Never Put Yourself Into Your Company’s Genealogy

Most of the articles I have written over the last 28 years while working with network marketing and party plan direct selling companies haven’t been controversial. This is NOT one of them.

The Issue

Several times each year, we learn that a client of ours or a prospective client is planning to (or already has) inserted the owners at the top of their genealogy.

Usually, they were previously independent representatives of other companies, so they are used to being in the genealogy. It feels natural and right to be in their own genealogy. It might even feel exciting to “double-dip” by earning money as a representative in their own sales force while being compensated as an owner with the company’s profits.

What About Employees?

Should you permit employees of your company to participate as independent representatives?  My answer is a firm NO.  See below for the reasons why not.

Tell or Not

If you put yourself into your company’s genealogy, you will need to decide whether to do it secretly or overtly. Either way, this is a bad practice. If you are an owner (or an employee) and you are in your own company’s genealogy now or you’re thinking about inserting yourself, you need to know the consequences of your actions.

The Problems

One of the things I really like about multilevel income opportunities is that they are equal opportunity programs. Everyone has the opportunity to be successful. All direct selling companies say this over and over, and many of our independent representatives believe the dream is real and tell others all about it. This is a promise. Everyone has an equal shot at success. It’s the American way.

No independent representative should have the ability to view all of the information of all of your independent reps.  When your employees are independent representatives, they violate the expected privacy of every other representative.

Secret #16 in my article 20 Secrets of Successful Direct Selling Companies is “Keep Your Promises.”  If you place yourself into the company genealogy and hide this fact by enrolling a business entity that no one knows is really you, you aren’t keeping your promise.

You know in your heart that secrets are never kept secret. They get out, usually at inopportune times. Most often, this kind of secret is revealed to an independent representative by a company employee who knows the identity of ABC Ltd. and then shares it with others. It’s good gossip!

If you don’t want the shame you will feel when your sales force learns you were hiding in the genealogy, don’t hide there.

Are you thinking that overtly placing yourself in the genealogy is then a good decision? If you are thinking this, you’re wrong.

This is what happens when your sales force hears you are in the genealogy just like them:

1. They believe the compensation plan was written to enrich the owner, not them. As a result, they don’t trust you and the compensation plan.
2. They believe that you and your employees who are independent representatives have an unfair advantage because you have access to all of the information about all of the other representatives. No one else has this knowledge. It’s not fair!
3. When you have a contest, the company or an employee may appear as a winner. This is madness and it’s not right!

Lesson Learned

Don’t put yourself or any of your employees into your genealogy. If you’ve already done it, get yourself or your employees out of there as quickly as possible.

Agree or disagree? Feel free to comment below.