What's the difference between being and Independent Marketer versus an Independent Employee? Kelly Witter sheds some light on restrictions you should be aware of when deciding which company or business you plan to work with.

Independent Marketer vs. Independent Employee
By Kelly Witter

In starting your own business, you probably want to make the decisions on how you run your business. You want freedom, an ability to utilize your creative ideas, and exercise your leadership. Companies have to limit what is said about their compensation plan and the products for obvious legal reasons but everything else should be up to you.

As an Independent Marketer – just how much independence do you have? How many restrictions are being placed? Seems more and more these days, Independent Marketers are treated more and more like glorified Independent Employees.

Policies, Procedures and Contracts...

Company Contracts are often written for THEIR best interest and rarely do they give YOU, the individual, any rights. How they exercise THEIR rights can impact your future.

You want to make sure that you truly are an “Independent Marketer” and that you own your business. And therefore, make sure you retain the rights to decide how your business should be run, when it should be sold, how and when to work.

10 questions to ask before you decide to join a company or continue with an existing:

1. Does your contract bind you or others in your household?
There cannot be any restrictions on the distributor's spouse or family conducting any other legitimate business of their choice. The company has no right to condition their distributors' business based on any third party that is not a signature party to the independent contractor agreement/contract. Such attempts may be illegal. Distributors should have the right to join any legitimate association of their choice.

2. Can you “will” your business and are there any stipulations attached?
Distributors have a right to sell, transfer or will their independent contractor business to any party that would qualify as a distributor under normal conditions. This is a provision that also helps protect the independent contractor status. Know who you would “will” it to, and if there any business type actions required, to continue to receive the compensations and residual income earned.

3. What is the company’s non-solicitation policy? Does it continue after you cancel your contract with them and for how long?
No restrictions should be placed on any legitimate business relationship, regardless of a competing company being involved or not. Distributors' personal business relationships shall be honored and protected. Distributors' down lines that are personally sponsored and personal retail customers are part of the distributor's business. Companies will recognize the sacred nature of the sponsor/distributor relationship. Distributors have the right to expect company’s efforts to support and sustain that relationship, and do nothing to compete with or harm the Distributors business. Be leery of contracts that hold you to standards you can not control indirectly, through a 3rd party, or unknowingly.

4. Can you sell your business at your sole discretion without limitations?
Again, as mentioned above: Distributors have a right to sell, transfer or will their independent contractor business to any party that would qualify as a distributor under normal conditions. This is a provision that also helps protect the independent contractor status.

5. Do you choose the methods in which you operate your business?
Distributors have a right to own and operate their own independent contractor business. The company and the government should recognize that a distributorship is an independent small business with all of the rights and tax benefits of any independent small business. You should be able to choose the hours, the places, the tools, form of communication, methods of presenting, and marketing strategies. The more the company dictates the less freedom you’ll have.

6. Are there tools available to maximize your time or can you create your own? Make sure you have the right to utilize or create your own time leveraging tools.

7. How much control or freedom do they have once you have signed the contract? Independent Marketer or Independent Employee. If you feel you are being controlled by your every move, if you read the contract and need to look up the definitions to only still be confused you may want to look for a new company.

8. Are there policies and procedures in place that hold your business back from full income potential? As more limits that are placed, your options diminish, and your potential becomes limited. Be cautious about company sponsored websites, leads, and training tools that become income generators for the company not you.

9. Does the company have any time, travel, dress code, or location requirements to receive your check at any level in the company?
You want to make sure if travel and/or meeting are required at any level that you know the expenses, rules, and financial reward or consequence that you may have as a result.

10. Does the company offer true residual income or are there continued qualifiers? By entering into an agreement with any company, each Distributor is entitled to specific and undeniable rights to protect and preserve immediate and long-term residual income. Residual income in my mind is ongoing commissions from past work for products/services continually being purchased without ongoing qualifiers, quotas, or caps. If the company has ongoing monthly/quarterly requirements, there may not ever be a time that you can slow down or stop working without losing a major portion of your check.

RECAP:
Independent Marketer vs. Independent Employee, which one are you? Know what you can and cannot do in your mlm company and what red flags to watch for. If your companies restrictions are too high, maybe it’s time you do a little more research. Before you decide to join a company or continue with your existing, do your own due diligence, more specifically spelled out here http://www.kellywitter.com/ (Lesson 6). (some points solidified from statements in the provisions of the DRA Bill of Rights)

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Kelly Witter is a Professional Business Consultant and Trainer running her own sizeable business. She is a stay-at-home, married, mother of 3 girls, blessed to be home with her family for 8 years now. Anyone who knows Kelly, knows she is more of a giver, than a receiver. Her passion truly lies in helping others succeed and grooming up top leaders. Kelly is big into systems.

As an Independent Business Owner, she understands successful marketers must acquire a certain skill set along with utilizing tools, resources and systems to better manage their time and energies more efficiently and effectively. She is associated with some of the top leaders in the industry, assisting others in gaining the required essentials to move forward in their business. Because of her connections with several top leaders, she can most likely guide and determine which opportunity would be the best fit for you.

A small bit of her background includes assisting in Law Firm Management, Business Owner, 7 years in Government, 5 years CNA, Volunteering, Educational Paraprofessional, Dean’s List in College.

Her goal is to help educate, equip and suggest essential tools, resources and systems to assist in growing your business. Learn more at: http://kellywitter.com/

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