Monday, November 5, 2012

Visalus Terminates 80 Promoters

Visalus Sciences, the Challenge Company, has terminated at least 80 of their Promoters (those who are building a Visalus business), reportedly a number of them were top leaders. As a long-time leader in the network marketing industry, I wondered why a popular company like Visalus would terminate so many people in one shot. My research unveiled that their policies and procedures clearly say that a Promoter may not be involved in promoting another MLM business (which is interpreted by the company as any plan that pays more than a single level). Those terminated were working programs like My Lead System Pro and Empower Network, which are marketed as MLM lead systems, but also have a compensation plan. Some of those terminated were top income earners in both Visalus and in the other companies.
This has been an ongoing struggle in the industry. There are some companies, like Visalus, that are very strict with their policy about working other businesses that are similar to MLM. In my opinion, those marketing network marketing/MLM businesses are independent contractors and as long as they are not cross recruiting (trying to get people from their primary company - i.e. Visalus, in this case) into another MLM company, they should not be penalized. I certainly understand why a network marketing company like Visalus would not want their leaders cross promoting, but have a hard time understanding why they would not allow their Promoters to be involved in programs that do generate leads and help people build that primary business. My opinion is that it's too heavy handed and will probably result in some lawsuits.
Personally, I think the best network marketing companies are those who have founders so confident in their business that they aren't heavy handed with those peple who are building their business. Top leaders, in any network marketing business, are entrepreneurial at heart and the more freedom they are given (within reason), the better they will produce.
The lesson to be learned here is that if you are with a network marketing company, read your policies and procedures before you involve yourself in any of the "lead generation" or "funded business proposal" systems. If you are with a "heavy handed" company, you'll have to decide whether to continue with that company or find one of the more confident companies that hold those who are building a business more loosely. Personally, that's my choice.