Keep your distance from my downline!

Stop competing network marketing businesses from stealing your new recruits.

I have joined an MLM firm and am putting together a sales team. One of my downline members went to an opportunity meeting last week and was approached by another distributor to join a completely other firm. I'm worried about having my workers attend meetings right now. It doesn't seem right. How should I proceed?

This is a case of questionable integrity and unethical action, as well as a blatant violation of most MLM businesses' regulations and processes. You've obviously worked hard to build your downline. Motivating your distributors and establishing product and business loyalty is difficult enough without being undermined by others inside the same firm.

As one might assume, many firms are seeking for innovative strategies to recruit distributors. While I suggest monogamy when it comes to the firm you represent, it's not unusual for people to be members of many companies at the same time. This is something you should always expect. This is normally permissible under business standards, but there are usually rigorous laws in place about what is known as "crossline sponsoring."

When a distributor supports or seeks to sponsor someone inside a firm where they are both members into a competitor company's business potential, this is known as crossline sponsorship. Crossline sponsoring typically means that the violation is crossing sponsorship boundaries in order to steal another corporate member's recruit. However, it is possible that they are soliciting someone who was not directly recruited by them but is somewhere in the depths of their own downline and has been sponsored by a downline member.

You signed a distributor contract when you joined your firm. If you look closely, you'll notice that it states that the company's rules and regulations are regarded an extension of this contract. These requirements are often provided as a separate document and are incorporated into your distribution handbook. In this rules and regulations document, crossline sponsorship is most likely a restricted action. If it isn't, it should be. Crossline sponsorship, if detected, generally results in a strong reprimand from the corporation, which often leads to the termination of the guilty person's distributorship. The reasons are self-evident.

Much of the organization's bonding occurs during business opportunity meetings, rallies, and training sessions. You want your new or potential recruits to feel protected throughout these sessions. In reality, my experience has shown that social engagement with employees from other sales groups within the same firm is crucial for developing a positive corporate culture through group dynamics. The establishment of trust and a spirit of collaboration among all of the many distributor organizations is one factor that makes this system operate. The firm's rules and regulations, which each distributor has committed to, should instill faith that the company will safeguard them from unscrupulous persons who try to steal a fellow downline distributor for another company opportunity.

I've testified in a number of instances connected to this topic as an expert witness for the MLM sector. Many times, the violator did not read the regulations and did not understand what they were doing was prohibited. I should note out that the regulations normally state that members can discuss additional options with the individuals they individually sponsor, but not with anybody farther down the genealogical tree. The easiest approach to avoid this issue is to have a strong and pleasant connection with your sales crew.

People don't readily abandon a company when they've formed a link with their upline sponsor, the firm's products, and the company itself. It's also not out of line for you to file a complaint with your firm about this if you're certain it's happening. Your business and revenue may suffer as a result. Protect your interests in the same way that any responsible businessperson would.