Policies and Procedures: Sale or Inheritance of an Independent Representative’s Business

November 28, 2023 By admin Leave a Comment

Introduction

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.

In this post, we will tackle one of the Policies and Procedures topics. That topic is “Sale or Inheritance”.

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 always 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.

Does your company permits its reps to sell their businesses? If so, do your Policies and Procedures make it difficult or easy to conclude a sale?

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 salability of the business.

How does your company address this issue in its Policies and Procedures? Feel free to comment below.

Need Help?

For help tackling this important issue and other Policies and Procedures issues for your company, contact us at Sylvina Consulting at 503.244.8787.

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.

Jay Leisner and Victoria Dohr authored the top-rated book for new and young network marketing, referral marketing, and party plan companies, "Start Here: The Guide to Building and Growing Your Direct Selling Company".

Available in English and Spanish. This startup guide contains 250 pages of wisdom that will guide you through the right steps to start and continue on your journey to build a successful direct selling company.

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In 1986, Jay began his career in direct selling by working for a major direct selling software provider. First as a software developer and later as a project leader and a business analyst, Jay worked closely with new and established network marketing and party direct selling companies to provide them with software solutions to meet their unique requirements.

Jay contributed in many ways to the success of large implementation projects for many companies. Jay also worked with dozens of smaller companies to assist each of them in various capacities to provide them with the systems they needed to help their businesses to grow faster.

Along the way while working with them, he learned the secrets of successful direct selling companies and the challenges faced by them. In true entrepreneurial spirit, Jay’s decision in 1999 to start Sylvina Consulting as a direct selling consulting company was driven by what he saw was a need for answers, advice, and solutions.

In 2004, 2006, 2009, 2014, and 2018, Jay gave presentations on compensation plans, recognition, and field leadership development at conferences held by the US Direct Selling Association.

He traveled to South Africa in 2015, 2016, and 2017 to conduct workshops on compensation plan design and recognition programs for member companies of the South African Direct Selling Association.

In 2017, Jay spoke at the Canadian Direct Sellers Association Meeting on the importance of recognition.

More than just a compensation plan expert, Jay is exceptionally skilled at advising new and established companies on business strategies. Before offering advice or solutions, he asks important questions to understand each client’s specific concerns and goals.

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