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.
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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 – Most Thursday evenings 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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Thurs Nights - 8:30pm EST - (218)-237-3938 (pin 100127
#)
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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 !
Copyright - 2012 /
2013
Peter
Arnold, CLU, CFC // Founder
AcademyGroupOnline.com
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