I'm about to take you through the basics of contracts. Don't hit delete until you've read this because it's more important to your business and your income than you may think.

Contracts exist to protect both parties in an exchange. They exist in every aspect of life, but when we call these agreements out as contracts, we confer on them a legal character that can be intimidating.

In simplest terms, a contract is an agreement you make to do something for which consideration is exchanged. For example, when you go to the supermarket, you agree to buy the goods you have selected, at a price they calculate, and then you exchange the money for the items.

Social media platforms are another example of contracts operating in everyday life. When you signed up to Facebook, you signed a contract with them agreeing to abide by their terms in exchange for a license to use their platform.

Regardless of which network marketing company you choose, you will have agreed to their policies and procedures as part of the signup process.

Companies want to protect their products, brands and systems so they will be particular about how their materials can and can't be used. These rules and regulations also act to protect the rights of your customers and your rights as a distributor.

The majority of people who join a network marketing company check the box agreeing to the policies and procedures without giving them even a glance.

But be aware! Failure to read the terms of the agreement does not stop a contract being created once the box is ticked and the exchange (often involving payment of a membership fee) is made.
Contracts attempt to provide clarity when there is confusion or a dispute about expectations or behaviour.

Unfortunately, this means that the distributor agreements for many network marketing companies are lengthy as they attempt to account for every possible scenario that may occur.

Also, despite attempts to write the contracts in lay terms, they are often cumbersome to read for the everyday person and seem filled with irrelevant clauses. But don't just dismiss them.

If you haven't familiarised yourself with what your company does and does not permit with regards to building your business, it's time to grab yourself a cuppa and dig into the legalese. The good news is, it's part of taking care of your business.

Remember, the rules are designed to protect the company you hold dear, the customers you serve, and your income.

It's your job as a business owner to understand what is an acceptable practice and what isn't when it comes to growing your income.

Ignorance is not a valid excuse for breaching the contract.

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