MLM / Network Marketing Contracts, the Policies and Procedures

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.

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?" This is
criminal.

This is only one of many policies that I can show you that you do not want to find in your company's Policies and Procedures.

The good news is that there is help to keep you out of this situation.

#1 RESOURCE in MLM

To get more info on policies and procedures and tons of cool info to help you choose a great business and build it big, go to MLM Compass.

Here is some language that you will find any many policies and procedures.

"[Company] expressly reserves the right to terminate all Agreements upon thirty (30) days written notice in the event that it elects to: (1) cease business operations; (2) dissolve as a corporate entity; or (3) terminate distribution of its products and services via relationship marketing."

Well that is just plain bad news for distributors. But what does it say about management. Maybe they are saying, we don't know what we are doing so we may have to make some big changes in the future. Or maybe they are saying that we know exactly what we have in mind for the future and shame on you for not recognizing the bad position you have put yourself into.

How about this wording from the same company?

"Affiliate and [distributors] must renew their Agreement each year..."

"The Company reserves the right to reject any applications for a new Retailer or applications for renewal."

It just keeps getting worse, doesn't it?

The good news is that the company whose policies and procedures I extracted this info from has now dropped their network marketing compensation plan. It seems that when the government filed suit against them as a pyramid, they had to take some desperate actions.

The bad news is that there are many companies out there with these statements in their policies and procedures, just waiting to take advantage of you.

More good news. There is help for people who want to learn how to avoid these problems before they get involved with a company with a contract that gives you no hope for long term success. And there is help available to learn how to recognize a pyramid when you see one. Even well disguised ones like this company had.

#1 RESOURCE in MLM

Sorry but I gotta protect the victims too.

Victim #1 - The company did away with the compensation plan. Lot's of victims. My friend lost over $40K per month.

Victim #2 - This well known company which is making negative news again, terminated over 20 of their top distributors with a total income reported at $1 Million per month.

Victim #3 - This well known company built their reputation through network marketing. The company's product became so well known that they didn't need distributors anymore so they did away with the business model and starting selling the product through traditional retail. Lots of victims.

Victim #4 - This company has a reputation for changing the compensation plan. Reportedly 9 times in the last 11 years. Each change took money away from the distributors. Lots of victims.

Victim #5 - This company is fighting law suits. They need cash and they are looking for distributors to terminate. Look out for that policy that requires you to keep all your retail receipts and present them to the company when asked. Oh, and if you live where there are huricanes or such, be sure to keep those receipts in a safe place. You know, just in case your house gets blown away or something. If you heard the real life story you wouldn't believe this one.

And the list goes on and on and on.