Tough
Questions – Straight Answers
The
Cross Sponsoring Dilema
by
MLM Consultant Michael L. Sheffield
MLM and Direct Sales Expert
Ahlthough
our firm focuses on consulting and coaching support for Network Marketing
executives, I regularly receive questions at our website from distributors
seeking advise. The following question was posed to me recently, and I thought
the DSJ readers might benefit from my advise to this frustrated distributor.
Question: I recently
joined an MLM company and have been building a sales team. Last week, one
of my downline members attended an opportunity meeting and was solicited by
another distributor to join a completely different company. I am concerned
about having my people go to meetings now. It doesn’t seem fair. What
should I do?
This is an issue of questionable integrity and unethical behavior as well
as a direct violation the Policies and Procedures, Rules and Regulations mandated
by most MLM companies today. Obviously, you have worked hard to recruit your
downline. Motivating your distributors into action and building product and
company loyalty is hard enough without being sabotaged by others in your same
company.
As you would expect, there are many companies looking for
ways to recruit new distributors. While I personally recommend monogamy when
it comes to the company you represent, it is not uncommon today to see people
be members of more than one company at the same time. You should always assume
that this is the case. This is usually allowed under the company rules, but
there are usually strict rules a company sets forth pertaining to conduct
around what is called “crossline sponsoring.
Crossline sponsoring happens
when a distributor performs the act of sponsoring or attempting to sponsor
someone within a company where they are both members into a competing company’s
business opportunity. Crossline sponsoring usually indicates the violator
is crossing lines of sponsorship to steal another company member’s recruit.
However, it can also mean that they solicit someone that was not recruited
directly by them but is somewhere in the depth of their own downline and sponsored
by a downline member.
When you joined your company, you signed a distributor contract. If you look
closely at it, it will probably indicate that the Rules and Regulations set
forth by the company are considered an extension of this contract. These regulations
are usually issued as a separate document and inserted in your distributor
manual. Crossline sponsoring is most likely a restricted action in this Rules
and Regulations document. If not, it absolutely should be.
Crossline sponsoring, if discovered, usually results in a severe reprimand
of the violating distributor by the company that many times leads to termination
of the offending person’s distributorship. The reasons are obvious.
Much of the bonding of the organization's members is developed during business
opportunity meetings, rallies and training programs. You want to feel that
these meetings are a safe haven for your new or potential recruits. In fact,
my experience has shown that the social interaction with other people in the
same company but different sales organizations is critical for building good
corporate culture through group dynamics.
One thing that makes this system work is development of trust and a spirit
of cooperation among all the different distributor groups. The Rules and Regulations
of the company that have been agreed to by each distributor should create
a level of confidence that the company will offer protection from unethical
people who attempt to steal away a fellow downline distributor for another
company opportunity.
As an expert witness for the MLM industry, I have testified in a number of
cases related to this issue. Many times the violating person may not have
read the rules and doesn’t realize that this is ethically wrong. Unfortunately
in an equal number of cases, they are just breaking the rules. I should point
out that the rules usually say that they can talk to the people that they
personally sponsor about other opportunities but not anyone deeper in the
genealogy tree.
The best way to protect yourself
from this situation is to build a strong and positive relationship with your
sales organization. People don’t jump ship that easily when they have
bonded to their upline sponsor, the company products and the company itself.
It is not out of order for you to register a complaint with your company on
this issue if you are absolutely convinced that this is happening. It is your
business and income that can be affected. Protect your interest like any serious
business person.
Michael L. Sheffield is the CEO of Sheffield Resource Network, a full-service direct sales and multi level marketing (MLM) consulting firm. He is a Co-Founder and Chairman Emeritus of the Multi Level Marketing International Association and in 2001 he was inducted into the MLMIA Hall of Fame. As an MLM Consultant, he and the Sheffield team have assisted in hundreds of national and international MLM corporate start-ups as well as offered a full line of services for established direct sales companies. As the most noted expert on compensation plans, he has been a guest lecturer on the subject for the DSA, University of Illinois, University of Texas, Berkeley and Harvard Alumni Association. Long considered the industry's top MLM Consultant , Michael Sheffield has helped launch over 500 new companies and 200 new products marketed by direct selling companies around the globe. He can be contacted at 480-968-6199, Sheffield Resource Network, 2239 N. Hayden Road, Suite 103, Scottsdale, AZ. 85257, website address: www.sheffieldnet.com.
