Despite risks, distributor poaching continues in the channel
“When a distributor raids, or a company condones a raid or moves distributors, it destroys everything the industry stands for and erodes the whole integrity of the network.”
—Rick Redford, General Manager, ARIIX
The practice of raiding, or cross-recruiting, is widespread in the direct selling channel with estimates ranging from 25 to 40 percent of companies participating, and nearly every company is affected in some way, according to industry insiders.
Raiding involves the practice of a distributor or a company executive soliciting or offering enticements to other distributors to leave one company for another, or move from one branch to another, in breach of their independent contractor agreements. “The practice might be the single most destructive practice in the industry,” says Rick Redford, general manager of Utah-based ARIIX. “When a distributor raids, or a company condones a raid or moves distributors, it destroys everything the industry stands for and erodes the whole integrity of the network.”
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