It is not so uncommon in our industry to see attempts to attract successful leaders from other organizations. We see such attempts from new companies as well as established ones. And depending on the side taken, industry players can either be very sensitive or not sensitive at all about this issue.
I think we can all agree on one thing: If we believe in free competition, we should also accept that everybody is free to offer a business opportunity to others. This also holds true for those successful leaders in competing organizations.
The important element here is that this attempt should stay at an individual level but should not take the form of a destructive “raid” against an organization or a company. While the first is totally legitimate to me, the second is definitely not as it not only damages a company but in fact, damages the whole industry.
When I was the Country Manager at Oriflame, the first international network marketing company in Turkey, we had to deal with leaders from the international that followed Oriflame into the market. Not too many left our organization at that time, but the created confusion on the field was enough of a problem.
Coming back to the discussion, to me, there is nothing wrong if a field leader from “Company A” tries to convince another person from “Company B” that “A’s” is a way better business. What is wrong is, “Company A” and its leaders to attack “Company B” in a systematic way.
U.S. Direct Selling Association names the second type of activity “proselyting” and defines it as “An improper practice when Company A, or its representatives, specifically and consciously targets the sales force of Company B with the intent of persuading Company B’s salespersons or employees not only to sell or work for Company A, but also to cease selling or working for Company B, thereby interfering with Company B’s business or contractual relations.”
Usually, these attempts to recruit people from other organizations are accompanied by “sweeteners”. So, the special deals being offered to attract leaders is totally a valid point of discussion, too. You might want to read what MLM attorney Kevin Thompson has to say about this.
Please feel free if you wish to comment on all this.
Nick Mallett says
Be aware that in the UK and other common law jurisdictions, for a DSO to approach another DSO’s direct seller might constitute the tort of inducing a breach of contract, and therefore be actionable by one DSO against the other. Additionally, the direct seller may well be subject to effective restrictive covenants, limiting her freedom to change to another DSO. This is all very tricky water to navigate; expert counsel is essential.