Wednesday, May 27th, 2009
We’ve all heard the claims; “Cured my cancer!” “I am now off all of my medication!” “My Diabetes and depression are both gone!”
Without calling them out on this blog, there are several large and successful MLM companies that seem to have very loose compliance departments.
I am always shocked when I see a YouTube video made by a distributor that makes outrageous product or compensation plan claims. Maybe I shouldn’t be.
The surprise is from the lack of action taken by the corporation to enforce their terms of use. There have been many MLM companies that have been shut down by the FCC for misrepresentations on the part of the distributors.
A good MLM corporation does two things…
1. Educates their distributor force on what legal issues they must abide by. This education should focus on how a distributor can effectively share their story without interjecting the “cures” and “medical claims” that so many have as part of their story.
2. Actively enforce their terms by monitoring what is said, written and distributed, particularly on the internet.
A serious network marketer does two things as well…
1. Searches for a great company with great products, that also follows the above mentioned two steps. Why does a distributor care? Because a corporation that follows those steps mentioned above, is less likely to be shut down by the government and therefore is poised to be a long-term opportunity for the distributor.
2. Preserves the opportunity for themselves and others by abiding by the legal terms of their distributor agreement, and helps their down lines do the same.
This often overlooked area of a distributors business is key to having a long-term, successful network marketing business.
*shameless plug* It seems like a good place to mention that we here at IgniteHQ have solutions for our clients on how they can effectivly monitor the web and educate the distribtuor on “how not to ruin the opportunity.” Our technology platform also allows your distributors to pubish safe content to social networks, like facebook and twitter, without you (the company) losing control. Send us an email if you’d like to learn more.
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