16 thoughts on “MLM Weekly News: How Concerned Are You Of This Questionable Situation”

  1. Troy and Peter,

    Troy – I've known and respected your services to the networking industry for many years. Many THANKS for your tireless effort to inform and help get it right. Your the man!

    Peter – Your comments are right on the money. I bet the P&P's aren't read by more than 5% of rep's before joining. The boiler plate used is written to give company owners free rain to protect the company and make changes as they see fit. What they do and get away with is wrong ! I will pass your very informative web site to many of my pro networking friends. THANKS !!


  2. Troy,

    I couldn't agree more there are many companies BUY leaders and it is polluting the industry, it stinks, I have had several companies make offers and have refused based on the fact that it is unethlical and it should be against MLM laws for a company to do business in that manner.

  3. Hi Troy,

    Interesting question, I witnessed a similar situation in a MLM a company for which I was associated. I think there is no need to concern about this topic. Sometimes they really make a correct purchase something they will not find what they are looking for. Nevertheless, I believe leadership is something that should not bought. A leader must be compromised and not a mere volunteer that could run when it finds that thinks got heavier.

  4. Sherri,

    Thank you for commenting. I think the great Richard Brooke CEO and Founder of 21Ten said it best… "We wanted Corporate America to recognize us as a legit industry, and today they do." With more and more direct selling companies being run by folks from Corporate America, we are just looking more and more like Corporate America.

    It is our responsibility as lovers of this great profession to hold true to transparency and authenticity.

  5. Troy – I commend you for addressing this issue. I grow my business the same way I raise my family, with morals, ethics and pride. Unfortunately, network marketing already has a negative "stigma" associated with it. If the buy-ins and drawers continue, I'm concerned that the direct sales industry will end.

  6. Troy,

    I appreciate your discussing this topic of buying leaders. and agree, disclosure would make all the difference in the world.

    I just finished my first read of Integrity: the courage to meet the demands of reality By Dr. Cloud. Mind you, my FIRST read of this book. This book brings "Integrity" to a whole new level. I recommend it to anyone who is ready to take their leadership skills to the next level. We really need to be cognizant of the 'wake" we are creating.

    Thanks again for the video. I didn't mean to speak more about the book than the content of your video, because with this video you're saying a lot about the 'wake' that's being created by the 'let's make a deal' scenarios that are going on under tables behind closed doors.


    Thanks again for speaking out.

  7. Personally I agree with you that we should have full disclosure & a level playing field for all.

    For example if the pay plan pays on the lesser leg – everyone should have 2 legs, right? How many so called leaders only have one leg in some companies & get paid on that one leg?

    Honestly does this even make them a leader? – I think not. One should not train & expect their down line to do what they themselves do not have to do.

    Full disclosure of this kind of activity would stop people leaving because they feel the company lacks integrity.

    My previous company had so many deals going on it made me concerned that they would not be able to remain financially viable long term.

  8. Dominick,

    Thank you for stopping by. Disclosure is the key. When companies and leaders offer full disclosure, the respect and trust goes through the roof.

    Thank you for the kind words. If I were a preacher, it might only be you and I brother 🙂 I think I might run off most of the members.

  9. Kaz,

    Thanks for stopping by and sharing. This isn't about right or wrong, it is about disclosure and making sure every deal is done legally.

    I agree that direct selling companies are just like any other corporation. And in looking at it that way, they should also be held to the same corporate rules of law, as should the talent they are buying.

    When a news caster leaves one network for another, they have a waiting period placed in their contracts. They are hired by the new network, but it is anywhere from 90-days to 12 months before they can be back in front of a camera.

    So the questions we need to think about and find answers are as follows:

    1. Is the new company buying fresh talent, with skills, systems, and influence with their personal directs, or are they paying for a leader to raid the former companies LOS (Line of Sponsorship) which is as defined by case law an asset of the former company.

    2. If the new company is paying for the leader to entice their former sales organization to come to the new company, and the leader uses disparaging comments and half trues to accomplish this type of action, should the new company be held jointly liable for this action?

    The concern is not that great leaders are paid for their personal skill set and talent, it is the fact most deals are done under the table, and hurt countless distributors in other companies.

    Next time it may happen to you, if that is the case would you feel different?

    By the way, as a corporate officer in a company, I can say right up front we have never made a deal where we have paid anyone to join our field team. We do offer a performance based package for qualified leaders. If they hit the benchmarks, then they are rewarded, if they do not hit the benchmarks they are not rewarded.

  10. As always, an EXCELLENT video message, Troy!

    Over the past 23-years in this industry, I have seen SO many "special deals" crafted for (so-called) BIG HITTERS.

    My experience is – especially within Binary Pay Plans – that management will open "phantom spots" to slot in attractive Big Hitters – high above existing downlines.

    This is usually never disclosed – it's kept secret – it's unfair to the average Rep – it's wrong, in my opinion – it needs to stop — OR, be fully disclosed.

    You mention "integrity" (I will get that book you showed us)…

    INTEGRITY (both in Corporate and in Uplines) – this is 'so' important to look for.

    It will "reveal" itself (or otherwise) within the MLM company P&Ps (Policies & Procedures) – the Legal Agreement we all sign (but never even read, first! :>)


    INTEGRITY should be the very "foundation" of the MLM company's Leadership. It is moral soundness – it is honor – truth – character – freedom from corrupting influence, or motive.

    INTEGRITY is about practicing the Golden Rule. It is about treating people with respect – without judgement. It is the most 'fundamental source' of one's personal worth.

    INTEGRITY should cause the Management / Ownership to provide the highest level of CARE and ACCOUNTABILITY to those they lead.

    INTEGRITY – You need to look for it – in their Vision – in their Mission – in their Leadership – in their Purpose – in their Values – in their Promises => so that (hopefully) you will "know" you have the SECURITY of being able to pass your businesses on – to your children – and to their children.

    Thanks for your tireless efforts on our behalf, my friend!

    Warmly / Peter A.

    Peter Arnold, CLU, CFC / Founder

    Business Achievers Academy / Canada

  11. Troy, Great insight. I agree, we should all be on the same playing field. Leaders should have to do the work.

  12. Interesting Topic

    Right or wrong though – MLM companies are just corporations wanting to grow so they do what corporate people do which is pay for skills required. Hence the deals we hear about – wonder if there is even one company out there that has NEVER done a deal,it seems to be the way start ups get traction.

    Hear a lot of people complain about this type of activity & yet many of them are in companies that are doing exactly what they say they don't like about others.

    If you are living in a glass house please remember not to throw stones – you really can not condone your company doing what you say is wrong about other companies if you want to sleep at night. Can you????

    C U all @ the TOP


  13. There may be legitimate times when a leader is looking for a home for them and their team. However, this should be rare and not the norm. I have seen too many leaders jump from one company to the next looking for a quick way to reaching their dreams. They forgot that their dreams only happen when they build their success on the accomplishments of others on their team. They forgot that the great leaders of our industry’s history was built on “Servant Leadership” as the key ingredient.

    To the companies that are looking to buy the “Big Pins”. Consider the messages that you are sending. Is your product or service really bringing value to the market place? Or do you feel that your success will be determined by the “Influencers” you ink a deal with to assure you a quick path to profits?

    I would suggest that my one voice is the voice of many who are watching and listening. We are a “Plugged in” world, ready to tweet or post our viewpoints. It is happening every day. These conversations can in fact influence tens of thousands of people.

    Transparency is no longer something that is only shared with a few. It is what the people want and expect.

    For the companies that fail to recognize this new reality. Your failed businesses will become the case studies for the newer companies on what not to do.

    For the leaders of the Network Marketing industry. I would say…. Think before you jump.

  14. I agree that disclosing all the terms of a deal would change the perception and not leave a bitter taste in everybody's mouth. I think that is why it is so important to believe in the product, the company, the plan and the values that come along with your mlm opportunity.

    If you put all your stock in one person, you set yourself up for failure. I am a proud American not because of my president, my senate, my congress, etc…it is because of the total package. The same should pertain to your business. That being said Troy….your message is powerful and if you were a preacher…I could possibly defect to your church. 🙂

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