history – 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 New Video – What’s the Difference between MLM, Network Marketing, Party Plan and Direct Sales? https://mlmlegal.com/MLMBlog/new-video-whats-the-difference-between-mlm-network-marketing-party-plan-and-direct-sales/ Thu, 26 Mar 2015 21:26:59 +0000 http://mlmlegal.com/MLMBlog/?p=918 They all fall under the general umbrella of direct sales. Historically, direct selling only involved direct person-to-person sales, often door-to-door. In the 1950’s, companies such as Amway, Shaklee and Mary Kay introduced to the direct seller the ability to sponsor … Continue reading

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They all fall under the general umbrella of direct sales. Historically, direct selling only involved direct person-to-person sales, often door-to-door. In the 1950’s, companies such as Amway, Shaklee and Mary Kay introduced to the direct seller the ability to sponsor other sellers, to build a sales organization and to receive a override commissions on the sales in their sales organization at multiple levels. This is the origin of MLM, multilevel marketing and network marketing, which are all the same thing, i.e., direct sales with a multiple level compensation opportunity. In addition, in the 1950’s, companies such as Tupperware and Home Interiors applied group selling, in the home, to direct selling and from this origin grew the party plan. Today party plan selling is direct selling and virtually every party plan company is also MLM because it rewards sellers for sales in a sales organization built by the direct seller.

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.

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Free “Direct Selling, Network Marketing, MLM” DVD https://mlmlegal.com/MLMBlog/free-direct-selling-network-marketing-mlm-dvd/ Tue, 02 Apr 2013 22:14:20 +0000 http://mlmlegal.com/MLMBlog/?p=405 SourceNet Creative and MLMLegal.com present the “Direct Selling, Network Marketing, MLM” DVD. Visit www.mlmlegal.com for your FREE DVD full of MLM advice about starting and running the successful MLM company. The “Direct Selling, Network Marketing, MLM” DVD is FREE (for … Continue reading

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SourceNet Creative and MLMLegal.com present the “Direct Selling, Network Marketing, MLM” DVD. Visit www.mlmlegal.com for your FREE DVD full of MLM advice about starting and running the successful MLM company.

FREE MLM DVD

The FREE “Direct Selling, Network Marketing, MLM” DVD for qualifying executives of MLM companies.

The “Direct Selling, Network Marketing, MLM” DVD is FREE (for qualifying executives of direct selling, network marketing, MLM companies only. Click HERE to see if you qualify.)

Some of the Video Segments Include:

  • Introduction and Basics
  • Successful Companies
  • Legal MLM
  • Success Stories
  • History and Technology
  • Not Pyramid Schemes
  • Debunking Myths
  • Internet and the Future

This FREE MLM DVD full of excellent advice is courtesy of MLMLegal.com and the law firm of Babener & Associates.

Qualifying executives of Multi-Level Marketing and Direct Selling companies can request a free DVD that includes vital information for starting and running the successful MLM company. Please call our office at 503-226-6600 or 800-231-2162 to see if you qualify. Those who wish to purchase a DVD can do so for $4.95 (Call for bulk pricing). Legaline Publications also offers other valuable books, brochures and materials to aid in the transference of expert knowledge in the direct selling industry.

Click the image below to view the back of the DVD:

(Back Cover)

The back of the the FREE “Direct Selling, Network Marketing, MLM” DVD.

In order to receive your free DVD, complete the following form.  This information is vital to executives of Network Marketing (MLM) companies, whether you are involved at a start-up level or are an emerging company, ready to launch and grow your company. We will confirm with you to verify that you will benefit from the information presented in the DVD and then send you the complete disk for FREE. Call us at 503-226-6600 or 800-231-2162 to see if you qualify.

Industry expert, Jeff Babener represents leading US and foreign companies in the direct selling industry.  He has been advisor to such companies as Avon, Discovery Toys, Nikken, New Vision, NuSkin, Excel, Fuller Brush, Cell Tech, Kaire, Sunrider, Melaleuca, and more.

Check out Legaline Publications for books, brochures, DVDs, and more that are perfect for MLM company owners and distributors alike.

MLMLegal.com and MLMAttorney.com also offer over 60 FREE videos for both distributor and MLM executive education online:

Attorney Jeff Babener, Discusses Various Topics in a MLM Compliance Training Session NEW!

Earnings Claims and Consumer Protection Laws

Interviews with Expert MLM Attorney, Jeffrey Babener NEW!

Short Course on Network Marketing: Q&A with Jeffrey Babener on Pyramid Schemes NEW!
The Difference Between MLM Earnings Calculators and Earnings Claims
From a Legal Perspective: The Difference Between a Pyramid Scheme and Legitimate MLM
Compliance Guidelines for Direct Selling Companies and Network Marketers
Factors that Make a MLM Company Successful
A View of the Direct Selling Industry: Past, Present and Future
Why Choose the MLM Model for Your Business? – A CEO Interview

MLM Startup Conference in Las Vegas Video Adverts NEW!

MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com
The MLM Startup Conference in Las Vegas

MLM Distributor Education Videos

Jeffrey Babener: Company and Distributor Training on the MLM Industry
Understanding the Basics in Order to Succeed In Direct Selling
Recruiting Advice from an Industry Expert
How to Tell if a Company is a Pyramid or a Legitimate MLM

Starting a MLM Company – A Video Primer

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 a 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

All About MLM, Direct Selling and Network Marketing

An Introduction to Direct Selling and the Basics of MLM
The Major Players – Successful MLM Companies
The Legal Issues of Starting and Running a Direct Selling Company
Success Stories in the MLM, Direct Selling, Network Marketing Industry
Technology’s Impact on the Direct Selling Industry: The History of Technology
Not all Direct Selling Companies are Pyramid Schemes
Debunking Direct Selling Industry Myths
The Internet‘s Effect on Direct Selling and the Future of MLM

About the MLM, Direct Selling, Network Marketing, Party Plan Industry – Q&A

Is the Compensation Plan the Driving Force of Success?
What are the Top Two Reasons why MLM Companies Fail?
How Important Is Recruiting to MLM Company Success?
What is Importance of Merchant Account/Payment Solutions Processing?
Who are the first key Hires for a MLM Company?
Do We Start Local or Go National Immediately?
What is the Driving Force of Success for a MLM Company?
Why Do Distributors join MLM Companies?
Why Do Distributors stay with MLM Companies?
Has Corporate America Discovered the MLM?
What is MLM History with the Government?
Should a MLM Company go International immediately?
Is the MLM Industry “for real” in the Business World?
What is the role of an Experienced MLM Legal Counsel?
Is a MLM Lawyer a Typical Lawyer?
What is the Relationship between MLM and the FDA?
What is the Relationship between MLM and the FTC?
What is the Direction of State Regulation of MLM?
What are the Central Tax Issues for MLM?
Is it Proper to pay Commissions on Sales Tools and Training?
Do Different Compensation Plans and Products Receive Different Legal Regulation?
How Does a Business Lawyer become a MLM Lawyer?

For more information, visit our websites at www.mlmlegal.com and www.mlmattorney.com. Or, visit our blogs at http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/.

Find us on our social networks:

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LinkedIn

Twitter

Myspace

Facebook

And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference will be here before you know it! On May 16th and 17th, 2013 we are hosting the MLM Conference for the 25th year! This is now our 64th 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 October and February conferences as well.)

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

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The History of Technology and the MLM Industry https://mlmlegal.com/MLMBlog/the-history-of-technology-and-the-mlm-industry/ Wed, 27 Mar 2013 19:09:52 +0000 http://mlmlegal.com/MLMBlog/?p=400 This blog post is the companion post to the video: Technology’s Impact on the Direct Selling Industry: The History of Technology, in which MLM Attorney, Jeffrey Babener, discusses the impact technology has had on the direct selling industry. The MLM … Continue reading

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This blog post is the companion post to the video: Technology’s Impact on the Direct Selling Industry: The History of Technology, in which MLM Attorney, Jeffrey Babener, discusses the impact technology has had on the direct selling industry.

The MLM industry has been immeasurably changed by advances in communication, technology, transportation, and shipping. When the original companies, such as Shaklee and Amway, started marketing through multilevel marketing they consisted of large networks of distributors who inventoried and supplied products to individuals in their localized areas. This, of course, was because the country did not yet have UPS or FEDEX that allowed for next day delivery to the customer or distributor.

Most of the companies in the early days had large, key distributors pay their own downline commissions rather than have the company pay the downline commissions directly because the companies lacked the technology to track distributors. They also relied on communication by the key distributors in their field because the internet did not yet exist. Neither did cell phones. The tremendous ease in communication that we have today simply didn’t exist for the early direct selling companies.

Of course, that all changed in the 1980s with the computer revolution. There were three instances of advancements in communication, including technology, transportation and shipping, which had a profound impact on the success of the MLM industry. In addition, as we saw in the 1990s and beyond, an explosion in direct selling has not only taken place in the United States, but also around the globe.

Prior to advances in technology, it could take decades for a multilevel opportunity or a direct selling opportunity to find its way into other countries, especially developing nations. Today, with satellite television and the internet, individuals in countries throughout the world can become aware of an opportunity and a company’s products instantaneously.

Today, direct selling companies like Avon do business in more than 140 countries and we expect to see that increase dramatically. In fact, studies done by the Direct Selling Association have indicated that over the next ten years we will expect to see approximately 200,000,000 people recruited into a direct selling opportunity around the world. Roughly today, approximately 155,000 people per week are recruited into a direct selling opportunity worldwide. And, the fastest growth is occurring outside the United States, interestingly enough.

Although, direct selling companies, especially the most successful ones have their roots in the United States, the MLM model and foundation was built in America. MLM leaders have always been native to the USA.

For more information, visit our websites at www.mlmlegla.com and www.mlmattorney.com. Or, our blogs at http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/.

Visit us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference will be here before you know it! On May 16th and 17th, 2013 we are hosting the MLM Conference for the 25th year! This is now our 64th 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 October and February conferences as well.)

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

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A View of the MLM Industry: Past, Present and Future – Interview with Jeff Babener https://mlmlegal.com/MLMBlog/a-view-of-the-mlm-industry-past-present-and-future-interview-with-jeff-babener/ Tue, 26 Mar 2013 19:48:42 +0000 http://mlmlegal.com/MLMBlog/?p=398 This blog post is the companion post to the video: A View of the Direct Selling Industry: Past, Present and Future, in which MLM Attorney, Jeffrey Babener, discusses the past, present and future of the direct selling industry. Interviewer: Jeff, … Continue reading

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This blog post is the companion post to the video: A View of the Direct Selling Industry: Past, Present and Future, in which MLM Attorney, Jeffrey Babener, discusses the past, present and future of the direct selling industry.

Interviewer: Jeff, let me ask you this question. The industry has come a long way in the last several decades. Can you share with me your experience on how the industry is viewed today versus how it was viewed decades ago?

Babener: Yes, if you’ll indulge me a little bit. I’m going to give you a mini history of what happened in the direct selling industry and where the industry is going. From both a legal and industry standpoint, the origins of the MLM industry go all the way back to the 1800s to the days of the Yankee Peddler. Yankee Peddlers were direct sellers because they sold directly to the public.

From a legal standpoint, there have been three points in time in our industry where issues have become complicated and differentiated. In the days of the Yankee Peddler there was an issue with the product; there was the perception that salesmen were selling snake oil off the back of a wagon and then skipping town.

During the first half of the 20th century, salespeople were going door-to-door selling vacuum sweepers or encyclopedias, like the famous Fuller Brush man. Whether they were selling high-ticket items, like vacuums, or encyclopedias, they would go in, make high pressure sales, and then disappear. So, during the first half of the twentieth century the direct selling industry had problems that related to the presentation to the consumer. The net result was that somewhere after the 1950s-1960s, the states adopted what was called the “Cooling-Off Rule.” This was intended to resolve the problem of high pressure consumer sales tactics in the home.

Interviewer: Buyer’s remorse, right?

Babener:  Yes. The Federal Trade Commission (FTC)’s “Cooling-Off Rule” basically stated that if a salesperson comes to your home and sells you something, and you pay a significant amount of money in the excitement of the moment, then you have three days to change your mind. It’s called the Three Day Right of Rescission. You have three days to cancel the transaction.

The methodology of direct selling changed in the 1950s, allowing distributors/marketers to not just sell person-to-person, but also they became allowed to recruit other people into their sales team. This was a novel approach. And, it all started with Mary Kay, Shaklee, and others.

This did really well in the 1950s. They stumbled upon a great method of marketing. This is partially what makes up our 30 billion dollar U.S. industry today with 16 million direct sellers, and perhaps, more than 100 billion in sales and 60 million salespeople around the world today. It was very successful.

Now, with successful models often come the charlatans. In the 1960s, along came a program called Dare to be Great, by Glenn Turner. Companies like this one were parading around as if they were direct selling companies but really all they were doing is moving money.

In the Dare to be Great program, individuals were invited to a seminar where they paid $5,000 where they were taught to recruit others to come to the seminar and pay another $5,000. Lo and behold, this marketing system really tainted the direct sales model.

They tainted the MLM business model so much that pyramid laws were adopted all over the country. The business model was tainted so badly that in 1975, the FTC looked at Amway and questioned its validity, accusing it of being a pyramid scheme. Although the company was not a pyramid scheme it still spent four years in litigation with the FTC.

In 1979, a FTC administrative law judge looked carefully at Amway, and for various reasons, proclaimed it not to be a pyramid scheme. Some of the reasons included the reasonable buyback policy for those leaving the business, the adoption of the 70 Percent Rule and the company’s fair customer rules.

The 70 Percent Rule basically stated that distributors shouldn’t buy more products for resale unless they’ve sold or used at least 70% of what was previously purchased. After reviewing Amway, the FTC judge decided it was a legitimate company. Had Amway not won that case in 1979, there would be no direct selling industry today.

Ever since, there has been a constant ebb and flow – a tug and pull – between our FTC and attorney generals and the MLM industry.

I’d say that until the 1990s, the MLM industry still had a negative image. People would read nothing but bad press about the direct selling, network marketing, party plan industry. There remained bad images because there were some abuses in the system. Yet, all of sudden in the 1990s, people started to pay attention to the direct selling model. Then, MLM companies started to explode around the world.

Companies like Avon today are doing 12, 13, 14,000,000,000 around the world in sales with 1,000,000’s of distributors. Amway doing better than 10,000,000,000 around the world. All of a sudden we have companies like Herbalife being traded on the New York Stock Exchange.

Shaklee was bought by Wall Street investment houses. Warren Buffet stepped into the picture, spending hundreds of millions to buy Pampered Chef.

All of a sudden the press began to turn positive, and we were known in the industry as entrepreneurs.

We were known as the industry that capitalized on the things that had become important. Everybody realized that all new jobs in America came from small businesses. Direct sales is a great micro business.

Just when our industry began to come into its own we went into a major recession when our stock market collapsed in 2008. Many companies might have thrown in the towel but some of the largest direct sellers, like Avon and Amway, saw it as an opportunity for their time to shine.

If you saw the 2009 Super Bowl you would have noticed something interesting. The first commercial of the Super Bowl was an Avon commercial. And, it wasn’t a commercial for the company’s products, but for its opportunity. Avon was making a statement that they were credible and they were serious. They were telling viewers that they had an opportunity for you. They were the new Plan B.

This resonated with folks who lost their 401(k)’s, saw their retirements disappear, their bubbles burst, or had reach glass ceilings. The company was telling viewers that they had something real to offer; a good part time business with good products.

Avon, of course, stuck around. The national anthem was then sung by Jennifer Hudson, the spokesperson for Avon. This was not a mistake. Avon had realized that Amway had spent a fortune on promoting its brand. Whereas, Avon had been absent on its branding for some period of time. The company began taking great pride in its products and its successes.

While America was having problems around the world with all of our money going floating away, guess what has been one of America’s most successful exports? We have taught the world direct selling. We have taken it everywhere. Direct selling is almost like basketball. It is indigenous to America, but it does well in Japan and China. Even in China, MLM isn’t allowed, and the industry still does well.

Today, Amway does billions in sales. All of a sudden there was a message being heard on Wall Street. MLM companies were being traded on the NYSE. The industry came into its own.

When you have companies like Excel sign on four million customers, or Network 2000 that sign on two million customers for Sprint, or you see major companies, from Texas and other states selling deregulated energy, and having tremendous success then there is some pride to be taken there.

Everybody is discovering that the principles behind direct selling, network marketing, MLM, and party plan. This method of marketing can be quite successful if done with integrity and done with ethics. And today, the industry is now very well accepted. And it’s also well accepted around the world.

Interviewer: Awesome. Thank you for sharing that.

Make sure to visit our blogs for the latest information on the direct selling industry: MLMLegal Blog Home and MLM Attorney Blog Home

Find us on our social networks:

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And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference will be here before you know it! On May 16th and 17th, 2013 we are hosting the MLM Conference for the 25th year! This is now our 64th 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 October and February conferences as well.)

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

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Relationship between MLM and the Federal Trade Commission (FTC) https://mlmlegal.com/MLMBlog/relationship-between-mlm-and-the-federal-trade-commission-ftc/ Wed, 19 Dec 2012 23:18:03 +0000 http://mlmlegal.com/MLMBlog/?p=306 A vital question that is often asked of us relates to the relationship between the direct selling, network marketing and MLM industry and the FTC. It has been a bumpy road. I can say that today it is a cooperative … Continue reading

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A vital question that is often asked of us relates to the relationship between the direct selling, network marketing and MLM industry and the FTC. It has been a bumpy road. I can say that today it is a cooperative road, but early on in the aftermath of the Dare to Be Great pyramid schemes in the 1960s and in 1975, the FTC challenged Amway as being an illegal pyramid scheme. After four years of litigation in 1979, an administrative law judge of the FTC ruled that Amway was a legitimate business opportunity which has now paved the way for every other company that has ever come along. The ruling was based on the fact that Amway promoted retail sales, had a buyback policy for people who had inventory and wanted to leave the business, and adopted a 70 Percent Rule, encouraging people and telling people to please don’t buy more product unless they have either used or sold the product previously purchased. These became known as the “Amway Safeguards” and they have been cited in every case ever since. 

That was the last the industry heard from the FTC, for the most part, other than various product-related issues. That is, until the mid-1990s when the FTC started to revisit the question of personal use by distributors. Some of the consent decrees with companies that were really egregious violators, were not in adjudicated rulings, but consent decrees, the FTC’s position was that at least 50 percent of product needs to be sold outside of the distributor network for a company to be legitimate. This put a lot of tension on a lot of companies, particularly health products companies that have a lot of personal use. There has been a lot of debate back-and-forth and a number of states, at the request of the industry, have changed their pyramid statutes to recognize personal use as a legitimate end-destination and an ongoing dialogue still occurs with the FTC.  In fact, in a 2004 FTC Staff Advisory Opinion, the FTC actually recognized the validity of personal use by distributors so long as the purchases of product are founded on the actual desire for the product as opposed to pyramid schemes in which distributor purchases are often primarily to merely qualify in the business opportunity.  Said the FTC, “..the purchase of goods and services is not merely incidental to the right to participate in a money-making venture, but rather the very reason participants join the program.”

Today, at industry conferences, the FTC is a participant and it always tends to assure the industry it recognizes its industry. As a matter of fact, just a couple of years ago, the FTC sought to modify its Business Opportunity Rule and considered some options that would have made it much more restrictive for MLM companies to recruit. After an onslaught of letters and comments to the FTC, the FTC modified its position on the Business Opportunity Rule and came into agreement for the most part with the industry on how things should go.

There will always be tension between the FTC and the industry on the issue of personal use, and overall, there seems to be a consensus. It is the observation in the industry that the FTC chases after egregious companies and does not chase after what we would normally consider legitimate companies.

For more information about network marketing and the FTC, watch the companion video to this blog post: What is the Relationship between MLM and the FTC?

Or, read one of our many articles on the Federal Trade Commission:

FTC Guidelines on Endorsements and Testimonials
FTC Guidelines Resource Center
FTC Guidelines Endorsements and Testimonials: Detailed Analysis
FTC News Release on Endorsements and Testimonials
FTC Complete Guidelines Release
FTC Short Version Guidelines Release
FTC Examples of Material Connection
FTC Regulation of Advertising

FTC Proposed Business Opportunity Rule: Analysis and Updates:
New! The FTC Final Business Opportunity Rule: Still Work to Do
FTC Exemption Draft Falls Short … MLMLegal.com and DSA Suggest Revisions
FTC Exempts MLM from Proposed Business Opportunity Rule
DSA Position on FTC MLM Exemption Proposed Business Opportunity Rule
Analysis and Industry Response
Actual Text of Proposed Rule
FTC Speaks Out
DSA Speaks Out
DSWA Speaks Out
MLMIA Speaks Out
DRA Speaks Out
MLMLegal.Com Speaks Out

FTC v. BurnLounge: Lessons Learned for MLM/Direct Selling

For more information on the direct selling industry, visit www.mlmlegal.com or www.mlmattorney.com.

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

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Top 10 Direct Selling Companies in the World https://mlmlegal.com/MLMBlog/top-10-direct-selling-companies-in-the-world/ https://mlmlegal.com/MLMBlog/top-10-direct-selling-companies-in-the-world/#comments Tue, 25 Sep 2012 22:40:33 +0000 http://mlmlegal.com/MLMBlog/?p=236 Direct Selling News (DSN) just released its report of the top 100 global direct selling companies. Here at MLMLegal.com and MLMAttorney.com we will break this list down of 100 companies into more manageable bites of interesting and fun information. Here … Continue reading

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Direct Selling News (DSN) just released its report of the top 100 global direct selling companies. Here at MLMLegal.com and MLMAttorney.com we will break this list down of 100 companies into more manageable bites of interesting and fun information. Here is a list of the top ten global direct selling companies.

The number one direct selling company is Avon Products, Inc. with net sales of $11.3 billion in 2011. Avon is the global leader in direct selling, specializing in beauty, fashion jewelry and apparel. Here are Avon’s statistics, provided by DSN:

1. Avon Products, Inc.

2011 Net Sales: $11.3 billion
Country: USA

Avon is the founder of modern direct selling and the acknowledged world leader in cosmetics, fragrances and toiletries. Avon’s well-known product lines include Avon Color, Anew, Skin So Soft™, Advance Techniques Hair Care and Avon Naturals and mark™.

2010 Rank: 1
2010 Net Sales: $10.9 billion
Sales Method: Person-to-person
Compensation Structure: Single-level and multi-level
Products: Beauty, fashion jewelry, apparel
Markets: 100
Salespeople: 6.5 million
Employees: 42,000
Headquarters: New York, N.Y.
Executive: Sheri McCoy
Year Founded: 1886
Stock Symbol: AVP—NYSE
www.avon.com

Coming in a close second is Amway. Amway is well-known and a history-rich direct selling company. In 2011, the company’s net sales was $10.9 billion. Here are Amway’s statistics, provided by DSN:

2. Amway

2011 Net Sales: $10.9 billion
Country: USA

Amway offers consumer products and business opportunities in more than 80 countries and territories worldwide through more than 3 million distributors. Top-selling brands for Amway are NUTRILITE vitamin, mineral and dietary supplements, ARTISTRY skin care and color cosmetics, and eSpring water treatment systems. Alticor is the parent company of Amway.

2010 Rank: 2
2010 Net Sales: $9.2 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, personal care, food and beverage, home care, wellness
Markets: 80
Salespeople: 3 million
Employees: 20,000
Headquarters: Ada, Mich.
Executives: Steve Van Andel and Doug DeVos
Year Founded: 1959
www.amway.com

What company would you guess would come in third place? Tupperware? Mary Kay? Nope. The third largest direct selling company in the world is Herbalife Ltd., with net sales of $3.5 billion in 2011. Herbalife is a leader in cosmetics and personal care products. Here are Herbalife’s company statistics, provided by DSN:

3. Herbalife Ltd.

2011 Net Sales: $3.5 billion
Country: USA

Herbalife is a global nutrition company that sells nutritional supplements and weight-management and personal-care products. Its products have been developed by scientists, physicians and nutrition experts, including Nobel laureate in medicine Louis Ignarro, Ph.D.

2010 Rank: 5
2010 Net Sales: $2.7 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 79
Salespeople: 2.7 million
Employees: 5,000
Headquarters: Los Angeles, Calif.
Executive: Michael O. Johnson
Year Founded: 1980
Stock Symbol: HLF—NYSE
www.herbalife.com

The fourth largest global direct selling company is Natura Cosmeticos SA, a Brazilian company. In 2011, Natura’s net sales were $3.01 billion. As a fierce competitor, Natura has expanded internationally and distributorships are available in the United States. Here are Natura’s company statistics, provided by DSN:

4. Natura Cosmeticos SA

2011 Net Sales: $3.01 billion
Country: Brazil

Natura is a direct sales company in the cosmetics, personal hygiene and perfumery sector, committed to the quality of relationships, innovation and constant improvement of its products and services based on a sustainable development model of business.

2010 Rank: 3
2010 Net Sales: $3 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 7
Salespeople: 1.4 million
Employees: 6,800
Headquarters: São Paulo, Brazil
Executive: Alessandro G. Carlucci
Year Founded: 1969
Stock Symbol: NATU3.SA—São Paolo
www.natura.net

Remember Vorwerk (technically Vorwerk & Co. KG)? Or, perhaps you’ve never forgotten about them? Vorwerk was started in 1883 and is still going strong. The company began in Germany, but is accessible around the globe. With $3.0 billion in net sales in 2011, Vorwerk comes in as the fifth largest global direct selling company. Here are Vorwerk’s company statistics, provided by DSN:

5. Vorwerk & Co. KG

2011 Net Sales: $3.0 billion
Country: Germany

Vorwerk is a 129-year-old, family-owned, German-based company that has been focusing on the direct sales channel since 1930. Products include household appliances as well as high-quality cosmetics. Vorwerk & Co. KG is a global group that includes JAFRA Cosmetics, which reported sales volume of nearly $600 million (USD).

2010 Rank: 4
2010 Net Sales: $2.9 billion
Sales Method: Person-to-person and party plan
Compensation Structure: Multi-level
Products: Cosmetics, household appliances, home care
Markets: 76
Salespeople: 600,000
Employees: 23,000
Headquarters: Wuppertal, Germany
Executives: Walter Muyres and Reiner Strecker
Year Founded: 1883
www.vorwerk.com

What about Mary Kay? Well, she’s come in sixth place, with $2.9 billion in net sales in 2011. Not bad, considering Mary Kay is one of the most recognizable direct selling brands in the United States. Here are Mary Kay’s company statistics, provided by DSN:

6. Mary Kay Inc.

2011 Net Sales: $2.9 billion
Country: USA

Mary Kay was founded in 1963 by Mary Kay Ash with the goal of helping women achieve personal growth and financial success. The company’s skincare and color cosmetics products are sold in more than 35 countries around the world.

2010 Rank: 6
2010 Net Sales: $2.5 billion
Sales Method: Person-to-person
Compensation Structure: Single-level
Products: Cosmetics and personal care
Markets: 35
Salespeople: 2.4 million
Employees: 5,000
Headquarters: Addison, Texas
Executive: David Holl
Year Founded: 1963
www.marykay.com

In seventh place is Tupperware Brands Corp., with $2.6 billion in net sales in 2011. Tupperware was started in 1946 by Earl Tupper, with the initial help of Brownie Wise, who made door-to-door selling into a movement for American housewives. The Tupperware brand is so successful that even today the general populace refer to their plastic storage containers as “Tupperware.”

7. Tupperware Brands Corp.

2011 Net Sales: $2.6 billion
Country: USA

Tupperware is a global direct seller of innovative, premium products across multiple brands and categories through an independent salesforce. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home as well as beauty and personal-care products.

2010 Rank: 7
2010 Net Sales: $2.3 billion
Sales Method: Person-to-person and party plan
Compensation Structure: Single-level and multi-level
Products: Storage and serving products; beauty, personal care
Markets: 100
Salespeople: 2.6 million
Employees: 13,500
Headquarters: Orlando, Fla.
Executive: Rick Goings
Year Founded: 1946
Stock Symbol: TUP—NYSE
www.tupperware.com

In eight place is Oriflame Cosmetics, with $2.1 billion in net sales in 2011. Headquartered in the small city of Luxembourg, this company has risen to reputable heights. Oriflame’s beauty brands are popular around the world, including in Europe, Asia, Africa, and Latin America. Distributors in the United States may want to keep an eye on this company in case it expands into North America. Here are Oriflames’s company statistics, provided by DSN:

8. Oriflame Cosmetics SA

2011 Net Sales: $2.1 billion
Country: Luxembourg

Oriflame is one of the fastest-growing beauty companies in the world. The company operates in 67 countries and is the market leader in more than half. Although it has no U.S. presence, Oriflame has a presence in Mexico, Central America, South America, Europe, Asia and Africa.

2010 Rank: 8
2010 Net Sales: $2.2 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Beauty
Markets: 67
Salespeople: 3.6 million
Employees: 7,900
Headquarters: Luxembourg, Luxembourg
Executive: Magnus Brännström
Year Founded:1967
Stock Symbol: ORI-SDB.ST—Stockholm
www.oriflame.com

In ninth place is Nu Skin Enterprises, Inc., with $1.7 billion in net sales in 2011. Nu Skin’s anti-aging and cosmetics products have made the company stand out amongst the competition. Here are Nu Skin’s company statistics, provided by DSN:

9. Nu Skin Enterprises, Inc.

2011 Net Sales: $1.7 billion
Country: USA

Nu Skin demonstrates its tradition of innovation through its comprehensive anti-aging product portfolio, independent business opportunity and corporate social responsibility initiatives. The company’s scientific leadership in both skin care and nutrition has established it as a premier anti-aging company, evidenced in its unique ageLOC® science that addresses aging at its source.

2010 Rank: 10
2010 Net Sales: $1.5 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 52
Salespeople: 855,000
Employees: 3,500
Headquarters: Provo, Utah
Executive: Truman Hunt
Year Founded: 1984
Stock Symbol: NUS—NYSE
www.nuskin.com

In tenth place, but by far not last place, is Belcorp. (Why don’t we have a company profile for Belcorp? Once the company provides an English-version of their website, then we will.) Belcorp racked in $1.6 billion in net sales in 2011. Based out of Peru, this is another successful direct selling company offering cosmetics and personal care products. Here are Belcorp’s company statistics, provided by DSN:

10. Belcorp

2011 Net Sales: $1.6 billion
Country: Peru

Belcorp boasts a rich heritage and product portfolio. The company helps put women in touch with their ideal of beauty and self-fulfillment by empowering and strengthening women to change their lives. Belcorp’s Beauty Consultants offer beauty and lifestyle products through three distinctive brands: L’bel, Èsika and Cyzone.

2010 Rank: 11
2010 Net Sales: $1.3 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 16
Salespeople: 938,000
Employees: 8,695
Headquarters: Lima, Peru
Executive: Eduardo Belmont
Year Founded: 1968
www.belcorp.biz

There you have it. The top ten global direct selling companies. Note that Attorney Jeff Babener has represented many of the above mentioned companies. See his biography page for more information.

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

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MLMLegal.com and Babener & Associates Announces Its 62nd National Starting and Running the Successful MLM Company Conference https://mlmlegal.com/MLMBlog/mlmlegal-com-and-babener-associates-announces-its-62nd-national-starting-and-running-the-successful-mlm-company-conference/ Fri, 21 Sep 2012 22:59:24 +0000 http://mlmlegal.com/MLMBlog/?p=230 MLMLegal.com and Babener & Associates September 18th, 2012 Press Release Announces our 62nd Annual MLM Startup Conference. Read it in full right here and online: MLMLegal.com and Babener & Associates Announces Its 62nd National Starting and Running the Successful MLM … Continue reading

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

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MLMLegal.com and Babener & Associates September 18th, 2012 Press Release Announces our 62nd Annual MLM Startup Conference. Read it in full right here and online:

MLMLegal.com and Babener & Associates Announces Its 62nd National Starting and Running the Successful MLM Company Conference

The Conference Will be Held October 25th and 26th, 2012, Which is Quickly Approaching!

PORTLAND, Ore., Sept. 18, 2012 (GLOBE NEWSWIRE) — For more than 25 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.

The next MLM Startup Conference takes place October 25th& 26th, 2012 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, the most knowledgeable experts and the most practical advice from qualified experts.

Over the course of two days, attendees will hear from scores of industry experts and, if they choose to, can sign up 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 (via martin). 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.

Free MLM Startup Manual

 

 

 

 

How do you find out more information?

Visit our website:

www.mlmlegal.com

Visit our blog:

http://mlmattorney.com/blog/2012/05/22/mlm-startup-conference-in-las-vegas-october-25-and-26-2012/ or http://mlmlegal.com/MLMBlog.

Watch the Conference 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

Contact Us: Charity Dunning at 503-226-6600 or 800-231-2162

The next MLM conference will be held October 25thand 26th, 2012 in Las Vegas (keep a look out for the February and May conferences as well). Each day will begin at 9:00AM and end at 4:00PM, when the one-on-time will begin and end around 7:00PM. For more information visit: http://www.mlmlegal.com/srs2.html or call 800-231-2162/503-226-6600. Registrations are taken by phone and questions are always welcome.

Presented by one of the most trusted individuals in direct selling and MLM, Jeffrey Babener, Editor of www.mlmlegal.com. Attorney Jeff Babener represents

About Attorney Jeffrey Babener: Conference Host and Chairman, Editor of www.mlmlegal.com, as well as the leading direct selling attorney in the United States – With over 25 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, from Melaleuca to Usana and Excel Communications, 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 60 national conferences on direct selling.

Contact: Babener & Associates/MLMLegal.com
Telephone: 503-226-6600/800-231-2162
http://www.mlmlegal.com

 

Find us on our social networks:

Google Plus: http://plus.google.com/u/0/115279960045099999909#115279960045099999909/posts

LinkedIn: http://www.linkedin.com/in/mlmlegal

Twitter: http://www.twitter.com/BabenerLawFirm

Myspace: http://www.myspace.com/mlmlegal

Facebook: http://www.facebook.com/profile.php?id=696968133

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

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Over 700 MLM, Network Marketing, Party Plan, Direct Selling Profiles at MLMLegal.com https://mlmlegal.com/MLMBlog/over-700-mlm-network-marketing-party-plan-direct-selling-profiles-at-mlmlegal-com/ Fri, 10 Aug 2012 18:13:50 +0000 http://mlmlegal.com/MLMBlog/?p=211 The editors of MLMLegal.com have worked for over four years to research, write and maintain hundreds of MLM, network marketing, party plan, and direct selling company profiles. There are now 725 MLM company profiles on MLMLegal.com‘s company profile page. Hundreds … Continue reading

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

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The editors of MLMLegal.com have worked for over four years to research, write and maintain hundreds of MLM, network marketing, party plan, and direct selling company profiles. There are now 725 MLM company profiles on MLMLegal.com‘s company profile page.

Hundreds of companies have gone out of business throughout the years, and some have especially been hit hard in the last recession; however, hundreds have also endured the test of time.

We constantly updating each MLM company’s information; whether it be their products, compensation plans, U.S. sales base, or mergers and buyouts. However, be sure to double check the company’s website to make sure you are getting the absolute most recent and up-to-date information. In addition, we are constantly on the lookout for newly-launched direct selling companies to profile.

Here are some of the newest additions to MLMLegal.com:

ZeroPoint Global

Super Soy Gifts (Mia Bella Candles)

ZoiVi

Varolo

We’ve prepared the MLM Company Profiles webpage for informational purposes only. We don’t endorse any company. We are simply providing an educational tool for visitors’ convenience. These profiles are a great place to get quick, easy and fast information about compensation plans, company histories, products, and the like. We are proud of MLMLegal.com‘s extensive informational and educational attributes. Although it may be easy to get lost (and sometimes it is fun getting a little lost), MLMLegal.com provides legal articles, MLM in law in 50 states, over 700 MLM company profiles, hundreds of direct selling cases, FTC updates, BurnLounge case analysis, vendor directories, news headlines, iTunes application, educational MLM videos, and so much more. Be sure to visit MLMLegal.com and MLMAttorney.com for all the information you need on the direct selling industry.

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

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The WFDSA Explains: What is Direct Selling? https://mlmlegal.com/MLMBlog/the-wfdsa-explains-what-is-direct-selling/ Thu, 05 Jul 2012 23:01:14 +0000 http://mlmlegal.com/MLMBlog/?p=192 The World Federation of Direct Selling Associations (WFDSA) explains exactly what is direct selling, briefly illustrating that direct sales describes a person-to-person marketing strategy, its history and more…

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

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The World Federation of Direct Selling Associations (WFDSA) explains exactly what is direct selling, briefly illustrating that direct sales describes a person-to-person marketing strategy, its history and more…

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

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Can You Make It By Starting Small? https://mlmlegal.com/MLMBlog/can-you-make-it-by-starting-small/ Thu, 14 Jun 2012 19:48:53 +0000 http://mlmlegal.com/MLMBlog/?p=133 From zero to hero…. Can you make it just by starting small or do you have to start big? The fact is, the most successful direct selling companies of all time all started small. That’s why we have done more … Continue reading

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From zero to hero….

Can you make it just by starting small or do you have to start big? The fact is, the most successful direct selling companies of all time all started small. That’s why we have done more than 60 conferences on Starting and Running the Successful Direct Selling Company with 5,000-6,000 people in attendance. We have started companies with “moms and pops” at the conference table, and watched some of those companies grow to sell billions of dollars in sales over the years.

A few good stories to inspire everyone….

Look at the history of some of our industry leaders; let’s say you take a company like Amway, a company that sells in excess of $10 billion dollars a year globally. This is a company in which, basically, the owners started mixing biodegradable soap in their bath tub.

Somebody like Doris Christopher, started Pampered Chef, and spent the first few years in her basement. Of course, later on, it was taken over for a huge fortune by Warren Buffet and Berkshire Hathaway.

Longaberger Basket Company, whose sales have been in the billions, was started by creating a small assembly line in the backyard. The owner at the time was a manager of an IGA grocery food store.

Discovery Toys was started by Lane Nemeth. She basically was in early education, and she had a passion for shopping for educational toys when she traveled. She brought the toys back and showed them to her fellow teachers and parents, which resulted in the development of a huge company, built from scratch.

Cheryl Lytle, of Creative Memories, was basically doing demonstrations and supplying various sorts of supplies for scrapbooking and ended up building a company with sales in the hundreds of millions of dollars.

Very few people know this, but a young man named David McConnell, around the turn of the century,  was a door-to-door book salesman in the South; and in order to get the ladies to buy the bibles, he gave them a small complimentary bottle of perfume. After a while, he figured out that, actually, the ladies liked the perfume more than the books, and he grew his company from there forward. He named it the “California Perfume Company.” After some consideration, he decided he needed the name to be more upscale. He noticed that Shakespeare plays were performed at Stratford on Avon, and so he renamed the company Avon. More than 100 years later, Avon does better than $10 billion in sales as a New York Stock Exchange traded company in more than 150 countries. So what you really know now is that Avon is actually a door-to-door bible sales company.

Most recently the industry witnessed a tremendous success story.  Two ladies in Kansas started a company called Silpada Jewelry. During their first year, they did less than $100,000 in sales, with a handful of distributors. In just over 10 years, they built their company to hundreds of thousands distributors, hundreds of millions of dollars in sales, and in July of 2010, they were acquired and became part of Avon………… and they were paid $650 million.

Start Small…Think Big….

So if the question is “Can you start small and make it?” ……. With dedication and hard work, the answer is a resounding “Yes!”

 

For more information, watch the video Factors that Make an MLM Company Successful, or one of our many other MLM, network marketing, direct selling educational videos.

These articles also address ways in which to achieve success in direct selling: “MLM Consulting: Starting Your MLM Company,” “MLM Consulting: How to Build a Successful Direct Selling Company” and “MLM Corporate Startup Essentials: Part II.”

Expert MLM Attorney Jeffrey Babener has authored many books on MLM and direct selling. Check out Network Marketing: What you should know and The Network Marketer’s Guide to Success.

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

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