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Recruiting Struggles: Dealing with Unpaid Arrears

In summary, my director was speaking with her recruits this evening and discussing how many of them have dropped like flies after doing a show or two. She mentioned a particular recruit that had signed up in September and then called with some questions, but then stopped returning calls or emails. My director told me that the recruit is in arrears from HO and has not responded to their requests. I guess this is a common problem, as one of my director's other recruits is in arrears for $500+. It's also possible that this recruit has filed for bankruptcy, which HO doesn't know yet. I was just surprised by the nerve of these girls and all I could say was "oh my." Has anyone else ever heard of this
kcjodih
Gold Member
3,408
I was speaking with my director this evening and I was mentioning my frustrations with my recruits dropping like flies. They do a show or two and then 'disappear' or they do 1/2 dozen catalog shows and then call it quits. I was mentioning a particular recruit (my number 3) that had signed in September after asking for more info through HO and then did two shows, called with some questions, I helped all I could and then never again returned my calls or emails.

My director then informs me that that recruit is in arrears from HO and has not responded to their requests (or either of ours obviously). I guess she 'spent' $350 in customers $ and then when HO went to 'bill' her account the money wasn't there!! :eek: :eek: I asked my director if this was common and she said she didn't quite know but that one of HER recruits that I had met at a meeting or two last fall is in arrears with the company for $500 + and has now claimed bankruptcy - which HO doesn't know yet, they're just still trying to get her to pay up :eek: :eek:

I just couldn't believe the nerve of these gals and all I could say was oh my!!

Has anyone else ever heard of this happening?
 
My aunt said her dentist's daughter had a bridal shower that the consultant took the money and ran! Luckily PC still gave the bride and the customers their products which turn a sour note back around. It does happen, there are some very dishonest people out there.
 
I've never had that happen, but I do have consultants the sign up.. do a couple shows and then won't call back or just quit! It's aggravating!
 
I've heard of such things happening, and unfortunately, it will probably continue to happen until the economy improves. Luckily, our company is willing to work with the hosts and customers to give them a positive experience. I had it happen to me when I hosted a party for another company, and I never heard a single thing, even after I wrote to the company's corporate headquarters, looking for resolution. I eventually had to take the consultant to small claims court myself, and ended up out those costs. As a result, DH doesn't want any new product from that company brought into the house. With PC making it right, at least those customers (hopefully) still have a good view of PC. As far as consultants signing and never doing anything, that's always going to happen. I've had one recruit who never did a single thing, and another who submits about 1 order a year. As much as we're there to train and support our new people, whether or not they fulfill their part of the agreement is really between them and HO.
 


Hi there, I am sorry to hear about your frustrations with your recruits dropping out and the situation with one of them being in arrears with HO. Unfortunately, this can sometimes happen in any business, not just in the direct sales industry. As a consultant, I have also experienced similar situations with some of my recruits. It can be disheartening, but I have learned to focus on the positive and continue to support and motivate those who are still active and dedicated to their business.In regards to your question about whether this is common, I cannot speak for all consultants and their experiences, but I have heard of similar situations happening before. It is important for us to always remind our recruits about the financial commitment and responsibility that comes with running a business. I always make sure to discuss the importance of budgeting and keeping track of expenses with my team.I hope this situation gets resolved for you and your director's recruits. Keep up the great work and don't let these challenges discourage you from reaching your goals. As long as you continue to provide support and guidance to your recruits, I am sure you will see success in your business. Best of luck!
 

Related to Recruiting Struggles: Dealing with Unpaid Arrears

What are unpaid arrears and how do they affect recruiting?

Unpaid arrears refer to commission or bonuses that are owed to a consultant but have not been paid by the company. This can have a negative impact on recruiting as it can make the company appear unreliable or untrustworthy to potential consultants.

What steps can be taken to deal with unpaid arrears?

The first step is to communicate with the company's accounting department and find out why the arrears have not been paid. It could be a simple oversight or there could be a larger issue. If necessary, escalate the issue to a higher level within the company. You can also reach out to your team leader or upline for guidance on how to handle the situation.

How can unpaid arrears be prevented?

One way to prevent unpaid arrears is to keep accurate records of your sales and commissions. This will make it easier to track any missing payments and provide evidence to the company if needed. Communicating regularly with the accounting department and following up on any outstanding payments can also help prevent unpaid arrears.

What can be done if the company is unresponsive to unpaid arrears?

If the company is unresponsive to your attempts to resolve unpaid arrears, you can reach out to the Direct Selling Association (DSA) for assistance. The DSA has a code of ethics that all member companies must adhere to, including prompt payment of commissions and bonuses to consultants.

How can unpaid arrears affect the morale of consultants?

Unpaid arrears can have a significant impact on the morale of consultants, as they have worked hard to earn these commissions and bonuses. It can also create a sense of mistrust towards the company, which can make it difficult to recruit or retain consultants. It's important to address unpaid arrears promptly and communicate openly with your team to maintain a positive and motivated atmosphere within the company.

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