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

By Jeffrey Babener © 2012 / 2013


In explaining itself to the public, press and regulators, every direct selling/network marketing company (and its distributors) should aim to describe the Company and its marketing program in the tradition of legitimacy.

If asked, the public explanation of the Company would preferably (and truthfully) be as follows:

    1. The Company finds itself as a member of a well-established industry or channel of distribution, direct selling/network marketing… an industry with millions of individuals involved, selling billions and billions of consumer products.
    2. The Company has scrupulously avoided all of the abusive elements of pyramid schemes, such as: phony, over-priced product, front-loading of inventory, big cash investments, earnings misrepresentations, headhunting fees, leaving distributors stranded with large amounts of inventory, etc.
    3. Instead the Company finds itself in the mainstream of the long-established direct selling/network marketing industry by offering a legitimate business opportunity with many recognized salutary features:
      1. Highest quality life-changing products which stand on their own in the marketplace.
      2. Pricing that is clearly competitive in the skincare industry.
      3. The only distributor entry requirement is the purchase of an “at cost” sales kit.
      4. Distributors purchase product as it is needed. There is no mandate of purchases and there certainly is no front-end loading of inventory.
      5. Company product does not sit in closets or garages. It is effective and it gets used by consumers and they buy more because it is highly valued.
      6. The Company has adopted an industry-recognized standard policy to repurchase inventory from distributors who wish to leave the business.
      7. All of the emphasis of the Company marketing program is to establish a substantial base of retail customers, including a specific distributor award program for acquisition of retail customers who commit to recurring monthly purchase of products.
      8. The Company has produced, what is arguably the finest product, packaging and marketing materials in the direct selling/network marketing industry.
      9. The Company only pays commissions on product sales… nothing else.
      10. The Company prohibits “pie in the sky” earnings claims and hypothetical potential earnings representations.
      11. The Company’s training materials, online and offline, as well as its live training, are at the forefront of the direct selling/network marketing industry.

For more information on starting and running the successful MLM company, visit the following links:

How to Build a Successful Direct Selling Company

Starting and Running the Successful MLM Company Conference in Las Vegas

Starting Your MLM Company

FREE MLM Startup Manual: Starting and Running the Successful MLM Company

Watch one of the many videos on how starting your MLM company:

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 an 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

And, for more information, visit www.mlmlegal.com.

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