This is a tough and often controversial topic, but one that I want to a DEEP DIVE on and get your collective FEEDBACK.
Some people believe that companies should never sue former distributors, and while I understand that sentiment, we need to look at the situation in more depth.
Why Companies Rarely Should Sue:
On one hand, I lean toward the idea that companies should rarely sue former distributors. After all, distributors are independent contractors, and it feels hypocritical when a company celebrates a leader joining their ranks and bringing an entire team with them. It’s seen as momentum and a win when people follow a leader into a new opportunity. But the minute that same leader leaves, the company turns the tables, labeling them as “bad” or “disloyal.” That inconsistency feels wrong. I know many incredible leaders that have attempted to LEAVE the right and rarely does it ever go well if you are a big leader. No matter how you leave your influence is bound to attract others.
Why Companies Sometimes Need to Protect Themselves:
On the other side, I recognize that companies must protect their business and their distributors when lines are crossed. When a former leader goes public with disparaging remarks about the company, there is a need to protect the business and the community. In such cases, legal action may become necessary.
There are many so called gray areas that are so complex. Sometimes a leader or company feels justified in their rebuttals based on what they heard was said about them. We won’t go there in this discussion.
Ideal Approach: Start with Communication
In an ideal world, these conflicts could be handled without lawsuits. I believe that communication should always be the first step. Owners should reach out to the distributors or leaders and have a civil conversation. If possible, both parties should try to resolve issues without escalating. I even think owners from both the old and new companies could try to discuss things in a professional, non-confrontational manner. However, I also acknowledge that this isn’t always realistic, and sometimes conversations don’t go as planned. BUT AT LEAST TRY!!! Wars are started and marriages ruined from bad communication! Be a next LEVEL leader and at least TRY!
Finding the Middle Ground
Too often, I see companies jumping to sue far too soon. On the flip side, others argue you should never sue, no matter what. I believe the truth lies somewhere in the middle. The key challenge is knowing when the line has been crossed and how to approach these situations with integrity. It’s a tricky decision for both parties involved, as everyone feels justified in their actions.
At the end of the day, legal action should be a last resort, taken only after carefully considering all other options.
What are your thoughts on this?
When do you think it’s appropriate for companies to take legal action against former distributors?
One Response
I agree. Lawsuits tend to hurt more people than they help. So many times people get involved that were not “hurt “ but dragged into the middle. Fear is a big factor. “Who do I stay loyal to?”
Most times we do not know both sides of the story. Too many assumptions are made.