MLM Cross Recruiting:
The Gift and the Curse


Before you knew what mlm cross recruiting was, one of the things that most likely attracted you to network marketing is the possibility of you being able to gain financial and time freedom within a reasonably short amount of time.

You know that this industry requires you to sell some product as well as have a team of distributors under you to sell the product as well. Obviously, you know what is required, but what what you don't know are the unethical methods that SOME people used to accomplish this.


MLM Cross Recruiting is an unethical strategy that many people use to get to the top ranks of their company quickly.

Even though it is deemed illegal in the industry many people still blatantly use it today and are hardly noticed or disciplined for it.


According to the MLM attorneys, Wellman & Warren, mlm cross recruiting is seen when representative uses the networks that they gain in one MLM company and request them to join a competing company.


MLM Cross Recruiting - Unethical Strategy


How Does MLM Cross Recruiting Work?

I'll simply explain how this happens to help people rise in ranks so quickly.

  • Let's say that we have a leader in your company that goes by the name of Bill.
  • Bill has 5000 people under him. Bill is already seen as a leader in the organization and many look up to him to be the driving force.
  • Bill then also sees another MLM company that offers a similar product and in his eyes the opportunity is better.
  • Bill joins the other MLM company. He then has a meeting with his team and sells them on the idea of switching companies.
  • All 5000 people on Bill's team agreed to switch companies and purchase the new product that has $50 recurring monthly payments.
  • Now Bill’s volume with the new company it's $250,000 per month overnight ($3,000,000 per year).

MLM Cross Recruiting - How Does It Work


Now compare Bill’s methods to an average distributor who came into the new company and had to work it from scratch.

Lawmakers in this industry consider Bill’s methods unethical and a form of bad sportsmanship.  In addition to giving the MLM Industry is a bad name, additional methods to unethically grow your MLM team is:

  • Putting in a fake position under your leg in a minors name
  • Signing up people under your team and using their name without their consent or knowledge
  • Signing up with someone else in the same company on another team under a fake name

In many MLM companies, this is considered a direct violation of the policies and procedures that they have set in place.

Violating these policies and procedures ruins the spirit, trust, and confidence that one has in the MLM company.  Most companies will offer protection from people who violate those terms.



MLM Terms and Conditions

Many people violate those terms unknowingly. I remember at one point I was at a business opportunity meeting for a company. The leader in front of the room speaking made a joke about the prospect who wanted to read the fine print on the application before they signed up.

The leader said, “I’m at the highest paid position in the company and I never read the word on the back of this application. I just signed up and went to work.”

MLM Cross Recruiting - Terms and Conditions

Not knowing the rules that a company set in place can come back to haunt you later on. As far as mlm cross recruiting, many people won't switch companies that easily because they bond with their team and people that they've met throughout the journey.

However, if the situation comes up, remember that it's YOUR business and income that is affected. Do your due diligence to protect it just like any businessman would protect any investments they have.

MLM companies who take that seriously as they SHOULD can sue you for breach of contract.  Many people involved in this would claim Plausible Deniability.

According to Wikipedia, Plausible Deniability is when you "deny knowledge of or responsibility for any damnable actions committed by others in an organizational hierarchy because of a lack of evidence that can confirm their participation.”

The biggest lie in the MLM industry is, “I read the terms and conditions” because most people don't.  Because of that, many MLM companies end up terminating people for cause because they blatantly are in violation.



When Others Cheat

In the MLM industry, you may hear leaders say, ". . . don’t compare yourself to others, run your own race."

Everybody has their own goals when running their own race.  First, their goal should be to run their own race fair and square.

MLM Cross Recruiting - When Others Cheat

In my high school days, I was on the cross country team for one season.

We had a cross-country meet at Van Cortland Park where we had to run 3.1 miles. There were about 1000 of us in the race. When the race started we all started at the same time of course.

As I got 1.5 miles into the race I noticed a creek separating the trail we were on from the trail on the other side.  I didn't notice people behind me cut through the Creek to get to the other side.  As a result, the people who are 50 spots behind me and ended up 75 spots ahead of me.

If this was a finals competition, would it be fair that someone cheated me out of a qualifying position?  Even though I was running my own race and probably improved my personal best time, is it ethical?

You may have cases where someone isn't satisfied with your sponsor and want to cancel their membership and honestly join another MLM company.

This is allowed. However, in most cases, the MLM company has stipulations in place where the representative has to wait at least six months before signing under a new sponsor.  Some of them will say you cannot be involved in more than one MLM company especially if they're in the same niche as the one you are already participating in.

Once you're in your network marketing company for a while you start to build bonds with people and it starts to feel like a family. You believe that your network marketing company is the best opportunity compared to others.  Some get the sense of brotherhood or sisterhood such as a fraternity or a sorority would.

There will be a time (if it hasn't already happened) where a leader of your company will quit and join another network marketing company taking people with them.  This can be devastating, especially if they were a leader in your company and you looked heavily to them for guidance and support. Or they were in your downline and you spent an enormous amount of time and energy building their business.

When this happens you have two options. The most popular one that's used by most people is to:

     1. Bash the person who left and hope they fail miserably at the other opportunity.

The other option is to:

     2. Wish them success and happiness in their new venture.

It is natural to discredit the personal on social media to everyone you know because your emotions get to you. However, to be professional and wish them success and happiness shows more professionalism on your part and makes you be a true leader with integrity and better sportsmanship.




If you're not happy with your current MLM position, company, or leadership you have every right to switch companies. That doesn't violate any laws. You just have to do it correctly according to the terms and conditions of your current company and are not allowed to sell your new opportunity to the same exact people you just left within a certain timeframe.

MLM Cross Recruiting - Not Happy With Your MLM

Part of the reason the multilevel marketing industry has a bad reputation is because of the dirty tricks and the loopholes that people take advantage of regarding this industry.



Make Your Grass Greener

If people on your team are looking to leave your downline and go somewhere else, you have to wonder what is it about YOUR team that makes them want to leave. No matter how good another opportunity is, if they’re truly happy where they are they won't be so quick to pack up and leave.

It is like being in a relationship. You put your trust in your partner. If you can provide for your partner and be there in terms of need and support them.

Furthermore, they feel that you have a genuine interest in their well-being, a certain level of trust is built. If someone else knows your partner and takes interest in them, most likely they will approach them and pursue them in a relationship.

It is up to your partner to let them know that they are currently in a relationship. If your partner is happy they will do that. If not, they will show some curiosity and go dabbling in what the other person has to offer.

Instead of worrying about if someone's grass is greener on the other side, make your grass greener. You will see fewer people looking elsewhere for fulfillment. That's why it is very important as an upline to be a leader, not a dictator.

When you make people feel like they are part of something bigger this will lessen the chances that they go looking elsewhere for something better.

MLM Cross Recruiting - Make Your Grass Greener


As your team grows and time goes on, people will leave for other opportunities and people will quit the business.

This is no different than people joining a gym and stop going after a few months because of lack of dedication . . . or people stop eating fast food because they have lost the taste for it or they decided to be on a diet.

The gym and fast food franchises don't stop marketing to gain new customers. As a leader in your business, it'll benefit you to keep rebuilding and find new team leaders to develop to get to the next level.


By the way, you may be working with someone on your team but they refuse to do the necessary actions to push themselves further.  You may find that person wanting to join another MLM company later on.

If they decide to join another network marketing company you have not lost anything. If you compare them not working to them leaving . . . You get the same results.

Them not working is like they weren't there anyway.  At worst, you may lose a credit in your downline.  Don't chase those people. Put your time and energy into those who show signs of wanting to grow.



How NOT To Get Terminated For MLM Cross Recruiting

MLM Cross Recruiting - How NOT to Get Terminated

If hearing all of this has you concerned if you are doing things the right way or not, follow these suggestions. If you're part of a network marketing company and don't want to be terminated for doing anything illegal unbeknownst to you:


  • Familiarize yourself with the terms and conditions during your involvement with the network marketing company. Even if you do not read it before you sign up with the company, most companies give you a grace period to cancel to get a full refund. Before the grace period is over make sure you have read all policies before then.
  • Be privy to every single update the company has. Some people are in the network marketing company for the excitement, financial and self-development benefits and sometimes ignore important company updates. Some of these updates have to do with policies and procedures regarding representatives also.
  • If you are working with a particular company, concentrate on that company only. If you have second thoughts about if you should be in the company or not make sure your decision is made before you commit. Most people rarely see success if their focus is divided amongst more than one company (unless they have one that is already successful).



Make A Difference

MLM Cross Recruiting is a big issue among MLM companies. Many reps are responsible for hitting big ranks because of it. Most never get caught because some cannot prove that they are doing it.

But if you are in a network marketing company now, most likely you know someone or are going to know someone who will do this in the future. It could be up to you to put a stop to it.



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