributors have no authority to bind the [Company] to any obligation. Each distributor is encouraged to set up his/her own hours and to determine his/her own method of sale, so long as he/she complies with the policies and procedures of the [Company]. Independent distributors are fully responsible for properly paying all applicable taxes and fees as per the laws of the United States. [Company] does not perform any withholding services nor is the firm responsible for unpaid taxes on behalf of independent distributors.
Reading your policies and procedures will keep you out of trouble and keep your commission check rolling in to you. If distributors keep violating clauses such as the one mentioned above, sooner or later you will be terminated.
You see your big shot “Widget” company has lots of overhead, lawyers, Doctors, celebrities, their top “distributor”, office staff, buildings, leer jets and lots of other everyday day-to-day expenses to pay. When the company is not turning a profit by making sales, the overhead has to be paid somehow. It is in these cases that you become noticed as a distributor. It is in these cases that the company “in their sole discretion” can find and use any clause in your contract to terminate you if you are in fact in violation of any clause.
Stop giving your company ammunition. Know what is in your contract, know what you can and can not do. Promoting yourself as an “employee” of any network marketing company it probably the most noticeable thing you can do to target yourself.
Become a student of this industry to protect yourself and become a critical thinker. Take advantage of this educational opportunity provided to you for free by Mentoring for Free. Read Success in 10 Steps.
If you are ready for success in YOUR life and in the business of YOUR choice, then this educational opportunity will be invaluable to you. The e-book is NOT a business opportunity. It is an educational opportunity.
How can we best help you?
To Your Success
Dave and Darlene Mills
Mentors with a servant’s heart