Posts Tagged ‘Legal Contract’

Common Mistakes Everyone Makes in MLM

February 17th, 2010

A common mistake, often fatal to your business is: “Failing to check the background of your company’s leadership!
When the management team has built a downline themselves, they
respect you.

Companies are nothing without us!

If they could sell their products themselves, they’d just put some
magical ad on the internet somewhere and people would come
to buy in droves.

But that does not happen.

Why? Because it takes you and me to build the relationships
with the prospects, so they buy from us.

And how do you know if your company leadership has integrity?
Simple. Read their company Policies & Procedures. (not the
Terms & Conditions) Then you will know.

99.9% of the people you talk to want to build a business and then
retire and enjoy the fruits of their work.

But these companies have come in the backdoor like snakes in
the night. They’ve changed their Policies & Procedures, adding
phrases like “ongoing sales”, “ongoing recruiting,” “continuous”,
“regular meetings.” You cannot retire – even though they’ve
promoted early retirement as one of the main benefits of their
business!

It’s amazing. If you retire, they can legally terminate you! Does
that show any sign of integrity?

Absolutely not.

Your Policies & Procedures are THE contract between you & your
company. They are written by the company lawyers. You’d better
know for certain what YOUR P&Ps say!

Here are some additional steps to insure your safety & security.
• Search Google for the owners of the company.
• Do the owners have Integrity? Add the word ‘Scam’ to your search.
• Do the owners have a Corporate background or an in-the-field Network Marketing background?
• Read your “Policies & Procedures” and “Terms & Conditions”;
both are part of your Legal Contract.
• Look for the word “Ongoing”.
• Look for policies that strike you as “Unreasonable”. Like “Termination, with or without cause”.
• Ask yourself “Does this contract protect me or the company?” “Is it clear which way it leans?”
• Does the company charge you for training or a company web site?
• Does the company charge you for each paycheck they send you?

Rules of Thumb:
• The longer the contract, the greater the possibility that the policies important to you
are being hidden in “Legalese”!
• If it’s a “Cash Only” business…It’s a Scam!
• If you can buy a position at the top…It’s a Scam!
• If you are offered a “Special Deal”…the playing field isn’t level for all.
• If the products are sold on eBay at a greatly reduced price…Buy there instead.
• If a company is publicly traded, Financial Decisions Will be made in Favor of the
Stockholders at the Expense of the Distributors.
• Check these two websites: http://MLMwatchdog.com and http://MarketWaveInc.com.

The above info (taken from our trainng) covers only 1 of 5 critical legs (Pillars) that make up ALL companies. This and much more is available to each member of our community, Mentoring For Free.

To have Access  to us and all the Free training start here

To Your Success,

~Cristiana Martinez

If you enjoyed this post, make sure you subscribe to my RSS feed!

No comments »

Posted in Why people fail in MLM

Tags:

Success MLM Tip ~Read your Policies and Procedures

January 12th, 2010

I’m sure you’ve signed up for something and checked the little box that says you agree before they let you click that last button to proceed many times.

You’ll be amazed at what you find in your own Policies and Procedures, the legal contract between you and your MLM company.
In MLM / Network Marketing, that box you check usually says something like this, “I have read, understand and agree to the Terms of Agreement, the Policies and Procedures, and the Compensation Plan.”
Wow! You just agreed to a lot of stuff and if you are like most people, you didn’t even read it. You don’t even know what they are. Isn’t that interesting…
We read contracts and agreements everywhere else in our lives, so why don’t we read them before we sign up online?
If there is just one phrase or one word that you do not understand, DO NOT SIGN! This is not a hobby you are starting. This is a serious business and should be treated seriously.

If you were buying a business that cost you thousands of dollars, would you read the contract or maybe have an attorney read it? Of course you would. But you get into your little business for very little money so it isn’t necessary. Really?

Here is a Real example:

This is a major company, name changed to [company] to protect the criminals. What a deal.
10.3. AGREEMENT TERMINABLE AT WILL
You may terminate your relationship with [company] at any time by providing a signed written notice to [company]. [Company] may also terminate the relationship with you (including any partnerships, corporations or other entity) at any time by providing written notice. You or [company] are not required to have any reason, nor do you or [company] have to claim or prove any cause to terminate this relationship. If and when the relationship is terminated, you shall have no claim against [company] nor any right to claim or collect lost profits, lost opportunities or any other damages. Termination will result in the loss of all benefits as an [company] Independent Consultant.

Imagine that every phrase in the contract you signed can and will be used against you, because that is what will happen.
If you are thinking, “Oh! They wouldn’t do this to me.” Ask yourself, “Why did they put it in the P&P if they weren’t planning to use it?”

The good news is that there is help to keep you out of this situation.
To learn more about how to protect yourself, start with Success In Ten Steps by Michael Dlouhy.                                                                            It will save you years of failure and frustration.

If you enjoyed this post, make sure you subscribe to my RSS feed!

5 comments »

Posted in Training

Tags: