Many companies that have become significant in size may have copied their contract from another company when they first launched, as well as their policies and procedures, and simply given a rewrite to make them fit the terminology of their Company. This is not a good thing to do. “Why?” you ask.
Dan Murphy, Co-Founder and Managing Principal of Strategic Choice Partners, recently shared some insights from being an expert witness on four separate occasions that led him to ask an important question in his guest article on the World of Direct Selling News titled, “Time for a Compliance Check Up?”. Be sure to read the full article. Here is a summary of a few of the takeaways from Dan:
It is crucially important that all of these documents are drafted by a skilled attorney with thorough knowledge of Independent contractor law and that the contract works in concert with the policies and procedures and the compensation plan.
When To Update
In direct selling, Spring is often a great time of year. The launch of new products for the year may be behind you, and the craziness of convention is still a ways off. I would urge every Company to take the advantage of this time and bring the appropriate resources together to review these documents with the assistance of a legal advisor with experience in this field.
Read the entire article now at World of Direct Selling News (and be sure to subscribe to their newsletter if you haven’t already).
Are you asking these questions, too? We’re working alongside many companies in direct selling, helping them shape the answers to these questions that make the most sense for their individual situation and culture. We’d love to help you, too. Contact us now and let’s schedule some time to discuss your company and its best next steps into 2017 and beyond.
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About Dan Murphy
Dan has over 30 years of experience in high growth organizations holding senior finance and operating roles at TJX, Pepsico, Panera Bread, Princess House and Immunotec. For the last 15-years, Dan has served as both a CEO, CFO and COO for two party plans and network marketing company respectively. Currently, Dan is a consultant specializing in the Direct Selling Industry, his primary area of focus is interim management, turnaround management, financial management, strategic planning, operations and capital formation.
Dan has for the last two year been President and CEO of Passion Parties Inc. a direct selling party plan company in the relationship enhancement business, headquartered in Las Vegas NV. In January of 2016, the Company was sold to a strategic buy in the same category creating the largest such Company in the industry.
Learn more about Dan on his bio page, and contact us at info@strategicchoicepartners.com if you’d like to discuss how Dan and SCP can help your company.
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