The money-driven top bananas pulled in tens of thousands of dollars per month selling those big product packages. At meetings with thousands of newcomers, hundreds of reps lined up each night for the chance to tell their rags to riches stories on stage.
Money was unbelievably good. Those who couldn’t sell their product or get anyone else to buy in were belittled as complainers, uncommitted and negative, or small thinkers who couldn’t see the big picture. (I was in those meetings.)
Understandably, the company didn’t put on the brakes – it was good for them, too. Millions of dollars were rolling in each month. But when too many people complained they’d been talked into buying product they couldn’t sell or get a refund for, the regulators stepped in. Tens of millions of dollars in refunds and fines were paid out by the company. Today they’re very customer focused.
Enron also had a fabulous run because of their money-driven energy traders. Their management too, became very rich. And the stock zoomed. But the energy traders who led the charge were discovered doing all manner of unethical and illegal things, and the company collapsed when those stories were told.
The company’s stock price tanked and eventually, so did the company. The chairman, Key Lay, convicted of fraud last month, died of heart failure last week.
Quixtar is also discovering what money-driven reps have done to the image of their company. Not being strong enough to put a stop to these practices (by terminating the offending reps) is one of the biggest reasons Quixtar‘s reputation is what it is.
Who hasn’t heard a story about those business meetings where no one will tell you what it’s about until AFTER you get there – so fearful are they that people wouldn’t come if they knew.
Unfortunately, the image of any network marketing company is created primarily by the reps in the field. If the money-driven types are allowed to continue to hype and misrepresent income, and how easy it is to earn it, dead bodies will continue to litter the network marketing landscape, bringing down not only the companies who condone this behavior but the whole industry as well.
For things to change, the incentives need to change. For example, how about some big rewards and recognition for those who bring and take care of regular long term customers?