Business Ethics in Network Marketing Business
If business ethics is an issue in ANY industry it would be the network marketing business industry. And ESPECIALLY so in the mlm industry.
Part of the reason that mlm or multi level marketing has left a bad taste in the mouth of so many folks is because of bad business ethics. The primary goal> of ANY business, whether it's a regular brick and mortar business or an MLM company is to make a profit.
However, if in making that profit it affects the independent reps negatively then it is HIGH time to take a look at your company's business ethics. It may involve paying less commission or having the company put a stop on making certain products....OR what about just being honest!
If The "higher ups" have to make decisions on the side or change the accounting books to make things seem to appear a certain way, that is reason for caution in my opinion.
Remember the story about Enron? Eventually the business will falter under bad decision making.
That's why legitimate companies follow business ethics because the consequences of not being ethical can lead to them losing a license reputation or have very high fines. They may even go bankrupt....and many mlm companies HAVE gone bankrupt because of bad network marketing ethics.
A HUGE issue with MLM business ethics is the number of MLM representatives that are trusted to tell the truth when representing the company.
Unfortunately there will always be a rep somewhere that will slip a 'little lie" in their representation.
This is done for several reasons... sometimes because of greed for the money and reputation... but I think most of the time it is out of desperation.
When prospects are given an mlm presentation most are sold on the financial freedom aspect of the business, which is not all bad. There is a lot of truth to the saying that people follow YOU and not your product... however, there is something to be said about the mlm representative that is honest and caring enough to warn their prospects that this may take some time and effort!
It pays in the long run to be honest and have integrity. You'll build a strong reputation , a strong loyal team and reputable business. I have heard of strong team leaders that took their entire teams with them to another mlm company when the one they were with started practicing bad network marketing ethics.
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