What Is Cross Recruiting In MLM?
Is your MLM threatned by a former distributor who is continually cross recruiting from your downline team?
How well do you know your IBO contract agreement?
Perhaps you been a victim of cross recruiting and don’t realize what is going on or what to do?
Crucial information inside…
There are so many great rewards that people get from working as a distributor in the MLM, Network Marketing, and Direct Sales industry. Stories of success by average people who came from nothing who ended up working hard in the trenches as independent business owners to earning thousands upon thousands of dollars a month replacing their full time income.
But what you really hear more about are theÂ bad rumors of how these top MLM leaders were taken to court and found guilty of cross-recruiting so they could get to their level of success.
This unethical strategy of building downlines as a faster way to reach residual income is prohibited in the MLM industry yet many unreported Network Marketers are still practicing it today.
If you haven’t heard about cross-recruiting and are currently a Network Marketer involved in a home based business then listen carefully to why you should NOT be relying on this recruiting form.
What Is Cross Recruiting In MLM | Bad Sportsmanship
What you need to know is that cross-recruiting is really by law illegal.
By definition according to one well respected MLM attorneys Wellman & Warren cross-recruiting occurs when a distributor uses contacts that he or she develops while working at one MLM company to solicit distributors to join a competing company.
When a independent distributor of a Network Marketing company decides to jump from one company to another and begin influencing a large number of the previous company members and customers into their own new MLM opportunity this is considered “Cross-Recruiting”.
So if your using an approach for example like:
“Hey so and soÂ I can help you way better than your sponsor can, it is best for you to switch sponsors and join my team under your spouse’s name until your current distributorship wears out.”
You know both you and themÂ are going to be held responsible for it by the company.
What can happen next is the consequences of cross-recruiting are severe and if found guilty you can be sued by the company you are involved in for what is called, “Breach of Contract”.
Sometimes it’s a case where everyone involved will plead plausible deniability and still go through it because the team all want to win and make money.
Let me paint this picture for you as to how it goes down behind the curtain.
Let us say that you are a leader that has the ability to bring into your current MLM team about 4,000 people and each of them already agreed to purchase about $150.00 in autoship. Â Now what happens is that revenue in sales immediately becomes an accumulation of earning mathematically speaking
4,000 X $150.00 = $600,000 X 12 Months (1 yr) = $7,200,000.00
Now do you consider that fair and ethical compared to the average distributor of what they can do within the program? Â B.S! I don’t think so.
But you know what that is how the top leaders are doing it, this is how some of them not all of them but the ones that do play dirty are earning the larger commissions and no one is going to tell you because they have been sworn to keep it silent or they are afraid to speak up about it.
And you probably can tell who is shady and who has integrity just by the way they market themselves.
This is really a bad form of sportsmanship when it comes to building a business in this niche.
What Is Cross Recruiting In MLM |Â Playing Dirty MLM Tactics
One of the sneaky little dirty MLM tactics of cross recruiting involve:
- Getting involved in another team within the same company under a fake name
- Using their spouses name and social security number without consent of the person.
- Using the name of their child or children to purchase empty positions within the matrix.
- Placing volume points under another distributor and vice versa for themselves so they can climb up the ranks faster.
- Bridge a top leader in another MLM competing company under a false non-disclosure agreement in exchange for cash and volume by the numbers.
Oh as I said it get’s dirtier but you must know this part of the history of the Network Marketing industry if you plan to continue to build a business.
What Is Cross Recruiting In MLM | Conclusion
When it comes to marketing in the Network Marketing industry this is almost compared to running a race. You will have rules to follow and if you break the rules then you have to face the consequences.
I have read reports and witnessed so many incidents where cross-recruiting was used as a “DIRTY” MLM strategy to grow large teams unfairly.
Meanwhile, there are many hard working and good hearted distributors who want that shot at success who runs this race fair and square who get hurt.
If you are not getting any support from your own sponsor or upline there are much better ways to handle this before searching for another sideline member who is having success to become your sponsor.
There has to be a common ground here where you and your sponsor or upline in your company discuss how you feel about the type of support you were promised when you signed up with them.
Most Network Marketing companies have a disclosure within the contract that stipulates that if you are unsatisfied with the sponsor you have then you can cancel your distributorship and wait at least six months before signing up under a new sponsor.
This is the most ethical way to do switch sponsors and upline so that it covers you and your company.
Now if the case is where you are in multiple MLM business opportunities be sure to re-read your contract because somewhere along the policy agreement it states that you can or can’t be involved in multiple businesses especially if they are the same niche.
For example you can be in MLM A that is a skin care company and also has a dual distributorship with a competing MLM B that markets and sells their own Brand X skin care products.
The same goes for you if you are bribing with incentives and monetary compensation to a member in another sales team organization within the same company and you try to pay them a “Bridge” to come into your own team in the same company.
It’s not worth it because in the end everyone including you will get financially hurt so we strongly advise to be aware of cross-recruiting practices and report them immediately to the company.
Now if you are not happy with your current MLM opportunity it is your right to switch companies and doesn’t violate any laws because you are free now to change business opportunities, just that you aren’t allowed to market your new opportunity to the very people of the company you just left.
Is this helping you and starting to make sense?
It’s no wonder MLM has a bad rap sometimes because of dirty tricks like the ones demonstratedÂ puts a bad taste in potential customers mouths.
Do you feel cross-recruiting is fair game or not when it comes to building a business in the Network Marketing industry? Leave your comments below and share your personal experience with cross-recruiting we love to hear from you.
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Your friends and mentors,
Ace & Rich Guzman