Before reading this article, please read the lawsuit between Terry Dorfman and Melaleuca. Thanks to Rod Cook at MLM Watchdog for posting it!

Lawsuits are never pleasant, but they can be instructive.  Here are several lessons we can learn from Ms. Dorfman’s experience:

Never join a company that enjoys litigation.  Check the company’s history to see how often they have been involved in lawsuits, especially against their own distributors.  It’s one thing to fight other companies to protect the interests of the company and reps – quite another to be constantly engaged in legal battles with the most important people of all, the distributors.

Never join a company more interested in “crushing” other companies than protecting and promoting its own distributors. Red personalities can get things done, but sometimes they are the wrong things.

Never join a company that plays “Let’s Make A Deal!”  Unless everyone is treated the same, you will never know what’s going on in the boardroom.

Never accept a deal.  If you accept a good position, you will never be able to tell your prospects or team that this is a level playing field.

Never offer a deal.    You are setting yourself up for huge problems – conflicts, resentments and lawsuits.

Read your policies and procedures.  It doesn’t matter to the company whether or not you are in violation of a clause like “Policy 20”.  The longer the policies and procedures, the more clauses are available to the company to use against you, relevant or not.

Read your policies and procedures.  You may be surprised at the number of people whose behavior you are responsible for.  You did not sign up to supervise or monitor the activities of others, but you may have signed a contract which makes you responsible for the actions of hundreds or thousands of people in your downline.  It’s an impossible task that your company should not ask you to perform, but should you fail, you can be terminated.

Read your policies and procedures.  They may not affect you in the beginning, but once you start earning good money, you may become a target for your company.

Never make an income claim or guarantee anyone any amount of income.  It’s called ‘enticement’, and can land you and your company in a heap of trouble.  All we can do is show people the compensation plan and any income disclosures provided by our company.

Never join a company that violates its own policies and procedures.  If corporate is allowed to ‘cross-recruit’ distributors in other companies, but forbids you from doing the same, there is something wrong.

Network Marketing is just another way to deliver goods and services to the end consumer. It’s a business just like any other.

Just be sure of whom you’re doing business with.

Read the Free MLM Report that will help you avoid the problems that Ms. Dorfman is facing.

Bob and Anna Bassett
Skype bobbassett