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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 1611
Experience:  Run my own successful business/contract law practice.
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I'm a distributor/independent business owner for an MLM

Customer Question

I'm a distributor/independent business owner for an MLM company. Another distributor who brings in the big bucks is accusing me of deliberately recruiting their customers. I advertise online and orders go through a website. I have no control over who decides to order from me. The VP of sales just called me (being pressured by the big earners, no doubt) and subtly "threatened" a loss of commission if I sign up a customer already buying from my competitor. Again, I have no way of knowing that information. And even if I could magically know this, isn't it a free market out there where consumers can choose who they want to do business with? I'm a one-man show and don't have the pull with the company this other distributor does (whose ethics violations are winked at). I don't want to lose my commissions but I also don't want to give each and every customer the "third degree" to find out if they are purchasing from my "competitor" . This seems so insane to me, and business is just starting to take off. I can't help but wonder if this other distributor is deliberately harassing me and trying to put out of business just because of greed and pride. It wouldn't be the first time they have done it. I need help fast as I have another phone call tomorrow with VP of sales and I'm very upset about this.How can I defend myself and my business against such insanity. BTW I absolutely love the product I'm selling and would never want to be without it, but the company is giving itself a black eye with the way they are "managing" distributors and sales.
Submitted: 11 months ago.
Category: Business Law
Expert:  MDLaw replied 11 months ago.

Hello and thank you for using the Just Answer website, PJ. Please keep in mind that we cannot give you legal advice but we can give you legal information. I would need to know what your contract and policies and terms are with this company in order to be able to inform you as to whether or not the company has a leg to stand on in terms of losing your commission.