March 4, 2016 — It seems that everything we do in our lives is somehow governed or controlled by laws. Indeed, billions of people around the world willy-nilly accept the idea that their day-to-day activities are guided by the “rule of law”. Yet many statutes were often written (e.g.) 20 years, 50 years or more than a century ago by long since deceased, mostly old white men who lived during an era with different philosophies, attitudes and beliefs reflecting the traditional social and business norms of the day.
So Here’s The Scoop: There is no shortage of good, bad, ugly and odd Federal, State, City or County laws and ordinances, etc. For example, in some U.S. States it appears to be against the law for all passengers in a car to not wear seat belts but it’s okay to load up the bed of the old pickup with several people without any safety restraining devises whatsoever – go figure.
And speaking of laws, last week in my column (“We get paid and paid well”) ‘Paul’ made the following comment that started me thinking. He said, in part, “…No more charge backs. Once the rescission period laps (sic) we keep our earnings and the developers’ can call that something they understand, believe in and do themselves: LIQUIDATED DAMAGES!”
I believe what Paul was suggesting is that when any owner/member cancels after the rescission period, should the developer decide to issue a full or partial refund anyway then the rep has earned and is due their full pay and developers should not be allowed to charge the reps back since the refund was the developer’s decision, not the rep’s.
And I agree that with the exception of those ‘heat-merchants’ out there who blatantly lie about ownership/membership benefits, features and uses, etc. In those instances developers have my full support to charge back 100% of the commissions they paid and then fire the fraudsters’ sorry lying assess.
As for clean deals – my policy is no charge backs after the cancellation period!
Obviously I’m not a lawyer and have no training whatsoever in legal matters but I also believe that since courts continue to rule that “ignorance of the law is no defense (or excuse) etc.” it seems to me that the ‘system’ enforces and often penalizes ‘we the people’ for not understanding the millions of laws on the books and that brings me full circle back to the liquidated damage clause (LDC) that should also apply to all reps.
And I say that because as far back as I can remember developers have had a LDC in their purchase contracts with consumers so that should a owner/member ‘kick’ after ‘X’ amount of time not only is the developer compensated but in many jurisdictions also retains ‘X’ dollars for what amounts to a breach of contract by the owner/member.
The key word there being ‘compensated’ and that remuneration should apply to reps who performed their jobs to the developers’ requirements and 100% satisfaction.
So why doesn’t the LDC standard apply to sales (and marketing) reps when they’ve earned a commission? And why, to this day & worldwide, do so many developers
steal keep 100% of their reps’ reserve funds (average: $3,000 per rep) after the reps (e.g.) have moved on to another opportunity with another company whether inside the Land of Time or other industries?
In fact, why in the hell are reserve funds still an acceptable practice especially considering a closing process that is specifically designed to protect the developers’ interests that includes those consumer liquidated damage clauses, the VLO procedures and, in many regions of the world, the recession periods?
And while I’m in ‘La La Land’: I also wonder, over the last half a century, what was the total $$$ amount developers retained, lawfully, for themselves due to those consumer LDC’s while at the same time they either never paid out earned commissions in the first place or when they did many turned around & charged back their reps for what they earned and were rightfully due?
I don’t know the answer but when you consider the scores of thousands of reps (worldwide) who have worked in ‘the biz’ at some point in time over the last 50+ years I’m sure the amount, collectively, was YUUGE, continues to compound and grow exponentially – and will do so most likely well into the future.
Oh well, it’s only time, labor and money – NEXT!
Good Luck Out There
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