Now Appearing in an Extended Engagement! Join David Robison as he takes you into his world and his daily life of reviving a stand-up comedy career. Prepare for side trips exploring the "art" of salesmanship and business ethics and his experience with Multi-level Marketing. Enjoy some frequent detours describing his observations on life. Read the exploits of this self-proclaimed Renaissance-man and blooming blogger as you go
On The Road With Dave.
So you're the perfect sponsor. You praise the "go-getters"; you encourage the insecure, and you motivate your entire team to stretch and grow to become the best they can possibly be. You are the dream-master.
But today, one of your distributors calls you up and says,
"Dave, man, this just isn't working out, I can't do it, I want a refund, I quit.
OR
"Dave, dude, I know I can do MLM, but NOT with you, I'm joining "CheeseWheels 'R' Us".
Okay, I believe any self-respecting MLMer is gonna try and convince the distributor to stick it out, persevere, hang in there.
"C'mon Lisa, nobody is giving 'Cheesewheels' any chance of being around six months from now".
But, according to a report by the US Bureau of Labor Statistics; "baby boomers" held on average 10.2 jobs between the ages of 18 and 38--and I have no doubt that quite a few MLMers go through just as many "biz-ops"; so it's likely there will come a time when you are going to have someone walk out on you.
What do you do?
Well, if you consider your MLM Business a true business, then you must stop them before they walk out the door, and ask would they consent to an "exit interview."
An "exit interview", according to Candidate Resources, Inc., "is a tool that provides an organization's management with valuable information regarding the organization's employment and worklife. Employees leaving the organization's employment are asked to provide their opinions regarding employment with the organization relative to expectations, desires, changes and improvements to be made etc."
And while your sponsored distributors are not employees, you do perform a management duty to your downline; and their opinions, expectations, and performance affect your business. Furthermore, if they leave unhappy, you need to know why and what needs to be done to improve. If they leave with a positive impression, all the better, but their leaving will have ripple effects on your business and you need to be prepared.
Below is my rendition of an "exit interview" designed for an MLM business.
EXIT INTERVIEW QUESTIONAIRE
Thanks for allowing us the opportunity to work with you through (name of company.) It is the goal of our team/organization/group to provide all distributors with an enjoyable business experience, in which everyone is a valued member of a quality organization. The purpose of this exit interview questionnaire is to give you the opportunity to talk about your experience with (name of company/team). Your responses will assist us in our continuing efforts to improve this business opportunity. All responses are voluntary, but your comments are much appreciated.
Name Immediate Sponsor Date State
Date Sponsored Date of Separation REASON FOR RESIGNATION
Another MLM Company Regular Employment Conflicts Unsatisfactory Income Hours of Work Unsatisfactory Family Conflicts Other
1. What are your reasons for leaving? And, what prompted you to leave now?
2. What was the most enjoyable part of representing this company?
3. What was the least enjoyable part of representing this company?
4. Was this business opportunity what you expected? Please explain.
5. Would you have made any changes to the way your business operated? If yes, please describe.
6. Would you ever consider representing this company again? If not, please explain.
7. What did you like most about this company? And, what did you like least about this company?
8. Would you still recommend this business opportunity or team and our products in the future
9. As a new distributor, was your training helpful for what you were actually doing six months later? If not, please explain.
10. What could have been done to prevent you from leaving?
11. What was the quality of supervision you received? Good? Fair? Poor? What could your sponsor or team do to improve his/her management style? Communicate? Motivate? Facilitate? Recognize? Other? Please explain
12. What does your new company offer that this company does not offer?
13. What points would you make if you could tell your entire upline how you feel about this company?
Responsible MLM sponsors can use a similar "exit interview" to improve their recruitment and retention practices. Similarly, questions such as these could be targeted at inactive clients to improve repeat sales or jump-start stalled sales.
For tips on management for the rest of us, I also recommend Lyndsay Swinton's website called...wait for it...Management For The Rest of Us, which was the inspiration for today's article. MFTROU is for people who are new to management or need to fine tune existing skills. I'd say we all could use fine tuning.
Here's wishing we all attain a 100% retention rate, but if that fails and "Cheesewheels R Us" experiences phenomenal and explosive growth, be prepared with an exit interview for your distributors who are "jumping on the wheel". It might be an exit with an open door for their return.
This is Dave saying, "Good Evening and exit stage left...even."
"MLM Mondays" is featured every week on (what else?) Monday SOMETIMES TUESDAY; and offers information, advice and tips on operating an MLM-affiliated business. On The Road With Dave does not guarantee any results from the information, but offers it as opinion.
Alticor Inc. today announced that it acquired Gurwitch Products, a luxury cosmetics and skin care company that develops, manufactures and markets cosmetics under the brand name Laura Mercier®, from The Neiman Marcus Group.
Under the terms of the transaction agreement, Gurwitch Products will operate as a stand-alone, wholly owned subsidiary of Alticor, and maintain its current retail distribution channels through high-end department stores and online retailers.
Through its 100 percent ownership of Gurwitch Products, Alticor expects to enhance its insight into the luxury cosmetics marketplace, and leverage combined product development capabilities to realize enhanced growth opportunities in Alticor’s direct sales premium beauty business. With the support of Alticor’s global infrastructure and resources, Gurwitch Products will continue to grow the Laura Mercier business and add to its strong luxury brand portfolio. "This transaction represents an exciting new partnership in the luxury cosmetics marketplace," said Steve Van Andel, chairman of Alticor. "Gurwitch Products has demonstrated a strong track record of leadership in developing a highly successful luxury cosmetic brand. We look forward to pooling their extensive knowledge of the worldwide industry with our global connectivity, manufacturing expertise and our companies’ integrated R&D capabilities to support the growth of both the Laura Mercier product line and our own skin care and cosmetic offerings."
Alticor president Doug DeVos continued, "For Alticor, the acquisition builds on Gurwitch Products’ knowledge of prestige cosmetics and consumers in the luxury cosmetics space to bring product advancements to our core direct sales distribution channel, to the benefit of our Independent Business Owners and their customers around the world."
"We are excited to be part of Alticor, a global company with an uncompromising commitment to quality products and leadership in the skin care and color cosmetics industry," said Janet Gurwitch, chief executive officer of Gurwitch Products. "Gurwitch Products has worked successfully with Neiman Marcus, Bergdorf Goodman, its other retail partners and talented artist Laura Mercier to build a luxury cosmetic brand with an exceptional reputation among consumers and the industry. This transaction comes at a significant time as the Laura Mercier brand celebrates its ten year anniversary. Gurwitch Products will maintain close partnerships with its valued retail partners and continue exclusive distribution of Laura Mercier through high-end retail and online sales channels. Joining with Alticor will provide access to additional resources, support and global infrastructure to help Gurwitch Products bring its business to the next level."
Neiman Marcus Group president and chief executive officer Burt Tansky commented, "We are confident that Alticor will be a strong partner for Gurwitch Products and will support the continued growth and success of its Laura Mercier brand. Laura Mercier will continue to be an important part of the cosmetics assortment at both Neiman Marcus and Bergdorf Goodman."
In 1996, Gurwitch Products joined forces with famed makeup artist Laura Mercier after realizing the imminent paradigm shift in the beauty industry propelling niche lines to the forefront of the cosmetics business. The signature of the Laura Mercier brand is the "Flawless Face®," the nucleus of the cosmetic line which includes such award winning products as Foundation Primer, Moisturizing Foundation, Secret Camouflage and Secret Brightener.
In connection with the transaction, Banc of America Securities LLC acted as financial adviser to Alticor, and Bryan Cave LLP provided legal counsel. Financo Inc. acted as financial adviser to The Neiman Marcus Group, and Andrews Kurth LLP and Mayer, Brown, Rowe & Maw, LLP provided legal counsel.
What does an Egyptian, an Iranian, and a Palestinian have in common?
Nope, it's not a joke...but, it's a show filled with jokes.
Egyptian-American Ahmed Ahmed, Iranian-American Maz Jobrani and Palestinian-American Aron Kader talk to Robert Siegel about the challenges of humor during times of war on National Public Radio.
The three second-generation Americans take on the Middle East and it's seriousness with humor and insight about not only US politics, but also Middle Eastern sensitivities and strife in a comedy tour de force called the "Axis of Evil."
If you've noticed, I've had an Amazon link in my sidebar for a long time.
What you might not know is that Recommended Books and CDs and DVDs are all picked by me and the link is built by me.
But now Amazon says it can learn about my site and make recommendations based on my site. So, I'm gonna give it a try for as long as this particular entry stays visible on my front page; and see what happens.
Some interesting selections so far, just minutes after I changed the template, I noticed an ad for Desperate Housewives and a Candida Royalle video. Which makes me wonder what blog entry prompted THOSE advertisements. Maybe I'm typing something subliminal that even I'm not aware of.
Their insight into corporate marketing goes way beyond just selling incentives, travel certificates and personalized coffee mugs.
And now they have launched a blog that is offering this insight on a daily basis.
The Daily Perk, as of today, has 2 months worth of blog entries and should take you very little time to get "caught up to speed."
Welcome to The Daily Perk.
Day in day out the one thing people can count on, in addition to death and taxes, is that someone (or some company) somewhere will try to motivate them to consider a product. Think about it. From toothpaste (buy one get one free) to cars (cash back) incentives are being used.
Even at work, corporations use incentive tools such as cash, merchandise and travel to get people to perform better. It's not a bad thing and you can do it too. Incentives can help people make decisions and can entice them to try harder at work. This blog will show you how it's done. See how companies use incentives to their advantage (and sometimes miss the mark)....
...The Daily Perk serves as an eye opener to an industry you should know about, understand and use. Our only incentive in getting you to return often is in the quality of the content we provide and we'll do our best to make it interesting, fun and informative.
To me, that sounds like a pretty good incentive to learn some new things.
Grabbing a microphone and standing before a bunch of people is a thrill for me, but even I get nervous, if I'm not prepared.
In this age of Web 2.0, Multi-Level Marketers may think they can "do it all" online, all the time, but there will come an occasion or occasions where you'll find yourself in front of an audience, even if that "audience" is one single person.
If MLM is the farthest thing from your mind; and you are a journalist, freelance writer, or oil rig worker, the time will come when you may be asked "to say a few words". Be Ready.
TIPS FOR SUCCESSFUL PUBLIC SPEAKING FROM THE TOASTMASTERS CLUB
Feeling some nervousness before giving a speech is natural and healthy. It shows you care about doing well. But, too much nervousness can be detrimental. Here's how you can control your nervousness and make effective, memorable presentations:
Know the room. Be familiar with the place in which you will speak. Arrive early, walk around the speaking area and practice using the microphone and any visual aids.
Know the audience. Greet some of the audience as they arrive. It's easier to speak to a group of friends than to a group of strangers.
Know your material. If you're not familiar with your material or are uncomfortable with it, your nervousness will increase. Practice your speech and revise it if necessary.
Relax. Ease tension by doing exercises.
Visualize yourself giving your speech. Imagine yourself speaking, your voice loud, clear, and assured. When you visualize yourself as successful, you will be successful.
So, you're a bona fide MLMer in the marketplace. You are competing with all the other MLMers selling their line of wares. And all of ya'll are out to carve out a small piece of the pie, to find your niche and make your fortune.
Good for you. Competition is healthy.
But can you compete with yourself?
I decided to log on to my AOL account last night and visit my favorite MLM hang-out; the "Entrepreneur" chat room.
As luck would have it, there was a rather new Quixtar IBO in the room.
His new Quixtar sponsor neglected to inform the newbie IBO of a "non-compete" clause in the Quixtar Rules of Conduct.
Here is RULE 6.5 in part: (Emphasis Mine)
6.5. Non-Competition and Anti-Raiding: The Corporation and all registered IBOs share a competitive business interest in maintaining the integrity of the Line of Sponsorship, which was developed exclusively for the purpose of distributing products and services offered or marketed by the Corporation and compensating IBOs for marketing and merchandising such products and services. In order to protect these interests as well as those detailed in Rule 4.27.1., current and former IBOs must not use the Line of Sponsorship to sell, distribute, or promote competing products, services, or other business ventures, or otherwise interfere in the Quixtar business of other IBOs.
6.5.1. For purposes of this Rule 6.5., "Compete" means to own, manage, operate, consult for, be employed by, or participate as an independent distributor in (a) any other direct sales program using a multilevel or "network" marketing structure, or (b) any other enterprise that markets, through independent distributors, products or services functionally interchangeable with those offered or marketed by the Corporation.
Now, before you get all hot under the collar about having your rights usurped by the "Big Brother"; just know that Quixtar is not the only MLM company out there with a similar clause.
In fact, Market America and Shaklee has had court battles over similar clauses and the stipulations were proven pretty much valid.
What I would like to highlight about these clauses is this:
If your company has such a clause, it is your ethical duty to inform your prospects of such a stipulation before you sign them up AND it makes no sense NOT to ask them ahead of time if they are already involved in an MLM company.
Most of my readers already know that my opinion is that one MLM business is hard enough to build, TWO is a disservice to yourself and your downline.
Currently the MLM industry is undergoing close scrutiny by the FTC and the Commission is proposing new rules regarding disclosures.
Avoid the rush, start disclosing issues such as this now.
I admit I have problems with the scope of Quixtar's rule. And I think the rule could be debated when it comes to the typical MLMer/customer.
MLMers like the concept of multi-level marketing and multi-level marketing products. It is not uncommon for an MLMer who is building a strong dedicated business with the company of their choice to purchase other MLM products from MLMer friends.
And if the #1 reason to join an MLM company is to first receive the discount on products yourself; it makes perfect sense to sign up as a distributor for the discount, but to remain merely a customer in intent. These "customers" do not violate the "non-compete" rule in MY OPINION.
But, if you are affiliated with an MLM company with a "non-compete" rule, and you plan to operate two MLM businesses with all the requirements thereof, DON'T.
Abide by the rule or resign.
I encourage everyone to read the "Market America" and "Shaklee" links above for a complete look at Non-Compete clauses and don't send your new recruits into chatrooms promoting two different companies, UNLESS in your MLM company, you can compete with yourself.
"MLM Mondays" is featured every week on (what else?) Monday; and offers information, advice and tips on operating an MLM-affiliated business. On The Road With Dave does not guarantee any results from the information, but offers it as opinion.
"We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive."
Sometimes those links in our blogroll are there to merely entice the "link-ee" to link to OUR site and thus increase OUR traffic. Sometimes those links to Amazon are there to increase our coffers. But in our defense, we know it's a common practice among bloggers and their readers and we are open about it.
But sometimes we AREN'T so open. Sometimes we are downright sneaky and secretive.
I know I am.
There are some websites that I use as a resource or as an "idea pool"; that I would not divulge to my readers, nor would I link to them.
Now, I know that may sound harsh and I also know that these sites are public and available to anyone on the World Wide Web; AND I know that there are probably thousands of bloggers out there using the exact same sites. BUT, THESE SITES ARE "MY" LITTLE SECRET! (And no, they aren't porn sites)
So, I wanna know from my vast readership: Do you have your own little secret storehouse of web knowledge? Do you use certain sites with no intention of ever revealing the source?
You don't have to tell me the sites; just let me know that I'm not the only secret-keeper out there.
Everyone has special dates in history that they can't help remembering.
For my dad, it was December 7, 1941; the day Pearl Harbor was attacked.
For others, it was November 22, 1963; the day America lost John F. Kennedy to a sniper hiding in a book depository.
For some, the day that music died was August 16, 1977; when the King of Rock and Roll, Elvis Presley, took his final bow and "went home" to be with his mother.
Many shed a tear for the astronauts and one teacher that died aboard the space shuttle, Challenger, on January 28, 1986.
In today's generation, the date September 11, 2001 will be a date that made America cry in fear and unite in patriotism.
For me, July 20, 1969 will be a date that I shall always remember. A date where we cried in joy, and shouted with pride, and stared in awe as the first human being stepped foot upon a celestial body other than Earth.
I remember gathering around the black and white television set my family had and watching in amazement as Astronaut Neil Armstrong said those immortal words,
"...that's one small step for man...one giant leap for mankind."
During the next few years, every school project I undertook had something to do with space travel or science. I read everything I could about men and women who had great ideas and saw them through to reality. I realized that so many things existed outside my small Mississippi town.
Today, as I was carrying out my duties at my job, many of the clients I service asked me for the date as they signed required paperwork. Normally I have to stop and think for a moment; but today, I quickly let them know the date, followed by "It's Moon Day!".
Many of the elderly people would say, "Oh yes, that's right, I remember when that happened," and then proceeded to tell me what they were doing on that date.
Yes, I too, remember what I was doing on that date. I was realizing that life was changing before my eyes, and reaching for the stars was no longer out of our reach.
Fake email addresses, phishing sites, sneaky re-directs, hidden URLs: These are the tools of worthless spammers and they add to the perception that all internet marketers must be shady and fly-by-night outfits.
So what does an ethical Direct Seller, MLMer, or Internet Marketer do?
Expose the scammers, and run them out of our market.
Look...we, as well-intentioned marketers spend many hours a day educating our clients and potential clients on why they SHOULD do business with us, rather than someone else; and that's just with the competition that is "above board" and ethical.
So, why not take a stand against the sleazy back alley internet marketers giving us a bad name?
Why not educate ourselves just a bit on how these lying, cheating, stealing con artists operate?
I found the first step to do this, via BlinkList member "Ousbs" and a great page on a site written by "PCHelp".
Wouldn't you love to know who's behind it? Maybe, even know enough about their domain to report them; if they are a spammer/scammer or ne're-do-well?
"These tricks are known to the spammers and scammers, and they're used freely in unsolicited mails. You'll also see them in ad-related URLs and occasionally on web pages where the writer hopes to avoid recognition of a linked address for whatever reason. Now, I'm making these tricks known to you. Read on, and you'll soon be very hard to fool.
If you know how it's done, you will also know how it's undone."
It's OUR World-Wide Web, our community; so let's learn how to clean it up.
On July 7, the Bulldog Reporter’s Daily’ Dog has published a piece about a recent poll on how corporate PR should manage "angry bloggers". The article stated that the online poll asked more than 300 communicators to choose one response to the question, "Who should respond to angry external bloggers—-media relations or customer service?"
The fact that "46 percent of respondents believed bloggers should be ignored, or managed by customer relations departments" caused a storm
David Robison (Personal address deleted) dave@ontheroadwithdave.com
Federal Trade Commission / Office of The Secretary, Room H-135 (Annex W) RE: Business Opportunity Rule, R511993 600 Pennsylvania Avenue, NW Washington, DC 20580
July 16, 2006
To All Interested Parties
I, like many others, am writing this letter to voice my concerns and opinions regarding Business Opportunity Rule R511993. My first concern with writing this letter is that the volume of "boiler-plate" letters sent from concerned Direct Sellers will minimize the consideration the Federal Trade Commission may give the respondents. It is my hope that a "live' representative from the FTC office will give my letter the weight I feel it deserves.
The Proposed Business Opportunity Rule R511993 is certainly a step in the right direction to protect the public from "unfair and deceptive acts or practices" of unscrupulous "biz op" pitchmen. I also admire the implication of the rule to place Direct Sellers in a league with franchise-type businesses. For too long, Direct Sellers have lived with a public impression that they may not be true businesses.
But, I believe that the rule still lumps legitimate direct sellers and participants in legitimate Multi-level Marketing companies with con men and scam artists offering ""territories" and expensive vending machines or products with no potential market.
My first experience with Multi-level Marketing was in 1980 as a Shaklee Products distributor. I made extra money as a student in high school selling nutrition bars to my friends and household products to my teachers and friends of the family. I later signed up as an Amway Distributor and now am an Independent Business Owner affiliated with Quixtar. I also write an online weblog (www.ontheroadwithdave.com) that discusses topics related to Multi-level Marketing and have made it a personal mission to explain methods of ethical marketing to my readers. The Proposed Rule affects my credibility as a marketer because under the rule I will be "suspect" from the very beginning and will once again have to explain the "whys" of my business's legalities.
My specific concerns are much like what you may have already received from Industry leaders, distributors, and individual company officers and personnel; but please consider my differences and agreements with these fine people.
1. SEVEN-DAY WAITING PERIOD
Starting a business may be as dangerous as buying a gun, and surely requires research and planning before making a decision, but a 7-day Waiting Period limits the freedom of the individual to make a decision in their own time. Many people have contacted me AFTER they have done their research on my associated company, Quixtar, and they are ready to become a Quixtar business owner. Should I be forced to make them wait AN ADDITIONAL 7 days? Should they be interrogated as to when they first heard about my company for a detailed report? And since Quixtar already offers a written money back guarantee, the proper safety net is already in effect.
If you must protect the consumer with a "cooling off period", then require enforcement of a standard 3-Day Refund policy for cancellation or shorten the waiting period to 3 days.
2. DISCLOSURE AND REPORTING OF LITIGATION
The Proposed Rule also calls for the release and disclosure of any information regarding lawsuits involving misrepresentation, or unfair or deceptive practices.
This is a great addition provided the information is about my company, Quixtar or MYSELF and provided that any litigation disclosure concerns legal actions that found myself or Quixtar guilty of such charges.
We live in litigious times; to protect the brand of my company and myself; disclosure of every lawsuit would damage my credibility even in cases that vindicated my company or myself. Also as a business owner I should not be held accountable for others in my company's pay structure hierarchy. I should only be held accountable for MY misdealing. I have no qualms disclosing my legal status to a potential client or business associate.
3. REFERENCES
The Proposed Rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. This rule presents several problems to my particular business, although I have no problem with providing references. I would be glad to provide the names of those associated with my own business.
But I feel this requirement would infringe on the privacy of every IBO whose name, address, and phone number was provided to prospects. It would also penalize the sponsor, who would be required to give his prospect contact information for 10 other Quixtar Business Owners, any of whom might be happy to register the prospect themselves.
4. DISCLOSURE FOR INCOME CLAIMS
Again, I agree with the intent of the proposal; I feel our industry has been plagued with hype and wild claims but to require a separate disclosure for any income claim is burdensome. In the case of my company, Quixtar; we are already required to issue a blanket disclosure of average income for all active distributors in a given time frame. This simple, standard, easily understood disclosure would be perfect industry wide and could be implemented more easily.
5. FINANCIAL DISCLOSURE TO SUBSTANTIATE INCOME CLAIMS
Again, a simple average income disclosure approved by the FTC would eliminate potential business owners from being duped by examples of potential wealth and/or success.
In closing, I believe in the efforts of the Federal Trade Commission and I believe that providing every prospect with important information is good for the prospect and MY business. I feel, however, the FTC already possesses the power to implement change in a simpler form and in a way that protects the consumer, while also protecting ethical business owners. Thank you for the opportunity to express my views.
Respectfully,
David Robison
"MLM Mondays" is featured every week on (what else?) Monday; and offers information, advice and tips on operating an MLM-affiliated business. On The Road With Dave does not guarantee any results from the information, but offers it as opinion.
For much of the 20th century, ventriloquism was a huge part of popular culture. Edgar Bergen -- manipulator of Charlie McCarthy and Mortimer Snerd, and father of Candice -- was the world's most famous "vent." That's the term ventriloquists use to refer to themselves. Johnny Carson was a vent. So were Steve Allen, Don Knotts and Ted Knight, among many others.
But wait, here's my confusion; today I looked at the data on Alexa and my traffic rank had a listing that reported that over a 3 month period I was UP 100%.
Another YEE-HAW! (By The way, I never really ever say "Yee-haw!")
My favorite blogger of "existential angst" or "existential joy", Wil Wheaton has written a fine story today at his blog.
The Internal Critic peeked over my shoulder.
"That pretty much sucks," he said.
"You've been saying that about everything I write for months!" I said.
"Why don't you take a break?" He said.
I sighed. "Fine."
I envy Wil for not only his massive readership and rankings on "the internets", but his style writing and topics ring so true for me on many levels.
Okay, I may not be an ex-Star Trek actor or an "uber-geek" with a cult following, but other than that I identify with Wil, like so many of his readers. Plus, he played with ventriloquist dolls as a kid. He totally rocks.
You'll see that link on the next few posts here at "On The Road With Dave".
But, before I take on the issue of the proposed FTC rule, it's important to realize that some of the problems the rule is hoping to address have been with the MLM industry for quite some time.
I'd venture to say that the Multilevel Marketing industry is the most questioned about its legality and right to exist than any other business; although I know other businesses exist that may be questioned as well.
"So where do the mines lay? Here are the most common:
INCOME CLAIMS
It comes as no surprise that deceptive income claims top the list. The FTC has attacked such claims for years as they are one of the primary means used to recruit new prospects. Note that the term "deceptive" precedes the term "income claims." Not all income claims are improper; the key is presenting proper disclosures to support the claim so that it is not deceptive.
PRODUCT CLAIMS
Again, no surprise here; we've seen unsubstantiated product claims attacked since the days of the wagon-drawn snake-oil salesman! Unfortunately, people don't seem to learn. No product will not cure everything from AIDS to zits, nor will it increase a car's mileage by 300%, and everyone will not become a millionaire by following an infomercial real estate course. Anyone who claims their products will do these or any other unsupportable things should not be surprised when they receive an FTC Access Letter or a Civil Investigative Demand.
TESTIMONIALS
Testimonials are a unique category of product claims. Although they have been around forever, in the last few years they have become more aggressive than ever. The FTC has been cracking down, but it seems as though they are trying to plug a floodgate with a cork. Nevertheless, those who are indiscriminate and cannot substantiate the claims made in testimonials run an increased risk of regulatory action.
FAULTY REFUNDS
If you offer an industry standard 90% inventory refund upon a distributor's cancellation, do it without delay when a distributor quits the business - don't play games! With that in mind, it is important to understand the rules. You may recapture commissions paid to a distributor which is subsequently rendered unearned based on the product return (so long as you reserve the right to do so in your policies), but don't try the artifice of claiming that since a distributor was to resell 70% of their inventory, you will only issue a refund based on the 30% of the inventory they should have remaining.
LATE COMMISSIONS
It's deceptive to say you will pay someone on a given date, and then fail to do so. You may have a bit of leeway if a problem results from a computer glitch or something out of your control, but not much.
JOB OFFERS
When recruiting for prospects, a network marketer is not offering a job. They are seeking independent contractors who will go into business for themselves. Recruiting by leading people to believe that you are offering a job is unquestionably deceptive. Don't let it happen in your company."
MORE ON THE FTC R511993 BUSINESS OPPORTUNITY RULE COMING UP!
"MLM Mondays" is featured every week on (what else?) Monday; and offers information, advice and tips on operating an MLM-affiliated business. On The Road With Dave does not guarantee any results from the information, but offers it as opinion.
"You have to love a nation that celebrates its independence every July 4, not with a parade of guns, tanks, and soldiers who file by the White House in a show of strength and muscle, but with family picnics where kids throw Frisbees, the potato salad gets iffy, and the flies die from happiness. You may think you have overeaten, but it is patriotism."
