You’ve worked hard at your MLM business for several years and have had the success you dreamed about.  You’ve fired your boss and retired your spouse.  You’ve bought a new car and you’ve bought a new house.  You’ve put a new roof on the church.  Congratulations!

You pick up your weekly check on Friday and head to the bank to set up a college fund for the kids.  Halfway there, you get hit by a bus.

The funeral is Sunday, your will is read on Monday, and your family takes over your business on Tuesday.

The kids go to the mailbox on Friday as usual to find … NO CHECK!

What happened?

On Wednesday, your CEO realized that the company would be sending your commissions to your family who had no clue how to run the business and no intention of bringing in more customers or distributors.

On Thursday, the company lawyers went over your contract, found your family in violation of the policies and procedures and terminated them.  They notified payroll immediately to cancel your check.

On Friday, the mailbox was empty.

And all this time, you are looking down, cursing yourself for not reading your contract.  You remember going to your first business presentation at the hotel where they described the wonderful products and the lucrative comp plan.  You remember asking if you could bequeath your business to your family and you remember them saying, “Of course!  Just sign here.”

Now you remember putting a check mark in that little box stating, “I have read, understand, and agree to the policies and procedures and terms and conditions of this contract.”  And you now remember that you didn’t read them and you didn’t understand them, but you did agree to them.  Ouch.

What did the lawyers find to save the company hundreds of thousands of dollars?

17. Inheritance of Business – An Independent [Company] Business may be inherited by a single person, a married couple or a trust which complies with [Company]’s guidelines, pursuant to a valid will or other appropriate document, or in accordance with the intestacy laws of the state or province in which the Marketing Executive resides. A person who inherits an Independent [Company] Business must furnish [Company] with proper documentation that he/she is the beneficiary and is authorized to represent the estate. He/she must also execute a Customer Membership Agreement and an Independent Marketing Executive Agreement, fulfill all of the functions of a Marketing Executive and abide by the terms of [Company]’s Statement of Policies.

Well, that sounds reasonable, doesn’t it?  Your family has to comply with the Company guidelines.  Wait a minute!  What are the company guidelines, and what happens if your family does not ‘comply’?

Your family must prove you are dead and that they are indeed the heirs.  That seems okay.

Somebody in your family must become an affiliate.  That’s okay, you guess, unless the kids are under 18 or does that matter?  Maybe your spouse could become the affiliate and the kids will still collect the check, but if you’re a single parent, maybe Aunt Jean or your lawyer could do it.

And your kids have to fulfill all the functions of a distributor and abide by the company’s Statement of Policies.  That seems okay, doesn’t it?  Wait a minute!  You haven’t read that Statement of Policies, so you have no clue what your kids have to do to keep collecting your commissions!  It’s too late now, but let’s read on, six sections later …

23. Supervisory and Leadership Functions – Marketing Executives’ compensation is based on sales of product to the End Consumer. To qualify for this compensation Marketing Executives have the ongoing responsibility to promote the [Company] business opportunity, to support [Company]’s policies, programs and personnel, and to service, supervise, motivate and train the Marketing Executives in their Marketing Organization to sell and market [Company] products and promote the [Company] business opportunity.

And now you’re really rolling over in your grave.

Your kids are now distributors who have an ONGOING responsibility to …

  • Promote the opportunity
  • Support the policies
  • Support the programs
  • Support personnel
  • Service distributors
  • Supervise distributors
  • Motivate distributors to sell product
  • Train distributors to present the opportunity

And now you know what the lawyers found.  On Tuesday, your kids didn’t promote the opportunity or support any policies or programs or personnel.  On Wednesday, your kids didn’t service or supervise any distributors.  On Thursday, your kids didn’t motivate or train any distributors to present the opportunity or sell any product.  On Friday, your kids found the mailbox empty.

For a guide to reading your contract, start here.

For an excellent list of ways to avoid the Empty Mailbox, get this free complete MLM Success Report.

Bob and Anna Bassett
Skype bobbassett