NETWORK MARKETING/MLM consultant practice tips. NETWORK MARKETING/MLM International Expansion requires coordination of NETWORK MARKETING/MLM Legal, NETWORK MARKETING/MLM tax, NETWORK MARKETING/MLM consulting and NETWORK MARKETING/MLM Software Technology.   A myriad of factors from product entry to shipping to customs to NETWORK MARKETING/MLM regulatory compliance must be addressed.   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.

SECTION 6:   Network Marketing and the Law
By Jeffrey A. Babener
Excerpted from Network Marketing: What You Should Know, Jeffrey Babener, Legaline Publications
MLM consultant practice tips. MLM Compensation Plans come in all forms, including unilevel, stairstep, matrix, binary, etc.   Proper implementation requires consultation with an MLM Consultant on MLM Consulting, an MLM Attorney and MLM Law Provider and MLM Software provider for input on MLM technology and MLM Software Programming. . MLM Legal and MLMLegal.com and Babener and Associates provides expert MLM Consultant and MLM Consulting advise on MLM corporate, MLM software, MLM Compensation, MLM Taxes, etc. MLM Consulting is an important component for MLM startup.  Careful Choice of MLM Software is another component of MLM Corporate.  A MLM Consultant and MLM Law and MLM Legal is part of the MLM Startup Team.  MLM Compensation must be reviewed by an MLM Consulting standpoint by an MLM Consultant and MLM Legal and MLM Law professional and programmed by a MLM Software and MLM Technology provider.

Legal or Pyramid?

Because of the abuses of the "rotten apples" of the industry, multilevel marketing has become a closely scrutinized and regulated industry. Regulations regarding multilevel marketing companies in the United States are a constantly changing patchwork of overlapping laws, which lack uniformity and vary from state to state.

The basic thrust of these statutes is that marketing plans are prohibited which require an investment or purchase by sales representatives for the right to recruit others for economic gain. Under these statutes, multilevel marketing companies must be bona fide retail organizations which market bona fide products to the ultimate consumer. Inventory loading and "headhunting," or remuneration for the mere act of recruiting others, are prohibited. Sales kits should be sold at actual company cost to sales representatives.

In the leading legal decisions, a variety of abuses have been targeted as potential elements of illegal marketing plans:


1. Products which have "no real world" marketplace, i.e. the marketing program is a façade for a scam.

2. Products which are sold at inflated prices.

3. Plan which result in inventory loading or "buy-in" qualification by distributors.

4. Substantial cash investment requirements.

5. Mandatory purchases of peripheral or accessory products or services.

6. Plans in which distributors are left with substantial unsold inventory upon cancellation of participation.

7. Plans in which fees are paid to distributors for headhunting and emphasis is on recruitment rather than sale of product.

8. Earnings misrepresentations or inflated earnings representations.

DIRECT SELLING/DIRECT SALES consultant practice tips. DIRECT SELLING/DIRECT SALES International Expansion requires coordination of DIRECT SELLING/DIRECT SALES Legal, DIRECT SELLING/DIRECT SALES tax, DIRECT SELLING/DIRECT SALES consulting and DIRECT SELLING/DIRECT SALES Software Technology.   A myriad of factors from product entry to shipping to customs to DIRECT SELLING/DIRECT SALES regulatory compliance must be addressed.   DIRECT SELLING/DIRECT SALES Legal and DIRECT SELLING/MLMLegal.com and Babener and Associates provides expert DIRECT SELLING/DIRECT SALES Consultant and DIRECT SELLING/DIRECT SALES Consulting advise on DIRECT SELLING/DIRECT SALES corporate, DIRECT SELLING/DIRECT SALES software, DIRECT SELLING/DIRECT SALES Compensation, DIRECT SELLING/DIRECT SALES Taxes, etc. DIRECT SELLING/DIRECT SALES Consulting is an important component for DIRECT SELLING/DIRECT SALES startup.  Careful Choice of DIRECT SELLING/DIRECT SALES Software is another component of DIRECT SELLING/DIRECT SALES Corporate.  An DIRECT SELLING/DIRECT SALES Consultant and DIRECT SELLING/DIRECT SALES Law and DIRECT SELLING/DIRECT SALES Legal is part of the DIRECT SELLING/DIRECT SALES Startup Team.  DIRECT SELLING/DIRECT SALES Compensation must be reviewed by an DIRECT SELLING/DIRECT SALES Consulting standpoint by an DIRECT SELLING/DIRECT SALES Consultant and DIRECT SELLING/DIRECT SALES Legal and DIRECT SELLING/DIRECT SALES Law professional and programmed by a DIRECT SELLING/DIRECT SALES Software and DIRECT SELLING/DIRECT SALES Technology provider.