Policies and Procedures – MLM, Network Marketing, Direct Selling News, Videos, Articles, Legal Updates, and More. http://mlmlegal.com/MLMBlog From Multilevel Marketing Attorney and Business Consultant, Jeff Babener. Run, Learn & Get Lost at MLMLegal.com Sat, 07 Mar 2020 15:31:49 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.25 Most Requested Video of the Month – Difference Between Sponsoring and Recruiting http://mlmlegal.com/MLMBlog/requested-video-month-difference-sponsoring-recruiting/ Tue, 10 May 2016 17:57:04 +0000 http://mlmlegal.com/MLMBlog/?p=1107 MLMLegal.com’s most requested FAQ this month answered in a video by MLM expert Attorney, Jeff Babener: What is the difference between sponsoring and recruiting? Although the terms sponsoring and recruiting are often used interchangeably, they are actually have two very … Continue reading

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MLMLegal.com’s most requested FAQ this month answered in a video by MLM expert Attorney, Jeff Babener: What is the difference between sponsoring and recruiting?

Although the terms sponsoring and recruiting are often used interchangeably, they are actually have two very different meanings. Recruiting is the act of searching and soliciting for new distributors for the downline sales organization of an existing distributor. Of course, the activity carries important responsibilities, such as compliance with company and statutory guidelines on earnings representations, product representations, and representations as to the business opportunity of the company.

Once a recruit has agreed to join the company, a recruiting distributor becomes a sponsor. Almost all company policies set forth very specific duties and responsibilities of a sponsor, including supervision, training, and communication with their downline sales organization. In addition, all companies have specific rules on cross-sponsoring and respectful relationships with other sponsors and distributors.

Watch the video for a detailed explanation by Jeff Babener, Editor of MLMLegal.com. View all of our new videos and more on our new and improved website: MLMLegal.com!

MLMLegal.com is bustling with educational content for direct sellers and startup/existing MLM companies! Be sure to visit us often!

If you are interested in attending the Starting and Running the Successful MLM Company conference visit our conference page, view our speaker list, or get more details. All executives/owners of direct selling companies are welcome to attend. Call 800-231-2162 to register.

Our next Starting and Running the Successful MLM Company Conference takes place May 20, 2016 in Las Vegas. View our conference flyer and speaker list online. Participate in our Innovation Campaign for your chance to receive TWO FREE TICKETS to attend our next conference.

If you’re reading this blog post and the conference dates above have passed, check our website for the current conference dates.

Sign up for the MLM News Global newsletter for top headlines, news stories, scam alerts, videos, articles, and more information on the network marketing industry.

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prweb (4/14/16) – Renovation of MLMLegal.com- Come Visit the New and Improved Website http://mlmlegal.com/MLMBlog/prweb-41416-renovation-mlmlegal-com-come-visit-new-improved-website/ Thu, 14 Apr 2016 20:27:04 +0000 http://mlmlegal.com/MLMBlog/?p=1102 MLMLegal.com is Upgraded: Easy-to-Use Navigation Bars, Stylized Images, Organized Landing Pages for Articles, Videos, & MLM Legal Portland, Oregon (PRWEB)April 14, 2016 Come visit the new and improved MLMLegal.com! This is the first major renovation of MLMLegal.com. MLMLegal.com’s new face … Continue reading

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MLMLegal.com is Upgraded: Easy-to-Use Navigation Bars, Stylized Images, Organized Landing Pages for Articles, Videos, & MLM Legal

Come visit the new and improved MLMLegal.com! This is the first major renovation of MLMLegal.com. MLMLegal.com’s new face is easy to navigate and full of valuable and educational content, pertinent to direct sellers. And Babener & Associates is working on updating more pages throughout 2016.

A new and easy-to-use navigation bar helps visitors easily find what they are looking for, whether it is the blog, articles, videos, MLM resources, conference pages, or one of the many other resources available on the website for network marketers.

The main homepage image was provided by expert MLM Attorney himself, Jeff Babener, while on a trip to Europe. These beautiful mountains provide the metaphor “Let Us Be Your Guide.” Let the Law Office of Babener and Associates, MLMLegal.com, guide clients through the sometimes difficult MLM industry and its legal climate. As experienced network marketing attorneys, who have been in the industry for over three decades, and who represent companies such as Melaleuca, Avon, Herbalife, NuSkin, USANA, Nerium, Excel, and Team National, our firm has the experience and credibility to help direct selling companies navigate the direct selling industry.

“Let us be your guide” through education provided throughout the website in the form of articles, videos, books, and MLM resources. Or,” let us be your guide” in helping to startup or run your direct selling company; Babener & Associates advises in all of the legal aspects of starting up or running MLM, network marketing, direct selling companies.

The new homepage offers quick and easy-to-find links so that visitors can easily contact Babener & Associates, request a Complimentary MLM Startup Manual, gather information regarding the next MLM Startup Conference, or subscribe to the newsletter, MLM News Global.

The new MLMLegal.com homepage still features new content, such as headline news and relevant articles, this time under their own, clearly-outlined sections.

Scroll down the homepage to find more educational video content and request a complimentary copy of the MLM Startup Manual.

What else is important?

A scrolling carousal provides visitors with images taken of past conferences and directs the eye and mouse directly to the page where one can find out when the next conference takes place and who will be included as expert speakers.

And now, visitors can find all of Jeff Babener’s educational MLM videos (over 140 videos) in one location, the homepage. …Right along with Mr. Babener’s most popular industry articles.

And don’t forget about the rest of the MLM, network marketing, direct selling content on MLMLegal.com. Use the Law Library to find all of Mr. Babener’s articles, federal and state cases, MLM law in 50 states, MLM business articles, IRS 911 Publication, and so many more article index pages that can be easily navigated.

Hint: Each new webpage now has related video and page content at the end of each webpage.

As does the new homepage. The end of each page has links to related material/videos, or other related pages that we suggest visitors look also to enjoy while at MLMLegal.com.

And finally, at the bottom of each webpage are links to social networking sites. Follow MLMLegal on Twitter. Friend MLMLegal.com on Facebook. Like the Babener & Associates Facebook page. Visit Babener & Associates on LinkedIn or Google+. There are lots of easy ways to stay in touch and now it’s made it easy to find and follow Babener & Associates/MLMLegal.com online.

MLMLegal.com and Babener & Associates thought a lot about visitors when redesigning the new website. MLMlegal.com is now more manageable yet still famous for being full of lots of useful content.

Potential attendees to the Starting and Running the Successful MLM Company conference are welcome to visit the conference page, view the speaker list, or get more details online. All executives/owners of direct selling companies are welcome to attend. Call 800-231-2162 to register.

The next Starting and Running the Successful MLM Company Conference takes place May 20, 2016 in Las Vegas. View the conference flyer and speaker list online. Participate in the Innovation Campaign for a chance to receive TWO COMPLIMENTARY TICKETS to attend the next conference.

Sign up for the MLM News Global newsletter for top headline news stories, videos, articles, and more valuable MLM, network marketing, direct selling content, an imperative to anyone in the direct selling industry.

The Starting and Running the Successful MLM Company conference will be held May 20, 2016.

How do you find out more information?

Visit the new website:

http://www.mlmlegal.com

Visit the blogs:

http://mlmlegal.com/MLMBlog/

http://mlmattorney.com/blog/

Contact MLMLegal.com: 503-226-6600 or 800-231-2162

Conference Information: The day will begin at 9:00AM and end at 5:30PM, then from 5:30PM-8:30PM there will be one-on-one time with the speakers. For more information visit our website or call 800-231-2162/503-226-6600. Registrations are taken exclusively by phone and questions are always welcome.

Presented by one of the most trusted individuals in direct selling and MLM, Jeffrey Babener, Editor of MLMLegal.com.
About Attorney Jeffrey Babener: Conference Host and Chairman, Editor of MLMLlegal.com, as well as the leading direct selling attorney in the United States – With over 30 years of experience as a direct selling attorney, Jeffrey Babener has advised leading companies in the MLM/Direct Selling industry, ranging from Avon to Nikken, to Herbalife, to Melaleuca, to USANA, and to Excel Communications, Nerium International, plus many more. He has been published in national magazines such as Money, Inc., Atlantic Monthly, Entrepreneur magazine, Direct Selling News, Direct Sales Journal, Success magazine, Money Maker’s Monthly, among countless others. He’s authored several books, including his most popular Network Marketing: What you should know. Mr. Babener has chaired more than 70 national conferences on direct selling.

Learn how to receive two COMPLIMENTARY tickets to attend the next Starting and Running the Successful MLM Company Conference by visiting the MLMAttorney.com.

See the Press Release.

Visit us at www.mlmlegal.com to learn more.

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Press Release: Starting and Running the MLM – A Deep Focus Conference – Las Vegas, Nevada – May 20, 2016 http://mlmlegal.com/MLMBlog/press-release-starting-running-mlm-deep-focus-conference-las-vegas-nevada-may-20-2016/ Thu, 24 Mar 2016 21:09:08 +0000 http://mlmlegal.com/MLMBlog/?p=1099 MLMLegal.com and Babener & Associates Announce the 72nd National Starting and Running the Successful MLM Company Conference. This one-day, deep focus event has limited seating so register today. (PRWEB)March 24, 2016 The Starting and Running the Successful MLM Company conference … Continue reading

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MLMLegal.com and Babener & Associates Announce the 72nd National Starting and Running the Successful MLM Company Conference. This one-day, deep focus event has limited seating so register today.
Our last conference boasted 71 companies from 23 states and 8 countries, including Canada, United States, Ghana, Israel, Spain, Russia, China, and Germany!

Our last conference boasted 71 companies from 23 states and 8 countries, including Canada, United States, Ghana, Israel, Spain, Russia, China, and Germany!

The Starting and Running the Successful MLM Company conference will be held May 20, 2016.

For more than 30 years, leading industry experts have educated the executives of starting and existing MLM, direct selling, network marketing, and party plan companies on how to structure their compensation plans, legalize their companies, recruit key employees and top-ranking distributors, develop business models, generate leads, fund their business, establish their website and technology platforms, better understand the direct selling industry, and so much more.

Did you miss the last MLM Startup Conference? In attendance were over 100 people, representing 71 companies from 23 states and 8 countries (Canada, United States, Ghana, Israel, Russia, Spain, China, and Germany). The companies in attendance represented the entire spectrum of company development, from startups to established companies. All attendees registered for our conference in order to learn more about the network marketing industry, grow their companies, meet experts in the industry, and educate themselves on the MLM industry.

The next MLM Startup Conference takes place May 20, 2016 in Las Vegas. View the conference flyer page at http://www.mlmlegal.com/srs2.html to learn more.

This is the original MLM Startup Conference — responsible for launching many industry-leading companies — perfected over the course of a quarter of a century to ensure the highest quality of information, most knowledgeable experts, and most practical advice from qualified experts.

Join us May 20, 2016 at our next conference! Over the course of the day, attendees will hear from a multitude of the best industry experts, and if they choose, can sign up to meet with the speakers for individual one-on-one time. A full list of speakers and their biographies/credentials can be found at http://www.mlmlegal.com/bio.html.

The educational information gained by attending this event is invaluable. Here are just a few of the testimonials from past attendees:

“We have a traditional business at the moment and we are looking to take it into the realm where it’s more personalized, it’s more about building people and an experience. It has been absolutely worth our trip. We are looking to take our business to the next level and build relationships.”

“The reason I came to the show was to learn more about how to launch my direct sales company. I’m very comfortable and accustomed to selling through more traditional networks; however, I believe that the product that I’m launching is more suitable for direct sales; to get direct-to-consumer faster and in greater sales.”

“[I’ve] been in network marking for 30 years [but] we are learning a lot of things about how to launch, how to reach the people we need to have, and again, the things that are required to make a successful company, not only for us but especially for our customers and for our affiliates.”

Each attendee will receive a free copy of the Starting and Running the Successful MLM Company Manual.

How do you find out more information?

Visit our website:
http://www.mlmlegal.com

Visit our blogs:
http://mlmlegal.com/MLMBlog/
http://www.mlmattorney.com/blog/

Watch the Conference Videos or many of the other educational MLM Videos!

  • MLMlegal Releases New Film on MLM Startup Conference — Produced by Networkingstar.com
  • The MLM Startup Conference in Las Vegas
  • MLM Startup Conference — A Must for Executives of Startup and Existing MLM Companies
  • Since You Are a MLM Attorney, Why Would You Host the MLM Startup Conference for the Executives of Startup and Existing Companies?

Contact Us: Register Today, 503-226-6600 or 800-231-2162

The day will begin at 9:00AM and end at 5:30PM, then from 5:30PM-8:30PM there will be one-on-one time with the speakers. For more information, visit: http://www.mlmlegal.com/srs2.html or call 800-231-2162/503-226-6600. Registrations are taken exclusively by phone and questions are always welcome.

Presented by one of the most trusted individuals in direct selling and MLM, Jeffrey Babener, Editor of MLMLegal.com.

About Attorney Jeffrey Babener: Conference Host and Chairman, Editor of MLMLegal.com, as well as the leading direct selling attorney in the United States – With over 30 years of experience as a direct selling attorney, Jeffrey Babener has advised leading companies in the MLM/Direct Selling industry, ranging from Avon to Nikken, to Herbalife, to Melaleuca, to USANA, and to Excel Communications, Nerium International, plus many more. He’s been published in national magazines such as Money, Inc., Atlantic Monthly, Entrepreneur magazine, Direct Selling News, Direct Sales Journal, Success magazine, Money Maker’s Monthly, among countless others. He’s authored several books, including his most popular Network Marketing: What you should know. Mr. Babener has chaired more than 70 national conferences on direct selling.

Lastly, learn how you can receive two free tickets to attend the October 2015 Starting and Running the Successful MLM Company Conference by visiting our Innovation Campaign page.

View the press release at PR Web.

Visit us at www.mlmlegal.com to learn more.

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Limited-Seating, One-Day MLM Startup Conference – May 20, 2016 http://mlmlegal.com/MLMBlog/limited-seating-one-day-mlm-startup-conference-may-20-2016/ Tue, 01 Mar 2016 17:35:48 +0000 http://mlmlegal.com/MLMBlog/?p=1093 LIMITED SEATING – CALL AND REGISTER: 800-231-2162 May 20, 2016 – Las Vegas, NV Friday: 9am-5:30pm, 5:30pm-8:30pm one-on-one with the speakers The 72nd National Conference of: Sponsor and Chair: MLMLegal.com and MLMOne.com Conference Chairperson: Jeff Babener, Babener & Associates Babener … Continue reading

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LIMITED SEATING – CALL AND REGISTER: 800-231-2162

Limited, One-Day Only Event

May 20, 2016 – Las Vegas, NV

Friday: 9am-5:30pm, 5:30pm-8:30pm one-on-one with the speakers

The 72nd National Conference of:

Sponsor and Chair:

MLMLegal.com and MLMOne.com

Conference Chairperson: Jeff Babener, Babener & Associates

Babener & Associates Law Firm

Conference Co-Chair: Michael Sheffield, The Sheffield Group

Learn it all from those who have advised (and started many), including Avon, Herbalife, Amway, USANA, Melaleuca, Nerium, Excel Telcom, ACN, Team National, Shaklee, etc.

Seven hours of Seminar – 30 hours of one-on-one consultation.

Each Attendee Recieves a Free MLM Startup Manual:

Each attendee receives a FREE copy of the Starting and Running the Successful MLM Company manual. Some chapters include:

~ Legal Issues

~ MLM Law in 50 States

~ FDA Health Claims: The Final Rules

~ The Snail that got Mugged: FTC v. Direct Selling

~ Start-up Issues

~ Incorporating the Network Marketer

~ Five Dynamics that Drive a MLM Company

~ Product

~ Creating Your Next Million Dollar Product

~ Treasure Hunting for New Products

~ Compensation Plans

~ Compensation Plan Conversion: Direct Sales to MLM

~ Your Compensation Plan’s Competitve Edge

~ Communications and Media

~ Focus on the Mission… Not the Commission!

~ When the Media Calls… Who Answers the Phone?

Check out our speakers and get more information.

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Private Equity in Direct Selling, Republished with Permission of WorldofDirectSelling.com http://mlmlegal.com/MLMBlog/private-equity-in-direct-selling-republished-with-permission-of-worldofdirectselling-com/ http://mlmlegal.com/MLMBlog/private-equity-in-direct-selling-republished-with-permission-of-worldofdirectselling-com/#comments Tue, 01 Dec 2015 18:22:25 +0000 http://mlmlegal.com/MLMBlog/?p=1064 Private Equity in Direct Selling Republished with Permission of WorldofDirectSelling.com November 23, 2015 by Hakki Ozmorali, Editor of World of Direct Selling Investments that are directly made into a private company or that are used to buyout in order to … Continue reading

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Private Equity in Direct Selling

Republished with Permission of WorldofDirectSelling.com

November 23, 2015 by Hakki Ozmorali, Editor of World of Direct Selling

Investments that are directly made into a private company or that are used to buyout in order to delist a company from a stock exchange is “private equity”. It can be raised from individual investors, institutional investors or sometimes, from a group that act together. As a source of fund, private equity can be used by company managements for a variety of purposes, ranging from turning around a distressed business to further accelerating the already existing growth.

When investing, usually the investor sets an objective and a time frame to achieve it. As soon as that objective has been met, investor sells its stake and “exits”.

Obviously, outside investors pick the industries and companies to invest from those that are promising to them. Let’s see then, how attractive the direct selling industry has been to these investors. We will briefly review this week, some of the prominent examples from the industry.

5LINX

Founded in 2000, 5LINX is a direct-sells three main categories of products: Home essentials like telecommunications and energy, wellness products, and business services such as mobile marketing and payment processing. As of end-2014, 5LINX reported $109 million sales.

In 2006, Trillium Group and the New York State Common Retirement Fund made a $1.7 million investment in 5LINX. Eight years after this in 2014, New York State Comptroller’s Office reported this investment had generated a $6.7 million return – close to four times the original investment.

Arbonne

In 2004, Harvest Partners purchased NPG, Arbonne’s parent company. Things did not go so well, though. arbonneArbonne’s holding company and all its subsidiaries filed for bankruptcy in 2009. The company’s board made the decision to restructure the debt to equity and allowed the company’s lenders to become the owners. The company officially declared bankruptcy in January 2010. But in several weeks, Arbonne emerged from bankruptcy. Arbonne announced in early 2011 that its parent company NPG had been named the winner of the “Corporate Turnaround of the Year” award by the M&A Advisor magazine.

Having survived this turmoil, Arbonne stands now as the world’s 36th largest direct seller with 2014 sales of $486 million in the Direct Selling News Global 100 list.

Blyth

Blyth is known as the parent company of PartyLite that also owned the majority of the shares in ViSalus between 2012-2014. In August 2015, The Carlyle Group announced it would acquire Blyth for $98 million. The price paid for shares represented a premium of approximately 105% percent over the closing price of Blyth common stock at that date.

CAbi

cabi“CAbi” stands for “Carol Anderson by Invitation”. It was founded in 2001 as a clothing direct seller. CAbi was bought in 2012 from its founders by the private equity firms Irving Place Capital and J.H. Whitney.

With its more than 3,000 “Stylists”, company’s revenue exceeds $250 million.

CVSL

CVSL is definitely a unique case in the global direct selling industry. The company defines itself as “a unique portfolio of direct-to-consumer companies, led by an experienced management team, engaged in a long-term process of acquiring companies in this sector and maximizing returns for shareholders.”

CVSL is led by John P. Rochon, a well-known figure in the industry. So far, the company has invested in the direct sellers Agel, Betterware, Kleeneze, Longaberger, Paperly, Tomboy Tools, Uppercase Living, and Your Inspiration at Home.

CVSL is a public company whose shares are being traded on the New York Stock Exchange.

LegalShield (formerly Pre-Paid Legal Services)

LegalShield was founded in 1969 by Harland Stonecipher under the name of Pre-Paid Legal Services. As its name implies, the company sells legal service plans to individuals and businesses.

MidOcean Partners, a private investment firm acquired the company in 2011 through a cash transaction valued at approximately $650 million.

LR Health & Beauty Systems

Called “LR” in short, this is a well-known Germany-based direct selling company. It was founded in 1985 by two lrentreprenuers, Helmut Spikker and Achim Hickmann.

In 2004, Apax Partners invested in LR and then gradually acquired a majority share. Apax Partners is a leading private equity investment group, with the funds under the advice of Apax Partners exceeding $35 billion around the world.

Apax Partners said in 2012, it had agreed to sell its stake at LR to a private equity consortium of Bregal Capital and Quadriga Capital.

LR’s 2014 revenue exceeded $300 million.

Oriflame

Oriflame was founded in Sweden in 1967 by the brothers Jonas af Jochnick and Robert af Jochnick and their friend Bengt Hellsten.

While its shares were being traded on the London Stock Exchange, Industri Kapital, a leading European private equity firm bought 45% of Oriflame’s shares in 1999. With this transaction, Oriflame was delisted from the stock exchange, too. Industri Kapital’s this transaction valued Oriflame at approximately 450 million Euros at that time.

In line with the initial plans, the management listed the company on the Stockholm Stock Exchange through an IPO (“Initial Public Offering”) in 2004. Following this, Industri Kapital started selling its shares on the stock exchange and exited by selling its remaining 4.5% stake in August 2006.

Origami Owl

Origami Owl is a custom jewelry direct seller founded by a teenager, Bella Weems and her family in 2010. Two years later in 2012, company’s revenue exceeded $24 million. Origami Owl’s 2014 sales was $250 million.

In October 2014, Origami Owl received $43 million from Gauge Capital. Satori Capital had also invested in Origami Owl an amount not disclosed.

Pampered Chef

Pampered Chef is probably the most publicized of these examples due to its investor’s very high profile.warren.buffett

In 2003, Warren Buffet’s company Berkshire Hathaway which owns stakes in big names like American Express and Coca-Cola, announced it would buy Pampered Chef, few days after Buffett reviewed its financials. At that time, Warren Buffet said, “We are extremely excited by Pampered Chef. Doris Christopher has created from scratch an absolutely wonderful business.”

Doris Christopher founded Pampered Chef in 1980 to direct-sell kitchen tools by borrowing $3,000 on a life insurance policy. By 2001, company’s annual sales reached $740 million.

In late 2014, Warren Buffet appointed his aide Tracy Britt Cool as the CEO of Pampered Chef. At the age of 30, Cool was known to be one of Buffett’s most trusted advisers,

Pippa&Jean

Pippa&Jean is a German direct sales company selling accessories. The company received investments from Holtzbrinck Ventures, Klingel Gruppe, SevenVentures, and Vorwerk Direct Selling Ventures.

Stella & Dot

stella.dotThis company was founded by Jessica Herrin and Blythe Harris in 2007. In 2010, Sequoai Capital, that was said to control nearly 14% of Nasdaq, invested $37 million in Stella & Dot. With this, Sequoia owned 10% of the company, valuing Stella & Dot $370 million. Before this, the company had also raised about $5 million from Radar Partners

Stella & Dot’s sales in 2009 was $33 million. It more than tripled in 2010 reaching $104 million. This became $220 million in 2013.

It is true that capital raised from private equity companies helps businesses a lot. However, raising capital from institutional investors is not an easy task. The future of the industry, founders’ success till then and their visions, all play a part in attracting investors’ initial interest. Shortly after these though, comes their search for professionalism within the company, including of the founders’ and top management’s. It’s always worth remembering that only those that pass all these tests can win that valuable financial support.

 

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New Video-Are Network Marketing Companies Mostly Moving to All-Digital/All-Online Starter Kits? http://mlmlegal.com/MLMBlog/new-video-are-network-marketing-companies-mostly-moving-to-all-digitalall-online-starter-kits/ Tue, 13 Oct 2015 17:08:36 +0000 http://mlmlegal.com/MLMBlog/?p=1036 Can online-only starter kits be done in a way that ensures a high perceived value? There has been a clear trend in recent years to offer sales and marketing support online and in the cloud. In reality, the developmental costs … Continue reading

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Can online-only starter kits be done in a way that ensures a high perceived value?

There has been a clear trend in recent years to offer sales and marketing support online and in the cloud. In reality, the developmental costs are equal or more in providing such support. The quality of support is quite significant, including: all company forms, distributor agreements and terms, policies and procedures, administrative housekeeping rules, product descriptions and updates, compensation plan descriptions and updates, training, communication tools, back office management of down line sales performance and financial reporting, replicated websites, the list goes on. In reality, the real and perceived value of emerging online sales and marketing support will far exceed the limited (physical) sales kits of “yesterday.”

If you are interested in attending the Starting and Running the Successful MLM Company conference visit our conference page, view our speaker list, or get more details. All executives/owners of direct selling companies are welcome to attend. Call 800-231-2162 to register.

Our next Starting and Running the Successful MLM Company Conference takes place October 22 and 23, 2015 in Las Vegas. View our conference flyer and speaker list online. Participate in our Innovation Campaign for your chance to receive TWO FREE TICKETS to attend our next conference.

If you’re reading this blog post and the conference dates above have passed, check our website for the current conference dates.

Sign up for the MLM News Global newsletter for top headlines, news stories, scam alerts, videos, articles, and more information on the network marketing industry.

Visit us at www.mlmlegal.com to learn more.

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New Video: Is it Legal for Consultants to Sell Company Products through Booths? http://mlmlegal.com/MLMBlog/new-video-is-it-legal-for-consultants-to-sell-company-products-through-booths/ Tue, 08 Sep 2015 16:50:07 +0000 http://mlmlegal.com/MLMBlog/?p=1005 As a distributor, can I use display booths to sell my company’s products? Is there a limit on the time I can spend selling at a booth? Watch the new video from www.mlmlegal.com. This question likely refers to sales at … Continue reading

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As a distributor, can I use display booths to sell my company’s products? Is there a limit on the time I can spend selling at a booth? Watch the new video from www.mlmlegal.com.

This question likely refers to sales at trade show booths. First, check you company’s policies and procedures, as they will be the guiding rule to follow. Most companies allow distributors to operate a booth at a trade shows that are for the general public, such as boat shows, home shows, health shows, conventions, among others.

Although, most companies ask that distributors seek approval prior to operating a booth opportunity and they also insist on compliance with proper use of the company trademark and advertising. In addition, most companies do not permit the sale of other companys’ products or the promotion of other companys’ business opportunities at the booth. And, the time limitation is generally governed by the length of the event.

Related blog posts:

3 Ways to Start Promoting Your Network Marketing Business

Are Their Concerns about Consultants Marketing Their MLM Business through Social Media?

If you are interested in attending the Starting and Running the Successful MLM Company conference visit our conference page, view our speaker list, or get more details. All executives/owners of direct selling companies are welcome to attend. Call 800-231-2162 to register.

Our next Starting and Running the Successful MLM Company Conference takes place October 22 and 23, 2015 in Las Vegas. View our conference flyer and speaker list online. Participate in our Innovation Campaign for your chance to receive TWO FREE TICKETS to attend our next conference.

If you’re reading this blog post and the conference dates above have passed, check our website for the current conference dates.

Sign up for the MLM News Global newsletter for top headlines, news stories, scam alerts, videos, articles, and more information on the network marketing industry.

Visit us at www.mlmlegal.com to learn more.

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Are Their Concerns about Consultants Marketing Their MLM Business through Social Media? http://mlmlegal.com/MLMBlog/are-their-concerns-about-consultants-marketing-their-mlm-business-through-social-media/ http://mlmlegal.com/MLMBlog/are-their-concerns-about-consultants-marketing-their-mlm-business-through-social-media/#comments Fri, 07 Aug 2015 18:04:31 +0000 http://mlmlegal.com/MLMBlog/?p=991 It is very common for consultants to have friends on their social media accounts who are friends and customers, or co-workers and friends, or family friends and work friends, as well as also being someone they know in their direct … Continue reading

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Some legal case authorities claim that if a consultant announces that they are going to join another MLM company on Facebook then it’s protected under freedom of expression by the First Amendment. Therefore, a company cannot accuse a consultant of raiding their downline for distributors. Other courts and cases have suggested that consultants separate out their Facebook downline from those of friends and family.

Some legal case authorities claim that if a consultant announces that they are going to join another MLM company on Facebook then it’s protected under freedom of expression by the First Amendment. Therefore, a company cannot accuse a consultant of raiding their downline for distributors. Other courts and cases have suggested that consultants separate out their Facebook downline from those of friends and family.

It is very common for consultants to have friends on their social media accounts who are friends and customers, or co-workers and friends, or family friends and work friends, as well as also being someone they know in their direct selling business as customers or sponsors. Since many consultants often sell to their warm market first, distributors often know their customers or sponsor as friends, relatives, or church members. This causes some issues to arise for the MLM company.

A common issue that the industry is grappling with right now occurs when a consultant leaves a network marketing company and joins another MLM company, then begins promoting the second company to their Facebook friends (or other social networks) and to the people who are in their downline organization from the first company. The question is often asked as to whether or not this is considered distributor raiding. The industry has not come to a consensus on this issue yet. Many MLM companies, however, do ask that consultants who leave their company and start selling for another company, not raid their sales organization because they’re damaging the livelihood of all of the other consultants left behind. The industry is working its way through this issue but has not come up with concrete solution to the problem yet.

There is conflicting legal case authority on the issue. Some legal case authorities claim that if a consultant announces that they are going to join another MLM company on Facebook then it’s protected under freedom of expression by the First Amendment. Therefore, a company cannot accuse a consultant of raiding their downline for distributors. Other courts and cases have suggested that consultants separate out their Facebook downline from those of friends and family. But, as we saw above, Facebook friends do not always fit into black and white categories. Often, your friend is also your co-worker. Your relative is also your customer. Your neighbor is also your friend. The courts have argued that Facebook is, in a way, simply a sophisticated means of sending emails because each post is like sending out a bulk email to several hundred people. From this prospective, deciding on whether or not there is a conflict is complex.

We will let you know if the courts come to a deciding factor anytime in the future. In the meantime, if you are in a similar position, we recommend that you read your company’s policies and procedures to see their specific policy on the topic of consultant raiding. You will also find hundreds of articles on our website(s) and blogs on the topic of distributor raiding.

Here are a few that may be of interest to you:

Why do MLM Companies Require Distributors to Use Replicated Websites Rather than Distributor-Created Websites?

Executive Interview by the DSWA – “Legal Hotspots for Direct Selling Companies” with Jeff Babener – Video

Can I and should I join multiple companies and establish multiple downlines?

MLM Company Policies on Social Networks and Distributor Raiding

How Have Raiding Rules Evolved in Direct Selling Contracts and Policies and Procedures? – Video

How Have Raiding Rules Evolved in Direct Selling Contracts and Policies and Procedures?

Has There Been Cases Won or Lost on the Topic of Social Media and Distributor Raiding?

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