Contractual restrictions
Posted: Wed Apr 23, 2025 6:04 am
It is hopeless to find an MLM system that does not have some contractual provision that limits the ability of its distributors to recruit fellow distributors to other companies.
There are two fundamentally different policies:
- prohibiting the use of downline lists or "genealogy" reports viber data as a recruiting tool for another company;
- prohibiting recruiting to another MLM.
There are several approaches to implementing the second type of policy. Some policies allow a distributor to recruit directly sponsored distributors to other programs, while other policies prohibit recruiting any distributors at all. Some companies take an even more rigid stance and prohibit distributors who have reached a certain rank from participating in other programs.
While some policies are more common than others, it is important to remember that companies develop policies based on their specific programs and corporate philosophies and that there is no industry standard on this issue.
There are two fundamentally different policies:
- prohibiting the use of downline lists or "genealogy" reports viber data as a recruiting tool for another company;
- prohibiting recruiting to another MLM.
There are several approaches to implementing the second type of policy. Some policies allow a distributor to recruit directly sponsored distributors to other programs, while other policies prohibit recruiting any distributors at all. Some companies take an even more rigid stance and prohibit distributors who have reached a certain rank from participating in other programs.
While some policies are more common than others, it is important to remember that companies develop policies based on their specific programs and corporate philosophies and that there is no industry standard on this issue.