Success Stories – MLM, Network Marketing, Direct Selling News, Videos, Articles, Legal Updates, and More. https://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 2019 MLM Startup Conference https://mlmlegal.com/MLMBlog/2019-mlm-startup-conference/ Tue, 26 Nov 2019 14:24:06 +0000 http://mlmlegal.com/MLMBlog/?p=1431 Do you want to see what it’s like to attend the MLM Startup Conference in Las Vegas? Have you ever considered starting your own networking marketing business and get instructed by experts in the direct selling industry? Check out this … Continue reading

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Do you want to see what it’s like to attend the MLM Startup Conference in Las Vegas? Have you ever considered starting your own networking marketing business and get instructed by experts in the direct selling industry? Check out this video by the industry experts, Jeff Babener and Michael Sheffield:

For more information, visit www.mlmlegal.com.

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Is Your MLM / Network Marketing Company Failing? Here’s Why. https://mlmlegal.com/MLMBlog/is-your-company-failing-heres-why/ Mon, 15 Jan 2018 00:32:46 +0000 http://mlmlegal.com/MLMBlog/?p=1254 Who or what is generally responsible for the failure of the majority of MLM companies? To answer this question, it is best to look at the two phases of MLM companies: start up and maturity. Although many things can go … Continue reading

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Is Your MLM / Network Marketing Company Failing? Here’s Why.Who or what is generally responsible for the failure of the majority of MLM companies?

To answer this question, it is best to look at the two phases of MLM companies: start up and maturity.

Although many things can go wrong in a startup direct selling company, two factors are repeated with frequency for the failure to launch. The first factor is inability to recruit. MLM is a business based on recruiting a successful sales force to market products. (Obviously, there are many important factors ranging from logistics to personnel to technology to quality control to distribution… and all these can go wrong as well.) It should be noted that the need for capital is in inverse proportion to the ability to recruit. A MLM company that can recruit is often positioned for fast growth and may even become a cash cow. If the company does not have that native ability, it needs sufficient capital to hire the talent to make recruiting happen. And in the absence of the recruitment asset, a company should plan on a much longer trajectory to profitability.

And the recruitment challenge dovetails with the second major reason that companies fail at the onset: lack of adequate capital or funding. Many companies start the business without adequate capital to allow for a one or two year run to become profitable. In fact, many companies assume that they will be profitable within months or that they will not need capital for growth. The lack of buffer capital to survive the early unprofitable days of a company is a prescription for early failure.

As to mature companies – who’ve been around for years and years but find themselves on a downward spiral, the key answer is to continuously innovate and create ways to bond with both distributors and customers. Companies that can’t grow with the market, or maintain loyalty of distributors and customers, will find that sales will plateau and ultimately decline. This is a branding business and a relationship business. Unless a mature company is ready to continually reinvent itself and stay fresh, it may find itself on a slow, or sometimes rapid, road to contraction and failure.

MLM, network marketing, otherwise known as direct selling, is a relationships business. Those that succeed do so because they have a deep relationship with their customers and distributors. To maintain long-term success as a MLM business owner, you too have to make sure that you’re not just running a company, but a business of relationships.

As mentioned, networking is a big part of MLM. Come network with us. 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. It’s run by the most trusted and knowledgeable man in the business, offering legal services for over 25 years to companies like Avon and Mary Kay, Jeff Babener.

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.

Learn more: Watch the Video. What are the two main reasons for a MLM company’s failure?

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6 Direct Selling Companies with Humble Beginnings https://mlmlegal.com/MLMBlog/6-direct-selling-companies-humble-beginnings/ Sun, 23 Apr 2017 20:27:20 +0000 http://mlmlegal.com/MLMBlog/?p=1218 Aerodynamically, the bumble bee shouldn’t be able to fly, but the bumble bee doesn’t know it so it goes on flying anyway. –Mary Kay Ash Humble Beginnings Can you become the “million-dollar earner?” Don’t sell yourself short just because you’re starting … Continue reading

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Rich DeVos and Jay Van Andel mixed their first product, LOC Cleanser, in their bathtubs when they began their business.Aerodynamically, the bumble bee shouldn’t

be able to fly, but the bumble bee doesn’t

know it so it goes on flying anyway.

Mary Kay Ash

Humble Beginnings

Can you become the “million-dollar earner?” Don’t sell yourself short just because you’re starting fresh in the multilevel marketing business. History tells us that, in America, many billion-dollar businesses – including MLM – have been started on a shoestring budget in garages and basements. Cases in point: Bill Gates of Microsoft, Phil Knight of Nike shoes, and Steve Jobs of Apple Computer. There are countless inspiring network marketing success stories about individuals whose companies or distributorships had very humble beginnings, such as:

1) The Bathtub?

The co‑founders of Amway, also known as Quixtar, network marketing’s largest multi-billion-dollar company. Rich DeVos and Jay Van Andel mixed their first product, LOC Cleanser, in their bathtubs when they began their business. Starting out as distributors for a vitamin company, Nutrilite, their Amway Corporation later bought Nutrilite, which today is their division for nutritional supplements. Amway has gone on to become the largest seller of dietary supplements in the world with consistent sales in the billions.

2) Door Knocking?

The founder of Avon (a cosmetic conglomerate), David McConnell, wasn’t even in the cosmetics business in 1886. He was selling Bibles door-to-door, and giving away free perfume samples as a way to get into the homes of prospective customers. As it turned out, his customers showed much more interest in the perfume samples than in the bibles. So, he began the California Perfume Company, later renamed Avon.

Today, Avon, trades on the New York Stock Exchange, operates in more than 140 countries with sales in excess of $7 billion, and is one of the largest sellers of cosmetics in the world.

3) Nothing, really?

After a successful career as a top distributor for the direct selling company, Stanley Home Products, Mary Kay Ash started her own small business in 1963, named Mary Kay. She created products with ingredients like hide tanner (used to cure animal hides) and became the most famous face of direct selling and network marketing. Mark Kay lecturing around the world and was even included in a case study at Harvard Business School.

Mary Kay Ash was one of three alumni distributors of Stanley Home Products that established multi-billion dollar companies. Her colleague, Brownie Wise, went on to help establish Tupperware, and Mary Crowley founded Home Interiors.

Clearly, their MLM distributor experiences allowed them to accept and succeed in new challenges that would likewise impact millions of lives and inspire other entrepreneurs to develop successful distributorships and found their own companies today.

4) Liniment?

Consider the origins of Watkins Products back in 1868. Today, Watkins sells a full line of products, from spices to cosmetics, to health care items. In 1868, however, the founder of the company, Joseph R. Watkins, was selling only one product: liniment. From that single product was built, perhaps, the longest-running direct selling success story of the industry.

5) Football?

How improbable! Art Williams was a high school football coach making little more than $10,000 per year when he applied principles of multilevel marketing to the sale of term insurance.

A. L. Williams went on to become the largest seller of term insurance in the U.S., eventually evolving into today’s Primerica, a division of one of America’s largest financial institutions, Citibank. Sales of financial products by Primerica run into the billions of dollars every year. And, all from a football field!

6) Big Dreams!

Modern-day network marketing successes – whether they are companies or individual distributors – all have their own startup story, starting on a shoestring budget. This business was meant to grow from the humble beginnings of one person’s dream. Hand-to-hand marketing is the nature of the direct selling business

And the successes of those that have started billion-dollar companies are paralleled over and over among the millions of network marketing distributors. Look around at the top distributors for major companies today and you will find individuals, who in their prior lives, were teachers, plumbers, lighting salesmen — all with modest employment incomes and equally-modest prospects in life.

What it Takes: A Positive Mindset

This is a mindset business. Your attitude is often a self-fulfilling prophecy. There is some real truth to the veterans’ advice which notes, “If you think you can, you’re right; If you think you can’t, you’re right!”

So, the next time you think you can’t do it, think again! Make sure, however, that you have access to one of the following tools:  a bathtub, a garage, a bible, or a dream.

Do you want more inspiration? Watch these video titles from the 30+ year direct selling industry veteran, Jeff Babener:

Are There MLM Companies That Have Achieved Success on a Low Budget?

How Much Does It Cost to Start a MLM Company?

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Is it True that Distributors in MLM have a 95% Failure Rate? https://mlmlegal.com/MLMBlog/true-distributors-mlm-95-failure-rate/ Fri, 12 Aug 2016 23:20:02 +0000 http://mlmlegal.com/MLMBlog/?p=1164 Semantics play a role here. For instance, what is the meaning of failure? Does it refer to distributors who do not make substantial enough money, or who don’t make any money, or who lose money? Because most leading companies offer … Continue reading

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Is it True that Distributors in MLM have a 95% Failure RateSemantics play a role here. For instance, what is the meaning of failure? Does it refer to distributors who do not make substantial enough money, or who don’t make any money, or who lose money?

Because most leading companies offer terminating distributors a 100% or 90% buy back policy for inventory and mandatory sales materials (a full refund of your startup kit, e.g.), the risk of actually losing money is drastically diminished.

Many leading companies offer earnings disclosures that indicate the level of earnings of distributors. It is true that many distributors merely join to become discount buyers. And actually do not make money in the MLM program because they are not really pursuing the opportunity.

It is also true the vast majority of active distributors (those who actually make money) typically make no more than a few hundred dollars per month. There is a saying in the MLM industry that “95 percent of distributors fail or lose money.” This would not be viewed as a fair statement, unless one views, as worthless, the product/service purchased by distributors for personal or family use. Except for scam companies, this is not the case. Leading MLM companies are known for offering high quality products and desirable services.

What this related video: Why Do Distributors Join MLM Companies?

 

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 October 27 and 28, 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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May 2016 Conference was a Success and Statistics https://mlmlegal.com/MLMBlog/may-2016-conference-success/ Tue, 24 May 2016 17:19:00 +0000 http://mlmlegal.com/MLMBlog/?p=1110 We pulled off some great numbers for the May 20, 2016 conference! In attendance were over 60 companies and 90 people, representing 18 states, the U.S., Canada and Europe! We appreciate all the guests in attendance, as well as the … Continue reading

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We pulled off some great numbers for the May 20, 2016 conference! In attendance were over 60 companies and 90 people, representing 18 states, the U.S., Canada and Europe!

May 2016 Conference

May 2016 Conference

We appreciate all the guests in attendance, as well as the lineup of incredible speakers.

If you weren’t able to make the May 2016 conference, no problem! We are hosting the next Starting and Running the Successful MLM Company Conference on October 27 and 28, 2016 in Las Vegas.

We invite anyone who is starting or running an existing MLM company to join us! MLM business owners, executives, corporate staff, you’re invited! The classroom-like setting of the conference promotes education, not selling. We work hard to provide you with a fully credible lineup of expert speakers who advise in the areas of recruiting, legal, compensation plans, software, technology, raising capital, and so much more. At the end of each day we offer one-on-one time with the speakers. As you hear the speakers discuss various topics, you can decide who you’d like to sit down with to discuss your unique situation with at the end of each day. Sign up with them all or just a couple! It’s up to you!

Visit our website for details.

October 27 & 28, 2016

Las Vegas, Nevada

9AM-4PM

4PM-7:00PM – one-on-one time with the speakers

Call 800-231-2162 for more information or to register.

Visit our conference page and speaker list for additional information.

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 https://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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What are the most important things to remember when you host a distributor recognition event? New Video https://mlmlegal.com/MLMBlog/what-are-the-most-important-things-to-remember-when-you-host-a-distributor-recognition-event/ Wed, 10 Feb 2016 18:56:45 +0000 http://mlmlegal.com/MLMBlog/?p=1087 First, we must note that this is a bit out of our area. However, we have attended many such events and been involved in meeting planning from hotel logistics to program to meeting planners. And we have done this scores … Continue reading

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First, we must note that this is a bit out of our area. However, we have attended many such events and been involved in meeting planning from hotel logistics to program to meeting planners. And we have done this scores of times with many of the leading direct selling companies.
With that said, the point is that you are in a relationship business. All studies have shown that recruitment and retention have a direct correlation with how your distributors bond with management, leaders, corporate mission, and product. Obviously, a company will lead with the goal of rewarding distributors with recognition, providing good education on the product, opportunity and recruitment, inspiring them as to the past and future, demonstrating sincere appreciation and making sure they have a good time. This is “experiential bonding” and it is a company’s opportunity to showcase both objectively and emotionally why distributors should bond with management, other leaders, other fellow distributors, company product, the mission of the company and hopefully, if there is a philanthropic program, with the community “giveback” of the company.

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 February 25 & 26, 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.

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

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How to Fund your MLM Startup Company – New Video https://mlmlegal.com/MLMBlog/how-to-fund-your-mlm-startup-company-new-video/ Tue, 06 Oct 2015 21:15:53 +0000 http://mlmlegal.com/MLMBlog/?p=1032 Raising capital to fund your network marketing startup company can be tricky. In fact, there is no clear-cut answer to finding funding. However, there are options available to MLM company owners. There are several giant direct sales companies operating today … Continue reading

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Raising capital to fund your network marketing startup company can be tricky. In fact, there is no clear-cut answer to finding funding. However, there are options available to MLM company owners. There are several giant direct sales companies operating today that began with a very limited budget, just like you: in their basements, bathtubs, garages, and space bedrooms. Many of these companies grew organically to the huge size that they are now. You, however, may be in a different situation, where an influx of capital is absolutely necessary to keep your business afloat.

This article will help to provide you with details about how you can get free and trusted information about how to fund your MLM business. Experts generally suggest that it costs around $100-$200 thousand to start up a direct selling company. This article will provide you with some ideas as to where to find startup funding and links to information online, written by experienced MLM industry experts who’ve been asked thousands of times, “Where can I find funding to start and grow my MLM business?”

Here are three of the most common options MLM business owners consider when they are looking to fund their network marketing startup:

1)      Do you have a substantial recruiting background? If you are a seasoned recruiter and are able to attract a strong line of consultants then your need for capital will decrease considerably. Expert MLM Attorney Jeff Babener always says, “Your need for capital is in direct inverse proportion to your ability to recruit.” If you are able to attract a strong sales force then your need to raise capital outside of the company may greatly diminish. Consultants will be the key to your success. If you are not a seasoned recruiter, then you may want to consider hiring someone who does have recruiting experience.

2)      Do you have personal capital? MLM startups often find the capital that they need in their own bank accounts, or the bank accounts of family and friends (often referred to as your ‘warm market’). In some cases, an angel investor will be willing to invest in the company (a wealthy uncle, perhaps?). These sorts of investments are based primarily on the personal relationship, as well as trust and loyalty.

3)      What about public financing? Unfortunately, not many venture capital firms are interested in investing in startup network marketing companies. The startup MLM company has the tendency to be run by inexperienced business owners needing only a few hundred thousand dollars, which isn’t very attractive to large investors. In nearly all cases, investment into the company will come from a close source. Once your business is worth millions, then the investment firms will take notice. You can read about some of the most famous MLM success stories on these pages: Silpada, Herbalife, Pampered Chef, and Visalus.

Another great place to get information on raising capital for your business is at the Starting and Running the Successful MLM Company Conference where industry experts will provide you with individual, one-on-one time and attention. Each speaker will sit with you and discuss your personal situation and specific needs. The easiest was for you to attend the conference on a budget is to visit the page of our Innovation Campaign. The October 2015 Innovation Campaign offers network marketing company owners the ability to receive two free tickets to the next Starting and Running the Successful MLM Company Conference in Las Vegas (a $345.00 value!). All you have to do is fill out a brief survey at our sister website: www.mlmattorney.com, and we will contact you right away to confirm your free tickets to the event! Attending this event will give you direct access to several MLM industry experts, including capitalization experts and MLM legal expert, Jeff Babener. Visit our Innovation Campaign page for complete information about the conference, including the topics that will be covered, the speaker/expert list, videos, and much more. For additional questions call 800-231-2162.

It won’t be easy raising capital to fund your MLM startup, but we hope that we’ve given you some ideas on where to start. We also hope that you better understand that it is possible to start small and make it big in this industry. For more information on raising capital visit 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 Newsletter – August 18, 2015 – Headline News, Video of the Week, Articles, Scam Alerts – Sign up Today! https://mlmlegal.com/MLMBlog/new-newsletter-headline-news-video-of-the-week-articles-scam-alerts-sign-up-today-2/ Tue, 18 Aug 2015 20:18:35 +0000 http://mlmlegal.com/MLMBlog/?p=997 The MLM News Global E-Newsletter offers top MLM news, recent scams, videos, company profiles, and timely articles delivered to your inbox on a bi-monthly basis. The e-newsletter contains top news stories in the network marketing industry, the most recent MLM … Continue reading

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The MLM News Global E-Newsletter offers top MLM news, recent scams, videos, company profiles, and timely articles delivered to your inbox on a bi-monthly basis.

The MLM News Global E-Newsletter offers top MLM news, recent scams, videos, company profiles, and timely articles delivered to your inbox on a bi-monthly basis.

The MLM News Global E-Newsletter offers top MLM news, recent scams, videos, company profiles, and timely articles delivered to your inbox on a bi-monthly basis. The e-newsletter contains top news stories in the network marketing industry, the most recent MLM scam alerts, timely articles on the direct selling industry, and so much more. Make sure that you’re not the last to know about top MLM news stories, or to hear about the latest MLM scam reports. Our timely headline reporting will keep you up-to-date on stories that affect everyone in the network marketing industry. In addition, important press releases, directly from MLM/network marketing/direct selling, party plan companies, will keep you current on trends and direct selling company developments in the industry.

Top News Stories in this Newsletter:

  • How Mannatech will change under new CEO Alfredo Bala
  • Longaberger parent CVSL reports increased revenue
  • Report: Donald Trump made millions from Concord company ACN
  • Free day of pampering for Baldwin County students before school starts
  • Herbalife Stock Rating Upgraded by Vetr Inc. (HLF)
  • Herbalife – 35 Years of Inspiring Results
  • Are Their Concerns about Consultants Marketing Their MLM Business through Social Media?
  • 3 Ways to Start Promoting Your Network Marketing Business
  • Tupperware Brands Reports Second Quarter 2015 Results
  • Fun and excitement at Sophie Paris Fashion and Beauty Caravan
  • LifeVantage Appoints Justin Rose New Chief Sales Officer
  • New Morinda Office Opens in Canada
  • Should MLM Companies be Concerned about Market Saturation?
  • Debby Richardson of PartyLite Awarded Direct Sellers Association of Canada ‘Mark of Distinction’
  • Who/what is generally responsible for the failure of the majority of MLM companies? What percentage of MLM companies fail?
  • USANA Health Sciences Director Sells $1,118,880.00 in Stock (USNA)
  • Donald Trump Made Millions From Multilevel Marketing Firm
  • State-owned pharmaceutical companies tap direct-sales channel
  • MLM Company Policies on Social Networks and Distributor Raiding

View the newsletter archive to read these news stories. Better yet, sign up for the MLM News Global Newsletter for free and get your bi-monthly copy delivered to your inbox.

In the Scam Alerts this Week:

  • Lyoness investors face pyramid scheme charges in Greece
  • Dubli threaten WUKAR’s Matt Trainer with a lawsuit
  • uFun Samoan funds illegally transferred to Thailand
  • Feds Seek Information From Victims Of ‘Achieve Community’ Scam
  • Zeek Receiver hunting an “elusive” OH Brown
  • Canadian Zeek net-winner trial scheduled for April 2016

Video: What Compensation Plans Do Distributors Generally Prefer?

Company Profile of the Week: Cutco

Articles this Week “MLM Corporate Startup Essentials III” and “Outstanding Trade Associations – DSA and MLMIA.” http://www.mlmnewsglobal.com/

Sign up for free! Keep up-to-date on network marketing news, scams, articles, videos, and more, a necessity for anyone in the MLM industry. Sign up for FREE. Visit: http://www.mlmnewsglobal.com/.

Brought to you by industry leader, MLM Attorney, Jeff Babener.

Your best educational resource on the web: check out the hundreds of articles, videos, company profiles, and more at MLMLegal.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.

 

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Are Their Concerns about Consultants Marketing Their MLM Business through Social Media? https://mlmlegal.com/MLMBlog/are-their-concerns-about-consultants-marketing-their-mlm-business-through-social-media/ https://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?

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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