Policies and Procedures are the rules that govern the relationship between a direct selling company and its independent representatives. When fully completed, they comprise about 60 different topics. Needless to say, this relationship is complicated!
In this video, we will tackle one Policies and Procedures topic. That topic is “Sponsor Changes.”
P&P: Sale Or Inheritance Of An Independent Representative’s Business
Sale or Inheritance
Most businesses with revenue streams (and some without) can be sold as long as the business can be operated by someone other than the current owner. This isn’t the case with the sales of businesses of independent direct selling representatives.
Not all direct selling companies permit their independent representatives to sell or bequeath their businesses. Interestingly, many that technically do permit their reps to sell their businesses impose conditions on the sales, some of which effectively render the salability extremely unlikely.
Two Issues
Whether a company offers its distributors the ability to sell, transfer, or inherit a distributorship, I believe, is based on two primary considerations, the first of which is whether the company believes another person can step into the shoes of a distributor or consultant and operate that person’s business successfully.
The second consideration is the company’s perspective on the importance of the saleability of the business.
How does your company address this issue in its Policies and Procedures?
Need Help?
For help tackling this issue or other important policies for your company, contact us at Sylvina Consulting.
Jay Leisner, the President of Sylvina Consulting, is a top compensation plan and direct selling expert, a trusted adviser to new and established network marketing and party plan companies. For more than 30 years, Jay has enjoyed assessing and improving network marketing, party plan and referral marketing companies across the globe.
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