UFO Leaders and Entrepreneurs,
It seems like it happens every 2 or 3 years that there is a competitive attack on the company or someone’s organization and we have to deal with it and handle it legally and once again protect the UnFranchise System and field organizations. It certainly is disruptive, unproductive and aggravating, but absolutely necessary. Many of you are aware of a recent such incident that we announce or communicated with you about last week.
As surprising, disturbing, disrupting and derailing as this is, it also becomes an opportunity and time to reevaluate our success, priorities, values and loyalties. It becomes a time to reassert what you believe in, your WHY, the company WHY and it is a call to action and a call to loyalty. It becomes a time for a reality check, a barometer of where people stand and a time to count blessing and ask WHY! It is important to understand WHY we are the best opportunity as well as WHY this happens.
Ironically, this is a great opportunity to learn and educate and revisit the WHY behind the business to empower yourself and your team! That is why I a providing this article, lesson and training. It addresses this current event, but on a larger scale this phenomenon in general and how to understand it and handle it.
I have reflected on this and put together an educational lesson and some reference material for those of you that are interested or want to understand better and empower yourself as a leader to explain things or answer questions as a leader. You’ll find these additional resources below.
It is a little long so you may want to keep it on file as a resource. Most importantly, it is a tool at your disposal if you have anyone affected by this event, or one like it in the future, or if you need to provide your team assurance or explanations so they understand and have their confidence restored and all doubt eliminated. In fact, you can actually give it to them. So here you are getting it right from the horse’s mouth. You know part of the life process required to keep growing is to shed the dead branches or leaves for new growth. We certainly feel that we are stronger for this and in a many ways it is a blessing in disguise. I welcome, your questions, thoughts, or comments.
I want to thank so many of you for your outpouring of support, loyalty and love from your calls, texts, emails and social media post. It has been an avalanche and overwhelming and we read or listen to every one of them and are so moved, grateful and appreciative. Keep them coming anyway! (LOL) But we cannot answer them all so hopefully this serves as some form of acknowledgment and thank you.
So I have one question for you. Are you in the wheelbarrow?
Keep Growing
-JR Ridinger
JR’s Evaluation , Philosophy and Position on competition in the Direct Sales and Networking or Business Opportunity Arena
The Questions that People Ask about Competitive ventures and their claims and the truth about UFO’s that experienced success and leave for something else and the REALITY CHECKS on the business and the ANSWERS to how MA & UnFranchise Compare.
I). FIRST: Our success and record speaks for itself – It is not up for question. However, People and human nature are up for questions and often change. I think it was Frank Keefer who first said– “the plan is perfect but people are not and work at messing it up.”
II). So let’s deal with cold hard irrefutable facts and the record because in there lies the TRUTH? “Know ye the truth and the truth shall set you free.” Here is a list of facts.
There are more new UFO pin levels than ever before.
21 new qualifying candidates for Advisory Council this quarter alone requiring a stable repeating residual income of over $18,000 commissions per month in at least two 4 week pay cycles
Recruiting is up world wide and US significantly (hitting record levels)
Continued (in fact record) volume and retail growth. And our numbers are audited annually and published, so we can’t make things up like is frequently done in direct sales.
Top 50 Internet Retailer in online selling or retailing
Internet Retailer cited as the number one fastest growing Mobile commerce site in the world
A regulatory epitome of stability, integrity and sound practices, and customer, distributor satisfaction and code enforcement.
Market America and its officers recognized and honored by major magazines and business organizations – too voluminous to list here. (Go to site media and news tabs or links)
Excellent proven products that do not have problems and people beat the door down for month after month and year after year. 6 million real preferred customers not UFO’s
A regulatory epitome of stability and sound practices
BBB torch award and A+ rating,
Marc Ashley named as Chairman of the Board of the BBB Serving Central Carolina
Residual income growth of UFO’s overall and record increases by numbers individually.
10,000 new Shopping Annuity Qualifiers and growing by 20% per quarter
Financially sound as it gets
Positive media, press and reputation worldwide
Branded and know as a new internet model and not MLM/Networking
Highest repeat customer retention and satisfaction.
Increases in IBV on partners and products and over 50% increase in IBV checks and earnings
Continued increases in MPCP and compensation programs (never has the resulted in less to the field in our history—only MORE)
Solid NMTSS and Training programs continue to grow in US and world wide and addition of a digital NMTSS with MeetON.com
Improved and trend setting or revolutionary technologies and internet platforms with digital marketing and social commerce, No one compares in direct sales or networking, affiliate marketing or entrepreneurial on line selling has anything that rivals what Market America and Shop.com have in place
Improvements in every UnFranchise University division
Global expansion, Global retailing site, Opening new countries successfully every year. Revolutionary Global UnFranchise Unification and Cross Pollination program.
More and better products, revolutionary product break thoughts, every year
Launch and realization of the original concept of a Shopping Annuity allowing converting spending into earning while saving money.
I can go on for pages. In every area we have improved, made things easier, and have grown…
Our mission from the beginning was to redefine and change an industry and in the process we created a new one. We have continuously moved away and distanced ourselves from MLM/Networking and the repeating problems inherent there but in the process of attempting to change it we created a new model and industry and are truly a different model with a vertical tracking system of customers. When people don’t understand and still think it is like those models I offer examples of other evolved models that started as one thing but have evolved into something much different that is paradigm shifting or revolutionary.
Music players example: It started as Phonograph and large vinyl disc or 45’s, with one speaker and monotone and then large vinyl plates or LP’s eventually with stereo and eventually higher fidelity, then to 8 track tapes (remember them?), then cassettes tapes, then CD’s (not that long ago) then to UHB’s and i-Pods, i-Tunes download and MP-3’S to mobile phone play list, to now streaming. Certainly old phonographs and vinyl 45 plates or records are afar cry from streaming or IP3- libraries downloaded on a device or mobile phone. Do you agree? It is still music and a player but not at all the same and cannot even be compared as such.
It is important to understand WHY the UnFranchise system and the binomial MPCP were created and how they are different and WHY they are the answer or solution to the shortcomings of traditional networking or MLM and WHY it is different. You must understand WHY!
This is fully explained and taught in the UnFranchise and Binomial Manifesto: http://www.unfranchisemanifesto.com
III). QUESTION to UFO’s or former UFO’s that become our detractors, critics, or defectors that decide to engage in competition…
Where are we less or worse than when you started and we had little or nothing? Do not pass it off or change the subject if you want to talk. In order to talk you must earn the right and ANSWER!
So what is the list of what has failed or what is wrong or how we have not kept our commitments on or how the program is no longer the best out there? I would really like to hear it. Loren and I personally directly contacted them by phone and also wrote our detractors and defectors trying to save them and pleaded with them to produce this list—even one thing. They refused to respond or answer.
Perhaps it is something else and they are on a “witch-hunt” to find people that have an entitlement mentality that are “stuck on the dot” OR are having a slump or down turn and challenging moment, which anyone who has built the business has experienced this and will have it happen in any company or program at some point.
Do you remember the metaphors and demonstration of the “DOT” and getting “stuck on the dot” and not seeing the rest of or the big picture because one is absorbed with the dot or the problems, details, or situations that do not lead to greater success and the BIGGER PICTURE or objective? The ironic thing about that analogy and the “trap” is that one does not know when they are stuck on the DOT! LOL. I wonder if that has happened to these people as the true explanation without even realizing it? When you are stuck on the DOT it is nearly impossible to recognize it yourself without someone showing you. The funny thing is that we are all susceptible to it and I have been there too and constantly check myself with reality checks and surround myself with positive realist.
Give me someone who made it to a UFO level earning significant residual income and had a decline and we will pull the records and see what they have actually done in the way of activity and result producing activities over the past year(s). In nearly 100% of the cases (and we always do it), they stopped doing what got them there and in many cases are on a sabbatical or hiatus or “extended mental vacation” and do practically nothing except the minimum requirements. Now there are many legitimate reasons for this: personal crises, family problems, loss or change of job, health issues, financial problems, being absorbed by church or community work or other priorities, disputes or political battles with other UFO’s, feeling get hurt, lack of senior partner support, etc. One reason is as good as another and timing is everything. That doesn’t not mean they failed or the business didn’t work. It is called LIFE! But the fact that they did it years ago and stopped and still get paid is remarkable in itself and a modern day miracle. And they complain and criticize after years of doing little or nothing that their income did not increase? WOW! That is incredulous!
Who have we “slighted” or let down or been unfair with? Who have we changed the “deal” on and adversely affected beyond their control? What did we do to lessen the opportunity or mislead people? To date I have never had one concrete answer that wasn’t totally explainable and usually centered on personal political issues with someone.
I got a call from one of the original pioneers the other day, Steve Harris, in regard to this. He is a dynamic and funny guy, somewhat of a cantankerous character and anyone who knows him knows that you cannot put words in this guy’s mouth and he is smart and a great speaker and trainer but by no means a “rah-rah guy”. I love this guy’s candor and often-subtle sarcasm. He was smart enough to get in when there was little or nothing to believe in and he built to Director 17 -18 years ago and has had a solid six figure residual income for 17 years without building another leg or doing any more, just managing and supporting and speaking which he enjoys. He raved about how it is unbelievable! Where else can that happen? He built a residual income, maintained the business and pursued other ambitions like real estate and lifestyle idiosyncrasies and did his own thing, but was always loyal, supportive and honest. He raved about it and said jokingly— “You know I might go back to work now” (actually he does work it but less than he did in the beginning to make it).
Perhaps we are dealing with human nature of wearing out and the notion that “the grass is always greener on the other side “ until it dies like 1000’s of companies and people have done since we have been in business. This is what they are thinking : “if I can create doubt and take people into something else with promises of grandeur or a panacea (that in reality doesn’t exist)– we will make lots of money at their expense or loss.” LOL! Do you think I am exaggerating or kidding? I am not! How else do you explain it and that is exactly what they think and it destroy them. Kind of like the Esops fable of the dog with bone in mouth seeing his reflection in the pond with a bone and he tries to get the reflective image of a dog’s bone from him and loses the real one that he already has.
IV). THE ANSWER TO THE QUESTION: When something that happens is inconsistent with reality and out of context and doesn’t make sense we naturally wonder WHY! There has to be a logical explanation or answer. It baffles me how quickly people assume it is the business or company and jump to conclusions. If anyone wants a list of the people who have gone this route in the past and where they ended up, I will gladly provide it as they all ended up much worse off, the older one’s out of business, working a 9 to 5 job or struggling financially. The more recent ones don’t even compare to MA and are flawed, already struggling and showing signs of demise and I believe will be gone in the near future as well. So what is the answer as to why people resign and do this today? Want the answer here? I am sorry to have to tell the truth here as it pains me. But know ye the truth and the truth shall set you free! And we are truth, principle based and integrity centered and driven.
THE ANSWER: There is a commonly used technique in the MLM industry in recruiting guerrilla competitive warfare called “signing bonuses” or up front money or “transition financing support” (monthly pay equal to or greater than what you make now) to lure weak people. They basically ask people to leave for money and buy them: They offer the pivotal influential person a larger bonus and sometimes perks and advantages in the compensation plan or put them over existing legs already in the company. Then they offer a lesser amount of money support to their key people to come over with them so they can recruit them. They require them to “resign” from their current company they have been with (MA), like in this case, in order to get the money and sell us down the river. This is the “competitor” company’s assurance that there is no turning back or playing two ends against the middle as well as creating a lot of curiosity and concern as to why they left and what they are doing in order to stimulate UFO’s to call them. It has been determined and verified that, that is the case here. Now does it make sense?
ANOTHER QUESTION. Why would someone elect to do this and go with an inferior program and take the low road? It is the opposite of what we believe and stand for and have demonstrated from the beginning in the way of the opportunity, plan, system and what the business is about. It appears to be hypocritical to what they have been preaching for years. It demonstrates a lack of understanding and denial of WHY and a disregard for logic and integrity. It’s Life! Come on – the world is full of wrongdoing and each time you stop it –it doesn’t mean it will not happen again. It is the basic concept in religion of evil vs. good or in morality . Why are there scams and crime that repeat forever. Why do offenders or criminals repeat deviant destructive immoral behavior? The answer is that they just do and it because in is part of their identify . So my answer philosophically on this proverbial question is that is what LIFE is about and the mission of each of us is to improve the world by doing the right thing and living and leading by example. That’s all we can do and what God expects us to do and there is a judgment day.
But that answer is too simple. Lets go back to the WHY! Arm yourself with the why and the facts. It is incredulous and puts logic upside down why someone would revert to concepts and plans that put logic upside down and are the very reason this company was created as a solution to. They go backwards and try to sell people on something that are compromised for their own personal gain? Do yourself a favor and review the UnFranchise and Binomial Manifesto if you want facts, reasons and answers.
http://www.beingjrridinger.com/business-building/introducing-unfranchise-binomial-manifesto-website/
The program in question is a “Uni-level” MLM program. Uni-levels and matrix programs or marketing /compensation plans have been – proven to be flawed. The one phrase that nails it on the head is the “Swiss Cheese Effect” where they look good on paper using an exponential curve of bigger numbers and multipliers on a symmetrical fill of production or buying spots. In addition to usually not being based on retail sales to the ultimate end user, as soon as someone doesn’t get their 3 to 20 people on the successive levels, it creates a huge hole in the progression below that someone from above would have to fill in. To continue to pay, the participants above must place larger numbers of people on successive levels to fill the hole and exponentially larger numbers of people at the base line and it starts to fall apart. Some succeed from attrition and being at the top but that is the exception and one has little control over it! Proof? There are 1000’s of companies that imploded or disappeared because of it since our inception and even more before we were around.
Vertical vs. Horizontal marketing: We teach this in every presentation. It is important and one of the tenants that makes us different. This phenomenon automatically creates competition and a dog eat dog environment amongst the participants or distributors. So all of the things that make the MPCP and the MA UnFranchise great that people love are absent here and GONE!
It is worthwhile to review the advantages and benefits of the Binomial MPCP and the UnFranchise System that make us the answer, solution and the best out there. The List of MPCP features that the UnFranchise MPCP is based on that are absent in these MLM plans. Understand that the list of features that everyone loves about the MPCP and Compensation plan and UnFranchise system do not exist and are GONE! One can say bye bye to what they joined Market America for and believed in and why most people are in the business. REFER TO CHART AT BOTTOM FOR DETAILS AND EXPLANATION
V). The new lure, angle, trick or game in MLM that boomerangs: “Recruiting, Sponsoring, Referral or Fast Start Bonuses.” It looks like fast money for recruitment and can be for a while but is short lived and boomerangs. This has been proven scores of time in recent years and the regulators are onto it! Some people do not care and take the money and run. This new angle is the practice of paying a “recruiting or sponsoring or fast start” type of bonuses for recruitment to make it appear to be fast money without requirements or documented retail volume moving to the end user and to real customers. They call them Referral Bonus, Sponsoring bonus, Fast start bonus ( pays out a fifty percent (50%) for sign up or recruitment. They often tie it to an auto ship or continuity repeat CC charge, membership fee, kit, and pay commissions on the entry or sign up. They try to mask it with product but it doesn’t hold up under scrutiny. Bottom line it is illegal or violates regulatory and anti-pyramid or MLM marketing laws.
Historical fact of life in MLM, Networking is that some owners do not intend to be around forever and make a fast buck at others expense and disappear. The bottom line is that this type of bonus is questionable at best and usually is illegal but takes a while for the regulators to catch up with it. Bottom line is that it is often deemed illegal. For instance, the shake MLM company that grew fast this year: Vemma. Vemma was driven by this and recently shut down by the FTC. The current detractor company attacking us is largely driven by this type of incentive and recruitment money without meeting the regulatory mandates in my expert opinion. It is what it is. Refer to these links for a third party expert opinion:
http://www.worldofdirectselling.com/vemma-preparing-for-the-ftc/
http://www.mlmlegal.com/enroller.html
http://thompsonburton.com/mlmattorney/2013/02/06/ftc-shuts-down-fortune-hi-tech-marketing-summons-the-krakan/
Personally this is one of the things I hate about MLM. They leave a trail of destruction behind them and create a bad reputation and destroy opportunity credibility.
They (MLM or Network marketing “Pros” and “junkies”) have a 2 to 3 year plan too ironically. It is called “start over” every 2 to 3 years! Residual income is worthless and meaningless without longevity. Think about it. Unfortunately those who fall for this end up with no credibility and become part of the migratory MLM junkie crowd that have no security and always have to find another deal or scam and more times than not end up broke or in jail. Those that survive must constantly be positioning themselves for the next deal and lining each other up for the next company and program, as it becomes a revolving door.
VI). “One product” or one product line or one-market companies… This is also what we are dealing with here with the current competitor in question. One product or one market companies is the opposite of what we do and believe. Although there is nothing inherently illegal or wrong with this it has been proven hundreds of time to be highly vulnerable. It is one of the main reasons we started a product brokerage or “Mall without Walls” company. WHY? There are several reasons proven historically over and over again in the last 50 years.
It is a volatile and changing market place in the digital information age. New industries, companies, and products, emerge, succeed and disappear over night because of technology. Type writers, CD and Kodak film all gone. It happened with Water filters, alarms, radiant barrier, Photo memory books or scrapbooks, bookkeeping/tax services, satellite dishes, bundled Internet/ VoIP/utility/ phone/energy services, acrylic nails, Travel club memberships, Internet –Web site memberships, etc. etc. etc.. Recently it has happened with numerous magic Juice or drink companies, coffee companies, exotic remedies from volcano elements to weird plants in the dessert or jungle. Three things can and do often happen:
The “magic potent or lotion” or “rare exotic mysterious plant extract or juice” or “ magic device” creates a product cause and the company uses testimonials and claims to market it generating a cultish white heat of belief and cause. It tends to stimulate or lead to rampant exaggeration, false claims and regularity scrutiny. It is difficult to contain and when the press or regulators get a hold of it they want to earn a “merit badge “ to justify their existence and attack it because it is a easy target. Then it unravels and you’re organization and your business falls apart as well as your residual income.
In some cases a company succeeds with a legitimate new product and penetrates the market place educating the public like water filters, alarms, or utilities. NSA, Eagle Shield, Quorum and numerous others. It spawns vicious completion first in the direct sales opportunity industry and everyone copies it and attacks the pioneer competitively viciously. Then if it really works and has merit it ends up on TV and in Kmart to Walmart or today the internet and the there are price wars and they undercut the MLM, Network, or Direct sales company and destroy the market that the companies mission was built upon.
The same thing has happened with medicinal coffees and nutritional coffees and teas and there have been numerous ones in the last 5 years come and go.
Companies tie themselves to one product or market are vulnerable .WE REALLY ARE LOOKING TO PROVIDE WHAT PEOPLE WANT and what is hot or in demand, new, emerging, or stood the test of time and people love in order to establish and grow a solid retail sales base. “YOU WANT IT, WE GOT IT “ AND CAN MATCH PRODUCT TO PEOPLE AND PEOPLE TO PRODUCT or One to One marketing. This makes it possible to have a solid grass roots marketing system providing an entrepreneurial opportunity for average people to succeed financially. If there is something new and revolutionary (market driven)—it will come in under Market America’s Mall Without Walls and everyone can capture the opportunity and sales without betting the ranch on it or having the vulnerability while at the same time having a wider or broader market reach for more customers and more entrepreneurs. This is exactly what we did resulting in accomplishing greater retail volume, profitability and stability as a product broker with the Mall without Walls ™ and UnFranchise University Majors.
I would never go with a company that didn’t have this because the only thing that is for certain is that things will change and products will come and go. It is important when your objective is to build residual income. Have a system and a model that like this insures it and works better.
VII). Discussion on competition and “It a free country and entrepreneurial opportunity from a competitive point of view.”
What is the truth and reality and the WHY on this that gives the RIGHT ANSWER and the TRUTH?
Yes, the concept in a free market and free enterprise system allows anyone to start something and spread his or her arms and compete.
However in a civilized world there are laws that define what is legitimately free enterprise and fair competition and prevent unfair, disruptive, undermining, unjust enrichment or disregard for fundamental fair and necessary business agreements. You just can’t so whatever you want when it affects the rights, incomes, or property of others.
Free enterprise and a free market does not mean that you can disregard or abuse the rights of others, ignore agreements, or take intellectual property or dismantle the work of others simply to compete unfairly or gain at the demise and expense of others.
If this did not exist it would be anarchy and a riot of undermining, stealing, and instability.
On one end of the spectrum the law prevents monopolies and price fixing with the Anti Trust laws.
In the middle it protects property rights, trademarks, trade secrets, and intellectual property, patents, and business systems.
On the other end it prevents unfair competition and injurious behavior or tactics to compete unfairly, disregard contracts, or to attack and raid another business unfairly as defined in law.
So the classic one is – I am taking “my People”! Well, they (your or my people) all have a contract with Market America and the upline or senior partners are paid on retail sales production for having led to them and performing an on going managerial, motivation and training and sales function. The contract is with the company with every participant and UFO and the company has the responsibility to execute the program and PROTECT the organization and contractual rights.
Everyone in the business, including the pivotal or lead defectors and detractors joining a competitive venture signed agreements preventing proselytization, trade secrets, solicitation, and a set of rules and contractual obligations. Otherwise it would be a free for all and there would be no UnFranchise system or MPCP or security.
When someone thinks in terms of “my organization” or “my people” they must remember that they are also the senior partners or up-line’s organization too and they all have contracts with the company to protect the business system and lines of sponsorship. Otherwise we (everyone) would have nothing. All of them have a vested and economic interest in those people and the business generated as well as the organization and the income derived from it. Similarly the junior partners under the defector/detractor going into completion have the same claim – they have their organization too and they are “their people”. Therefore one cannot take the position that it is “their organization” without understanding that it is also up lines, down lines and companies organization too.
The other day a successful long time UFO, Andy Webb, commented that resonates with most everyone: ‘Hey I am not going to let this happen as they had access to my people through the NMTSS and when they go after them they are taking income that I worked for from me and food off of my table and I have 6 kids. Call it what you like, it ‘s stealing to me and I am not going to stand for it”
An Unique feature of THE UnFranchise system is the NMTSS and required training system requiring people to be properly trained to advance in MPCP as to not misrepresent or mess up someone else’s business and additionally to support each others businesses locally and in other geographical areas. In that capacity people from one group are being required to attend and train with another group or a trainer or high UFO level person who is put in the pedestal. Everyone knows that you can not “take people from another group “ within the company as it is cross group sponsoring and the plan would not work without prohibitions and enforcement against taking cross line volume or people in the business while in MA. The same exist when leaving the business for a period of 6 months to 2 years depending on the level of the person and agreement (Speakers bureau, NMTSS coordinator, Advisory council). If we didn’t have this we could not have the UnFranchise system or NMTSS and no one would have any stability or security and residual income would always be at risk and not viable.
Any time something like this happens the defector or detractor gets in the pulpit and screams free enterprise and “It is a free country and I can do anything I want.”
We frequently hear: “I am just doing what they did and they don’t like it. I made big money there and ‘this or that happened’ and the solution is for us to take OUR people and do our own thing with a new beginning”
On the other hand anyone can terminate their agreement at will and go do their own thing if they never approach or involve other people in Market America in their own organization or anyone else’s cross line organization. But that is where the problem and temptation is and it is also where we draw the line.
This can be done legitimately if one is willing to leave and do their own thing without breaking agreements or affecting other peoples’ businesses. When I started Market America the companies I had been with had pulled the rug from underneath me and failed me – they were gone. I didn’t try to recruit people from past ventures mainly because they bring their problems, bad habits and grievances with them or expect deals or special treatment or have ego problems with others from the past and it just is not worth it. I did have some people approach me and ask to join from past experiences like Rick Hannon who sought me out and then there was a small group of people I knew from consulting in the industry that approached me when they heard what I was doing.
However – I decided not to go after “big hitters,” or MLM junkies or “pros” and to build it primarily from the ground up with new people and prove that it could work that way.
Today that is a rarity because most business start with bringing other organizations and making special deals and having two sets of standards or deals—one for big hitter and paying them or relaxing requirements and another for the rank and fie and average people that we built this with.
What we are experiencing here is a professional “gang” of professional experienced MLM raiders using money inducements to join and proselytize. We are the target and they are attacking us viciously competitively in a systematic fashion, trying to proselytize the organization and pick people off for money and then work with them to move people to another program. This is how it is done today.
It is one of the things that I hate about the MLM industry. It has resulted in a migratory crowd that goes from deal to deal, always positioning for the next one and leave a trail of destruction behind them destroying the reputation and credibility of that industry. You are never safe and once you join them and it is very difficult to stop because to survive one must play the game.
But this is where we draw the line and protect the organization, the UnFranchise business, your organization and income at all cost. Over the last 24 years have been attacked about 6 major times and successfully prevailed in all of them and terminated and sued or got injunctions against their raiding the UnFranchise system and we experienced a handful of less rampant localized attacks and nip them in the bud. One case we took all the way to the NC appellate court and Supreme Court and got landmark citable decisions to protect and uphold the UnFranchise system and your business and residual income.
I call this the “mosquito in a nudist colony syndrome” It is where a UFO or for that matter anyone in direct sales or an opportunity based business gets off track and confused or has stopped producing on their own and is persuaded to join something else or comes across our organization and the open UnFranchise system and instead of building with their own people and thinks they can get rich or make a lot of money by swarming and “biting or feeding on” all of these entrepreneurial oriented hard working people that are running around “exposed” that are now at their access to “bite” and take advantage of. Well that is when we become the exterminator and have to eliminate them and protect the organization.
Some even think they beat the protective covenants with the Social Media tactic of luring and using intermediary people and by posting that they left or are “former” MA and have a “new Beginning” that I better in order to get people to call them out of curiosity or concern. They have an intermediary contact them or show the “plan” but them get connected through the intermediary. At that point they are involved in solicitation any way.
So the oldest trick in the book is to resign and publicize “former” success and level and whisper to challenge or struggling people we have a “new beginning” and you are at the top and others will come in under you.” Whether it is public announcements or whispering it is ultimately the same thing.. But when it becomes competitive and the UFO’s are the target is where we draw the line. Many people have the wrong notion that social media is just chatter or ”buzz” and exempt from the laws governing defamation, slander and libel; but they are wrong and courts have ruled that social media is a digital communication and broadcast or publishing system and is the same as sending out a news letter, or mailing to a mailing list, or advertising, especially when the people are already following them or in a interactive group.
It is difficult, but OK to walk away and build something with totally new people like I did when I started Market America. It is free enterprise, they claim! But it is difficult because the hope (in order to circumvent the contracts) is always to attract people by not directly advertising or promoting, but by creating a gossip tree that one left or is “former” and then have people contact them asking why. They think that beats the anti-solicitation covenants but it doesn’t because as soon as they do talk to the using the person who “bird dogs” them, they have crossed the lined the and violated the protective contracts. It is always good to know the reality of the hunt—you know as a hunter..
THIS COMPETITIVE ATTACK IS NOT NEW OR UNUSUAL. In fact, it is a frequently used method, strategy, or tactic in MLM/Network Marketing/Direct Sales industry wide major problem. There are a plethora of cases and applicable law that govern this.
When I sat on the DSA Board of Directors this was such a big problem that they put it in their code of ethics and established practices to mitigate it – but most companies or people that are guilty of doing it avoided it as they were not members. But I am telling you it was prolific! There was a plethora of litigation and court cases.
There is a clearly established and documented area of law dealing with fair completion and what can be done and can’t be done. You just can’t go out and do what ever you want and detract or affect other people business. One cannot just do whatever they want without respecting others rights and the law. There is a large list of legal principles that are applied here and have to be observed that protect the free enterprise system a fee market place competitively and we rely upon them, observe them and use them to protect the business,
Here is a list of some of them if you want to look them up:
Anti competition contractual restrictive covenants
Anti Solicitation covenants and agreements
Unfair trade practices
Defamation of business or personal character
Anti Disparagement covenants
Confidentiality agreements
Trade secrets and proprietary information laws and agreements
Tortuous interference with contracts and agreements by a competing organization, company or individuals
Undue enrichment, material misrepresentation
Breach of contract
Libel, slander: (be careful when competing and in trying to persuade people to another “deal” or dissuade them from MA by making unsubstantiated or untrue and false statements! (this is a frequently overlooked mistake)
Just open the first one if you do not have time. This Google search link to see what I mean, and it is only for one category search: https://www.google.com/#q=Inteference+with+Contracts+in+MLM+or+Direct+Sales
Here are some sample links on the extensive law and court cases favoring both sides on different issues:
http://www.mlmlegal.com/legal-cases/Herbalife_v_Ford.php
http://www.mlmlegal.com/legal-cases/Peterson_v_TheSunriderCorp.php
http://www.mlmlaw.com/saleswatch/swdownline.html
http://www.worldofdirectselling.com/making-offers-to-other-leaders/
http://documents.jdsupra.com/d18b522c-1112-4d8d-a9a1-3094c466b44e.pdf
http://sunridercase.com/mlm-legal-cases/
http://w-wlaw.com/what-can-an-mlm-company-do-when-a-former-distributor-cross-recruits/
http://prosites-watchdog3.homestead.com/mlm_lawsuits_court_cases.html
http://documents.jdsupra.com/18a8823d-5a6a-47d9-af56-cc1c2618cdf3.pdf
That is why we have distanced ourselves and have created a whole new model. Do you know WHY we’re not MLM? Oversimplified answer: (No levels, tracking system, deal directly with customers – see the Manifesto)
THE PROOF IS IN THE PUDDING! There have been 1000’s of MLM or networking start us and variations or spin offs have come and gone. 289 some tried to copy or counterfeit all or part of what we do and fail. So there is more to this than just another opportunity or a better deal. Market America and the UnFranchise is the best out there, proven, solid, the most lucrative and profitable, stable, and built on retail sales and we document and prove that every dollar of product is retailed or used by an end consumer or non participant of the program and PC’s making our system and requirements for the MPCP self reconciling and in safe harbor.
Responsibility to protect people and educate them and make sure they know what they are being influenced to join or do. Once we tell them or point them as to where to do their own due diligence—the responsibility becomes theirs.
Check the history and background of the company and principal’s executives. If you do not know how – contact us and we will provide links and references!
We always check references and network to find people who were involved and succeeded or that and we interview them. What we find is often alarming. In this case we were connected with a top earners and former Blue Diamond who is credible and provided very interesting facts that one should know. She is seeking legal advice and a remedy.
We look for important test points: Anyone considering a program or who has been contacted, influence, persuaded or is being “sold” or “pitched or recruited” owes it to themselves and their team or people they will try to involve to check points and test and research it yourself. I do not feel it is my place to comment or judge based on what we found – but anyone looking should do this on their own regardless as it is necessary to do your due diligence when committing yourself and a responsibility when potentially involving others:
Changes in compensation plan to the detriment or loss of the participant or leader.
Moved groups or organizations undermining one’s residual income.
Significant Volume declines.
Financial problems or past financial debacles of principals.
Product efficacy or ingredient discrepancies or issues.
Special deals or two sets of standards making an unequal opportunity driven by favoritism.
Serious distributor or customer claims,
Poor BBB ratings or regulatory scrutiny.
News or media or internet blogs negative information raising concern or questions
VIII). WHY PEOPLE DO THIS? This is a huge question and topic and I will do another Blog article and seminar on it.
In part, unfortunately, it is human nature. People look to rationalize and justify rather than be truthful. I have even come to learn that many people actually love a scam. Others want to be instantly successful, but do not want to make the trip to get there.
People ware out after years of inconsistent focus. I have always said that it is easier to do this faster with a bigger more consistent commitment than it is to do it slower. They are in and out of disciplined building and what they get started and growing they do not finish and it atrophies or wilts when they don’t pay attention, which would happen in any type of business. Even when some people get up to 150,000 per year (some did more than that in this scenario); they stop doing it and just collect checks and attend a meeting or two per month. They complain because their income did not grow. They are definitely not doing what they used to do and a lot of people have passed them and they are no longer as big of a deal and are embarrassed. I call these type of people “successful has-been’s” They made it at one time and are resting on their laurels and it is slipping and for some reason they expect it to increase without doing anything. I joke: “you are has been’s” but at least you ear not a “never was”. Congratulations!
The real question sometimes is: was it timing, LUCK or upline assistance, that accounts for their success in which case they should be very appreciative. The real test is if they did it once can they do it again when everything is easier and better. I would say if they can’t do it again they were just lucky and should be happy and work hard to change this.
It is human nature to have to blame a lack of progress or success on someone. Who do they choose? You have to blame it someone or something so unless they can come to grips with reality and ask for coaching, nothing will change and it results in embarrassment or denial and he or she become vulnerable. That is when stupid moves are mad or they become influenced by the wrong people who have the motive to get them into something else.
No business is exempt from this phenomenon. It is not exclusive to MA – it exists in all businesses, organizations, programs and fields of endeavor. Don’t get confused and allow people to think the business doesn’t work because they didn’t work!
Statistically there is no program where everyone excels and 100% of the people make it to the top. It is simply reality, life and reality dictate that not all people succeed or last. That has nothing to do with the quality of or how successful the enterprise is or the rest of the UFO’s overall. Do not confuse the two!
In sports it exist too and players have slumps or losing streaks. What is wrong when they blame it on the coach or team?
So I will take anyone who made it to a level of income and claims they declined or are losing income and pull the record and show that they stopped doing what they did before or in some cases actually poisoned their own group with their negative
When looking at success or failure you can not look a singled out cases without looking at the baseline or benchmarks of the overall picture and results which in this case is clearly: more UFO pin levels, more earning, higher recruiting, increased retail. Single examples do not define the trend, overall picture, reality or the truth. Do not jump to conclusions.
IX). When dealing with this phenomenon I always try to contact and meet with the person. Often they are resistant or hostile if they have breached our loyalty or have already involved and have involved others secretly in something else.
Always remember that my premise is we will always listen and evaluate anything that is legal and legitimate that can make us better so there is never a reason to leave if one wants change, or improvement. But we are smart and experienced and have a knowledgeable team of experienced professional that will vet it out. We are not going to do things that will not work, or that will self-destruct or may fail. So it always pays to talk first unless there is another ulterior self-serving motive. They did not talk. Why? The fact is that we have always gotten better and are constantly adjusting and adapting to stay ahead of the curve and to lead the parade.
If one doesn’t have anything that they claim is needed to be better: What then is the logic and rationale for their position and state of mind resulting in this type of decision? One has to blame it on something as it doesn’t make sense without blaming someone or something and we never blame ourselves!
I always ask a person in this situation: “Do you want to blame it on me?” Our egos sometimes destroy us because you have to have a healthy one and if it if doesn’t get rewarded with love or appreciation it can become a monster of your own demise. That is always fixable if they want it to be fixed by talking and partnering. What is their real intention?
More times than naught someone got their feelings hurt, their ego bruised or was embarrassed, or feels neglected or slighted and when you drill down that is the real cause resulting in irrational destructive behavior. However simply talking and involving the right people who care can fix that. Like Loren and I.
When someone is making a decision not based on sound logic and facts and truth and they can not debate it and make sense out if it – you have to protect yourself from their influence and not let them take you down with them.
I ask them: “Do you want to blame it on the business? Come on now!”
You see reality is reality and the facts speak for themselves. Are you going to point to people who have stopped doing much and expect an increased result?
A fact of life is that in anything or any field of endeavor, business opportunity, sport, discipline, company, program that not everyone lasts or succeeds! So regardless of the field of endeavor or business and there are as many reasons for ones lack of success as there are names of people! No undertaking or entity is exempt from it. This is also true for ones abundance of success or superlative unusual success. There is a reason for both.
But we measure and evaluate over the entire picture and scope of the enterprise or undertaking and look at the average, mean, the trend, as well as the circumstances. You cannot say because you had decline therefore no one makes money or you can’t make money. We can’t say that because you are not doing as well that no one is doing well. Similarly, we cannot say because one person has record growth and income that everyone is. We need to look at the person and situation and determine why and how does that compare to the average, mean and trend. We cannot allow someone to get away with erroneous statements and believe or take a position that – their situation or experience is the way it is or reality for the business. There are many variables:
They could be the exception.
The entire universe of data facts may indicate the opposite and you cannot deny reality.
It could be only people in a certain set or circumstance experience what one is claiming.
It could be something unique to them.
God forbid this one, but there could actually be something wring with them!
The fact is that the statistics, data and trends demonstrate that this situation is in the minority and is an exception and all those in this situation or mind set have some things in common
I don’t need to degrade or criticize anyone or name people but I can and will speak clearly to the issue and identify exactly what is happening and why AND it is not that the business doesn’t work or there is something better out there!
People and situations are dynamic and have their own set of action-reaction equations. People change or something sets off a chain reaction of events that causes people to make all types if moves or changes that can be poor decisions, necessary decisions or circumstance beyond their control or our understanding. Executives leave companies and change companies and are subject to vicious head hunting influences. People have skeletons in the closet that put them between a rock and hard place and they do something that only they know why but they are not going to tell us the real why. Pastors leave churches, coaches change teams, Artist change labels, people switch professions, people suddenly get divorces, and so on and so forth.
X). Understanding the bigger picture and the things that may be the cause of this type of event or one’s decline in the business and that it that it may have nothing to do with the actual stand alone Market America Business or UnFranchise business model and MPCP. But somehow it gets blamed on or connected to and confused with the business itself! This another whole discussion or seminar and is important to understand. I am going to do another leadership audio/video; seminar and blog post on it because it is that important and not very well understood.
There are three things in the life of a leader and facts of life in general that can result in a chain of events of cause an effect that are about the person or situation and not really about the business that get confused. The problem is really about the person or their situation and related matters. It is called LIFE, not Market America. It is easily confused or commingled with the business because the leader is in the business and it is a main part of their life and they are on a pedestal and very visible.
Business or politics, and unrelated aspects of the supporting functions of leadership roles in the UnFranchise System such as speaking, NMTSS, Speakers Bureau, Advisory Council.
Relationship cobwebs and ego contest that become tangled and destructive.
Personal drama, tragedies, and personal problems or events may play into these situations that have nothing to do with the actual business model or UnFranchise opportunity but affect the leader as a human being that set off a chain of events that eventually affect their performance and or decisions.
COMMENTARY: It is interesting how perception works. A person Is failing out of Harvard and they have to address it with friends and family or piers. Immediately the perception is that there is something wrong with the person and they couldn’t make it and they cut it and failed. Harvard didn’t fail and there is nothing wrong with Harvard as it is proven. A basketball player gets a chance to play North Carolina State (or Duke) and gets a contingent scholarship If they make the team. They get cut in tryouts because they do not play well. Something is wrong with the player and they were just not good enough and didn’t make the cut and didn’t make it. The basketball team and program are not questioned—the person is –they just didn’t make it. A law student graduated from law school and doesn’t pass the Bar exam. The school or the law boards, or the Law profession is not up for question but the person is. Why is it then when someone doesn’t perform in a proven model with MA’s success and 1000’s of examples to prove over 23 years, the proven company (like Harvard) is questioned and not the person or individual failing? That person didn’t make the cut or perform and are the one that is the looser as the Company and opportunity or program is proven and has tens of thousands that are making it or made it. When I hear people who say I was with that company (MA- or their ”former” company) and made it to a certain UFO level and residual income level and my income started to decline and I had to find something else”, what does it say. The fact is they are the exception to the norm and majority. It says that the program WORKED and they failed or are failing now and they are they problem. When a newer UFO or level of around Professional to National say:- “I was with that MA program and just for some reason couldn’t make enough money”, what are they saying? They have not made it with the competitive company either and probably won’t, but it really says that they failed and didn’t make the cut and are not that good—and they are the failure—not Market America. This practice is used to influence or dissuade people and is incredulous that people even listen to it. JR
THE POINT & PERSONAL POINT OF VIEW: I have been in this type of business most of my adult life and you won’t believe the countless stories, incidents and situations or things that go on that we hear and deal with every month and they never end. Often they are bazaar, unfortunate, and mind-boggling. We are in a people business and the business is like a family on one end of the spectrum and like a community or society on the other end of the spectrum. You could make a soap opera, TV series or movie series out of it for sure and it never ends. The Market America world with hundreds of thousands of UFO’s is a reflection and microcosm of the world and life. Anything that goes on in the world also goes on in the MA community. The UFO who is successful becomes branded as a Market America role model and is often perceived synonymously as the business. However what they do right or wrong does not mean that is about Market America. It is about life and them. There is a difference between an individual human being that is a Market America UFO or a star and Market America and the UnFranchise concept that makes up the company and everyone in it. In reality you have two things at work here that are difficult to separate: 1) because each UFO has their own business and they become the image of business to people and their group. That is Market America to the people connected to them, 2) the actual company itself as a business entity and leadership of the company and the UnFranchise concept with the field as a whole under our leadership. If one fails or does something it doesn’t necessarily mean something is wrong with the other, but it often explains why things happen. We do not broadcast them or tell you or the world about them unless it becomes destructive and affects other peoples businesses. Occasionally chains of events in one’s life become complicated and their role as a leader may also get caught up in conflicts, economic disputes over people, speaking, events or politics OR they may make mistakes, get in trouble legally or financially in things unrelated to the actual MPCP marketing business that affects their business and role in the business, Although they had a successful business at one time, they sometimes stop doing what they use to do, get negative, or are between a rock and a hard place and desperately do something that does affect the business adversely and their organization. However the bottom line is the cause of that was about them and people and not the opportunity and business model or Market America.
Brief Discussion and overview of the three factors. (Refer to Appendix at bottom of this for short additional explanation if needed). I will discuss in depth in another article and training
Business or politics, and unrelated aspects of the supporting functions of leadership roles in the UnFranchise System such as speaking, NMTSS, Speakers Bureau, Advisory Council.
Relationship cobwebs and ego contest that become tangled and destructive. The same thing happens in school, on people’s jobs or at work, and it happens in social circles and we are not immune to it.
Personal drama, tragedies, and personal problems or events (whether it be their fault and doing or totally legitimate and understandable) may play into these situations that have nothing to do with the actual business model or UnFranchise opportunity but affects the leader as a human being that set off a chain of events that eventually affect their performance and or decisions.
When you get a combination of these three factors in play – the probability of an event like this increases dramatically and it is very likely there will be a UFO “star” or once growing UFO experience a downturn or decline in income. The point is that it is about PEOPLE and not the business model or the Market America UnFranchise opportunity is the problem or the cause. Do not confuse the down fall or defection of a UFO star or anyone was growing as an indication that the business doesn’t work or there is something better out there. Most likely they will try to blame it in the business – but it just isn’t true. When it turns into a competitive raid is when we must take action together to protect everyone’s businesses.
Negative influences from people surrounds themselves with or hangs out with that affects their belief and attitude. Sometimes these relationships are stronger than the relationship with the company or senior partners that may live far away and it is somewhat embarrassing to see, visit, or communicate with them if one’s performance has slipped. Misery loves company and people with different or subversive motives or interest do not want you to succeed and want to influence in a way they can take advantage of the unstable or problem riddled person. Be careful the company one keeps or your people keep. Hanging with the wrong people produces the wring result. We either lead or are can are legitimate reasons for being off course such as family problems, marital problems, financial problems, accidents, health problems, loss of job, deaths in family, etc. It can be as simple as being distracted and was absorbed by something else that takes their focus and attention away. When they are in the spot light and people know they are not performing and it is visible it results in defensiveness, embarrassment, denial, frustration, or rebellion. They need to rationalize it and if they are worn out they may do irrational things or self-destruct. I never want this to happen but it also is not my fault, your fault or the company’s fault. It can happens to the best of us. When someone self-destructs and was in the spotlight or position of leadership, it becomes visible and people question it. But whether it is related to a sports team, Job, school, church, marriage, or Market America it doesn’t mean the business or entity they belonged to is at fault. It just may be the reality of the situation for the individual. I always try to spot this and reach out and guide them out of this but we can not read minds to mitigate any situation we do not know about.
XI) There is