Tag Archives: legal

New Video – Know the Signs: Pyramid or Legal MLM Company

A Conversation with Jeff Babener Video Series: Educate yourself on the difference between a legal MLM company and a pyramid scheme. Learn the keywords, such as front-end loading. Distributors should not be required to buy thousands of dollars’ worth of … Continue reading

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FTC Offers Guidance: Business Guidance Concerning Multi-Level Marketing

Do you have questions about multi-level marketing? The FTC staff has guidance to help members of the MLM industry apply core consumer protection principles to their business practices. Multi-level marketing is a diverse and varied industry, employing many different structures … Continue reading

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What Are Some Network Marketing Myths?

We have all heard the following claims in the zeal of promotion and recruitment. Multi-level marketing (MLM) classes are taught at Harvard Business School. Network marketing has produced more millionaires than any other type of business. MLM will dominate the … Continue reading

Posted in Consultants, Consulting, Consumer Protection, Direct Selling, Distributor Education, Distributors, Endorsements, For MLM Executives, Home-Based Business, Legal, MLM, MLM Articles, MLM Attorney, MLM Startup, Network Marketing, Party Plan, Pyramid, Raiding | Tagged , , , , , , , , | Comments Off on What Are Some Network Marketing Myths?

Most Requested Video of the Month – How Many Levels Deep is it Legal to Go?

MLMLegal.com’s most requested FAQ this month answered in a video by MLM expert Attorney, Jeff Babener: How Many Level Deep (in the compensation plan) is it Legal to Go? The issue of depth of levels seemed to be a major … Continue reading

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Video – What should today’s MLM business owner look for in a legal advisor?

With over 35 years in the industry, Jeff Babener has worked with companies like Amway, Avon, NuSkin, Usana, Melaleuca, and Nikken. Your legal advisor should be there for you 24/7. He’s worked with all kinds of startups, from budgets from … Continue reading

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Four Essentials for MLM Startup Companies

Prospective MLM startup owners often ask for the essential support elements for starting a new network marketing company. Four resources are clearly needed to do it correctly. Sometimes a company has one or more resources, but these are the important … Continue reading

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The New FTC Direct Selling Guidance… Imperfect, But a Good Start – New Article

by Jeffrey A Babener (First Published in World of Direct Selling) Ring the bells that still can ring Forget your perfect offering There is a crack in everything That’s how the light gets in Leonard Cohen… Anthem The new FTC Direct Selling … Continue reading

Posted in Direct Selling, Direct Selling Association, Distributor Education, For MLM Executives, FTC, Headlines, Home-Based Business, Internal Consumption, Legal, MLM, MLM Articles, MLM Attorney, MLM in the News, Network Marketing, Party Plan, Personal Use, Pyramid, Recruiting | Tagged , , , , , , , , , , | Comments Off on The New FTC Direct Selling Guidance… Imperfect, But a Good Start – New Article

Search for Certainty in Direct Selling… A Legal and Business Rationale for H.R. 3409

By Jeffrey Babener, © 2017/2018 (First Published in World of Direct Selling) Executive Summary: The legal environment and the accepted business model of leading direct selling companies has been relatively stable for 50 years. That equilibrium was upset by the regulatory … Continue reading

Posted in Consulting, Consumer Protection, Direct Selling, For MLM Executives, FTC, Headlines, Home-Based Business, Law Cases, Legal, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM in the News, Network Marketing, Personal Use, SEC, Securities and Exchange Commission | Tagged , , , , , , , | Comments Off on Search for Certainty in Direct Selling… A Legal and Business Rationale for H.R. 3409

Legally, are all Compensation Plans Viewed the Same?

Being in the MLM law business for over 30 years, we’ve been asked this question countless times. Direct selling business owners – especially MLM startup company owners – want to know which compensation plan structure will be the most supportive … Continue reading

Posted in Compensation Plan, Compliance Guidelines, Consultants, Consumer Protection, Direct Selling, Distributor Education, For MLM Executives, Home-Based Business, Legal, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM Startup, Network Marketing, Party Plan, Personal Use, Products, Pyramid, Startup, Videos | Tagged , , , , , , , , , , | Comments Off on Legally, are all Compensation Plans Viewed the Same?

The Thorny Issues of “Personal Use” in Direct Selling

There exists tension between the direct sales industry and industry regulators as to the role of “personal use” of products and services by distributors of MLM companies. The broad and ambiguous language in pyramid legislation has contributed to the problem. … Continue reading

Posted in Commission, Compliance Guidelines, Consumer Protection, Direct Selling, Direct Selling Association, Distributor Education, Distributors, Earnings Claims, For MLM Executives, Law Cases, Legal, MLM, MLM Articles, MLM Companies, MLM History, Network Marketing, Party Plan, Personal Use, Pyramid, Sales/Selling, Videos | Tagged , , , , , , , , , , , , , , , | Comments Off on The Thorny Issues of “Personal Use” in Direct Selling