The distributor who is recruiting for another company believes

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mehadihasan123456
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Joined: Sat Dec 21, 2024 3:24 am

The distributor who is recruiting for another company believes

Post by mehadihasan123456 »

Passions are running high, and everyone has reasons for taking a position. that the laws of competition give him the right to recruit whomever he wants, whenever he wants, to the company he wants. He intends to exercise this right, since the company is getting too much of the common pie as it is, and it is imposing unreasonable restrictions on him. On the other hand, the distributors up the line, who have worked long and hard to build up their lines of distributors, will not let you go without a fight. They cry out to the company to protect the fruits of their labor. Finally, on the third side, there is the company itself, from which the distributors are being stolen. It is not easy for a company to believe that a distributor it has paid so well and done so much for has the audacity to screw it. Add to the mix a number of libelous and malicious statements from all parties involved, a large number of rumors, the occasional threat of physical violence, and line data you have a recipe for a foolish lawsuit.

For both the MLM company and the distributors, the problem of marauding relates to those provisions in the distributor agreement, policies, and procedures that place restrictions on the ability of distributors to recruit for other MLM companies. Restrictions range from prohibiting the use of distributor lists as a recruiting tool to completely prohibiting participation in other MLM systems. In addition, a company has common law grounds for suing to protect its inventory from unfair competition.

Distributors who are sued respond by claiming that the rules are unreasonable in restraining trade. They argue that they are independent contractors and that the company has no right to impose anti-competitive agreements on them.
Marauding, however, is not limited to distributors. At times, the industry has seen cases in which executives at one company encourage their distributors to recruit distributors from another company. MLM companies that are members of the Direct Selling Association (DSA) have attempted to address this issue through the DSA's "proselytizing" directive.
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