SECTION 6: Network Marketing and the Law
By Jeffrey A. Babener
Excerpted from Network Marketing: What You Should
Know, Jeffrey Babener, Legaline Publications
MLM consultant practice tips. MLM Compensation
Plans come in all forms, including unilevel, stairstep, matrix, binary,
etc. Proper implementation requires consultation with an MLM
Consultant on MLM Consulting, an MLM Attorney and MLM Law Provider and
MLM Software provider for input on MLM technology and MLM Software Programming.
. MLM Legal and MLMLegal.com and Babener and Associates provides
expert MLM Consultant and MLM Consulting advise on MLM corporate, MLM
software, MLM Compensation, MLM Taxes, etc. MLM Consulting is an important
component for MLM startup. Careful Choice of MLM Software is another
component of MLM Corporate. A MLM Consultant and MLM Law and MLM
Legal is part of the MLM Startup Team. MLM Compensation must be
reviewed by an MLM Consulting standpoint by an MLM Consultant and MLM
Legal and MLM Law professional and programmed by a MLM Software and
MLM Technology provider.
Look for Legitimacy.
In determining whether or not a program is a legitimate multilevel marketing opportunity, the would-be participant or the entrepreneur, who is considering a multilevel marketing program, should consider several important points:
1. Products or Service. The company should offer a high quality product or service in which consumer satisfaction is guaranteed. It must have a "real" demand in the marketplace. If the product is consumed by distributors themselves, it must be one that distributors would want to buy on its own merits, irrespective of participation in the marketing plan.
2. Price. The price of the product or service must be fair and competitive in the marketplace. Distributors should be able to purchase the company product at wholesale or at a substantial discount from prices found in retail stores.
3. Investment Requirement. There should be no investment requirement at all, except a sales kit or demonstration material sold at company cost.
4. Purchase and Inventory Requirement. A legitimate marketing program should have no minimum purchase requirement, nor any inventory requirement, for one to become a distributor or sales representative. Once in the business, however, ongoing activity or qualification requirements are typical of leading network marketing companies.
5. Use of Product. Products should be used by consumers and not end up in a garage or basement.
6. Sales Commissions. Sales commissions should not be paid for the mere act of sponsoring other distributors.
7. Buy-back Policy. A legitimate multilevel marketing company will agree for some reasonable period of time to buy back inventory and sales kit materials in resalable condition from distributors who cancel participation in the program.
8. Retail Sales. The focus of the marketing program should be to promote retail sales to nonparticipants. Many states and programs recognize that purchases for personal or family use in reasonable amounts by distributors are also retail sales. "Personal use" as a retail sale is still, to this day, not universally accepted by courts and regulatory agencies B and validation of "personal use" is one of the important priorities of the industry and its trade associations.
9. Distributor Activity. Many of the new statutes regarding multilevel distribution companies require that distributors perform a bona fide, supervisory, distributive selling or soliciting function in moving the product to the consumer, i.e. that they have meaningful contact and communication with their downline sales organization.
10. Earnings Representations. The basic rule is that a legitimate marketing program should not make any earnings representations unless those representations are based on a track record. Testimonials by individuals of their own experiences are not uncommon, however.
11. Training. A good network marketing program should
offer solid training in sales and recruitment to its distributors.
DIRECT SELLING/DIRECT SALES consultant
practice tips. DIRECT SELLING/DIRECT SALES International Expansion requires
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component for DIRECT SELLING/DIRECT SALES startup. Careful Choice
of DIRECT SELLING/DIRECT SALES Software is another component of DIRECT
SELLING/DIRECT SALES Corporate. An DIRECT SELLING/DIRECT SALES
Consultant and DIRECT SELLING/DIRECT SALES Law and DIRECT SELLING/DIRECT
SALES Legal is part of the DIRECT SELLING/DIRECT SALES Startup Team. DIRECT SELLING/DIRECT SALES Compensation must be reviewed by an DIRECT
SELLING/DIRECT SALES Consulting standpoint by an DIRECT SELLING/DIRECT
SALES Consultant and DIRECT SELLING/DIRECT SALES Legal and DIRECT SELLING/DIRECT
SALES Law professional and programmed by a DIRECT SELLING/DIRECT SALES
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