Crazy P&Ps!

This is a great research article from my friends Bob and Anna. They did a lot of research on several different policies and procedures (PNPs) from many different network marketing companies. This is a sample of some of the crazy things they uncovered!

“Promotions are approved at the discretion of the upline leader, but company distributors may choose the automatic promotion option.”

This one made no sense until we realized that the company has a stairstep breakaway comp plan. When people promote below you, they take part of your check. This company allows your upline to stop your promotion, even though you have earned it!

“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.”

This means that if Alice is a successful distributor and she wants to marry Bill, also successful, one of them must give up his/her business! We wonder where that other business goes. To the company? Hmm. This company is looking for ANY reason to steal your check. This is breakage at its finest.

“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.”

Can you say indentured labor? Dictatorship?

“The distributor must fully, at all times, disclose the fact of ongoing income being received from any other network marketing or direct sales company."

Picture your boss requiring you to disclose your earnings from your second job. This is what we meant in our first article about MLM companies controlling you more than any employer ever would in the ‘real world’.

“The Company expects associates to make good judgments when referring customers and avoid situations that may lead to fraud or high customer turnover. Associates will be subject to a charge back for any incentive, bonus or commission earned if a customer fails to become active or is deactivated or canceled for any reason or suspended for non-payment within 180 days after becoming active.”

Does this mean that if a customer of mine fails to make one payment in the sixth month, I must pay back EVERYTHING the company has paid me?

To learn more about how to protect yourself, start with my free e-book, Success in Ten Steps. It will save you years of failure and frustration, and perhaps an unpleasant termination.