SECTION 6: Network Marketing and the Law
By Jeffrey A. Babener
Excerpted from Network Marketing: What You Should
Know, Jeffrey Babener, Legaline Publications
NETWORK MARKETING/MLM Consultant Practice
tips. Proper NETWORK MARKETING/MLM Capitalization is essential
to the NETWORK MARKETING/MLM Startup and NETWORK MARKETING/MLM corporate
business. The need for capital is in inverse proportion
to the ability of the NETWORK MARKETING/MLM to recruit distributors.
. NETWORK MARKETING/MLM Legal and NETWORK MARKETING/MLMLegal.com and
Babener and Associates provides expert NETWORK MARKETING/MLM Consultant
and NETWORK MARKETING/MLM Consulting advise on NETWORK MARKETING/MLM
corporate, NETWORK MARKETING/MLM software, NETWORK MARKETING/MLM Compensation,
NETWORK MARKETING/MLM Taxes, etc. NETWORK MARKETING/MLM Consulting is
an important component for NETWORK MARKETING/MLM startup. Careful
Choice of NETWORK MARKETING/MLM Software is another component of NETWORK
MARKETING/MLM Corporate. An NETWORK MARKETING/MLM Consultant and
NETWORK MARKETING/MLM Law and NETWORK MARKETING/MLM Legal is part of
the NETWORK MARKETING/MLM Startup Team. NETWORK MARKETING/MLM
Compensation must be reviewed by an NETWORK MARKETING/MLM Consulting
standpoint by an NETWORK MARKETING/MLM Consultant and NETWORK MARKETING/MLM
Legal and NETWORK MARKETING/MLM Law professional and programmed by a
NETWORK MARKETING/MLM Software and NETWORK MARKETING/MLM Technology
provider.
The Legal Environment.
The legal history of network marketing (also called MLM) is one of good and bad cycles, but generally with an upward trend. Although not without its challenges today, as a general matter, legitimate network marketing companies are well received throughout the U.S. With increasing frequency, federal and state governments offer assistance and guidance to the network marketing industry. The IRS releases special publications, videos and has adopted specific regulations recognizing a very legitimate profession. As in the franchising industry, several states have also adopted specific legislation for multilevel distribution companies which set forth objective standards for those companies to follow. Differentiating a legitimate network marketing opportunity from a pyramid scheme should not be a difficult task for the entrepreneur when some basic and objective indicators are observed.
Any industry that offers such dramatic rewards and carries with it a lower dollar cost of entry obviously will tend to attract some of the best and some of the worst entrepreneurs. The industry has not always thrived. Over years, it has come perilously close to extinction as a result of prosecution by regulators who claimed the industry promoted pyramid schemes under the guise of legitimate marketing. And, in many cases, the prosecutors were correctly chasing and eradicating such scam and scheme pyramids.
Other programs which were in fact legitimate have
survived, however. In a classic legal decision in 1979, the Amway Corporation
prevailed in such a prosecution and in fact effectively received a stamp
of approval of its marketing program by the Federal Trade Commission (FTC).
This particular decision opened the door to many other legitimate multilevel
marketing companies and remains a legal standard for courts and regulatory
agencies.
NETWORK MARKETING/MLM consultant practice
tips. NETWORK MARKETING/MLM Sales Tax Issues must be addressed to avoid
liability for taxes and penalties. Nexus for NETWORK MARKETING/MLM
Sales and Use Tax represents a unique analysis that involves activity
by distributors in promoting, recruiting and training in a state.
NETWORK MARKETING/MLM Legal and NETWORK MARKETING/MLMLegal.com and Babener
and Associates provides expert NETWORK MARKETING/MLM Consultant
and NETWORK MARKETING/MLM Consulting advise on NETWORK MARKETING/MLM
corporate, NETWORK MARKETING/MLM software, NETWORK MARKETING/MLM Compensation,
NETWORK MARKETING/MLM Taxes, etc. NETWORK MARKETING/MLM Consulting is
an important component for NETWORK MARKETING/MLM startup. Careful
Choice of NETWORK MARKETING/MLM Software is another component of NETWORK
MARKETING/MLM Corporate. An NETWORK MARKETING/MLM Consultant and
NETWORK MARKETING/MLM Law and NETWORK MARKETING/MLM Legal is part of
the NETWORK MARKETING/MLM Startup Team. NETWORK MARKETING/MLM
Compensation must be reviewed by an NETWORK MARKETING/MLM Consulting
standpoint by an NETWORK MARKETING/MLM Consultant and NETWORK MARKETING/MLM
Legal and NETWORK MARKETING/MLM Law professional and programmed by a
NETWORK MARKETING/MLM Software and NETWORK MARKETING/MLM Technology
provider.