Tim Sales Fires All of His Affiliates!

by louabbott on January 25, 2013

‘Thanks. We really value you but you’re fired!’

In MLM (multilevel marketing), the idea of a distributor agreement that guarantees you will be paid residual income on the customers that you bring to a company is considered sacrosanct.

sacrosanct definition

Definition

For many years now, Mr. Sales has offered a two-level affiliate program that pays commissions for bringing subscribers to his websites based around his video, “Brilliant Compensation.”

It is called the MLMBrilliance online prospecting system. The affiliate program is called the First Class MLM Tools affiliate program because it also sells products from www.firstclassmlmtools.com.

For many years now, I have referred many, many people because I think he did a terrific job of presenting the brilliance, rationality, and morality of a well-designed MLM compensation plan backed by products of real value, particularly in the “Brilliant Compensation” videos.

Of all people, I believed that Mr. Sales would never stop paying his affiliates for subscription products that produce ongoing revenue for his company.

I was wrong.

I received the following email today from the affiliate manager for Mr. Sales’ affiliate program  dated Thu 1/24/2013 11:23 AM.

Lou Abbott,

This is an important notice for Affiliates regarding one of the products that you have been earning commission on – the MLMBrilliance.com recruiting system subscription.

In order to better serve our MLMBrilliance customers and provide them with much requested features to their MLMBrilliance system, we have recently upgraded our system platform to a new software provider.  Unfortunately, this new software platform  does not accommodate an affiliate program.  

Instead, the new software for MLMBrilliance.com provides a “Refer 3, Get Yours Free’ feature, which will be explained in more detail below.

So, as of January 29, 2013, we will be discontinuing the affiliate program for MLMBrilliance.com.  At that time, you will no longer earn affiliate commissions for that product. You will continue to be able to earn commissions on all of the other products at FirstClassMLMTools.com and FirstClassMLMLeads.com.

This new system will be launched in February with a “Refer 3, Get Yours Free” program.    This program allows you, as an MLMBrilliance customer to refer three other customers at the same or better membership level as yours and as long as those referrals are active customers, your membership is free.  If you are a current MLMBrilliance customer, you will receive a separate notification about the new system and all of its features.

Here’s how the “Refer 3, Get Yours Free” program will work for you as a current affiliate of MLMBrilliance:

1) We have already compiled a list of active customers that you referred as an affiliate.
2) When the new system launches, you will receive a separate notification (all current MLMBrilliance customers will receive this notification) letting you know the details of your new system, how to log in, and so on.
3) At that time, any customers that you referred as an affiliate will be placed into your account under the “Refer 3 And Get Yours Free” feature.  This will happen automatically.  You do not need to do anything to assist with this change.
4) As long as your account maintains 3 paying customers who have the same, or higher, package as you do, you will continue to receive your MLMBrilliance subscription free of charge.

If you need further assistance, please contact Customer Support at Support@FirstClassMLMTools.com.  Thank you for being a valued customer and affiliate!

Regards,
FirstClassMLMTools.com

I am informed above that I will get my account for free.

I would guess so.  I have referred many times that number over the last 6 or so years. According to the above, they will be keeping all of the subscribers I referred, paying me (in trade, not dollars) on an ongoing basis for only 3 of them, and keeping all of the rest without ever paying a commission again. That just doesn’t right to me, coming from a Network Marketing leader of Mr. Sales stature.

You may be thinking as I am, “why anyone would anyone ever trust him in the future, for example with their Ariix International recurring commissions?”

Thanks to you too, for valuing me so much as an affiliate!

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{ 5 comments… read them below or add one }

John Counsel May 15, 2013 at 5:59 pm Thumb up 2 Thumb down 0

I don’t really want to comment on Tim’s decision, because I don’t know the exact circumstances, but I’m surprised that no-one has yet raised the issue of MLM companies that do the same to so many top leaders after years of paying them six-figure bonuses.

Excuses to terminate are trotted out for alleged breaches of terms of service or distributor agreement, the leaders are notified that they and the company are now “in dispute” and their bonus payments are stopped. Time drags on as the panic-stricken leaders scramble to find some kind of acceptable resolution with the company, which typically ignores all attempts. Meanwhile, the leaders’ bank balance begins to drain with legal fees, travel, phone and other costs mounting by the month — and for no income.

Too often, downline leaders begin to lose faith in the company and volume begins to dwindle. After some time, the company may notify the leaders of compulsory arbitration hearings with a professional arbitrator appointed by (yep, you guessed it) the MLM company, who pays for the arbitrator. Because of the contracts/distributor agreements signed by the leaders when appointed, the arbitrator’s ruling has the effect of a court order.

While I’m not here to cast doubt on the integrity of professional arbitrators, it’s hard to imagine a company continuing to hire any arbitrator who rules against the company.

It’s a scam as old as the companies who perpetrate it. And it happens more often than most MLM distributors would believe. But the orders and agreements binding everyone involved mean that nothing is usually heard of the proceedings.

As with any culture, corporate or community-based, it starts from — and is set by — the top. In this case, the company.

So what’s the real difference here?

There’s an old saying in management: “The higher you rise, the closer you are to the door.”

Human nature rarely changes when it comes to money and greed. Let’s be grateful for organizations like the Association of Network Marketing Professionals, who exist to help change the outcomes in favour of distributors instead of companies in situations like this.

Excellent article! 🙂

Reply

mike April 30, 2013 at 7:31 pm Thumb up 1 Thumb down 1

Guess Loosing Nu Skin 25 year check of 125K plus a month …. made a good guy forget what he believed ….bad actions always seem to cause more bad action.

shame on NuSkin and double shame on Tim …he was better than that.

We all make bad choices …this was unfair to the people that believe in you, and just plain like you

Mike

Reply

Bill Nixon April 24, 2013 at 9:18 am Thumb up 1 Thumb down 1

Looks like Tim decided to give himself an instant and permanent pay raise. “Hey, I’ve got an idea. I’ll get rid of all of my affiliates who got me here and make twice the money.” Yikes!! You’re right to point it out.

Reply

Savings Highway February 22, 2013 at 2:18 pm Thumb up 0 Thumb down 1

Hey Lou,

I really feel for ya.

I was thinking Tim Sales was one of the goods guys.

And you are obviously only one of a number of people he has screwed over by deliberately doing this.

Shame on him.

Reply

David February 2, 2013 at 1:18 am Thumb up 1 Thumb down 1

If man can go to the moon, they surely can continue an affiliate program.

I respect Tim’s knowledge of the MLM industry but henceforth I wouldn’t trust him with my financial future.

I’ll continue to buy his products, but I won’t sell them.

Reply

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