babener – 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 New Video – Welcome to MLMLegal.com, from Jeff Babener http://mlmlegal.com/MLMBlog/new-video-welcome-to-mlmlegal-com-from-jeff-babener/ Sat, 01 Sep 2018 15:44:39 +0000 http://mlmlegal.com/MLMBlog/?p=1323 No one better can introduce you to mlmlegal.com better than the man behind it, expert MLM Attorney, Jeff Babener. Speaking to you from the Swiss Alps, Jeff Babener invites you to MLMLegal.com.

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

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No one better can introduce you to mlmlegal.com better than the man behind it, expert MLM Attorney, Jeff Babener. Speaking to you from the Swiss Alps, Jeff Babener invites you to MLMLegal.com.

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

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New Video: Do I Need To Worry about Merchant Account Processing? Should I Have Just One Merchant Account? http://mlmlegal.com/MLMBlog/new-video-do-i-need-to-worry-about-merchant-account-processing-should-i-have-just-one-merchant-account/ Thu, 02 Jul 2015 16:46:54 +0000 http://mlmlegal.com/MLMBlog/?p=973 This is a question for a MLM startup or existing company as opposed to a MLM distributor. For distributors who drive customers to their replicated websites, the company has in place, credit card processing capability. But for a MLM company, … Continue reading

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

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This is a question for a MLM startup or existing company as opposed to a MLM distributor. For distributors who drive customers to their replicated websites, the company has in place, credit card processing capability.

But for a MLM company, few “to do’s” top the list of “must have in place” than payment solutions. It is imperative to have multiple solutions in place as a company grows. In fact, fast growth of a MLM company often triggers major concern to the credit card processor because of the exponential potential liability in the event of charge backs or failure to deliver on the part of the MLM. Thus fast growth may cause a merchant account processor to demand, in exchange for what it perceives as higher risk, larger reserves, higher rates and even hold backs on distribution of funds to the MLM company. Of course, failure to access funds will prove devastating for an MLM company that must pay commissions and pay its own vendors. Pleas by the MLM company often go unanswered and many companies have either faced collapse or actually collapsed as a result. The short answer is for any start up or existing MLM company is to make sure that it secures multiple processing accounts from different processors and banks. In addition, it should be in touch with a reputable consulting firm that represents companies in the search for back up merchant account vendors. The time to search is not during the crisis, but before the crisis occurs.

Learn more about the network marketing business at www.mlmlegal.com and www.mlmattorney.com.

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 Press Release: MLMLegal.com and Babener & Associates Announces Its 69th National Starting and Running the Successful MLM Company Conference http://mlmlegal.com/MLMBlog/new-press-release-mlmlegal-com-and-babener-associates-announces-its-69th-national-starting-and-running-the-successful-mlm-company-conference/ Tue, 06 Jan 2015 21:38:24 +0000 http://mlmlegal.com/MLMBlog/?p=904 The Network Marketing Conference Will Be Held February 26 & 27, 2015, Which Is Quickly Approaching LAS VEGAS, NV — (Marketwired) — 01/06/15 — For more than 28 years, leading industry experts have educated the executives of starting and existing … Continue reading

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

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The Network Marketing Conference Will Be Held February 26 & 27, 2015, Which Is Quickly Approaching
Join us for the first MLM Startup Conference of 2015!

Join us for the first MLM Startup Conference of 2015!

LAS VEGAS, NV — (Marketwired) — 01/06/15 — For more than 28 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.

The next MLM Startup Conference takes place February 26 & 27, 2015 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, the most knowledgeable experts, and the most practical advice from qualified experts.

Over the course of two days, attendees will hear from scores of 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 (via james). 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.”

If you don't start it right, you can't expect to get it right.

If you don’t start it right, you can’t expect to get it right.

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:

www.mlmlegal.com

Visit our blogs:

http://mlmlegal.com/MLMBlog/

http://mlmattorney.com/blog/

Watch the Conference 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

Contact Us: REGISTER TODAY! 503-226-6600 or 800-231-2162

Each day will begin at 9:00AM and end at 4:00PM, when the one-on-time will begin and end around 7:00PM. For more information visit: http://www.mlmlegal.com/srs2.html or call 800-231-2162/503-226-6600. Registrations are taken by phone and questions are always welcome.

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

About Attorney Jeffrey Babener: Conference Host and Chairman, Editor of www.mlmlegal.com, as well as the leading direct selling attorney in the United States — With over 25 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, 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 64 national conferences on direct selling.

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

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New Webpage at MLMLegal.com – An Inside Look into a MLM Trial http://mlmlegal.com/MLMBlog/new-webpage-at-mlmlegal-com-an-inside-look-into-a-mlm-trial/ Thu, 15 Aug 2013 18:09:09 +0000 http://mlmlegal.com/MLMBlog/?p=666 Have you ever wondered what happens in an MLM trial? In this presentation, MLMLegal.com gives you a rare, front row seat into the complexities of an MLM trial. In more than six hours of video, partitioned in more than a … Continue reading

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

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Have you ever wondered what happens in an MLM trial?

Have you ever wondered what happens in an MLM trial?

Have you ever wondered what happens in an MLM trial?

In this presentation, MLMLegal.com gives you a rare, front row seat into the complexities of an MLM trial.

In more than six hours of video, partitioned in more than a dozen 25 minute segments, watch cross-examination and direct examination of expert witnesses led by lead trial counsel, Jeffrey Babener, MLM trial attorney and editor of MLMLegal.com.

Consider this a mini-trial course on MLM and regulatory enforcement.

The case profiled in these videos is Kentucky v. Travelmax International. Travelmax was a marketing company that sold travel education products and travel bookings and services through a network of MLM distributors. Its travel bookings had risen to several million dollars per month.

In 1996, the State of Kentucky filed suit, contending that Travelmax was a pyramid scheme under Kentucky laws. The state secured a temporary restraining order, without benefit of hearing. However, under state court procedures, the court was mandated to set formal hearings to determine if the temporary restraining order should be continued. In a series of hearings spanning from late 1996 to early 1997, trial on this issue was held. At the conclusion of the hearings, the Court ruled against the State of Kentucky and in favor of Travelmax, dissolving the temporary restraining order and permitting the company to continue its business in Kentucky, pending further hearings.

In the Court’s Findings of Fact, Conclusions of Law and Order, the Court summarized its position and encouraged the State to work with Travelmax as its business proceeded in Kentucky:

Thus, the court can find no violation of the consumer protection statutes, and therefore, no threat of harm to the public. The compliance procedures of the company are sufficient to provide for the protection of the citizens of the Commonwealth, pending the outcome of the other litigation in this matter. The court strongly encourages the Attorney General’s office to take full advantage of the apparent willingness of Travelmax to cooperate in overseeing its Kentucky operations.

See the actual Opinion and Order of the Kentucky Court [PDF]: www.mlmlegal.com/travelmaxorder.pdf

In fact, in the ensuing period after the favorable ruling for Travelmax, the State of Kentucky and Travelmax did come to an agreeable resolution and settlement that would avoid the necessity of formal hearings.

The educational opportunity here is unique. In most court hearings, a court reporter listens and transcribes the official transcript of testimony and argument. The transcription becomes the official record of the case. In the Travelmax hearings, no court reporter was present. Instead, the entire hearing was videotaped by a court videotaping system, and the videotape became the substitute official transcript record of the proceedings. The court’s record of court proceedings are public records and thus the record of the Travelmax case is a public record. In this case, the videotape record was subsequently digitized, and then extensive excerpts of cross examination, direct examination and argument by lead trial counsel, Jeffrey Babener, were organized for online presentation.

In the following video excerpts of the Travelmax trial, several of the trial participants are featured:

Jeffrey Babener, lead trial counsel for Travelmax.

Jeffrey A. Babener, of Portland, Oregon, is the principal attorney in the law firm of Babener & Associates. For three decades, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the Direct Selling Association. He has served as advisor to such leading companies as Avon, Herbalife, NuSkin, USANA, Melaleuca, Excel Communications, ACN, Nikken, etc. He has lectured and published extensively on direct selling and many of his writings will be found at www.mlmlegal.com, of which he is editor. He is a graduate of the University of Southern California Law School, where he was an editor of the USC Law Review. He has served as trial counsel in cases, involving direct selling, throughout the U.S. He has served on the Lawyers Council and Government Relations Committee of the U.S. Direct Selling Association and as General Counsel, and Board Member, for the Multilevel Marketing International Association.

James M. Shake, trial court judge in the Travelmax case. Judge, Circuit Court, Jefferson County, Kentucky.

Dr. Charles King, expert witness for Travelmax. Professor, Graduate School of Business, University of Illinois at Chicago. Professor King has studied and taught on the subject of direct selling at the University-level for many years. He has published extensively in the area. He has led specialized classes on direct selling and appeared as an expert witness in federal and state cases.

Michael Sheffield, Scottsdale, Arizona, expert witness for Travelmax. Mr. Sheffield has chaired a leading management consulting firm in the direct selling field. He has counseled many of the major direct selling companies, has lectured and published extensively and appeared as an expert witness on direct selling in federal and state cases. He is an acknowledged expert in MLM compensation plans and operations of direct selling companies.

Al Anolik, San Francisco, California, expert witness for Travelmax, is acknowledged as one of the foremost legal and business experts in the field of Travel. He has advised many of the leading travel businesses and has appeared as an expert witness in major litigation. He has published and lectured extensively in the travel field and has substantial experience in the implementation of the travel business through the direct selling channel of distribution.

Dr. William Keep, expert witness for the State of Kentucky in the Travelmax case. At the time of the trial, Dr. Keep was an assistant professor of marketing at the University of Kentucky. The focus of his expertise was “retailing” as opposed to MLM and Direct Selling. He has published extensively in the field of business and testified in court cases. Subsequent to the Travelmax case, Dr. Keep studied the field of direct selling further and published in the subject area.

The following video segments provide an insider’s view into an MLM trial:

Introduction to MLM and Direct Selling

Lead Travelmax Trial Counsel, Jeffrey Babener, explains to the Court the scope and breadth of the MLM industry with an overview of legal issues pertinent to the industry and to the trial of a pyramid case in the State of Kentucky. In addition, focus is made on the leading pyramid case in Kentucky involving Dare to be Great (1974).

An Inside Look at a MLM Trial – Jeff Babener Explains Direct Selling in Travelmax Trial – 1997

An Inside Look at a MLM Trial - Jeff Babener Explains Direct Selling in Travelmax Trial – 1997

An Inside Look at a MLM Trial – Jeff Babener Explains Direct Selling in Travelmax Trial – 1997

 

 

 

 

 

Cross-examination of Dr. William Keep by Lead Travelmax Trial Counsel, Jeffrey Babener

Although Dr. Keep was called by the State of Kentucky as an expert witness to support the State’s case on pyramiding, the cross-examination, which focused on the credentials of Dr. Keep, revealed that Dr. Keep’s special area of focus was in the area of “retailing” and that his background and study in MLM/Direct Selling/Network Marketing was limited. The cross examination and voir dire (examination as to credentials as an expert) covers a wide range of legal and business issues in the direct selling field. In the end, Dr. Keep did not claim to be qualified to testify either as to the legitimacy or illegitimacy of the Travelmax marketing program. The cross-examination appears in the following segments:

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial 1997 – Part One

An Inside Look at a MLM Trial - Dr. William Keep - Travelmax Trial 1997 - Part One

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial 1997 – Part One

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Two

An Inside Look at a MLM Trial - Dr. William Keep - TravelMax Trial - 1997 - Part Two

An Inside Look at a MLM Trial – Dr. William Keep – TravelMax Trial – 1997 – Part Two

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Three

An Inside Look at a MLM Trial - Dr. William Keep - Travelmax Trial - 1997 - Part Three

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Three

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Four

An Inside Look at a MLM Trial - Dr. William Keep - TravelMax Trial - 1997 - Part Four

An Inside Look at a MLM Trial – Dr. William Keep – TravelMax Trial – 1997 – Part Four

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Five

An Inside Look at a MLM Trial - Dr. William Keep - Travelmax Trial - 1997 - Part Five

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Five

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Six

An Inside Look at a MLM Trial - Dr. William Keep - Travelmax Trial - 1997 - Part Six

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Six

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Seven

An Inside Look at a MLM Trial - Dr. William Keep - Travelmax Trial - 1997 - Part Seven

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Seven

 

 

 

 

 

Direct Examination of Dr. Charles King by Lead Travelmax Trial Counsel, Jeffrey Babener

As a student and Professor of MLM/Direct Selling/Network Marketing, Dr. King was called to explain an overview of the direct selling industry, a discussion of leading companies, a discussion of the indicators of legitimacy of a direct selling company and a discussion of the elements of a marketing program that would pose pyramid issues. Dr. King testified, in detail, regarding the Travelmax program, opining that the quality of the product, and the implementation of numerous consumer safeguards caused the Travelmax program to be in the mainstream of legitimate direct selling companies.

An Inside Look at a MLM Trial – Dr. Charles King in Travelmax Trial – 1997 – Part One

An Inside Look at a MLM Trial - Dr. Charles King in Travelmax Trial - 1997 - Part One

An Inside Look at a MLM Trial – Dr. Charles King in Travelmax Trial – 1997 – Part One

An Inside Look at a MLM Trial – Dr. Charles King in Travelmax Trial – 1997 – Part Two

An Inside Look at a MLM Trial - Dr. Charles King in Travelmax Trial - 1997 - Part Two

An Inside Look at a MLM Trial – Dr. Charles King in Travelmax Trial – 1997 – Part Two

An Inside Look at a MLM Trial – Dr. Charles King in Travelmax Trial – 1997 – Part Three

An Inside Look at a MLM Trial - Dr. Charles King in Travelmax Trial - 1997 - Part Three

An Inside Look at a MLM Trial – Dr. Charles King in Travelmax Trial – 1997 – Part Three

 

 

 

 

 

Direct Examination of Michael Sheffield by Lead Travelmax Trial Counsel, Jeffrey Babener

As a leading expert on MLM/Direct Selling/Network Marketing, Mr. Sheffield provided an overview of the industry, a detailed discussion of compensation plans offered by leading direct selling companies, the importance of quality products to a direct selling offering, an explanation as to appropriate consumer safeguards expected to be part of legitimate direct selling companies and a discussion of elements of pyramid schemes that should be avoided by direct selling companies. He testified that, after a thorough review of the Travelmax product and marketing program, he was of the opinion that the program was a legitimate direct selling marketing program and fit into the mainstream of leading companies in the direct selling field.

An Inside Look at a MLM Trial – Mike Sheffield in Travelmax Trial – 1997 – Part One

An Inside Look at a MLM Trial - Mike Sheffield in Travelmax Trial - 1997 - Part One

An Inside Look at a MLM Trial – Mike Sheffield in Travelmax Trial – 1997 – Part One

An Inside Look at a MLM Trial – Mike Sheffield in Travelmax Trial – 1997 – Part Two

An Inside Look at a MLM Trial - Mike Sheffield in Travelmax Trial - 1997 - Part Two

An Inside Look at a MLM Trial – Mike Sheffield in Travelmax Trial – 1997 – Part Two

An Inside Look at a MLM Trial – Mike Sheffield in Travelmax Trial – 1997 – Part Three

An Inside Look at a MLM Trial - Mike Sheffield in Travelmax Trial - 1997 - Part Three

An Inside Look at a MLM Trial – Mike Sheffield in Travelmax Trial – 1997 – Part Three

 

 

 

 

 

Direct Examination of Al Anolik by Lead Travelmax Trial Counsel, Jeffrey Babener

As a leading expert in both the travel business and travel law, Mr. Anolik provided an overview of the travel industry, a discussion of travel product offerings and explanation of the types of education offered to those interested in pursuing full or part time careers in travel. Mr. Anolik testified in detail as to his examination of the Travelmax business, that he was of the opinion that the Travelmax offerings were of high quality and that achievement of millions of dollars in monthly travel bookings was indicative of a reputable and legitimate travel business.

An Inside Look at a MLM Trial – Al Anolik in Travelmax Trial – 1997 – Part One

An Inside Look at a MLM Trial - Al Anolik in Travelmax Trial - 1997 - Part One

An Inside Look at a MLM Trial – Al Anolik in Travelmax Trial – 1997 – Part One

An Inside Look at a MLM Trial – Al Anolik in Travelmax Trial – 1997 – Part Two

An Inside Look at a MLM Trial - Al Anolik in Travelmax Trial - 1997 - Part Two

An Inside Look at a MLM Trial – Al Anolik in Travelmax Trial – 1997 – Part Two

 

 

 

 

For more information on this subject and other important issues in the area of MLM, Direct Selling and Network Marketing, please visit http://www.mlmlegal.com.

Download a PDF version of this Opinion and Order of the Kentucky Court.

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

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Only Two Weeks Left to Register for the MLM Startup Conference in Las Vegas! http://mlmlegal.com/MLMBlog/only-two-weeks-left-to-register-for-the-mlm-startup-conference-in-las-vegas/ Thu, 02 May 2013 19:11:14 +0000 http://mlmlegal.com/MLMBlog/?p=422 MLMLegal.com Announces Its 64th National MLM/Direct Selling Startup Conference! An ACTION CONFERENCE for executives of startup and emerging MLM companies! For more than 25 years, leading industry experts have educated the executives of starting and existing MLM, direct selling, network … Continue reading

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

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MLMLegal.com Announces Its 64th National MLM/Direct Selling Startup Conference! An ACTION CONFERENCE for executives of startup and emerging MLM companies!

The next MLM Startup Conference takes place May 16 and 17, 2013 in Las Vegas.

For more than 25 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.

The next MLM Startup Conference takes place May 16 and 17, 2013 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, the most knowledgeable experts, and the most practical advice from qualified experts.

Over the course of two days, attendees will hear from more than a dozen industry experts that have served as “behind the scenes” advisors to many of the direct selling industry’s leading companies. A full list of speakers and their biographies/credentials can be found at http://www.mlmlegal.com/bio.html.

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:

www.mlmlegal.com

Visit our blogs:

http://mlmattorney.com/blog/ or http://mlmlegal.com/MLMBlog

Watch the Conference 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

Contact Us: REGISTER TODAY! 503-226-6600 or 800-231-2162

About Attorney Jeffrey Babener: Conference Host and Chairman, Editor of www.mlmlegal.com, as well as the leading direct selling attorney in the United States – With over 25 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, from Melaleuca to USANA, from NuSkin to Herbalife…. 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 60 national conferences on direct selling.

Contact: Babener & Associates/MLMLegal.com
Telephone: 503-226-6600/800-231-2162
http://www.mlmlegal.com

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

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Direct Selling Data from the U.S. and Around the World – 8 Surprising Statistics http://mlmlegal.com/MLMBlog/direct-selling-data-from-the-u-s-and-around-the-world-8-surprising-statistics/ Fri, 26 Apr 2013 17:29:30 +0000 http://mlmlegal.com/MLMBlog/?p=416  Direct Selling News – Global and National Data on the Direct Selling Industry The March 2013 issue of Direct Selling News reported early globally figures leading up to the World Federation of Direct Selling Associations’ (WFDSA) General Annual Statistical Survey … Continue reading

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

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 Direct Selling News – Global and National Data on the Direct Selling Industry

The March 2013 issue of Direct Selling News reported early globally figures leading up to the World Federation of Direct Selling Associations’ (WFDSA) General Annual Statistical Survey (being released in June). The WFDSA’s represents more than 60 Direct Selling Associations around the world.

The Direct Selling Association took a look at global numbers in the billions from 2011 and compiled a cover story-worthy list of detailed direct selling data. Readers should reference the Direct Selling News website for a detailed explanation of how these data were collected. Direct Selling News states that the importance of the WFDSA’s statistical information will help direct selling companies determine their plans for international expansion, help get the word out about direct selling (MLM, network marketing and party plan) companies, and will help to have an economic impact in the countries that they influence, especially in countries where they demonstrate the greatest financial impact.

Here we’ve summarized a list of eight relevant (and interesting) direct selling statics about the United States and from around the globe, paraphrased from Direct Selling News:

1)      In 2011, the direct sales industry equated to $153.7 billion dollars in worldwide sales.

2)      Direct selling is best represented by 22 major countries, which reflect 90 percent of direct selling retail sales.

3)      The top five countries benefiting the most from direct selling revenues are (in order of highest achievement) the United States, Japan, China, Korea, and Brazil. These countries alone make up over 60 percent of annual direct sales, globally.

4)      The United States is the number one market for direct selling, equating to $29.9 billion and, and has held 20 percent market share for two years running.

5)      Roughly, “15.6 million direct sellers grew U.S. market sales 4.6 percent and generated $29.9 billion.”

6)      78 percent of direct sellers are women.

7)      96 percent of all compensation plans are multilevel.

8)      Products are of great importance in direct selling. The leading product lines include, “…wellness (24 percent), household goods and durable (20 percent), cosmetics and personal care (18 percent), and clothing and accessories (12 percent).” The remaining 26 percent range anywhere from fuel additives to water filtration systems.

The Direct Selling News article titled “Direct Selling’s Billion Dollar Markets” can be found at http://directsellingnews.com/index.php/view/direct_sellings_billion_dollar_markets6#.UXnru8rLvdQ

For more information, visit our websites at www.mlmlegal.com and www.mlmattorney.com. Or, visit our blogs at http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference will be here before you know it! On May 16th and 17th, 2013 we are hosting the MLM Conference for the 25th year! This is now our 64th annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Keep an eye out for our October and February conferences as well.)

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

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MLMLegal.com has released an analytical article by noted direct selling industry expert and legal authority, Jeffrey Babener http://mlmlegal.com/MLMBlog/mlmlegal-com-has-released-a-seminal-article-by-noted-direct-selling-industry-expert-and-legal-authority-jeffrey-babener/ Thu, 11 Apr 2013 20:39:07 +0000 http://mlmlegal.com/MLMBlog/?p=410 Herbalife: What Short Sellers Missed on the Way to the Press Conference… The Personal Use Issue in Pyramid Analysis; Who is an Ultimate User? An excerpt from the article and link to the full article atwww.mlmlegal.com.   Déjà vu, all … Continue reading

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

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Herbalife: What Short Sellers Missed on the Way to the Press Conference…

The Personal Use Issue in Pyramid Analysis; Who is an Ultimate User?

An excerpt from the article and link to the full article atwww.mlmlegal.com.  

Déjà vu, all over again … Yogi Berra

History repeats itself.

The 2012 billion dollar short seller attack on Herbalife, a 32 year old NYSE listed direct seller of nutritional products in 80 plus countries with annual sales in excess of $3 billion, is akin to a replay of seminal challenge to the MLM/Direct Selling model, won by Amway in 1979. In the Matter of Amway, 93 F.T.C. 618 (1979).

In the 1970’s FTC challenge, the criticism went to whether or not the core of the MLM referral selling model was a “deceptive” way to market. In the 2012 short seller attack, along with other criticisms, a principal complaint is that evidence of “substantial personal use and consumption” of company products by distributors themselves, renders an MLM/Direct Selling model inherently deceptive and an illegal pyramid scheme.

Memo to short sellers and algorithmic financial bloggers:

It may be time to reassess.

Some very salient facts and cases may well have been missed in the rush to challenge direct sellers.

  1. A survey of FTC, SEC and Justice Department leading pyramid cases during the last two decades is instructive. Interestingly, in massive releases of the Herbalife short seller and the prolific financial blogging “call to action” that Herbalife is a pyramid that should and will be prosecuted by the FTC, NO ONE has bothered to actually examine the facts of leading FTC, SEC and Justice Department pyramid prosecutions of the last two decades… if they had done so, they might observe a significant chasm that exists between inherently deceptive and egregiously abusive pyramid schemes and the practices of leading direct selling companies.
  2. They also may have missed the FTC’s own statements on personal use, as well as the trending legislation in more than a dozen states, recognizing the validity of personal use as a legitimate end destination of product.

For the full and detailed article “HERBALIFE: WHAT SHORT SELLERS MISSED ON THE WAY TO THE PRESS CONFERENCE…The Personal Use Issue in Pyramid Analysis Who is an Ultimate User?

For more information, visit our websites at www.mlmlegal.com and www.mlmattorney.com. Or, visit our blogs at http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference will be here before you know it! On May 16th and 17th, 2013 we are hosting the MLM Conference for the 25th year! This is now our 64th annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Keep an eye out for our October and February conferences as well.)

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

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FDA Notification for Permissible Structure/Function Claims for Dietary Supplements http://mlmlegal.com/MLMBlog/fda-notification-for-permissible-structurefunction-claims-for-dietary-supplements/ Tue, 09 Apr 2013 18:19:51 +0000 http://mlmlegal.com/MLMBlog/?p=408 MLM Distributors and MLM companies often ask about the notification requirements for permissible structure/function claims for dietary supplements, under FDA rules of DSHEA (Dietary Supplement Health Education Act). Here is summary, directly from the FDA, which may prove helpful: PART … Continue reading

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

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MLM Distributors and MLM companies often ask about the notification requirements for permissible structure/function claims for dietary supplements, under FDA rules of DSHEA (Dietary Supplement Health Education Act). Here is summary, directly from the FDA, which may prove helpful:

PART 101 — FOOD LABELING

Subpart F–Specific Requirements for Descriptive Claims That Are Neither Nutrient Content Claims nor Health Claims

Sec. 101.93 Certain types of statements for dietary supplements.

 

(a)(1) No later than 30 days after the first marketing of a dietary supplement that bears one of the statements listed in section 403(r)(6) or the Federal Food, Drug, and Cosmetic Act, the manufacturer, packer, or distributor of the dietary supplement shall notify the Office of Nutritional Products, Labeling and Dietary Supplements (HFS-810), Center for Food Safety and Applied Nutrition, Food and Drug Administration, 5100 Paint Branch Pkwy., College Park, MD 20740, that it has included such a statement on the label or in the labeling of its product. An original and two copies of this notification shall be submitted. 

(2) The notification shall include the following:

 

(i) The name and address of the manufacturer, packer, or distributor of the dietary supplement that bears the statement;

(ii) The text of the statement that is being made;

(iii) The name of the dietary ingredient or supplement that is the subject of the statement, if not provided in the text of the statement; and

(iv) The name of the dietary supplement (including brand name), if not provided in response to paragraph (a)(2)(iii) on whose label, or in whose labeling, the statement appears.

 

(3) The notice shall be signed by a responsible individual or the person who can certify the accuracy of the information presented and contained in the notice. The individual shall certify that the information contained in the notice is complete and accurate, and that the notifying firm has substantiation that the statement is truthful and not misleading.

 

(b)Disclaimer. The requirements in this section apply to the label or labeling of dietary supplements where the dietary supplement bears a statement that is provided for by section 403(r)(6) of the Federal Food, Drug, and Cosmetic Act (the act), and the manufacturer, packer, or distributor wishes to take advantage of the exemption to section 201(g)(1)(C) of the act that is provided by compliance with section 403(r)(6) of the act.

(c)Text for disclaimer. 

 

(1) Where there is one statement, the disclaimer shall be placed in accordance with paragraph (d) of this section and shall state:

This statement has not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.

 

(2) Where there is more than one such statement on the label or in the labeling, each statement shall bear the disclaimer in accordance with paragraph (c)(1) of this section, or a plural disclaimer may be placed in accordance with paragraph (d) of this section and shall state:

These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.

 

(d)Placement. The disclaimer shall be placed adjacent to the statement with no intervening material or linked to the statement with a symbol (e.g., an asterisk) at the end of each such statement that refers to the same symbol placed adjacent to the disclaimer specified in paragraphs (c)(1) or (c)(2) of this section. On product labels and in labeling (e.g., pamphlets, catalogs), the disclaimer shall appear on each panel or page where there such is a statement. The disclaimer shall be set off in a box where it is not adjacent to the statement in question.

 

(e)Typesize. The disclaimer in paragraph (c) of this section shall appear in boldface type in letters of a typesize no smaller than one-sixteenth inch.

For additional information on FDA Rules and Regulations, visit the following links:

What is the Relationship between MLM and the FDA? Video

The FDA and Health Claims Article

FDA Health Claims: The Final Rules Article

FDA: New Health Claim Rules:

Choosing the Right Product for Your Direct Selling Company

Distributor Training – Two Common Questions

MLM and the FDA

MLM’s History with the Government

New Video – Unauthorized Medical Claims and FDA Issues

FDA to Issue Revised NDI Guidance – Nutraceuticals World Reports

Nutritional Supplements, Health Claims and MLM

MLM Attorney – How a MLM Lawyer Can Help Your Direct Selling Business

FDA to Issue Revised NDI Guidance – Nutraceuticals World Reports

For more information, visit our websites at www.mlmlegal.com and www.mlmattorney.com. Or, visit our blogs at http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference will be here before you know it! On May 16th and 17th, 2013 we are hosting the MLM Conference for the 25th year! This is now our 64th annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Keep an eye out for our October and February conferences as well.)

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

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Free “Direct Selling, Network Marketing, MLM” DVD http://mlmlegal.com/MLMBlog/free-direct-selling-network-marketing-mlm-dvd/ Tue, 02 Apr 2013 22:14:20 +0000 http://mlmlegal.com/MLMBlog/?p=405 SourceNet Creative and MLMLegal.com present the “Direct Selling, Network Marketing, MLM” DVD. Visit www.mlmlegal.com for your FREE DVD full of MLM advice about starting and running the successful MLM company. The “Direct Selling, Network Marketing, MLM” DVD is FREE (for … Continue reading

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

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SourceNet Creative and MLMLegal.com present the “Direct Selling, Network Marketing, MLM” DVD. Visit www.mlmlegal.com for your FREE DVD full of MLM advice about starting and running the successful MLM company.

FREE MLM DVD

The FREE “Direct Selling, Network Marketing, MLM” DVD for qualifying executives of MLM companies.

The “Direct Selling, Network Marketing, MLM” DVD is FREE (for qualifying executives of direct selling, network marketing, MLM companies only. Click HERE to see if you qualify.)

Some of the Video Segments Include:

  • Introduction and Basics
  • Successful Companies
  • Legal MLM
  • Success Stories
  • History and Technology
  • Not Pyramid Schemes
  • Debunking Myths
  • Internet and the Future

This FREE MLM DVD full of excellent advice is courtesy of MLMLegal.com and the law firm of Babener & Associates.

Qualifying executives of Multi-Level Marketing and Direct Selling companies can request a free DVD that includes vital information for starting and running the successful MLM company. Please call our office at 503-226-6600 or 800-231-2162 to see if you qualify. Those who wish to purchase a DVD can do so for $4.95 (Call for bulk pricing). Legaline Publications also offers other valuable books, brochures and materials to aid in the transference of expert knowledge in the direct selling industry.

Click the image below to view the back of the DVD:

(Back Cover)

The back of the the FREE “Direct Selling, Network Marketing, MLM” DVD.

In order to receive your free DVD, complete the following form.  This information is vital to executives of Network Marketing (MLM) companies, whether you are involved at a start-up level or are an emerging company, ready to launch and grow your company. We will confirm with you to verify that you will benefit from the information presented in the DVD and then send you the complete disk for FREE. Call us at 503-226-6600 or 800-231-2162 to see if you qualify.

Industry expert, Jeff Babener represents leading US and foreign companies in the direct selling industry.  He has been advisor to such companies as Avon, Discovery Toys, Nikken, New Vision, NuSkin, Excel, Fuller Brush, Cell Tech, Kaire, Sunrider, Melaleuca, and more.

Check out Legaline Publications for books, brochures, DVDs, and more that are perfect for MLM company owners and distributors alike.

MLMLegal.com and MLMAttorney.com also offer over 60 FREE videos for both distributor and MLM executive education online:

Attorney Jeff Babener, Discusses Various Topics in a MLM Compliance Training Session NEW!

Earnings Claims and Consumer Protection Laws

Interviews with Expert MLM Attorney, Jeffrey Babener NEW!

Short Course on Network Marketing: Q&A with Jeffrey Babener on Pyramid Schemes NEW!
The Difference Between MLM Earnings Calculators and Earnings Claims
From a Legal Perspective: The Difference Between a Pyramid Scheme and Legitimate MLM
Compliance Guidelines for Direct Selling Companies and Network Marketers
Factors that Make a MLM Company Successful
A View of the Direct Selling Industry: Past, Present and Future
Why Choose the MLM Model for Your Business? – A CEO Interview

MLM Startup Conference in Las Vegas Video Adverts NEW!

MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com
The MLM Startup Conference in Las Vegas

MLM Distributor Education Videos

Jeffrey Babener: Company and Distributor Training on the MLM Industry
Understanding the Basics in Order to Succeed In Direct Selling
Recruiting Advice from an Industry Expert
How to Tell if a Company is a Pyramid or a Legitimate MLM

Starting a MLM Company – A Video Primer

Profile of a Leading MLM Law Firm – Babener & Associates
In Order to Achieve Success in MLM, One Must Have Passion, Patience, Persistence
Raise Capital in Order to Recruit Key Distributors
Creating Clear Agreements Between Company Owners
Role of Compensation Plan in a Successful Direct Selling Company
MLM Startup Conference – A Must for Executives of Startup and Existing MLM Companies
Choosing the Right Product for Your MLM Company
You Must Possess or Buy MLM Experience
Choosing the Right MLM Software and Technology for your Direct Selling Business
The Legal Issues of Starting and Running a MLM Company
MLM Startup Tips, Educational Resources, Answers to Network Marketing Questions
Learn What is Needed to Recruit Top-Selling Distributors
How Important is Your Company Name? Learn about Trademarking Your Company Name

All About MLM, Direct Selling and Network Marketing

An Introduction to Direct Selling and the Basics of MLM
The Major Players – Successful MLM Companies
The Legal Issues of Starting and Running a Direct Selling Company
Success Stories in the MLM, Direct Selling, Network Marketing Industry
Technology’s Impact on the Direct Selling Industry: The History of Technology
Not all Direct Selling Companies are Pyramid Schemes
Debunking Direct Selling Industry Myths
The Internet‘s Effect on Direct Selling and the Future of MLM

About the MLM, Direct Selling, Network Marketing, Party Plan Industry – Q&A

Is the Compensation Plan the Driving Force of Success?
What are the Top Two Reasons why MLM Companies Fail?
How Important Is Recruiting to MLM Company Success?
What is Importance of Merchant Account/Payment Solutions Processing?
Who are the first key Hires for a MLM Company?
Do We Start Local or Go National Immediately?
What is the Driving Force of Success for a MLM Company?
Why Do Distributors join MLM Companies?
Why Do Distributors stay with MLM Companies?
Has Corporate America Discovered the MLM?
What is MLM History with the Government?
Should a MLM Company go International immediately?
Is the MLM Industry “for real” in the Business World?
What is the role of an Experienced MLM Legal Counsel?
Is a MLM Lawyer a Typical Lawyer?
What is the Relationship between MLM and the FDA?
What is the Relationship between MLM and the FTC?
What is the Direction of State Regulation of MLM?
What are the Central Tax Issues for MLM?
Is it Proper to pay Commissions on Sales Tools and Training?
Do Different Compensation Plans and Products Receive Different Legal Regulation?
How Does a Business Lawyer become a MLM Lawyer?

For more information, visit our websites at www.mlmlegal.com and www.mlmattorney.com. Or, visit our blogs at http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference will be here before you know it! On May 16th and 17th, 2013 we are hosting the MLM Conference for the 25th year! This is now our 64th annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Keep an eye out for our October and February conferences as well.)

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

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Is a MLM Lawyer a Typical Lawyer? http://mlmlegal.com/MLMBlog/is-a-mlm-lawyer-a-typical-lawyer/ Thu, 14 Mar 2013 16:16:57 +0000 http://mlmlegal.com/MLMBlog/?p=391 This blog post is the companion post to the video: Is a MLM Lawyer a Typical Lawyer? Find out what differentiates a business lawyer, or a typical lawyer, and a MLM legal professional. People often ask me “Are you a … Continue reading

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

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This blog post is the companion post to the video: Is a MLM Lawyer a Typical Lawyer? Find out what differentiates a business lawyer, or a typical lawyer, and a MLM legal professional.

People often ask me “Are you a typical lawyer?” Most lawyers are viewed as people who sit in an office, draft contracts and argue cases in the courtroom all day. The answer is NO, we are not typical lawyers. We probably know more about multilevel marketing than most of our major clients that have been in the industry for years. We bring that knowledge to bear as we work with our clients and as they develop their business models. More than half of the discussions we have with our clients are about the MLM business itself as opposed to just purely legal issues. This gives us the opportunity to be challenged, which we welcome and we enjoy.

It is true that the hat we wear is “legal advisor” to many of the leading direct selling companies and startup mom and pop companies. Formally, we are their legal advisor; however, we are also a vital part of their business team. We greatly enjoy the many hats we wear in the direct selling industry.

For more information about MLM Attorney Jeff Babener, visit www.mlmlegal.com or www.mlmattorney.com.

The following links may also prove helpful:

Babener and Associates

Scope of Services

Experience Counts

Business Background

Biographical Profile

MLM Blog by Jeff Babener

Free MLM Startup Manual

MLM Startup Conference

Free DVD Full of MLM Advice

Comprehensive Index of Articles

The MLM Business

MLMAttorney.com Blog

 

Make sure to visit our blogs for the latest information on the direct selling industry: MLMLegal Blog Home and MLM Attorney Blog Home

Find us on our social networks:

Google Plus: http://plus.google.com/u/0/115279960045099999909#115279960045099999909/posts

LinkedIn: http://www.linkedin.com/in/mlmlegal

Twitter: http://www.twitter.com/BabenerLawFirm

Myspace: http://www.myspace.com/mlmlegal

Facebook: http://www.facebook.com/profile.php?id=696968133

And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference will be here before you know it! On May 16th and 17th, 2013 we are hosting the MLM Conference for the 25th year! This is now our 64th annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Keep an eye out for our October and February conferences as well.)

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

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