Creating Clear Agreements Between MLM Company Owners

This blog post is the companion post to the video Creating Clear Agreements Between Company Owners. The following is the transcript of MLM Attorney Jeff Babener’s own words:

Hello, I’m Jeff Babener, Editor of and I’d like to speak with you today about creating clear agreements between company owners. It is one thing for a MLM business to fail because of regulatory, legal, or financial challenges, but periodically, the industry is aghast when a MM company fails due to a dispute among company owners. Unfortunately, such events have occurred. The causes for such failure occurs because the business owners did not at the time of inception take sufficient care to outline their respective rights and responsibilities.

It may be a legal matter, but then again it is often a case of differing expectations about the future of the business. These expectations should be out in the open at the commencement of the business and mechanisms for dynamic change should be anticipated, including exit strategies for owners. The worst case scenario, which has occurred, is paralysis of the business while owners argue over management objectives. Obviously this problem cannot occur when there is one principal owner to the business. It tends not to occur when there are two owners. Three owners tend to produce a revolving alliance of two against one. More than three owners may well be a prescription for future disputes. In any event, managing expectations starts at home and at the beginning of the business.

Wishing you the best in your direct selling business, I’m Jeff Babener.

For more information visit our websites: and

Or, visit these links for more information:

Profile of the Leading MLM Law Firm – Babener & Associates and

MLM: Legitimacy through Statistics, Global Business Position, and Pyramid Schemes

Learn What is Needed to Recruit Top-Selling Distributors for Your MLM Company

Interview with Expert MLM Attorney – Are Earnings Calculators Legal?

Why do companies restrict the type of advertising carried on by their distributors?

Should I Launch my MLM Business Locally or Nationally?

Paying Commissions on Sales Tools, Sales Kits, and Training Materials……No!

The Role of MLM Legal Counsel – Why Hire a MLM Attorney

Four Factors that Make a MLM Company Successful

Explaining Your MLM Company to the Public: Answering the Hard Questions

Who Should be the First Key Employee that a Company Should Hire?

MLM Executives Must Raise Capital in Order to Recruit Key Distributors

MLM Pyramid Schemes – Everything You Need to Know All in One Place

Interview with Expert MLM Attorney – How to Handle Compliance Discussions with your Distributors

Are you Starting a MLM Company?

The Top Two Reasons Why MLM Companies Fail

MLM and the FDA

How Important is Philanthropy to a MLM Company?

The Hallmarks of Legitimate Direct Selling/Network Marketing Companies

What Differentiates a Legitimate Direct Selling/Network Marketing Company from an Illegal Pyramid Scheme?

How Important are Merchant Accounts and Payment Processing Solutions for Direct Selling Companies?

Should an MLM, Direct Selling, Network Marketing Company Launch Internationally Immediately?

What Factors Make MLM Executives and MLM Companies Successful – Video

Make sure to visit our blogs for the latest information on the direct selling industry: MLMLegal Blog Home and MLM Attorney Blog Home. HINT: Chose a category to narrow your search for discussion topics!

Find us on our social networks:

Google Plus:





And, as always, visit, the best MLM resource on the web.The next Starting and Running the Successful MLM Company Conference is quickly approaching! On February 21st and 22nd, 2013 we are hosting the MLM Conference for the 25th year! This is now our 63nd 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 May and October conferences as well.)

This entry was posted in Consulting, Direct Selling, For MLM Executives, Home-Based Business, Legal, MLM, MLM Articles, MLM Companies, MLM Startup, Network Marketing, Party Plan, Success, Videos and tagged , , , , , , , , , , , , , , , , , , . Bookmark the permalink.