WAHM Forums

Hi Everyone,


I like to educate myself about the compensation plans offered by various companies. Of course I'm partial to the plan offered by the company I represent smileys/smiley1.gif, but so far what I've observed is that every plan has its merits. However, I just encountered a company whose plan totally shocked me. I'm wondering if any of you have ever heard of anything like this. This company (which shall remain nameless because I do not wish to publicly "bad mouth" any particular company) sets certain performance goals for new consultants. That in and of itself is certainly not unusual; however the part that SHOCKED me is that if the new consultants do not meet those performance goals, they are contractually required to not only pay the difference between the kit cost and the retail value of the items contained within the kit, but they are also obligated to pay ADDITIONAL fines and penalties. Am I totally off-base here, or does that seem unethical to y'all, too? I'm interested in hearing your thoughts on this...


Blessings,


Christy

I don't beieve the company could legally enforce "fines and penalties", and
anyone foolish enough to sign such a ludricous document needs their head
examined.Now let me tell you how I REALLY feel! LOL!!

I quit a jewelry company because of such a ridiculous policy, that I did not
know about until after I received my manual. Fool me once, shame on you.
Fool me twice, shame on me....

Nondy

I believe it's terrible but that's why everyone should read the contracts before they sign on. If something is stated after the fact but not in that contract that was signed that's not legally binding I wouldn't think. Of course, I don't know everything either so it could be. Who knows.

Sounds like they try to motivate you to get going right from the start. Some people need that because I have signed up many who have not done a thing. Our Compensation Plan is really very rewarding.

It definitely sounds wrong and not DSA friendly. I did a bunch of research to keep current with where my past company's plan stood in the industryand never found that particular type of restriction/consequence. Good find!


Christine

Hey Christy!


I don't think you're off base at all! I wouldn't be comfortable with a plan like that either!

I can see charging the retail difference if they don’t make the requirements, but I can not see charging additional fees or penalties. smileys/smiley11.gifThat is why you need to read a contract before you sign!!Edited by: cinnamonmomof3

That sounds like a company I know of,I don't think that I would want to join a company with those types of restrictions/policies!There are people that enjoy that type of buisness to keep them working I guess.smileys/smiley5.gif

I know I would not join anything like that - I'm in my own business and I like that - setting my own goals - that feels like working for an employer - in corporate sales -


No thanks - I'm grateful for the flexibility I have - whew !!


Meg

You said it,Meg!We are in buisness for ourselves,you are right that would feel too much like working for an employer,I like my freedom to work when I want and how I want!smileys/smiley2.gif

I'm glad to see that I'm not the only one who feels this way! The company has apparently been around for over a decade, but has remained VERY small. I think I may know why... lol...


Anywho, I feel badly for anyone who unknowingly gets blindsided by these types of "policies." That's why I always recommend to anyone considering a direct sales opportunity of any kind to spend some time doing a little bit of research into the company first so that they know what to expect.


Blessings,


Christy

I've been in the party plan business for 10 years now & have never heard of Party plan penalties.


Rosalee Decker-HGP Designer www.ywave.com/~zelmyrs/ (http://www.ywave.com/~zelmyrs/)


"This is the day the Lord has made; rejoice & be glad in it."