Updated: Feb 24, 2020
I have been in the direct sales world personally for 8+ years and experienced them from a young age from family members being involved with them. I've seen companies go horribly wrong and I have seen them go amazingly right. Part of it has to do with the company and part of it has to do with the work you put in. I truly believe in what DS and MLM's can offer to families when done in the right way, but what happens when the company you signed up for is bad? I have never experienced a train wreck until this past year and it makes me truly sad.
There were a lot of signs that I should have left this company sooner. I am going to tell you what to look for so you can be aware when things are heading down a bad path.
Your CEO starts verbally attacking ambassadors on Facebook posts where they were only asking for clarity. If you are told you are being 'ridiculous' because you are looking for an update, start to have doubt.
If you are told that you aren't allowed to say anything negative or you are told the questions you are acting are too negative and you will be terminated, run.
The company cuts off communication with the Founding Investors because their feelings were hurt after being asked tough questions of 'what's going on?'
If your company urges you to turn in fellow consultants for 'compliance' but only discipline's the ones that are doing the 'negative' compliance things (such as asking questions) and not the ones who are fishing on the public company posts, realize how shady they are
If your company refuses to share who is on their corporate staff after multiple people leaving, be suspicious and wary.
If the company pushes that customers buy directly with the company instead of finding an ambassador, that is not a good mlm company to be purchasing with. Period. It shows they do not value the people who have invested in the company to share the products.
If the company you are signed up with admits that the company creating your back office stopped doing work due to abusive language the CEO used against them, take pause and ask yourself if you want to work under a verbally abusive CEO.
If business is constantly being stalled due to not having a proper working back office- partially because the back office doesn't work and because they are changing the back office platform every few months, they probably don't know what they are doing business wise.
If your company rescinds payment promises of what would count in their bonus pool, realize they don't plan on keeping any of their promises.
If the company cannot pay their ambassadors on time, realize the end is near.
If the company refuses to give sales records for you and your team, realize they are hiding something or don't have the ability to track and offer simple financial records.
If the company constantly claims to be victims, saying that consultants are making threats and filing claims against the company, but they are not following through on the promises such as training's, realize they will never own up to their fault's. People and companies who are always 'woe is me' never prosper.
If the company prefers to drag a former individual of their staff over being professional and owning 'misinformation', realize they will have no problem dragging your character if you speak up about issues.
If the company starts sending out termination letters to people who have stood up and ask questions, realize if you were to ask the wrong question, you would be next.
Do some research on any company you are joining. See what people have to say. Remember to take everything with a grain of salt, but if the majority of what you can find or are experiencing is shady, the company is probably shady.