2012年11月17日星期六

Selling and Buying MLM Positions

Some MLM companies, particularly those with binary compensation plans, allow established positions to be sold or even given away by the management to attract successful people away from other companies.Why would you sell your position? To get something in return for your hard work in building your downline, in case you want to:
Retire
Join a different company
If your company is what I call a true "5 pillars" company, you will not need to sell your position to retire. In a traditional business, if you stop managing the business it will stop producing income. So if you want to retire and you haven't saved enough money yet to cover your living expenses, you would attempt to sell the business. In MLM, if you have built a team of strong leaders who are fostering constant duplication, you will have a residual income stream. The only reason you would need to "cash out" is if your company's policies and procedures contain clauses requiring you to have ongoing responsibilities to keep earning your check. Sadly, many companies do have such clauses, requiring ongoing training, ongoing communication with your team, ongoing sales, and/or ongoing recruiting.If you decide to join a different company, you may have to give up your current position since some companies prohibit you from being involved in another MLM concurrently. Even if this is not specifically prohibited, if they have an "out" clause in the policies and procedures allowing them to terminate people for any reason they wish to invent (again, not a 5 pillars company) you could get "fired" for starting up in another company. So, in order to get something for your efforts you might want to sell your position if the company allows it.This happens very frequently in MLM, and was happening right above me in a company I recently left (partly for that reason!) What happens when a position is sold?
Loyal people in the team might follow the seller, taking value away from the position they sold
People who want to stay may not respect the buyer since they did not earn the position
New people usually assume that everyone earned their position
If the seller takes people with them, of course that is not fair to the buyer. And yet it often happens. If the buyer does not have the respect of the team, he/she is not a true leader. As someone who was relatively new to MLM I did not know this wheeling and dealing went on and respected the people in my upline because I thought they earned their position. When I found out that one of those people was buying his way up to a higher position, I lost respect for him because I felt it would be deceptive to anyone new who joined.I am not in favor of allowing positions to be sold. That is just my opinion of course!

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