Q: I
recently joined an MLM company and have been building a sales team.
Last week one of my downline members attended an opportunity
meeting and was solicited by another distributor to join a
completely different company. I'm concerned about having my
people go to meetings now. It doesn't seem fair. What should I
do?
A:
This is an issue of questionable integrity and unethical behavior
as well as a direct violation of the policies and procedures
mandated by most MLM companies today. Obviously, you've worked
hard to recruit your downline. Motivating your distributors into
action and building product and company loyalty is hard enough
without being sabotaged by others in the same company.
As you would expect, there are many companies looking for ways
to recruit new distributors. While I personally recommend monogamy
when it comes to the company you represent, it's not uncommon
today to see people be members of more than one company at the same
time. You should always assume this is the case. This is usually
allowed under the company rules, but there are typically strict
rules a company sets forth pertaining to conduct concerning
what's called "crossline sponsoring."
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Crossline sponsoring occurs when a distributor sponsors
or attempts to sponsor someone within a company where they're
both members into a competing company's business opportunity.
Crossline sponsoring usually indicates the violator is crossing
lines of sponsorship to steal another company member's recruit.
However, it can also mean they're soliciting someone who
wasn't recruited directly by them but is somewhere in the depth
of their own downline and sponsored by a downline member.
When you joined your company, you signed a distributor contract.
If you look at it closely, you'll probably see it indicates
that the rules and regulations set forth by the company are
considered an extension of this contract. These regulations are
usually issued as a separate document and inserted in your
distributor manual. Crossline sponsoring is most likely a
restricted action in this rules and regulations document. If not,
it absolutely should be. Crossline sponsoring, if discovered,
usually results in a severe reprimand of the violating distributor
by the company that many times leads to termination of the
offending person's distributorship. The reasons are
obvious.
Much of the bonding of the organization's members is
developed during business opportunity meetings, rallies and
training programs. You want to feel that these meetings are a safe
haven for your new or potential recruits. In fact, my experience
has shown that the social interaction with other people in the same
company but different sales organizations is critical for building
good corporate culture through group dynamics. One thing that makes
this system work is development of trust and a spirit of
cooperation among all the different distributor groups. The rules
and regulations of the company that have been agreed to by each
distributor should create a level of confidence that the company
will offer protection from unethical people who attempt to steal
away a fellow downline distributor for another company
opportunity.
As an expert witness for the MLM industry, I've testified in
a number of cases related to this issue. Many times the violating
person may not have read the rules and didn't realize this was
wrong. I should point out that the rules usually say members can
talk to the people they personally sponsor about other
opportunities but they can't talk to anyone deeper in the
genealogy tree. The best way to protect yourself from this
situation is to build a strong and positive relationship with your
sales team. People don't jump ship that easily when they've
bonded with their upline sponsor, the company products and the
company itself. It also isn't out of order for you to register
a complaint with your company on this issue if you're
absolutely convinced this is happening. It's your business and
income that can be affected. Protect your interests like any
serious businessperson would.
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Michael L. Sheffield is the founder of Sheffield Resource
Network, a full-service multilevel marketing consulting firm in
Tempe, Arizona. He is also the co-founder and chair of the Multi
Level Marketing International Association (MLMIA), whose members
represent companies throughout the world.
The opinions expressed in this column are
those of the author, not of Entrepreneur.com. All answers are
intended to be general in nature, without regard to specific
geographical areas or circumstances, and should only be relied upon
after consulting an appropriate expert, such as an attorney or
accountant.