Some Realities of 
Building a HOME BUSINESS in 
NETWORK MARKETING 

Hello - and WELCOME to this page. My name is Peter Arnold, and I hope you will find some helpful information below...

An MLM // Network Marketing Home Biz ==> is the greatest FINANCIAL STRATEGY in North America - because of the huge TAX savings alone (says Sandy Botkin - famous tax attorney)

An MLM // Network Marketing Home Biz ==> is the #1 RETIREMENT PLAN available anywhere - because it can create the best on-going PENSION (business annuity) on the planet -- IF built correctly (with the right business, financial, marketing and ethical principles at play)

An MLM // Network Marketing Home Biz ==> is perhaps the last bastion left, in the Free Enterprise System, where someone - without a high education - without a famous bloodline - without a large capital investment - can truly become totally FINANCIALLY FREE

An MLM // Network Marketing Home Biz? ==> Where else can one find - wrapped up in ONE business - the opportunity for - leverage - residual income - self development - friendships - tax incentives - time freedom & financial independence - recognition - travel - leadership growth - a sense of belonging - more fun - the chance for a better life - to name only a few?

An MLM // Network Marketing Home Biz ==> with right COMPANY - TRAINING - SUPPORT - MINDSET - MENTOR - MASTERMIND GROUP - your MLM Home Business (within your own business 'infrastructure') can truly, become your oyster. YES.

HOWEVER...

An MLM // Network Marketing Home Biz ==> should never be an "end in itself" - it should be strictly a "means" to an end (a vital tool) - along with your other assets - to help you achieve your major GOALS and your PURPOSE in this life.

An MLM // Network Marketing Home Biz ==> by itself, should never BE your "business" - it should be (an important) PART OF your overall Business Enterprise - otherwise, you leave yourself too vulnerable. Through a smart combination of "SELF Branding" and "Attraction Marketing" you can become the CEO of your OWN Home Business (YOU, Inc.). It becomes a critical strategy (you're 'positioning' yourself), because an MLM is not a "real" business - it is a Distributorship. With MLM, you are an IC (Independent Contractor) - but with any MLM-Network Marketing business, you do not actually "own" your OWN business as an IBO (Independent Business OWNER) - despite what their glossy brochures and websites may tell you. In fact, you are a commissioned Sales Rep for the company's products and services. Not that this is a 'bad' thing - it's just a reality (it's all spelled out in your P).

An MLM // Network Marketing Home Biz ==> is not "perfect" (what business is!)- we need to know our 'way around' the RISKS and the PITFALLS (YES, there are many)

 

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Is This Relevant to YOU, though?

What kind of protection could YOU possibly need?

And protection from WHAT?

RISK - Imagine you have achieved all your goals and dreams in your MLM-Network Marketing business. You are earning say, $25-$30,000/mo, with a very nice lifestyle, travel, a beautiful home -- and suddenly, your company is acquired by another company, and perhaps its Management Team has little (or no) MLM industry experience.

RISK - Or the company owner resents paying out so much money, month after month (these scenarios DO happen - believe it or not - this is NO hypothetical 'blue sky' theorising.)

RISK - Or The FDA (Food & Drug Association) or the FTC (Federal Trade Commission) decides to "attack" your company / industry - accusing its Reps of making false "medical" claims about its nutritional products (as they did with SeaSilver, and many other MLM companies). Or they accuse its Reps of making reckless "income" claims, based on its compensation plan. Or they threaten to attack or shut it down because they say it's a "pyramid" scheme. Or, they point the finger saying there's little or no actual "customer" product sales going on - only "distributor" (self-consumption) of products. On and on...

RISK - Your contract (Legal Agreement) with the NWM//MLM company P (Policies and Procedures) says that the company can choose NOT to renew your Distributorship when it comes due. It can suspend your bonus payments for real or alleged infractions of the often draconian, one-sided provisions of your MLM contract. If you decide to take the company to court, you'll have to do so without your bonus income, and the company's attorneys may tie you up in their legal arguments and technicalities - for years - hoping your money will run out (they've got your bonus income, too, don't forget!) Or, as happens more often, the company will exercise its right under your contract to choose binding arbitration - often with an arbitrator who is completely ignorant of MLM, or who is used regularly by the company (so guess what? - their income is largely dependent on company patronage!)

RISK - If the judge or the arbitrator asks what the industry STANDARDS are, chances are that they'll be referred over to the DSA (Direct Selling Association's) documentation.

 NO - NOT MY COMPANY!

We all believe and hope and pray that such misfortunes can "never" happen with the company(s) WE are associated with. It can - and DOES happen - and it can be a devastating blow to the distributor (and family), on many fronts - emotionally - financially - injured self-esteem. It can pertain to 'changes' in - comp plans - corp. missions - new product launches (without readiness) - dictatorship by Uplines or Corp. to the field - changing from NWM status to that of Direct Sales - a 'hit' by the FDA // FTC against an uncompliant Company or Distributor (making false or exaggerated medical and/or income claims, etc) - change of ownership (or leadership) - going public - on and on. These traumas impact "everybody".

Yes - these things DO happen - all the time - and some of these end up being real 'horror stories'. As an example, on our DRA Executive Board Meeting Call this week (2, 1/2 hours long) - much of the Agenda focused on this. We heard both the DRA Chairman + the President tell us all of 7 different 'unjust distributor terminations'!

More RISK

He Lost His HOME - One situation was where the Distributor had built his check to almost $30,000/month, after a number of years - and simply because suddenly, he was unable to provide his MLM company with the actual "receipts" of his required 5 monthly Retail Sales - they terminated him. The 'reason' he couldn't DO that was because he had just "lost his home" - it was flattened by Hurricane Katrina! And the 'company' already knew about it. But here's the irony - even the IRS gave him latitude, and agreed to 'work' with him at resolving things!

Where was the 'heart' of that company CEO? -- Where was the INTEGRITY of that Management Team? The sad fact is - when that Distributor signed his Legal Agreement with that company (the P) -- he didn't bother to read the 'fine print' (just as 'most' don't - sadly). If he had done his 'due dilligence' ahead of time - he would 'never' have joined that company. He doesn't have a (legal) leg to stand on. He thought he had developed a 'wonderful' relationship with the top brass of that company - yet, when they saw an opportunity to 'grab' an extra $30,000/month revenue for themselves, they chopped him out of the picture and 'took' it.

More RISK

She Became PREGNANT - Another case had to do with a lady who had been associated with her company for about 4 years - had built a nice downline - had built her check to about $4500/month. She became pregnant. Her pregnancy developed into a serious health problem. She had to "back off" for a couple of months. During that time - her production stayed fairly constant -- but it didn't GROW, as it normally had. After she delivered her (healthy) baby - she wanted to 'resume' her Home Biz. To her utter shock - the company had already 'removed' her entire downline - and placed it under someone else (someone who was able to "keep on building". Her position was terminated - the 'check' she depended on (and worked her 'heart' out to build) - was gone.

The 'response' from the company? - in essence, "Business is business - we can't wait around while someone decides to slacken off!" - Yes! - But again - this company had its 'own' tracks covered -- she had NO recourse -- she had "agreed" to this possibility when she signed that Legal Agreement (her P) in the beginning -- she just didn't take the time to read it, or have it properly reviewed by someone else - who 'understands' these Agreements (or, she would 'never' have signed it). She had simply TRUSTED her company (as do most of us).

SURPRISE! - The shocker here is - BOTH of these companies are BIG "well known" companies in our industry. BOTH are "long term" companies (one is 'publically traded')!

CONTRACT LAW - Even though we might say (in the 2 cases above) that the company 'behaviours' were almost CRIMINAL in scope - the fact is, this is all about CONTRACT Law - and once we sign that "contract" (the Policies & Procedures) without 'knowing' about any of the "gotchas" in it - we usually have NO comeback later. None.

More RISK

DSHEA - Thanks in large part to y/our DRA (working feaverishly 'behind the scenes' on y/our behalf) - back in 1994, Congress (finally!) passed the 'Dietary Supplement & Health Education Act' - after  the biggest consumer outcry in US history against the regulators - for threatening our very health freedoms. 

Here's a comparison that should catch our attention...
In 1943 - a court case stated that the FDAs purpose should be ==> "...to protect the public, the vast multitude which includes the ignorant, the unthinking, and the credulous who, when making a purchase, do not stop to analyze."
In 1994 - the DSHEA states ==> "...consumers should be empowered to make choices about preventive health care programs based on data from scientific studies of health benefits related to particular dietary supplements..."
 


'LIQUID' NUTRITIONALS - Recently, the FDA was "attacking" all companies (both MLM and "non" MLM) that were marketing LIQUID Nutritional Beverages - which means that once again, DSHEA came under attack. We in Canada have a similar battle here with our own Health Canada! Here's what the FDA was saying ... "beverages are conventional foods that may not be marketed as dietary supplements" -- "Products that are represented as functional foods do not meet the statutory definition of a dietary supplement in section 201(ff) of the FFDCA (21 U.S.C. 321(ff)) and must meet the regulatory requirements that apply to conventional foods..." 

So once again, y/our ANMP fought to "protect" the industry against this (stupid) attack by the FDA (which they claim is to "protect the (dumb) consumer!"

More RISK

The 'BUSINESS OPPORTUNITY RULE' - Back in 2008, the FTC tried to impose yet another (insane) piece of leglislation - the "Business Opportunity Rule" - which would have literally shut the industry down - killed it outright. But thanks to exhaustive efforts by your DRA (ANMP) - working on y/our behalf - this ridiculous RULE never saw the light of day, at least as it pertains to our industry.

More RISK

Shut Down 'DISTRIBUTOR OWNED' Websites? - In part, because the the "Cheerios Honey Nut" fiasco (making health claims) - the FDA (the same agency that approves "deadly drugs" such as vioxx, Prozac, and thousands of others) decided it would "protect consumers" by attacking websites that may be making similar claims - including those of MLM Distributors. Your ANMP has been pushing for Dr. Ron Paul's HR 2117 (Truth in Nutrional Marketing), and again, works tirelessly 'behind the scenes' to fight this!

But What 
About the DSA? 

The DSA (Direct Selling Association) is the industry association for the COMPANIES - not for the DISTRIBUTORS! Your DRA is the ONLY organization on the planet that strictly represents YOU, the Distributor / Affiliate / Rep.

Beginning to SEE the RISKS to YOU in all of this?

The above is just "tip of the iceberg". Scenes like the above are played out more often than most Network Marketers could believe. And the more successful you become, the more likely it is to happen to YOU, because as soon as YOU get on the RADAR SCREEN of your company ($10,000/month+), or the FDA, the FTC, etc - YOU become vulnerable.

RISK 
MORE Links to Check Out: 
Here --- Here --- Here --- Here --- Here --- Here 
  
(( click ))
 
 
UNFAIR? - Sometimes this kind of unfair, unilateral action is due to "predatory attitudes" by management. Sometimes it's just due to poor legal advice. And sometimes it's due to ignorance and inexperience. Whatever the motivation happens to be, it won't make much difference to YOu - you'll be on your own, and left to foot the mounting legal bills in a one-sided case that could easily see you having to pay the company's costs on "top" of your own.
 

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(( YOU should be a Member of the ANMP ))
 
Association of Network Marketing Professionals // ANMP is a global, non-profit organization that’s dedicated to educating, protecting and preserving the RIGHTS of Home Business Professionals everywhere - dedicated to the promise of RESIDUAL INCOME for all marketing professionals in the Home Business industry. The ANMP (formerly called the DRA - Distributor Rights Association) is the only organization of its kind in the world. NO member of its Board of Directors or its Executive Committee receives any remuneration or pay of any kind - it's a labour of love, because of our 'passion' for this great industry (profession) - it's totally voluntary.  

Founders - I have long been an avid admirer of the Chairman Emeritus, Rod Cook (also Chairman of MLMWatchdog.com) and the past President Emeritus, Cheryl Gonzalez. and its recent President, Peter Mingils. Through their tireless efforts over the years - and those of the other outstanding Board members) - and their steadfast dedication to the industry cause - Distributors / Affiliates have become the beneficiaries of a much stronger voice for their rights and freedoms.

I was proud to have served on the ANMP Board for almost 4 years, representing Canada.

Funding - It costs a lot of "money" to represent you - to retain top attorneys, etc - and our only revenue source is from our member's yearly dues (only $50/yr).

Jonathan Emord / Attorney - The ANMP continues to seek out this amazing legal mind for many of your battles, on your behalf. This savvy
gentleman is perhaps the finest constitutional attroney anywhere. He has won more cases against the FDA than anyone else. I have one of his exceptional books ("The Ultimate Price"). 'Meet' him => Click Here
 
 
Support - The ANMP supports its members by practical measures, like publishing current information to help Network Marketers [and NWM//MLM companies] to create fairer contracts (P&Ps), establish industry standards for reference in arbitration and litigation, and liaise with companies to bring about more equitable resolution of disputes with Distributors. It's a large but vital mission.  

Better to Prevent it BEFORE it Happens to YOU

ANMP => Your FRIEND - Thanks to your ANMP, you can take steps to educate and protect yourself and your TEAM. The "only" way to effect meaningful CHANGE in our industry is through increased membership - that will enable it to become a force to reckon with.   

ANMP ‘BOOK OF STANDARDS’ - Thanks to our ANMP, this masterpiece (Manual) gives  something that the industry never had before => Global Rules that will help every (Independent Contractor) Distributor when faced with serious issues, including LEGAL ones. Just imagine, sitting in court, and a Distributor is asked about - standards as a Distributor - and they have NO answer - because they have never been set by ANY independent body! Well, now they have - and ALL will benefit - including the MLM Companies. This great Manual (Global Standards & Education For Companies & Distributors) comes to each new ANMP member as a part of their membership (which is only $50/year - tax deductible).

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CONTACT

If you have questions or concerns about the ANMP and its role, or if you have a concern or dispute with your NWM / Network Marketing company about any aspect of your agreement with them, please get in touch with the ANMP - or your own country's ANMP Executive Director.

 

JOIN your ANMP today

 


 

Copyright - 2012 / 2013 / 2014

Peter Arnold, CLU, CFC // Founder 
AcademyGroupOnline.com