MLM Cross Recruiting

MLM Cross Recruiting

"Daily Routine For Network Marketing"

Ron Training at Industry Event

What do you you when your team is being cross recruited? Have you ever been the victim of a cross recruiting merge in network marketing?  Do you know what one the big illegal activities is in MLM that can cause a tremendous amount of damage!? Not sure what cross recruiting is?  In today’s post I’m going to share what “Cross Recruiting,” is and how you can protect yourself and your team from this highly unethical but common occurrence in our industry.  Be sure to leave a comment below to share you opinion on this controversial subject…

What is MLM Cross Recruiting

I am not an attorney and this post should not be considered legal advice, but this is my understanding on the subject.  Cross recruiting in a network marketing company is an illegal an unethical activity that occurs when a distributor uses contacts that he or she develops while working at one MLM company to solicit distributors to join a competing company.  The Uniform Trade Secrets Act prohibits this kind of activity but it still doesn’t stop it from happening. There are some exceptions to this rule.  Here is what I have learned from

“Distributors may usually solicit personal recruits.

This is because a personal recruit’s identity is not a trade secret belonging to the MLM company.

For example, if Amy is a distributor of XYZ Company, and she knows Betty from her church group, and she recruits Betty to join XYZ Company as a distributor, then Betty is a personal recruit.

If Amy leaves XYZ Company and becomes a distributor for Acme Company then she can solicit Betty to join this new opportunity with her.

However, if Betty recruits her cousin Charlie to join XYZ Company, and Betty introduces Charlie to Amy in connection with XYZ Company, then Amy cannot recruit Charlie to join Acme Company because Charlie is not a personal recruit of Amy’s.

That said, if Amy recruits Betty to join Acme Company then Betty can solicit Charlie to also join this new opportunity because Charlie is a personal recruit of Betty’s.” 

Cross Recruiting network marketing gets really ugly and messy fast.  The key is this, if you are making a move to a new company I would let my personal reps know that I am moving and only my personals.  However, to be safe I would not solicit anyone from my existing company.  For me this is a legal, ethical, and financial issue.  Legal because of multiple laws opposing the practice and unfortunately a lot of gray areas in the laws and downline genealogy arguments and trade secrets arguments.  Ethical because it takes a tremendous amount of effort and time to build any network marketing company and for someone else to come along and entice your team of distributors you have poured your best into to move to another company and leave you is just wrong, I call those recruiters “Vultures.” Financial because when a team of distributors move you as a sponsor and your upline are greatly effected financially.  This year I had 2 teams in my MLM downline get cross recruited, 1 team just moved to another sponsor in the same company! So how did I and how should you handle this kind of activity? Watch the video below to learn how I handled this twice this year…

How To Handle Cross Recruiting

The typical reaction is anger, offense, and other negative emotions that take your power and peace away from you.  I absolutely experienced all of those and even had upline members contact corporate and play that battle as well.  Here is how I handled cross recruiting several times this year in my business…

How to consistently recruit leaders in your business:

How To Protect Against Cross Recruiting

Your going to love step #3…

I’ve been in the industry since 2009 and at some point you and members of your downline will be approached by vultures and the cross recruiting attempt shows up.  The reality is that you can not and should not ever control people.  No one likes to be controlled but they do like to be lead by a strong leader.  Here are 3 Steps to fix and prevent mlm cross recruiting.

Step 1 – From the very beginning be focused on getting your reps results and having a great relationship with you.  When someone starts immediately show them what actions to take as fast as possible.

Step 2 – Develop a “small team Big love” culture that bonds you as a team together.  This is done by regular get-togethers, team calls, team contests, team incentive trips (yes even not sponsored by the company) and team parties, hangouts, and of course online marketing like Facebook groups and live webinar/hangouts. Always be acknowledging others and their achievements.  Create an environment where people are celebrated, not tolerated.  I personally believe you must genuinely care for and love people and be in this industry to serve them and not yourself.

Step 3 – Always be recruiting and developing new leaders.  The reality is that you will always have team members and leaders come and go. Cross recruiting while unethical and illegal is going to happen and people will get away with it.  Your best protection is not to maintain, squeeze, or manage your existing team but to lead by example and go recruit more distributors and develop more leaders.  You payoff is to help people change and build their lives; the income that comes along with MLM is a great bi-product of excellent leadership, recruiting, and selling product.  To hear more of my thoughts on how to fix cross recruiting watch the video above.

Have you ever had an experience with cross recruiting? It was painful for me, share your story in the comments below! Would love to hear a victory story…

Empowering You To Prosper,



Would You Like To Learn How To Recruit More Leaders? – Watch my Free Training on Sponsoring Leaders Here




p.s. Are you open to creating a Christ Centered Business?Click Here For a Free Strategy Call

About The Author

Ron Gelok

I'm a full time home based business entrepreneur. I love to meet cool people, God, Love to skateboard, go fishing, and water sports. Traveling is what I'm into and loving life. I'm here to empower ordinary people to do extraordinary things. The entrepreneurial gene runs deep inside me. I believe in abundance and taking control of my life and future.

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