MLM Software Company
Keep Away From My Downline
Prevent
other MLM companies from luring away your recruits.
by Michael L. Sheffield
November 27, 2000
Question:
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?
Answer:
This is an issue of questionable integrity and
unethical behavior as well as a direct violation of the policies and
procedures mandated by most Multi-Level
Marketing (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."
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.
________________________________________________________________________
MLM Consultant Michael L. Sheffield is the CEO of Sheffield
Resource Network, a full-service direct sales and Multi-Level Marketing
(MLM) consulting firm. He is also the co-founder and chairman of the
Multi-Level Marketing International Association (MLMIA).
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