March 13, 2004 an astounding group of sixty top MLM distributors, eight MLM Companies, and five guiding MLM lawyers conducted the first Distributor Rights Meeting (DRA).  The top distributors, from around the world, gathered to study the growing gap between MLM Companies and Distributors.  Network Marketing companies promise MLM Distributors long term residual income in printed and verbal marketing material.  On the surface this appears to be a factual statement but in recent years a serious epidemic has broken out.  After a certain period of maturity is reached, too many companies switch compensation plans or terminate distributors to increase company income.

The purpose of the DRA is to create and recommend standards for MLM Companies to adopt.  These standards are to give Distributors a more level MLM playing field than what has been evident the past few years.  In addition, the DRA is developing educational material for new companies to study so that they can get a fair start with Distributors by understanding that the field sales force should be treated as partners and not an income center.

Some of the Standards are very simple and logical, some leading examples are:

1.   Any complaints from one Distributor in a Company against another Distributor should be in writing, signed, and mailed in to the company.  No shouting telephone calls or mysterious email complaints should be accepted.

2.  The DRA members agreed that some MLM Distributors need to be terminated if they pirate/raid unwilling parts of their downline or crossline.  If a Distributor violates laws that result in regulatory action, the termination or suspension should be done very quickly to protect the Company and opportunity for everyone.

3. Members at the DRA meeting wrote a standard on DUE PROCESS FOR TERMINATION.  This standard gives a staged approach to termination or suspension with the full due process and hearings to be made available for all Distributors with allegations made against them.

4. The DRA meeting felt that a peer review panel of top distributors (with no downline conflicts) should be maintained to review problems as they arise.  The review panel would offer advice to the company on the suspension or termination.

The DRA is publishing a book on these standards and educational items to be spread around the world since the DRA is an International organization.  One of the goals will be to get this book in the hands of new startup companies so that they can understand the Partnership aspect of Distributor relations.

One of the Company Owners at the meeting who has been in ownership for over 18 years spoke on the fact that the grass is always greener on the other side of the fence.  He compared terminations with putting up a fence that prevented people from coming back if the grass turned out to be brown on the other side of the fence.  In almost 20 years of ownership he said his companies had terminated two people.  Both of those were related to regulatory issues.  He pointed out that today, with Internet information moving so fast, he thought a termination would do a lot more harm to the Company than 10 years ago.

A survey of the top Distributors indicated that the group as a whole had lost approximately $20 million in earnings due to terminations or compensation plan changes.  What was interesting about the meeting was that those who had been hurt the worst were the quietest, most intent people there.

A resounding NO! went up when a motion was made for this to be a Union group and be radical brick throwers.  The person that made that motion was quickly hushed!  The Distributor Rights Association wants to move back toward the old Partnership model that used to exist between MLM Companies and Distributors.  A mutual respect needs to be fostered for the good of the MLM Company and the Distributors who have came aboard with the dream of building a long-term residual income.

If you have problems with termination or suspension, the DRA executives will help you with you the best sources for informal and legal counseling.  The DRA is setting up space on www.mlm-dra.com for reporting terminations and suspensions as a source for doing due diligence on companies before joining them.  Your input and membership to the DRA are welcome.  You can sign up as a founder in the DRA until 1 January 2005 on the website for $100.