The Business Models Drive
the Behavior in the Field
Final Part 8
Why do you think the P & P’s are so long? The company may need to steal your bonus check to pay for their high overhead expenses. The fact is, when you have a P & P’s handbook that is 50, 75, 150 pages long, no one will read them. You may start, but by page 3 or 4 your brain is fried. Just for fun, pull that book out and read (or try to…) that again. The companies know that you will not read the whole thing through. So the first few pages are normally filled with boring jargon about the definitions of certain terms:
“This Agreement (the “Agreement”) is made between “Company XXX”, a corporation (the “Company,” “we” or “us”) and you. This Agreement sets forth the legal terms and conditions for your use of this web site and any other “Company XXX” web site(s) and for your purchase and/or use of any “Company XXX” goods, services or in connection with the “Company XXX” business opportunity (collectively referred to hereinafter as, “Offerings”). This Agreement also provides information on how to become a “Company XXX” Distributor.”
But the really bad stuff does not appear until page 37 or 58, hidden somewhere about 2/3 into the thing. You are better off starting at the end and work backwards. Try this. Just for fun. When some slamming, jamming, heavy hitting, closing salesperson calls you and wants you to join their super, duper, spectacular business opportunity of the century… act really, really, interested and excited and say, “I can’t wait to sign up!! I just want to look over your policies and procedures first.” Ahhh the blank stares, stutters and awkward silence. That’s extremely fun. You gotta try that just once.
99.9% of the people will not be able to produce their own P & P’s. This is not to say necessarily that they are involved in a scam or illegal scheme, but it could be an indication. They probably filed this stuff away just behind “soy recipes for your vegetarian snake” in their filing cabinet.
When going through your own P & P’s, look for words like “ongoing sales,” “ongoing sponsorship,” “ongoing recruiting,” “low persistency.” Look for Agreement 10.3 (just a number used for illustration): “As an independent affiliate of “Company XXX” your distributorship is terminable at will. This judgment will be made at the discretion of “Company XXX” with or without cause at any time.” This means that you could build and build, and when the company decides you are making too much money…”File 86: Affiliate Terminated.” What is more, since you signed the contract, you do not even have a claim against the company.
What about this one? “You may terminate your agreement at any time by providing written notice to ‘Company XXX.’” You don’t mind that one do you? You want to be able to quit don’t you? But here is where it gets interesting. “Company XXX” may also terminate the relationship with YOU, including any partnerships, corporations or other entity at any time by providing written notice. You or “Company XXX” are not required to have any reason, nor do you or “Company XXX” have to prove or claim any cause to terminate this relationship. If and when the relationship is terminated, you shall have neither claim against “Company XXX” nor any right to claim or collect lost profits, lost opportunity, or other damages. Termination will result in the loss of all benefits as a “Company XXX” independent consultant.”
Another part is, you resign your distributorship if you send back product and expect them to buy back more than one kit of product. You’ve signed a statement saying you retailed the stuff. So if you have not actually retailed it, which means you have violated your P & P’s, now they will terminate you. Government agencies in several states are cracking down on several network marketing companies for front-end loading, so that is why they added this clause to the P & P’s.
If you are in network marketing, you should not only be aware that this stuff is out there. You have the responsibility to find if this is your company. There are bad companies out there. They have even worse P & P’s. When you try to find this information, they hide it from you so you have a difficult time finding it. When you ask to see your policies and procedures, DO NOT let them feed you the Terms and Conditions or the Compensation Plan. These documents ARE extremely important. But some of the heavy hitters know what is in their P & P’s and they will do what they can to keep the truth from you.
That is what I really want everyone to understand. You must get to the truth of the matter. Get educated. Do some homework. Ask some questions. If none of this applies to you in your network marketing company, you are lucky. Stay with that company. However, if you have seen any of these realities within your network marketing company, do whatever it is that makes you sleep easily at night.
Because your conscience, like the business models, will always drive YOUR behavior in the field.
I would like to thank everyone who has followed this presentation from the beginning to the end. Hopefully, I have helped you out along the way. I wish you all the very best of success.
Kristopher Curry
Mentoring For Free
“Be a mentor with a servant’s heart.”