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Monday, November 28, 2011

FREE MLM Training - Do YOU Know What's In Your Policies And Procedures?

Your policies and procedures (also known as Terms and Conditions) is your contract with the company. Unfortunately many people join network marketing companies and don't read them.

Why? It's because so many people want to make money online and when a company has some fancy hyped up website that's geared to lure a person into joining their business opportunity and then they sign up and don't read them or the company may not provide it to them to read.

These companies don't want YOU to see them because they probably have some things in there that they don't want anyone to see. I refer to them as GOTCHAS.

Today I will share with you a few GOTCHAS that will stop you from making money online.

1. The termination clause is very important and if you find it in your policies and procedures, you can be sure that this is not the company you want to join, and if it's in there you can be sure they will use it if they need to.

Example of the wording of this clause:
A member can be terminated for violations to the terms and conditions or any other policies.
Note at the end of the clause above where it says "or any other policies." What it means is, if they want to add something into the policies and procedures so they can terminate you, this is legal and they can do this. It is stated in the contract, and you should know this if you have built a huge team of people in this company and if the should get in a bind for money and you have a BIG check coming from them they can easily terminate you and therefore they have stolen your check. It happens all the time to people and these companies get away with it when they stick this clause in the policies and procedures.

This is the first clause you MUST LOOK FOR. It is very important to the success of building your business and having residual income.

2. This next clause is one you MUST make sure it is not there. It's call the

An example of the wording:
(company name) may seek any applicable remedy in any appropriate forum with respect to disputes and any money owed to (company name). In addition to monetary damages, (company name) may obtain injunctive relief in any appropriate jurisdiction against any individual for any violations(s) of (company name) terms and conditions and violations or misuse of them and all governing documents of (company name).

Pay particular attention to the second sentence above. This is the where it is saying they may sue you if a dispute should come up or if the company says that you owe them money, and you say that's not so, and then in the second paragraph where it says "in addition to monetary damages,(company name) may obtain injunctive (a court order) relief in any appropriate jurisdiction against any individual for any violations(s) etc...." and then one more thing I want to point out to you at the end of this sentence where it says "all governing documents of (company name)".

That one is really powerful and you have to really understand what it means, and I will elaborate further. It means that if they have added any new clauses in the polices and procedures and they didn't notify you of the changes they can do that and they can use it in a court of law and you will end of losing in court because of this clause that they may have stuck in there before appearing in court.

Are YOU understanding now? If you see these two GOTCHAS in your policies and procedures, then you better run the other way quickly. This is not the company to join, it means they DO NOT have your best interest at heart and they don't have integrity at all.

To learn more about the policies and procedures of network marketing companies, I highly recommend that you click the link below and check out my FREE resource that will educate you about this, and you will learn how to evaluate a compensation plan and know a scam when you see it.

FREE Business Mentoring


Bill and Teddy Rogers said...

Some companies have pages of pages of fine print and most people don't take the time to read them until it's too late. It's very important that you read the entire P&P before you accept their terms so you don't lose money or your downline by a Gotcha later on!

Thanks for the post,

Bill and Teddy Rogers
Mentors With A Servant's Heart

rose said...

Agree with it some people don't bother to read the terms and conditions.but company should make the terms and condition in simple forum and in short. so that they can read it properly.the blog is written nicely on free MLM training.


larekart said...


Thank you for this awesome explanation of the "GOTCHA'S". I have had a minor explanation of the termination clause, but you have done an excellent and more thorough job. I really like your wording as I can understand it better.

Also, I never knew about the fact that your company could sue you!!! If ever one went to court you have given a very clear picture of how one would never stand a chance,

I will be sharing this article with many of my friends, Thank you for your unique style of writing and your honest explanation!!! Linda Rekart

Ann Moses said...

Terri, this is such a good post for all Network Marketers simply because they think they are in the right company and sad to say they are not making a brown PENNY because they have NOT read their policy & procedures contract. And they don't even understand that they are setting themselves up to FAIL! Thank for such an AWESOME post.