You might not know this about me…I take care of foster children. So far I have taken care of over 20 children and adopted one.

This past month I took in an ity bity baby boy, then cared for 2 little siblings for 3 weeks. After they left, in came another baby. So now, I have a 10 week old boy and an 8 week old girl.

I have been thrust back into those days of no sleep and having my household ruled by a miniature person who’s demands must be met immediately.

Even with the challenges, it’s fun.

Having these babies and being so busy with their care has also reminded me of why network marketing is such a great industry. You really can tailor the business you build around your lifestyle, needs and time constraints.

A huge factor in being able to customize the time and efforts you put into your MLM business is your compensation plan.

Many comp plans contain sinister clauses hidden in legalese few people can understand. Knowing what your company’s comp plan says, line by line, and how that affects your ability to build your business on YOUR terms.

I am giving you a gift of the link to last Saturday’s training call on Compensation Plans. 

Just send me an email at mentor.karen.j.miller@gmail.com requesting the Bob and Anna Comp Plan training from February 27, 2010.  I’ll send the link right to you.

Bob and Anna Bassett hosted the call and taught how to answer the 10K question. If you can’t answer this about YOUR company’s compensation plan, then you really don’t know how much you need to work to reach your financial goals.

Knowledge IS Power!  Learn what you need to know about your contracts and you’ll become 10 feet tall and bullet proof!

Believe in Your Success, I Do!
Karen

When you first got into MLM, I’ll bet you were like most people.  You were new to the industry, had no formal training, blindly believed your upline sponsor and trusted your company’s leadership implicitly.

I’ll bet you never thought about distributors having…or being entitled to…a Bill of Rights.

I’ll bet you never thought that there was an MLM Distributor Rights Association or that there was a Network Marketing MLM WatchDog.

Now that you’ve been working your business awhile and probably have some questions, you may not know quite where to turn for answers.

The MLM WatchDog, founded by Rod and Marcie Cook, is a great place to start.

Rod & Marcie have dedicated their efforts into making sure the MLM industry gets fair representation.  They are also committed to protecting their readership from being scammed.

I have included below the Distributor Bill of Rights as found on the MLM Distibutor Rights Association.

Read it carefully.     

 

Distributor Bill of RIGHTS

1. Distributors have a right to own and operate their own independent contractor business. The company and the government should recognize that a distributorship is an independent small business with all of the rights and tax benefits of any independent small business. By entering into an agreement with any company, each Distributor is entitled to specific and undeniable rights to protect and preserve immediate and long-term residual income.
2. Distributors’ personal business relationships shall be honored and protected. Distributors’ downlines that are personally sponsored and personal retail customers are part of the distributor’s business. Companies will recognize the sacred nature of the sponsor/distributor relationship. Distributors have the right to expect company’s efforts to support and sustain that relationship, and do nothing to compete with or harm the Distributors business. No restrictions should be placed on any legitimate business relationship, regardless of a competing company being involved or not.
3. Product usage by a distributor’s personally sponsored downline and customers is considered as retail sales of that distributor and is commissionable. The use of the company’s products within the sales organization is called “internal consumption.” Whether a distributor or a customer receives a discount is immaterial, as in the case that factory or wholesale outlet sales are still considered as retail sales.
4. Distributors have a right to a fair and balanced contract. Distributors shall be protected from termination without just cause. Distributors have a right to automatic renewal without material breach of contract. Distributors have a right to a process and system of fair and independent recourse.
5. There cannot be any restrictions on the distributor’s spouse or family conducting any other legitimate business of their choice. The company has no right to condition their distributors’ business based on any third party that is not a signature party to the independent contractor agreement/contract. Such attempts may be illegal.
6. Distributors have a right to sell, transfer or will their independent contractor business to any party that would qualify as a distributor under normal conditions. This is a provision that also helps protect the independent contractor status.
7. Distributors have the right to expect that their company and employees be honest and treat them courteously and respectfully; and submit to likewise treat them with mutual respect.
8. Distributors have the right to expect that their company has taken all reasonable steps to insure that their products are properly represented and meet any and all legal standards, have taken all reasonable steps to protect the proprietorship of the products and they are shipped in a timely manner.
9. Distributors should have the right to join any legitimate association of their choice.
10. Loyalty is expected from both Distributor and Company to each other.

Does your company’s contract and policy and procedures follow the principles in the Bill of Rights?

Have you even read your contract and policy and procedures?  If you have, do you understand the legalese?

Do you fully understand what could happen to your business if your company has a termination clause, or some other clause not in concordance with the Bill of Rights?

Who owns your downline (aka “your list”)?  If you left your company, are you allowed to contact your downline to introduce them to your new opportunity?  Or will you get sued?

These are questions you have to have answers to.  It means the survival of your business…the one you’ve worked so hard to build.

I can help you find those answers. 
All you have to do is ask.

Believe in Your Success, I Do!
Karen
mentor.karen.j.miller@gmail.com

So you’ve joined a network marketing company, but haven’t found the time or thought there was a need to read your contract.

Now is the time. 
Actually, you should have read your contract BEFORE you signed on the dotted line…but heck….none of the rest of us did either.

So pullout your contract and start reading it.

Do you have a non-compete clause in your MLM contract?

A non-compete clause (aka “covenant not to compete”) says you, the distributor, agree not to join another MLM or network marketing company upon leaving or being terminated from the company you are under contract with.

Length of time for such a clause often goes from 6 to 12 months.

Why does a company use a non-compete clause?

It is usually so the company can protect trade secrets and client lists.

Incidentally, non-compete clauses usually are used in employment contracts.

However, the attraction of network marketing is owning your own business.  At least that’s what everybody tells you when they are trying to get you to join.

What if you join the company and find out it is not what you were promised?
Or what if you are terminated or your distributorship is not renewed?

A non-compete clause can keep you from doing business for a substantial period of time.

Don’t think the company would enforce the contract their lawyers wrote and required you to sign before joining their opportunity?

Think again.

Wishing You the Success of a Lifetime!
Karen
k.j.miller.777@gmail.com