By Donna Marie Serritella, Direct Selling Solutions
Would you rather go to the dentist, or set up your direct selling company’s Compliance Department? Whether you would prefer to go to the dentist or not, this article is for you!
There are many reasons why your network marketing, party plan, or social selling company needs to have a Compliance Department. In this article, I will share eight of them with you.
To Protect Everyone
Having an active Compliance Department for your direct selling company provides protection for the customer, the independent distributors, the company, the brand, the products, and the general public.
To Uphold Policies
A network marketing, party plan, or social selling company must uphold its Policies & Procedures consistently and professionally.
The recorded history of enforcement is very reassuring and professionally necessary for any direct selling company.
To Reduce Time And Stress
Owners and corporate staff, even independent representatives, can spend an inordinate amount of time addressing issues.
It is NOT the role of the owner or independent representative to operate your Compliance Department, because each may be tempted to make exceptions and thus not follow your company’s rules.
An objective party needs to run your Compliance Department properly and efficiently, updating the staff and field leaders regularly.
To Monitor Field for Compliance
Your company must provide ongoing monitoring processes of the field and events. You must inspect what is expected. Monitoring efforts include providing an avenue for submission of potential violations.
To Establish and Enforce Sanctions
A comprehensive set of protocols are established to hold representatives accountable. The process should include a courtesy call, then a written warning, then a suspension, and at last resort, a termination. Each company can establish its sanctions based on its culture and its attorney’s advice.
To Provide A Process For Escalation
Your Compliance Department must be the one and only escalation process with enforceable consequences. Owners cannot perform these duties efficiently and without creating personality issues in the field.
Virtual compliance training is becoming increasingly popular among regulators. Bite-sized bits of compliance education are key. Some companies elect to provide a customized Compliance Training Course for their sales force. Many require the successful completion of the course to be activated as a representative.
To Prepare And Maintain Compliance Documentation
In the case of a Compliance Audit by a regulator, preparation is key. Your Compliance Department must keep accurate documentation so that it can be easily retrieved and provide evidence of an active working Compliance Department.
You know that going to the dentist, while perhaps a little painful, is good for your health. Similarly, setting up a working Compliance Department is essential to the health of your direct selling company.
To learn more about compliance, I invite you to meet me at the next Direct Selling Edge Conference, where I present a class on how to set up and operate a Compliance Department.