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MLM and Churches

by wynkoorw » Sun Mar 28, 2010 9:41 pm


I didn't want to hijack Diamond's thread earlier, but back when I was with Zrii, my enroller wanted to meet with pastors about enrolling the "Church" itself.

As in, "Church Name" is the enroller and the check goes to them. I know a lot of churches are starving for offerings and extra money, but what are the ethics to this.

I know there are a few pastors on here that read the boards, and I'd like your opinion. Is it ok to enroll a church entity and promote it on Sundays or put ads for it in the church bulletin?

If there is a church member in the upline who ends up profiting thousands by enrolling his "church name" who enrolls the congregation then in a conflict of interest? Or should we just be happy the church got extra money for missions and maybe some people were made healthier by using great products?

Thoughts please ...
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Re: MLM and Churches

by DIAMONDS » Sun Mar 28, 2010 9:56 pm


Hi Rob,

We currently have several churches in our downline.

As long as the profit is used for the good of the church it seems like a great idea.

It's also a way for the pastors to make a little extra money for their own bills as many of them rely on just a small salary based on the weekly offerings.

Doug.
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Re: MLM and Churches

by gkoinski » Sun Mar 28, 2010 9:59 pm


Good questions! I've done fundraisers for my church, adding a portion or all of my commissions towards the group's (ex. our Youth Group) fundraiser as well. But I've never enrolled a church as a new "member" in my downline. Would like to hear what others think too.
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Re: MLM and Churches

by WarrantiesForLess » Sun Mar 28, 2010 10:14 pm


Good questions! I've done fundraisers for my church, adding a portion or all of my commissions towards the group's (ex. our Youth Group) fundraiser as well. But I've never enrolled a church as a new "member" in my downline. Would like to hear what others think too.


Having worked with many non-profits over the years, they all want the money without the liability, and most will shy away from any MLM, and not want to sign any agreement unless of course a company has a seperate division which is fundraiser and not MLM structured in the same way as being a representative. A few companie have this option, but very few in my experience.

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Re: MLM and Churches

by Mike_Michelozzi » Sun Mar 28, 2010 10:15 pm


Every pastor and congregation will be different. Some will open their doors others will close them. Many pastors are distributors outside their churches. Some will be able to work out fund raisers and others won't. There really is no single response.

We've seen two things happen mostly. One is that pastors need extra income and build it outside their congregation. Along with that a few can work it into their congregation.

The second is that most churches close the door to network marketing opportunities even for fund raising for fear that it will split the church.

So it has to do with the pastor's attitude and relationships and with the relationship of you - the distributor - with the pastor.

We've had one pastor in our orgnization - he never took it inside the church and his wife uses the products. Another we sponsored came to believe network marketing was against God's will. When we told him people were praying for things he could offer them he said it was a cult. It was very strange.

The best of it to you.

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Re: MLM and Churches

by Tampogo4u2 » Sun Mar 28, 2010 10:25 pm


time to receive the money,in relationship to the effort they will be putting out is also an issue, with liability also some companies set aside a portion of their net proceeds and some companies take it right from the gross profit which is in my opinion more beneficial
I'm going to start approaching every kind of Charity,and church and nonprofit organization and high schools, and elementary schools because they're so desperate for extra money so I am very interested in this thread
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Re: MLM and Churches

by Tsnyder » Sun Mar 28, 2010 10:38 pm


I didn't want to hijack Diamond's thread earlier, but back when I was with Zrii, my enroller wanted to meet with pastors about enrolling the "Church" itself.

As in, "Church Name" is the enroller and the check goes to them. I know a lot of churches are starving for offerings and extra money, but what are the ethics to this.

I know there are a few pastors on here that read the boards, and I'd like your opinion. Is it ok to enroll a church entity and promote it on Sundays or put ads for it in the church bulletin?

If there is a church member in the upline who ends up profiting thousands by enrolling his "church name" who enrolls the congregation then in a conflict of interest? Or should we just be happy the church got extra money for missions and maybe some people were made healthier by using great products?

Thoughts please ...


I don't have an opinion on the personal aspects of your post
but I do have a caution for anyone desiring to sponsor a church
as an active business builder...

If you care at all about what happens to them you need to
have them speak with a tax professional who is competent
in matters of non-profit organizations.

I'm not going to bore you all with a detailed explanation but
there is a provision in non-profit tax law called unrelated business
income. Going too far over that line could cost them their charter
and tax exempt status.

Personally, I wouldn't touch the whole thing for any reason.
I think the best way to involve a church is to have the pastor
endorse the idea as a fundraiser for the congregation to raise
money that will be donated to the church.

Best to ya'

Tsnyder
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Re: MLM and Churches

by wynkoorw » Sun Mar 28, 2010 10:39 pm


time to receive the money,in relationship to the effort they will be putting out is also an issue, with liability also some companies set aside a portion of their net proceeds and some companies take it right from the gross profit which is in my opinion more beneficial


Huh? Translation please, Ken.
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Re: MLM and Churches

by Tampogo4u2 » Sun Mar 28, 2010 11:11 pm


time to receive the money,in relationship to the effort they will be putting out is also an issue, with liability also some companies set aside a portion of their net proceeds and some companies take it right from the gross profit which is in my opinion more beneficial


Huh? Translation please, Ken.



I'm not A expert at this and can only give you my opinion based on the way I've experienced working in nonprofits, and learning new ways because the way companies setup donating,

A portion of their proceeds made from special events very so much nonprofit organizations we have operating expenses, just like a regular business if I tell you I will give you 10% from sales of a particular product I have to be specific is it that net sales or the gross sales,

then are there 30. 60 or 90 days before they get paid.

our fundraisers they get paid 50% of the gross sale on the 10th of every month No overhead, No waiting No inventory. no fees to join. and they do not have to recruit others to qualify for the direct sales

other companies can utilize the tax code, depending how good their tax advisors are to make more money from saving themselves from having to pay taxes on their profits, using two simple methods of bookkeeping cash or credit Accrur method. it's very complicated and I am not a tax adviser,

churches and nonprofit organizations are manipulated, or manipulate these tax codes, so by the time the the benefit
gets to the beneficiary one dollar of tax donation only returns $.10 or a particular fundraiser promises 30% of the net profit
but fails to make a profit it's very complicated.

most important is good-faith people can't stop helping just because there are unethical people out there it's our responsibility to do the best we can with what we have.
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Re: MLM and Churches

by wynkoorw » Sun Mar 28, 2010 11:38 pm


time to receive the money,in relationship to the effort they will be putting out is also an issue, with liability also some companies set aside a portion of their net proceeds and some companies take it right from the gross profit which is in my opinion more beneficial


Huh? Translation please, Ken.



I'm not A expert at this and can only give you my opinion based on the way I've experienced working in nonprofits, and learning new ways because the way companies setup donating,

A portion of their proceeds made from special events very so much nonprofit organizations we have operating expenses, just like a regular business if I tell you I will give you 10% from sales of a particular product I have to be specific is it that net sales or the gross sales,

then are there 30. 60 or 90 days before they get paid.

our fundraisers they get paid 50% of the gross sale on the 10th of every month No overhead, No waiting No inventory. no fees to join. and they do not have to recruit others to qualify for the direct sales

other companies can utilize the tax code, depending how good their tax advisors are to make more money from saving themselves from having to pay taxes on their profits, using two simple methods of bookkeeping cash or credit Accrur method. it's very complicated and I am not a tax adviser,

churches and nonprofit organizations are manipulated, or manipulate these tax codes, so by the time the the benefit
gets to the beneficiary one dollar of tax donation only returns $.10 or a particular fundraiser promises 30% of the net profit
but fails to make a profit it's very complicated.

most important is good-faith people can't stop helping just because there are unethical people out there it's our responsibility to do the best we can with what we have.


Thanks for the clarification. That makes more sense. I guess like anything - good communication is key.
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Re: MLM and Churches

by TonyRush » Mon Mar 29, 2010 12:37 am


Terry, well-said. I don't personally care for the concept.

More often than not, it offends some church members and
winds up creating ill-will in the church community among
those who are believe the church has no business selling
MLM products to make money.

My personal opinion is to agree with them.

Tony
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