Cool Under Pressure: Managing Distributor Contract Clashes With MLMs

Multilevel marketing (MLM) companies are a different breed. These direct sales companies do not have employees so much as they have independent contractors or distributors, which leads to more unusual contracts than most commercial contracts.

Distributors for an MLM build their own independent business by direct selling goods to customers and recruiting new distributors in return for a payment of a percentage of their recruits' sales.

In the MLM world, these independent contractors are usually given a set of policies to live with, akin to an all-or-nothing approach to an independent contractor agreement. The policies or contracts are written for people all across the United States and sometimes, across the world, depending on the laws.