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Master Distributors

March 24, 2010

The MLM Attorney, former legal counsel to TEAM, recently wrote a post about the use of acquiring Master Distributors to jumpstart a new MLM. A Master Distributor is a prominent distributor one MLM who is enticed or recruited to join and bring his or her entire group over to another MLM. This MLM could either be a fledgling company or an existing one.

We’ve seen this happen a number of times in the past year. Randy Schroeder left Agel to join MonaVie, although he eventually “resigned” his Black Diamond distributorship to become the International Master Distributor and Trainer for the company. Robert Dean left Tahitian Noni Juice to join MonaVie, only to leave six months later for miracle water Evolv. Several MonaVie distributors left Kelly Bangert’s organization to hawk Xowii. Who can forget Brig and Lita Hart, who brought a sizable portion of their Amway group into MonaVie in the early days. Finally, who knows what Dallin Larsen said to Orrin Woodward to convince the Supreme TEAM Leader to give up — temporarily, of course — his dream of becoming the Walmart of the Internet in order to sell $40/bottle juice concentrate?

What these Master Distributors are selling is not Product A, B or C. They are selling themselves and creating a cult of personality. People join their organization because these people will lead them to the promised land. If the leader says, “We’re switching to Company B because it has a better product and compensation plan!” their many of their indoctrinated flock will follow. Master Distributors are skilled at using their System to control their downline into doing whatever they want. As Kevin points out in his article, some MLM companies are wary about recruiting these distributors; after all, they might stab them in the back in the future! These companies have to remember that the downline are faithful to the Master Distributor, not to their products.

On the matter of disclosing any financial agreement between a Master Distributor and his or her new company, I agree with Kevin. After all, if they are doing sooo well in their respective MLMs, why would they leave? There has to be a reason why they were looking for other opportunities, and disclosure is the best policy. Saying, “Company B is better!” isn’t enough when it’s evident that money was exchanged under the table.

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2 Comments leave one →
  1. Candace permalink
    March 27, 2010 8:44 am

    Spot on, Amthrax.

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