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&Ps).
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&Ps (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&Ps) -- 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&Ps) 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.
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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..."
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'LIQUID' NUTRITIONALS - As this is written, the
FDA is "attacking" all companies (both MLM and "non" MLM) that are marketing LIQUID Nutritional Beverages - which
means that once again, DSHEA will come under attack. We in Canada have a similar battle here with our own Health Canada! Here's what the FDA is 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 DRA will be fighting to "protect" us 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 our industry down" - killed
it outright. But thanks to exhaustive efforts by y/our DRA - 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. Y/our DRA has been pushing for Dr. Ron Paul's HR 2117 (Truth
in Nutrional Marketing), and again, is working 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:
(( 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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(( Why YOU need to be a Member of the ANMP Now! ))
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 our Chairman Emeritus, Rod Cook (also Chairman
of MLMWatchdog.com) and our President Emeritus, Cheryl Gonzalez. and our current President, Peter Mingils. Through their
tireless efforts over the years - and those of the other outstanding Board members) - and their steadfast dedication to
our cause - WE as Distributors / Affiliates have become the beneficiaries of a much stronger voice for distributor's 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 - We in the ANMP continue to seek
out this amazing legal mind for many of our battles, on y/our 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 our 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 us to become a "force to reckon
with".
ANMP ‘BOOK OF STANDARDS’ - Thanks to our ANMP, this masterpiece
(Manual) gives us something that we in this industry have 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 we 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).
ANMP / Weekly CONFERENCE CALLS For
Members – Every Thursday evening at 8:30 PM ‘EST’ the ANMP President, Peter Mingils (or the Director of Education - well
respected industry Consultant, Len Clements) host a Special Call with outstanding Guests, including Attorneys / Company CEOs / Top Distributors /
ANMP Exec, etc. These Calls are also 'archived' on the ANMP website .
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1(712)-432-1000 (pin 569 864 201 #)
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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 y/our ANMP
today !
Peter Arnold, CLU, CFC // Founder
Business Achievers Academy // Canada
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