Thread: Schisms....
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Old 07-12-2002, 12:23 PM   #77
Location: Bay Area
Join Date: Jun 2000
Posts: 1,200
Unregistered wrote:

What happens, I wonder, if clients are acquired by a person and customer lists / relationships are based on studying / working with that person, and that person dies ? What happens if those students go their separate ways ? Does the orginazation that remains have a claim to those students ? If that relationship was the sole basis for those students being a part of the orginazation ? Or can the go their separate ways ?
The organization does not own the students. It's the other way around. The only way to get around this is through a contract then the students would still be obligated to pay if they left.

In fact, most client lists are lost whenever a salesman leaves. It depends on the state but in many states a non-compete is valid only in very narrow and specific areas. In the case of a salesman, at least here in California, you can't limit their ability to apply their trade. So they hop on over to a competitor, set up shop, and start calling on their old customers. Game over, you lose.

The idea is to treat your salespeople in a way that they don't leave. Which brings me back to the crux of the problem. If all an organization offers is the charisma (stealing from Peter Goldsbury's writings) of their leader then when that person dies the organization will die or at least suffer. For organizations to survive they'll need either a strong and clear plan of succession (a charismatic #2) or they have to offer something of value to it's members.

Unfortunately, I know of no organization offering anything to it's members other than charisma and a piece of paper with Japanese writing on it, which, you still have to pay for. To put it more bluntly, I know of no organization offering it's members anything more than the opportunity to pay annual dues and test fees. If that's all you offer then I don't think you have much of a right to expect loyalty when the charisma leaves.