"Just Sign Here"

In my post titled, "Trust Me", I showed how a Google search can reveal the experience and character of the leaders of a MLM company. Now let's look at the most revealing way to learn if a network marketing company has this 1st Pillar in place.

Read the contract.

Even though the Policies and Proceedures, the contract, are written by hired guns (lawyers) to look after the interests of the company, it is the least read document of anything the company commits to print.

Why is that?

The companies know most people are too trusting, or in too much of a hurry to start their new home business to bother to read some long, boring legal junk.

Used Car Anyone?

MLM companies know their P and P's are like an "AS IS" statement on a used car. If you don't check that car out thoroughly before buying it, then any defect you find later is on you.

Failing to read the contract can spell disaster for your success right from the start. Plus your agreement to the P and Ps protects the MLM company from you taking legal action.

How-To Read The P And P

This can be a daunting task … even for experts. But there is a way to simplify it all. Look for key words and phrases that can spell trouble for your long-term business success.

Murderous Key Words And Phrases:

ongoing / regular / continuous / monthly … training/sales/management … responsibilities/obligations,
without / with or without / for … cause / notice / written notice
with 30 days written notice/notification
non-renewal, inactivity, involuntary cancellation, terminate/termination, sole discretion, discretion of COMPANY, household
disparaging / disparagement
waive rights/ waive any and all rights, liquidated damages
proprietary / proprietary interest, class action, 70% rule

NOTE: Because attorneys concoct these words & phrases there may be others not listed here.

P And P's Are Like Cockroaches!

Some contracts have grown with time to 100 + pages, with loads of these nasty little "gottyas" spread throughout. Plus the legal Dobermans writing this stuff like adding new key words, or even re-writing the whole thing.

On the up side, once you find these little buggers you know to keep looking for more. Chances are if you find one, then there's lots more hiding in the cracks.

An Ounce Of Prevention

The Policies and Procedures are a legally binding contract between you and the MLM company. It is imperative that you read this document and know what words and phrases to look for when reading it. This makes the company management's experience level obvious.

Generally, you want to see a contract of no more than 10 to 15 pages, and few if any killer words and or phrases.

Lawyers write these contracts to protect their client (not reps). They often insert certain words and phrases such as, “ongoing obligations”, “regular training responsibilities", etc. to steal your check, and or to make it so you can't retire.

Reading your contract is the safest, cheapest, most insightful way to learn about any MLM company and its leaders.

I appreciate you,

Bill Tessore