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Thursday, December 6, 2012

MLM Training - More Gotcha Clauses To Watch For In Your Policies And Procedures

Today I will be sharing with you a few clauses that may or may not be in your policies and procedures. Many people sign up for network marketing companies and don't even read them. The policies and procedures is your contract, and you must read them so that you will know what your company intends to do for you or possibly against you.

In a previous post, I spoke about a few gotcha clauses and you can read and know what they are at the link here ==> FREE MLM Training - Do you know what's in your policies and procedures 

What I will be sharing with you are a few more gotcha clauses that you might find in your policies and procedures. Let's get started and the first one I will share with you is:

Transfer of Sponsorship and this is a big one you must understand. Okay your goal is to build a business so that you will have residual income and leave it to your spouse and children as an inheritance. How can you do that if your network marketing company has a clause in the contract that says an associate may not sell, assign or otherwise transfer his associateship,marketing position, or other associate rights without written approval by the company which may not be unreasonably withheld. Sounds like you are an employee, doesn't it? Suppose circumstances makes it impossible for an associate to run the business, and they decide they want to transfer it to their spouse (who has been working the business with them all along). According to the clause, they will have to get permission to do this from the company. What if the company don't approve of it.  Didn't you build the team of partners? Didn't you work hard to earn residual income with this company? Now you can't even leave an inheritance for them because of this clause.

Is this fair?

In my opinion, I don't believe it is. Some people may not get the full understanding of what this means and may not care but it is a reason to be concerned of why a network marketing company would put this clause in the contract in the first place. The only reason they would do this is so they can terminate you when you break your legal binding agreement. Which means they don't have to pay you. It's sad when you see a clause like this because it means that the company does not have your best interest at heart.

Another clause that should concern you is Associate Authorization. This is a huge, huge one to pay careful attention to, because when an associate dies what happens and who has the right to collect the bonuses and what about the associate duties and the status of his position. Well if the associate is married, the assumption is that it passes to his/her spouse and/or children(s). If the clause says that written application must be received within ninety (90) days of the date of death. If the company does not receive appropriate instruction within ninety (90) days of the death of an associate, the associateship will be terminated or reassigned. The successor associate must fulfill all duties of the associate.

Now let's break it down like this, suppose there are unforeseen circumstances and they don't contact the company to let them know about the death of the associate within ninety days and when they finally let them know about the death, the ninety days has passed and it will be too late and the company will terminate the associateship.

Is this fair? No it's not. Does the company have your best interest at heart? Nope they surely don't. They don't have to pay the spouse anything. It's a legal binding agreement and it will stand up in court because it is in the policies and procedures.

These two clauses I feel should not be in P&P's at all, it is showing that the company does not care about their distributors at all.

I hope that this post has been eye opening for you and please leave your comments below, I'd love to hear them and if you found this to be beneficial then please share on the various social and bookmarking sites.

Terri Pattio
MLM Coach
Mentor with a servant's heart
"Listen, Live and Learn in the now"

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