Category Archives: MLM Companies

What Is Coding and How Does It Work?

Posted on January 2, 2015 by Charity

Most modern direct selling plans offer enroller coding bonuses. Historically, a sponsor enrolled a new distributor frontline and was deemed the sponsor. Commissions flowed from this relationship. However, as sponsors became busier and busier, companies concluded that it was beneficial … Continue reading →

Posted in Compensation Plan, Consultants, Consulting, Consumer Protection, Direct Selling, Distributor Education, Distributors, Earnings Claims, For MLM Executives, Home-Based Business, Legal, Marketing, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM History, MLM Startup, Network Marketing, Party Plan, Recruiting, Startup, Success, Training | Tagged code sponsor, coding, Commissions, consultant, direct selling, distributor, downline, enroller, frontline, IBO, law, legal, mlm, network marketing, party plan, questions and answers, recruiting, sales organization, sponsor | Comments Off

October 2014 MLM Startup Conference Success!

Posted on November 3, 2014 by Charity

You wouldn’t believe the turnout we had for the October 2014 MLM Startup Conference! Entrepreneurs, executives, founders, and CEOs from 98 direct selling companies registered for the event! Over 160 entrepreneurs registered for the conference! These innovative entrepreneurs represented 31 … Continue reading →

Posted in Advertising, Biography, Capitalization, Compensation Plan, Compliance Guidelines, Conference, Consultants, Consulting, Consumer Protection, Direct Selling, For MLM Executives, FREE, FTC, Headlines, Home-Based Business, Industry Sales and Growth, Internet Marketing, Just for Fun, Legal, Marketing, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM History, MLM Startup, Network Marketing, Party Plan, Personal Use, Products, Pyramid, Recruiting, Registration, Sales Tools / Kits, Social Networking, Software/Technology, Statistics, Success, Success Stories, Tax, Trademarks, Videos | Tagged 2015, attendee, Compensation Plans, Conference, consulting, direct selling, Event, IRS, law, legal, mlm, network marketing, original conference, Register, seminar, Speakers, Statistics, Tax | Comments Off

Did You Miss IT?! Next MLM Startup Conference is February 26 & 27, 2015!

Posted on October 22, 2014 by Charity

The MLM Startup Conference for Executives of Startup and Existing Direct Selling Companies takes place February 26 & 27 in Las Vegas. This is the 70th annual, two-day conference, featuring industry experts and invaluable tools for the MLM startup entrepreneur. … Continue reading →

Posted in Advertising, Compensation Plan, Compliance Guidelines, Conference, Consultants, Consulting, Direct Selling, Direct Selling Association, Distributor Education, Distributors, Earnings Claims, FDA, For MLM Executives, FREE, FTC, Home-Based Business, Industry Sales and Growth, Internal Consumption, Internet Marketing, Just for Fun, Legal, Marketing, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM History, MLM in the News, MLM Startup, Network Marketing, Part Time, Party Plan, Personal Use, Ponzi Scheme, Press Releases, Products, Pyramid, Recruiting, Registration, Sales Tools / Kits, Securities and Exchange Commission, Social Networking, Software/Technology, Startup, Success, Success Stories, Tax, Testimonials, Trademarks, Training, Vendors, Videos | Tagged 2015, Conference, consulting, convention, direct sales, direct selling, Education, Event, experts, mlm, network marketing, seminar, starting a mlm company, Startup | Comments Off

What Compensation Plans Do Consultants Generally Prefer?

Posted on August 8, 2014 by Charity

As the French say, “a chaque a son gout.” Translated, this means, to each his own taste. And this is the truth. There is no right or wrong when it comes to types of compensation plans, whether they be unilevel, … Continue reading →

Posted in Commission, Compensation Plan, Consultants, Consulting, Direct Selling, Distributor Education, Distributors, For MLM Executives, Home-Based Business, MLM, MLM Articles, MLM Companies, MLM Startup, Network Marketing, Party Plan, Products, Recruiting, Social Networking, Startup, Success | Tagged Australia two up, binary, breakaway, Compensation, Compensation Plans, consultants, consulting, direct sales, downline, generational bonuses, incentives, leaders, matrix, mlm, network marketing, party plan, personal volume, rewards, sponsor, unilevel | Comments Off

What Are Unauthorized Medical Claims?

Posted on July 22, 2014 by Charity

MLM companies and direct sellers are among the biggest sellers of health and cosmetics products in the world. Some of the largest companies are traded on the New York Stock Exchange (NYSE), such as Avon or Herbalife. Because of concerns … Continue reading →

Posted in Advertising, Compliance Guidelines, Consultants, Consulting, Consumer Protection, Direct Selling, Distributor Education, Earnings Claims, FDA, For MLM Executives, FTC, Home-Based Business, Law Cases, Legal, MLM, MLM Articles, MLM Companies, MLM Startup, Network Marketing, Party Plan, Products, Pyramid, Startup, Success | Tagged claims, direct sales, direct selling, DSHEA, FDA, ftc, guidelines, labeling, law, legal, Marketing, medical claims, mlm, network marketing, opportunity, party plan, product claims | Comments Off

Tennessee Recognizes Personal Use in New Legislation

Posted on July 10, 2014 by Charity

On July 1st, 2014, Tennessee became the latest government/regulatory entity to adopt updated MLM/Pyramid legislation recognizing “personal use” in pyramiding analysis. The Tennessee language is similar to language adopted in more than a dozen state statutes, which recognizes personal use, … Continue reading →

Posted in Consultants, Consulting, Consumer Protection, Direct Selling, Distributor Education, Distributors, For MLM Executives, Headlines, Home-Based Business, Legal, MLM, MLM Articles, MLM Companies, MLM in the News, MLM Startup, Network Marketing, Party Plan, Personal Use, Pyramid, Recruiting, Startup, Success | Tagged Burnlounge, buying clubs, consumer safety, direct sales, direct selling, headlines, inventory loading, mlm, MLM Law in 50 States, network marketing, news, opportunity, personal use, Pyramid, state law, Tennessee | Comments Off

What do Startup Companies Think about Long Term Professional Relationships?

Posted on June 27, 2014 by Charity

MLMLegal.com and Babener & Associates have been with many network marketing companies from the very beginning, from startup to stable. We were involved in early stages of a number of leading MLM companies, including some traded on the New York … Continue reading →

Posted in Capitalization, Conference, Consulting, Direct Selling, For MLM Executives, Home-Based Business, IRS, Just for Fun, Legal, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM Startup, Network Marketing, Party Plan, Products, Recruiting, Startup, Success, Success Stories, Tax, Training | Tagged 1994 Dietary Supplement Act, Advisor, advocate, agreements, Building a Direct Selling Company, clients, consulting, direct selling, growth, IRS, law, lawyer, mlm, network marketing, NYSE, partner, policies and procedures, Product, recruiting, Startup, success, Tax, trademark | Comments Off

BurnLounge Appeal Decision: Guidance on Pyramid v. Legitimate MLM and the Role of Personal Use in Pyramid Analysis- New Article at MLMLegal.com

Posted on June 24, 2014 by Charity

BurnLounge Appeal Decision: Guidance on Pyramid v. Legitimate MLM and the Role of Personal Use in Pyramid Analysis By Jeffrey A. Babener © 2016 On June 2, 2014, in the case of FTC v. BurnLounge, the U.S. Court of Appeals … Continue reading →

Posted in Compensation Plan, Compliance Guidelines, Consultants, Consulting, Consumer Protection, Direct Selling, Direct Selling Association, Distributor Education, Distributors, For MLM Executives, Headlines, Home-Based Business, Industry Sales and Growth, Internal Consumption, Law Cases, Legal, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM in the News, Network Marketing, Personal Use, Pyramid | Tagged analysis, appeal, article, Burnlounge, Cases, commentary, court, decision, direct sales, direct selling, discussion, DSA, Federal Trade Commission, ftc, full article, law, legal, mlm, network marketing, personal use, Pyramid, Pyramid Scheme | Comments Off

What are the most important things to remember when you host an employee recognition event?

Posted on June 20, 2014 by Charity

First, we must note that this is a bit out of our area of legal expertise. However, we have attended many recognition events and been involved in meeting planning, from hotel logistics, to program, to meeting planners. And, we have … Continue reading →

Posted in Commission, Compensation Plan, Consultants, Consulting, Direct Selling, Distributors, Home-Based Business, Industry Sales and Growth, Just for Fun, Marketing, MLM, MLM Articles, MLM Companies, MLM Startup, Network Marketing, Party Plan, Recruiting, Startup, Success, Training | Tagged appreciation, articles, bond, consultants, direct selling, distributors, employee recognition, giveback, inspiration, logistics, meeting planning, mission, mlm, network marketing, opportunity, party plan, philanthropy, product education, recruiting, retention, rewards | Comments Off

How Often Should Companies Renew Their Policies and Procedures to Make Them Relevant in Today’s Marketplace?

Posted on May 27, 2014 by Charity

There are two issues that have surfaced in recent years: 1) social networking and 2) frequent migration of distributors between companies. With social networking concerns, companies have had to decide on positive protocol for consultants who socialize through technology and … Continue reading →