“The biggest problem that Network Marketing companies have is at the top – here are some of the things that will make reps “vote with their feet” as Orrin Woodward would say:
1. Terminating reps, and taking away a check that they’ve earned
fair and square. If you own a company – you may own your trademarks, copyrights, and patents – however, you don’t own your reps. They are independent contractor
s, with the right to sell whatever the hell they want.
2. Treating reps like they are employees. They’re not. Reps are people who have their own hopes and dreams, are building a business for their own reasons, and an employee is someone you are paying to help execute your hopes and dreams. You can fire them if they don’t.
If you own a company – your reps are not your employees – YOU are THEIR employee. Very different way of thinking, and most owners don’t realize that.
3. Not appreciating your leadership. Sometimes it’s a punch in the gut to realize this – but if you own a company, and are not a rep, too
(Examples of company owners who are also reps would be me and David Sharpe – and also Nick Sarnicola at Visalus, among a very few others – Chris Kent over at Numis always has acted like a rep as well, along with Jake Kevorkian – great guys)
Anyways – if you’re not a rep, you have to realize, that it’s not your genius that created your company – it’s the genius of your reps. You’re essentially nothing without them. You didn’t create your sales volume – they did. Their sales tools. Their sales ability. Their blood, sweat, and tears. Their relationships.
Don’t take credit for what they do. Give them the credit. Include them in your masterminds. They deserve it. You, as the owner, are there to serve them, not vice versa. Your reps ARE your business, and your livelihood. They are more important than your employees, more important than your scientists, more important than JV partners.
Your reps are EVERYTHING. Treat them like gods, if you want them to stay, because they are welcome to leave at any time they choose.
The BEST teams I’ve ever seen at edifying leadership are the independent teams from the Amway organizations from the schools of Bill Britt, and Dexter Yager. Their leaders have stuck with them for 50 and 60 years because they get treated right.
4. Not paying people.
This is a big one. This is how a company financials should operate:
a. Company gets money
b. Reps get paid
c. Infrastrucure costs get covered
d. Business investments (tech, science, etc, joint ventures) happen
e. Company owners take a payout
All to often, that is reversed. I give credit to Chris Kent for teaching me that.
If you are not paying people – there had better be a damned good reason, and your people had better know, and you best have all of your available resources focused on solving it, now. If you don’t, you won’t have a company.
We’ve been a few days late paying people 2 or 3 times, when we introduced something new and had commission calculation mismatches, or something.
Every time, when that has happened, our entire staff has stayed up for days straight, through weekends, drinking redbulls all night to stay awake to fix it.
AND….we’ve communicated with our members quickly so they wouldn’t be surprised about it.
The golden rule is:
Commissions are not your money that you’re re-allocating to reps – it’s your reps money, that you temporarily have custody over until you pay it to them, like they rightfully deserve.
Not paying commissions that are due is straight stealing, in my opinion.
Anyways, hope you enjoyed the rant! We’ve all been raped by some companies before, here’s the most important thing to understand:
If YOU own a direct sales, or a network marketing company, your affiliates are everything. Treat them like it.
– David Wood”