Network Marketing => Your PROTECTION?Hello Partners:
As a Financial Advisor and a Business Consultant, I've reviewed a lot of legal and tax documents + business agreements and 'deals' for my clients over the years. It's part of what I do, and they rely on it because of hectic schedules, lack of expertise in that area, etc.
MLM // Network Marketing - Now consider the fast growing field of Home Business entrepreneurs - and in particular, MLM // Network Marketing professionals.
Two critical considerations here...
(1)- Home Biz EVALUATION - Over the past 20+ years that I've personally been involved in the Network Marketing profession, I have seldom (if ever) seen what follows below, as being included in the major criteria for doing proper 'due dilligence' when evaluating any MLM business program. This continues to amaze and trouble me.
In fact, it's shocking, because when you see some of the horror stories that can (and do) take place with Associates in the Network Marketing industry - as I do - one wonders why this single component isn't given the sober TOP priority in the evaluation process - and not the usual 'hype' that comes with stressing Comp Plans / Products / Services / Biz Opp, etc. Here's what I'm referring to - - -
P&Ps
POLICIES & PROCEDURES
When you sign an application to join any Network Marketing company's Business Opportunity - you also sign and agree to their
P&Ps (Policies & Procedures). Those P&Ps represent a very comprehensive
LEGAL AGREEMENT between you and the company - with wide-sweeping, very strict terms that you must uphold, or face quick reprimand - even possible termination (and sometimes unjustly!). It's true.
Yet the vast majority of Network Marketers never even "read" their P&Ps when signing up - let alone "study" them ((if they did - in some cases - they'd run)).
WHY is this? I believe it's primarily because of two reasons...
(1)- For the most part, the P&Ps are very complicated - they're written in "legalese" by the company's bank of Attorneys - not readily 'understood' by lay persons. In some cases, the P&Ps can be 20-40-60+ pages long! I can think of only two or three MLM companies that have P&Ps that are 3-5 pages long. Most tend to be boiler-plate documents that give all of the protection, ownership, power and control to the
companies. The Associates (Distributors) need protection and flexibility too.
Yes, the companies certainly have a 'right' to protect themselves - no question. They need certain safeguards in place for the benefit af all of us. And yes, some Associates do indeed violate their P&Ps, which could end up hurting everybody.
But there also needs to be a fair 'balance' between the rights of the companies and those of the Associates.
(2)- The P&Ps are simply 'not mentioned' within the many things to check out carefully when you're looking at a Network Marketing opportunity - there's very little 'awareness' of them, and that is a shocker, as I said. The
P&Ps - the
"dirty little secret" that NObody wants us to know about. In my opinion, when 'promoting' any MLM Biz Opp - the P&Ps should absolutely be put at the "front" of the list of considerations. Period. Period.
And none of this is meant to 'diminish' the many fine Network Marketing companies out there with sterling reputations. This is just a "reality check".
P&Ps // RED FLAGS - Check this out for yourself =>
www.MLM-Wise.com =====================================================================
(2)- Government REGULATION - Our industry has been closely scrutinized and "targeted" over the years by Government Regulators. In the US, by the
FDA and the
FTC (in Canada, by Industry Canada and the RCMP). Mostly, these bureaucrats prosecute for unfounded MEDICAL claims on nutritional products and for excessive INCOME claims on the business opportunity.
But we also do battle with them in lengthy (and very costly) disputes such as the (ridiculous!)
"Business Opportunity Rule" that's been going on for for far too long - threatening our very Home Biz freedoms!
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Enter the DRA
DISTRIBUTOR RIGHTS ASSOCIATION
Within the Network Marketing // Direct Sales industry, our
DRA (Distributor Rights Association) is the ONLY organization of its kind in the world that looks out strictly for the 'rights' of Associates // Distributors -
not the
DSA (Direct Selling Association) -
not the
MLMIA (Multi Level Marketing International Association) - only the DRA.
Yes, both the DSA and the MLMIA deal with 'industry' issues - but they represent the Companies - not the individual Associates // Distributors.
I am very proud to be representing Canada on the Board Of Directors of our
DRA - a global, non-profit organization. I have long been an ambassador for the DRA. I am an admirer of two of our founders - DRA Chairman, Rod Cook ( MLMWatchdog.com ), and President Emeritus, Cheryl Gonzalez, as well as for my other colleagues on the Board. Through their tireless efforts (all voluntary) - and their steadfast dedication to our cause - we as Associates // Distributors have become the beneficiaries of a much stronger voice for distributor's rights and freedoms.
DRA - MEMBER GROWTH - It is this which will become the single greatest factor in determining our very futures in this industry - our cause - our reputation for fairness - our visibility - our success in fighting the battles with some Companies, with Government Regulators, and others - for what is 'right and just' for our MLM//Network Marketing industry.
DRA - MEMBERSHIP DUES - At only $50./year - we receive SO many benefits and safeguards - it make the DRA one of the greatest GIFTS of any Professional Association that I know of (and I'm involved in many! :-)
DRA - PURPOSE - Obviously, we cannot be all things to all people [even though we sometimes try to be]. But what we can be is a tremendous source of - education - information - guidance - assistance to our members - on all kinds of issues they (we) may be challenged with. And for certain, we will always strive for closer cooperation, understanding and partnership between distributors and companies - especially regarding the Company P&Ps (Policies & Procedures).
-- our DRA is a fierce force for "good" - an Association that stands for very high Integrity, principles and values.
-- our DRA is a "good" place to be - with "good people" around it - with "good" advocates for justice and fairness, and our very freedoms.
DRA (Distributor Rights Ass'n) // FULL Story =>
www.MLM-KeyToSuccess.com Sincerely / Peter A.
www.PeterArnoldOnline.com Peter Arnold, CLU, CFC // Founder
Business Achievers Academy // Canada
Executive Director // DRA // Canada
