Visit our website at www.mlmlegal.com for more information on the direct selling industry.

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

A Conversation with Jeff Babener Video Series: Learn about the difference between the various compensation plans and how distributors are compensated with each plan. It’s called multi-level marketing since distributors are compensated at each level as they recruit more consultants. How many levels are distributors compensated at? Learn about breakaway compensation plans. Learn the difference between sponsors and recruits. Get the definition of each unique compensation plan and which plans are most common and which are less successful. How many levels deep is it most common to go, and legal, to go?

When does a compensation plan become a lottery, which is considered legal by many states? Which programs have stood the test of time, and which have gone by the wayside? Which compensation plan should you choose so that your company is legal and stands the test of time? Learn how to ask the right questions to determine a legitimate operating MLM company vs. a pyramid scheme. Watch the video.

Keep yourself educated on the legal aspects of the MLM industry. Visit MLMLegal.com. Are you starting a MLM company? Make sure you have your legal aspects covered. Contact legal MLM expert Jeff Babener for your free legal consultation today.

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

Whether your compensation plan is binary, matrix or an Australia 2-Up, and regardless whether your products are financial services, educational, health products, or vitamins, the answer is: The same legal principals apply no matter what your compensation plan is and no matter what your product is.

The questions you should be asking are “What is it that people are paying” and “Why are they paying it?” If you’re selling a quality product at a fair price to consumers then you are likely operating legitimately. If you’re running a program in which you are merely moving money or are selling overly-priced products to distributors who are buying into the compensation plan only to quality, then you probably have an illegitimate compensation plan structure.

State agencies and the FTC took a look at compensation plans and products in various spectrums. On a spectrum of compensation plans, a party plan that is retail-oriented is at the favorable end of the spectrum.  As we move across the spectrum, binary plans, particularly binary plans that have distributors buy multiple business centers moves to the far end of the spectrum, nearer to the territory of being a pyramid.

Companies that are marketing different types of products are looked at differently in terms of “Live and Let Live.”  At the conservative end of the spectrum, products that are used for daily household use, telecom, dietary supplements and vitamins – even if there is substantial personal use – state agencies understand that the product is being used and there is little to lose.  At the other end of the spectrum, and one that involves intense scrutiny, are products that are high-ticket items, like financial seminars, financial education programs, consumer benefit programs, and particularly, things that are intangible; states look at these and they ask the question “Who is buying it and why?”

If you think you can operate a legal business selling prayers or wishes you’re dead wrong.

States want to know that retail sales are making it to the end-consumer (not just the distributor).

For more information on compensation plans, check out the article “How to Analyze Compensation Plans.”

Expert MLM Attorney, Jeff Babener, has put together a lot helpful videos on compensation plans. Here are just a few. Visit our main website, mlmlegal.com, for more information on all aspects of running a legitimate direct selling business.

How Do I Create a Compensation Plan That Guarantees That I Am Legal?

What Compensation Plans Do Distributors Generally Prefer?

Role of Compensation Plan in a Successful Direct Selling Company

Is the Compensation Plan the Driving Force of Success?

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

We offer MLM entrepreneurs a way to network with experts from all sectors of the direct selling industry: legal, recruiting, technology/software, compensation plans, funding, generate leads, website and back office, business model, and more – all in one place, for one affordable price ($195 for the first attendee, each additional is $150).

So, if you’re starting a MLM, network marketing, direct selling company, or just thinking about starting a MLM company, come join us at the MLM Startup Event/Seminar in Las Vegas! The Hosts are Business Consultant and MLM Legal Expert, Jeff Babener, and MLM Compensation Plan Consultant, Mike Sheffield.

Our next conference takes place February 25 and 26, 2016 in Las Vegas (who doesn’t want a good reason to go to Las Vegas?). We even offer the Innovation Campaign for those who are on an even tighter budget.

Visit our website, www.mlmlegal.com, or our conference page to learn more and to see the full line-up of speakers. Read testimonials and watch our invitation videos. Anyone who is starting or running a MLM, network marketing, direct selling, party plan company is welcome to attend.

Call us at 800-231-2162 to register.

If you’re reading this blog post and the conference dates above have passed, check our website for the current conference dates.

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

Can online-only starter kits be done in a way that ensures a high perceived value?

There has been a clear trend in recent years to offer sales and marketing support online and in the cloud. In reality, the developmental costs are equal or more in providing such support. The quality of support is quite significant, including: all company forms, distributor agreements and terms, policies and procedures, administrative housekeeping rules, product descriptions and updates, compensation plan descriptions and updates, training, communication tools, back office management of down line sales performance and financial reporting, replicated websites, the list goes on. In reality, the real and perceived value of emerging online sales and marketing support will far exceed the limited (physical) sales kits of “yesterday.”

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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Make sure you’re not the last to hear about top headlines in the industry, or to hear about the latest company scam alerts. Our timely news reporting will keep you up-to-date on stories that affect everyone in the multilevel marketing industry.

We will also make sure you receive a “Video of the Week” on industry educational topics, such as legal issues, technology and software, common questions (FAQ), success stories, and MLM startup issues.

Each newsletter features the profile of a direct selling company, like Tupperware, Herbalife, and Mary Kay, or perhaps a startup multilevel marketing company that you haven’t heard about yet! MLM News Global also highlights two featured articles on industry-related topics, such as pyramid schemes, compensation plans, recruiting, lead generation, legal analysis, software, and more.

The MLM News Global Newsletter is presented by industry educator, MLM legal expert, and network marketing business consultant, Attorney Jeff Babener.

Sign up today to receive valuable MLM, network marketing, direct selling content, an imperative to anyone in the direct selling industry. Join our newsletter today!

Check out our Archives for past issues.

Learn more business tips at 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.

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

The costs of startup vary widely, depending on the type of product or service and need for infrastructure. It is obvious that a company which is engaged in its own manufacturing, ownership of warehousing and distribution facilities, etc. will expend much more in cost than a company which is furnished by suppliers of private label products or is involved in a service-type product. With respect to the initial infrastructure costs of a startup MLM, it may be reasonably expected that a company will expend, during the first year, $100,000-$200,000 for four key infrastructure elements: legal, software, compensation plan design, and creative design for online and offline promotional materials. Beyond these costs, the variables are far too extensive to predict without development of detailed pro forma projections.

Watch the video with expert MLM Attorney, Jeff Babener by CLICKING HERE.

For more information on any topic on network marketing that comes to mind, please visit www.mlmlegal.com and www.mlmattorney.com.

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

Jeff Babener speaking at the MLM Startup Conference in Las Vegas.

You wouldn’t believe the turnout we had for the October 2014 MLM Startup Conference! Entrepreneurs, executives, founders, and CEOs from 98 direct selling companies registered for the event! Over 160 entrepreneurs registered for the conference! These innovative entrepreneurs represented 31 states and six countries from around the world! Our turnout was fantastic! Thank you to all of our attendees!

Were you able to make it to the best MLM conference in the United States? Do worry! Our next conference will take place February 26th & 27th, 2015. Any executive of a startup or existing direct selling, MLM, network marketing company is welcome to attend. Simply call our office and register by phone: 800-231-2162. Visit our website for additional information: www.mlmlegal.com.

For additional information, visit MLMLegal.com or read about our Innovation Campaign. You can also watch conference videos, read testimonials, find links to more information, and view the next dates at the Innovation Campaign page.

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

Compensation plans are drawn by skilled craftsmen.

As the French say, “a chaque a son gout.” Translated, this means, to each his own taste. And this is the truth. There is no right or wrong when it comes to types of compensation plans, whether they be unilevel, stairstep breakaway, binary, matrix, Australia Two Up, etc.

In fact, it is rare today to see a compensation plan that does not combine elements of various models as well as various add on features such as a shared bonus pool, enroller bonus, check match, infinity bonus, generational payout, fast start bonus, etc. Compensation plans are drawn by skilled craftsmen such as Michael Sheffield of the Sheffield Group, www.Sheffieldnet.com, to incentivize differing types of behavior. And incentives may be accomplished by rewarding those who have substantial personal volume, substantial group volume, sponsor wide, sponsor deep, train their downline, demonstrate substantial retention, demonstrate the building of other leaders, etc. Differing compensation plan models reward differing types of behavior. In general party plan companies tend toward unilevel and generational bonuses. Consumables companies tend toward matrixes and binaries because the focus is on recruiting large downlines. Australia Two Up plans tend to be oriented to high-priced, one-time purchases.

As a general matter, all compensation plans have a similar amount to distribute, ranging from 30-50%. How the pie is cut differs from business to business. A party plan skews payments to the direct sale. A consumables plan skews payments to be spread over a larger base. In the end, the compensation plans chosen are tailored to the products, economic objectives and behavior to be incentivized.

For more information on the network marketing industry visit www.mlmlegal.com and www.mlmattorney.com.

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Our next Starting and Running the Successful MLM Company Conference takes place October 27 and 28, 2016 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register. If you’d like to see how you can get free tickets to the next MLM Startup Conference, visit our Innovation Campaign page.

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

What do you do when you need answers on the go? MLM Legal now offers a free iTunes application.

MLMLegal.com is one of the most informative and reliable websites about network marketing on the web. MLM Legal provides educational articles answering common industry questions, such as:

–          How to start a network marketing company

–          An inside look at a MLM trial

–          Herbalife and personal use

–          How to identify a pyramid scheme

–          How to analyze compensation plans

–          And, many more.

MLM Legal offers over 70 videos where MLM expert Jeff Babener discusses network marketing for both consultants and company owners. The website offers research assistance by providing over 700 MLM company profiles, a vendor and supplier directory, and the latest industry news. MLM Legal also offers free materials to those who qualify, including a free MLM Startup Manual, an insightful DVD, and newsletters.

MLM Legal is free and open to anyone, anytime. However, what do you do when you need answers on the go? MLM Legal now offers a free iTunes application. This application offers up-to-date information on the direct selling industry, news and headlines, frequently asked questions, MLM law in 50 states, hundreds of articles, notorious MLM cases, as well as legal news and articles written by Jeff Babener.

MLMLegal on iTunes is free and will provide you with valuable information on the go. Download the free iTunes app HERE.

Visit www.mlmlegal.com and www.mlmattorney.com for more information on the network marketing industry.

Find us on our social networks:

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LinkedIn

Twitter

Facebook

Our next Starting and Running the Successful MLM Company Conference takes place October 27 and 28, 2016 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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