One of the biggest crises that a network-marketing company can face is losing top-level distributors to another network-marketing company. Typically, when one or more of these important distributors depart, it is because they have been lured away by a competitor that promises vast financial reward. The catch is that to reap such financial rewards the departing distributors must persuade most of their organization to join them at the competitor company. When such a distributor is successful, the distributor's former company can face a material drop in revenues and profits overnight.
Winston & Strawn Partners John Sanders and Katrina Eash explain how companies can best avoid this practice—also known as downline raiding—in a recent article for Direct Selling News Magazine.
Read more of John and Katrina's insights in the full Direct Selling News Magazine article here.
This article was originally published in Direct Selling News Magazine. Any opinions in this article are not those of Winston & Strawn or its clients. The opinions in this article are the authors' opinions only.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
