How To Lead With Grace And Grit

Several years ago, I left a network marketing company that I had been with for years to move to another one...and I took a large portion of my team with me. I thought I knew what I was getting into. But it wasn't long after the move that I began noticing serious problems. The company had originally seemed like a fabulous company to be part of, but as time went on it began seeming more and more like a pyramid scheme.

In the beginning, the products were ones that I was proud to represent. Cell phone plans with most of the major carriers. Nutritional supplements that actually worked. Identity theft protection with one of the leaders in the industry. All at reasonable prices. The comp plan was solid. Making sales was easy. Recruiting was a snap. Many people joined just so they could get a better deal on their phone plans. Everything was okay. My team was growing their business. Then everything changed and the complaints started coming in.

I was shocked as slowly the initial products were no longer offered and instead were being replaced with things that had little to no value. The focus shifted from product sales to recruitment. People who had signed up as customers stopped buying. Recruitment became more and more difficult because no one was making any money except those of us with large downlines that hadn't been hit too badly by attrition...yet. But I new it was only a matter of time before my most loyal team members got frustrated and left. I knew that I had to step up and do something drastic if I was going to keep their trust and respect. I reached out to a mentor who advised me to take four important steps:

Evaluate What Went Wrong

As soon as you notice an issue—whether at work or at home—it’s best to take a step back and figure out what went wrong. This isn’t about assigning blame or looking for a scapegoat. Instead, your focus should be on getting to the root of the problem.

I did this by researching complaints against the company. I found that while everything had been good, the founder of the company ran it exclusively. It was only after he became seriously ill and turned control over to other parties that problems arose.

Pay the Price

Once you know what the issue is, you need to find a way to make things right. Think about who was hurt by your actions. Then brainstorm possible solutions by asking yourself, “What would delight my customers/employees/family/team?”

Sometimes, all that’s needed is a quick apology and a correction. For example, if you sent out an email to customers that gave them the wrong link, then a new email with an apology and the right link is more than enough.

But for bigger issues, like a shopping cart that breaks down, offer a little incentive to customers who complained. This can be as simple as a 25% off coupon for their next purchase.

Acknowledge What Happened

Part of being a leader is calling out yourself or your organization when you’re wrong. Don’t be afraid that doing this will hurt your image—just the opposite usually happens. That’s because people like employees, customers, and other brands respect leaders that acknowledge the truth.

So go ahead and make a formal announcement. You don’t have to call a press conference but do talk about what happened. Make it public knowledge and share what went wrong, what caused the issue, and what you’ll do to make it right.

I set up a conference call for my team and explained what had I had discovered. I told them that in my opinion, the company was no longer legitimate and that I felt it was just a matter of time before they found themselves in legal trouble. I offered to find us a new home and promised to do everything in my power to help them rebuild if they would trust me one more time. I acknowledged that perhaps I had been too quick to leave our previous company where we had been earning reliable income for the promise of a quicker path to wealth.

Create a Plan

Put on your problem-solving cap and think about how you can prevent this issue from happening in the future. For example, if the videos in your course were low-quality, then you could add a note to your pre-sales checklist to double-check the video resolution before you go live.

It’s easy to lead when everything is going well. But leaders aren’t made during the easy moments—they’re developed during hard moments and bumpy roads. If you’re facing difficulties at home or at work, don’t give up. Lean into these experiences and let them make you a better leader.

For those of you wondering, we did indeed, find a new home. Much of my team made the switch with me and we did rebuild much of what we had lost. I did lose some in the process, but we are all still connected. Who knows, they may even jump back into the biz some day. I recently got hardcore back into it! Most importantly, I retained the trust and respect of the people I had worked with for so many years.

Oh...and the company? They were eventually shut down by the FTC as an illegal pyramid scheme. Looks like that time I made the right call!