Network marketers are independent contractors all. Despite that, NM companies are extremely controlling. Most of the reps have no clue how restrictive their company’s policies are until the compliance department comes calling.
For example, in many NM companies reps are not allowed to represent any other product line. Even if what they’re doing is marketing the products and building customer bases (and not offering the other business opportunity.)
Of course companies need to protect themselves and their reps from the raiders. I’m not talking about that. I’m wondering about an entrepreneur representing two or three companies in order to market different product types to their customers.
Why not?
For example, Lulu might represent non-toxic cleaners from one company, skin care from another, and pet products or travel from yet others. That seems pretty natural to me – for enterprising reps, that is. We’re talking regular customers who do NOT also sell the product.
After all, we don’t buy everything from one store ourselves, do we?
What do you think?
Results so far, here.
What instances of ‘too controlling’ have you experienced?
I’ve coached quite a few people recently who are actually not allowed to even MENTION the company name in any type of advertising or in an email.
I think that’s crazy. I’m PROUD to be a professional network marketer and PROUD to be affiliated with my company. Why wouldn’t someone be able to advertise the company name? Maybe they have a bad name in the industry. Maybe they aren’t proud of their company, so the reps aren’t either.
That is too controlling.
Roxanne Green
Be A Mentor With A Servant’s Heart!!
Hi Kim,
I couldn’t agree more. Obviously the companies need to protect themselves, but if we are “independant contractors”, then some of these restrictions really tie your hands!
One thing that really gets me is when it comes to advertising. I just don’t get it. You are supposed to market and move product, yet, some companies make it so difficult to do so in any typical advertising fasion…what gives? You can’t do this, you can’t do that, don’t use the company name, etc. Come on, are we supposed to market this “wonder product” or what?
Another thing that I think is awful, and most people don’t realize this, is when a company will put clauses in their policy and procedure about ongoing/continual sales, recruiting, support, training, etc.
It seems to me like they don’t understand the Network Marketers dream of properly building an organization and being able to enjoy the fruits of your labor in the years to come.
Most people I talk to want to retire and enjoy the recurring income their organization is brining in. It appears that more and more companies are not allowing you to do this, and that is a real shame.
Suzanne
http://www.NetworkMarketingHotspot.com
http://www.TheMLMmom.com
I know a high profile person in my company that was terminated just for being at a meeting of a different NWM company. He said he did nothing wrong and was just looking. Scary. It’s time to quietly look for something else. I don’t want my livelihood coming from one source.
Many of these rules worked 10 or 20 years ago. Not today. My company LOVES people who are just customers. We have no rules for customers. 🙂
Lisa Dingel
http://mammaLisa.Vitamark.com
The irony is that we are supposed to be independent reps or contractors, ….however, we are dependent on the companies. They are the independent ones. Their P & P’s make it so.
I am more aware now than ever before of how many and how often Network Marketing Companies are being sued today…….It appears to be a catch 22. They need the P & P’s on their side because of what they have created themselves.
This is why it is so important to find a company with a Representative Friendly Environment. When you do, they will usually have an owner and other brass who have been in the trenches themselves. This is a good criteria to look for in a company. Perhaps #1 along with Company Experience.
In reality, Companies essentially depend on us. Where would they be without us. It is the business model. We can always get a JOB, eh?
We are far from being Independent. We now have the Distributors Rights Association on our side. DRA
Dedicated to a better life for you…Peace and Blessings, Dr. Herb Oliver…..Mentor Dr.
The reason most companies do not allow you to use their name in advertising is that ‘you’ are a subcontrator to the Company, not a Company representative. Could you imagine if Joe Smo said ” I am xyz company and I can make you a fortune and our product would grow you an extra arm” Can you imagine the heat the Company would take for some nimrod distributor. And believe me someone would do it!
If you don’t like it start your own Company and run it the way you want to.
If someone asks me what Company I am a part of I tell them. I am very proud to be with the Company I am with.
As far as being a distributor of other companies products some will let you and some won’t.
Best to you all!!
Yes, NM companies are too controlling. Especially in the New School world of today.
The no advertising restriction most companies have makes no sense. They just outright ban it. Once upon a time, only the already well off could afford to advertise which did give them an advantage of the person who couldn’t afford it. How much of an advantage is open for debate. Today, advertising is cheap and in some cases it’s free. The company image is a valid reason for some advertising restriction. This is understandable. Why not have a rule that states that any ad needs to follow certain guidelines and must be approved by the company first. Hey, if some guy wants to spend $25,000 on radio spots, well that’s fine by me. I’ll ride his coat tails all the way to the bank.
The other rule that makes no sense is forbidding a rep from marketing any other products. How many stores carry just one line of one type of product? Does GNC only carry GNC branded multi-vitamins? No, of course not. Even upscale specialty shops carry more than one type of product. You think people who spend a few thousand dollars on a suit might also spend a bit on shoes or jewelry? Just maybe someone who concerned about their own health might be concerned about their pet’s health also. Wouldn’t it be great for that customer to buy both products from the same person? They might even tell their pet loving friends to check out the great vitamins LuLu sells. A win-win situation.
Hello NM company Executives,
Loosen up a little. Don’t punish us for trying to make a living. Don’t punish us for being creative, Instead, give us more reason to work hard for you. And, by the way, no matter how hard you try, there will always be spies. You can’t get rid of them with rules. What’s that saying…oh yes, “Locks only keep honest people out.”
Peace,
Connelly
This is an interesting topic and with all topics there are several, generally good, points of view.
I know with my company, you know the one currently getting the bad press – USANA Health Sciences, will allow you to belong to more than one company, however if you do and are eligible for the leadership bonus you will not receive it.
OK, how much is the leadership bonus. It kicks in when you and your group (two legs) are doing 5,000 volume points in each leg. You commission will be $1,000 per week (as long as your hit the 5,000 points each week per leg)and your leadership bonus will be $175 per week. Annually your commissions would be $52,000 and your leadership bonus would be $9,100.
Now if you build 4 legs your leadership bonus can jump to $1,175 per week and your commission will jump to $3,000 per week for an annual income of $217,100.
My question is why would a person want to work two or more companies if you are making $4,175 per week.
You will now have the skills, credibility, and system in place to continue to build more legs under the 6 new centers you earned and you will have a team of people to help you build because you have to place those 6 new centers under your first 4 legs.
I personally see no value for me to build more than one company.
Now for the issue of not putting all your eggs (so to speak) in one basket. One could do what one of my upline did back in 1997. He was earning $3,000 per week back then and he is still earning $3,000 and he has done doing nothing in his business other than the minimum amount he needs to do each 4 week period. He became a Chef and has been doing that for years, in addition to getting his $3,000 each week from USANA.
One more thing to think about, how many of you would like for the people you have prospected, nurtured, worked with, trained, worried about, cared about and then find out they are working another company behind your back? None, I bet.
That could be the reason Kim, astutely so, does not allow any cross prospecting on this web site.
Each person needs to learn their respective compensation plans and you will find that all plans will allow every member of your company to earn millions of dollars per year if you will learn the proper way to build within your compensation plan. Remember there is more than enough money to go around. The Law of Abundance, the Law of Attraction, the Law of Gravity work all of the time, every time.
When you are a Gold Distributor in USANA (Maxing one center per week) you can create your own web site and create your own advertising, however it all needs to be approved by the company lawyers. Many of our Golds and above do create their own material. Many do not, they use, very effectively, what the company provides for us and they make a lot of money doing so.
As many of you know, one of the first rules in this business is to not re-invent the wheel, but being independent spirits many of us seem to want to.
My advise is to work one network marketing company, follow your company’s P & P, build a large business then take your commissions and invest them in the stocks of other companies, write a book, learn internet marketing, do something else to protect your income. Forget about trying to build two companies.
Respectfully,
Duane Spears
http://billiondollarrun.com
I haven’t experienced or heard of any control problems with my company. I actually feel like they allow us quite a bit of freedom.
However, I have heard stories about some other companies. It always makes me wonder why the person got involved with them in the first place.
Evelyn
I don’t think people realize how many lawsuits network marketing companies are hit with every year. All the tightening the reigns on us networkers is because of all the outrageous claims about income and cures. Networkers feel they must do this to get customers and business associates and that backfires on all of us. I’m a new schooler thanks to Kim and I’m working hard to turn that attitude around. I’m having no trouble finding others using Kim’s approach which does not violate the company policy because I’m telling my story. If I want to advertise or have a website, all I have to do is let distributor services look at and make the necessary changes and approve it. No company is perfect, but if you read their policies and follow them you’ll have no problems.
Cathy
Duane – Thank you for sharing this information with us. It was interesting and you said lots of things I think for myself. I know lots of people are successful marketing products or services for more than one company. It wouldn’t work for me but if it works for others I say go for it. If I ever found more time in a day and wanted to market another product I might look at the new Healthy Coffees. I wouldn’t feel right trying to sell products that were even somewhat similar. I’m not trying to be a jack of all trades, and really never even think of selling anything else. I love being just a customer.
Robin
Truth Network Marketing
While I have not had this experience personally, as the leader of a WAHM group I have run into this over and over. I try to come up with different ways to advertise for my group and get more business for everyone, but several companies are SO restrictive that I cannot do much to help these reps. The only thing I can do is advertise the group and hope that will benefit the members (we are a Shop and Swap group for moms who work from home – we support each other by being customers and in otrher ways).
So the sad thing is that here I am trying to do advertising for my members (at little or no cost to them) and they cannot even benefit from that. :o(
—–Shay :o)
The WAHM Shop and Swap Group
http://workathome.meetup.com/249/about
I feel it only right that companies should restrict their reps.
My company states that you can NM anything until you become a Director. Once you are a Director, you are paid a profit-sharing type of salary, you can no longer represent any other company.
That seems fair.
Here is one idea that makes sense to me, and would bypass many of the P&P designed to prevent multiple company affiliations. (I am not a lawyer.)
step one: figure out the business with one company, one product, and one customer base.
step two: incorporate your distributorship (if you didn’t do that to start with) to create a legal entity separate from yourself.
step three: create a new legal entity to represent a different product/company and have that entity become a distributorship with the new company.
step four: repeat step three as many times as you like.
Since your contract with each vendor company is really a contract with your LLC, they really can’t control what you and your other LLCs do or do not do.
It seems like quite a bit of trouble, but may allow you to work with too-controlling vendor companies that have a product that can benefit your customers.
Am I totally off, or does this make sense?
— Terrel
It makes sense to me, however if you are really gung ho with your company, why would you need to be with more than one?
Some companies need to be more strict with what their people are doing on the internet and with advertising.
I watched some things happen in another company I was with a few years ago that got shut down and I cringe when I see the same stuff going on with health and medical claims in the industry by reps.