We have hosted more than 70 national conferences on starting and running a direct selling, network marketing, MLM or party plan company. We have started and advised many of the leading companies in the industry and we have a “big picture” that may be difficult to find elsewhere. We are big believers in education and our website, www.mlmlegal.com, is hopefully evidence of this, with hundreds of articles, cases, statutes, and scores of videos. We take a particular satisfaction in helping entrepreneurs pursue their dreams and the consequence is often the creation of thousands of jobs and opportunities. And at our conferences, we have started many companies that are today, household names. It has been a pleasure and honor to assemble professionals in these conferences to assist individuals to create “something from nothing.”

At the conference, we facilitate relationship-building, networking, and the educating of MLM entrepreneurs. We bring direct selling experts from around the country to one location to coach attendees on software, technology, compensation plans, sales kits, recruiting, funding, capitalization, legal, and many other topics that are imperative to any MLM executive. Attendees are educated in a classroom-type setting by industry experts and then are offered one-on-one time to speak with any (or all) expert they choose. Our goal is to harness long-term relationships, while educating the next generation of network marketing entrepreneurs about the strength and credibility of the MLM industry. An industry that supports millions of people around the world.

As the creator and host of the original MLM Startup Conference, we support the MLM entrepreneur and play a key role in establishing new companies in the industry through our event. If you’re starting, or thinking of starting a network marketing company, we highly recommend that you attend. This is the best, and most longstanding, conference offered anywhere.

Are you interested in attending the Starting and Running the Successful MLM Companyconference? 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.

For more encouraging words to achieve success in network marketing, visit Attorney Jeff Babener’s websites: www.mlmlegal.com and www.mlmattorney.com.

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

Here are some ways which you can investigate a MLM company:

1) Check to see if it is a member of any industry associations, like the DSA or DSWA.

2) Call your state’s attorney general’s office or consumer protection division. Most states regulate direct selling companies through these agencies.

3) Check with the Better Business Bureau.

4) You can check the company’s financial information (especially if they are publicly traded – corporate reports are available from online services) by accessing a credit reporting service, like Dun & Bradstreet.

5) Ask your sponsor (or potential sponsors) for the names and numbers of some other distributors. Check the company’s references just as you would check a job applicant’s references.

6) Attend one of the company’s training seminars to see how the company operates first hand.

7) Check industry trade publications for any information on the company, like Entrepreneur magazine.

8 ) Many times the company’s products will be regulated by government agencies, like the FDA. You can check the credibility of the products in some cases by contacting such government agencies.

9) Do some digging: gather as much information from the company itself, like the number of years they’ve been in business, the number of distributors they have, what countries they operate in, etc. This information will give you an idea as to the company’s credibility. A good source for this information is available here.

Checking a company’s legitimacy can be time consuming but highly beneficial in the long term.

Information about pyramid schemes is available here.

And if you are wondering how to make sure that the direct selling company that you’re starting is not an unintentional pyramid scheme, be sure to contact us for your free legal consultation: 503-226-6600 or www.mlmlegal.com.

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

If you’re considering becoming a part of a startup network marketing company, learn how to recognize some red flags

There are ways to make sure that a direct selling company operates as a legal and ethical business. Firstly, contact the industry association websites, such as the Direct Selling Association (DSA), to see if the company is a member and if they abide by the DSA’s Code of Ethics.

Secondly, if you’re considering becoming a part of a startup network marketing company, learn how to recognize some red flags. Is the company offering a tangible product or service? Make sure that the company offers a product or service, and not something intangible, such as prayers or wishes. Does the company ask for an unreasonably-high investment to join? Startup kits average anywhere from $50-$150. If a company is asking for $500 for their startup kit, perhaps you should begin asking more questions. This alone is not a sign of a company operating illegally, but can be a sign to look for additional clues for questionable practices. Does the company focus its mission on primarily recruiting new members and not focus on the sale of product (or service) to the end consumer? A legally-operated MLM company will have a primary focus of selling products (or services) to the consumer, not just in recruiting new consultants.

Be sure to investigate any opportunity that you are considering joining and do your own due diligence. And, if you are starting your own network marketing company, it would be wise of you to hire a credible MLM attorney who specializes in direct selling law who can help you determine if your company is legal.

Sign up FREE for our newsletter, MLM News Global, and keep updated on industry news, scams, video highlights, and relevant articles.

Learn more about the network marketing business 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.

At the very least, a direct sales company should not enter the marketplace without legal review of its marketing program. Hiccups caused by having to respond to regulatory agencies, consultant complaints, vendor conflicts, etc. can be bad for any MLM business and its reputation.

An experienced and seasoned direct sales attorney can be the single most valuable resource that a MLM company can ever utilize. Look for a professional who has represented leading direct selling companies as well as startup companies.

As industry experts, they commonly know more about multilevel marketing and direct selling than most of their clients. In fact, more than half of our conversations with clients involve discussions about the MLM industry, rather than the mere legal aspects of running a direct sales company. And over time, such an experienced “consigliere” (see the movie The Godfather) may become the most trusted business advisor to a company and a vital member of the business team.

Apart from tremendous insight into the business, an experienced network marketing attorney can answer in five minutes what would take a business attorney five hours to research. And, the business attorney would likely still not completely understand the issue, let alone the solution.

The direct sales industry has – for better or for worse – provoked vast amounts of legislation and regulatory control that network marketing attorneys must navigate.

A brief list of regulations, legislation and legalities that experienced MLM attorneys, such as Jeff Babener of Babener & Associates, must commonly appraise include:

– Pyramid statutes

– MLM statutes

– Business Opportunity Rule

– Securities

– FTC regulations

– Postal regulations

– FDA rules and regulations

– Distributor relationships

– Vendor relationships

– Distributor discipline

– Trademark

– IRS and tax regulations

– International expansion

– Sales tax

– Marketing

– State law and registration

– And, legal review of sales kit contents, which include:

1) Consultant agreements

2) Policies and procedures

3) Product brochures

4) Compensation plan

5) Marketing plan presentations

6) Forms, from receipts to multiple owner applications, etc.

At the very least, a direct sales company should not enter the marketplace without legal review of its marketing program. Hiccups caused by having to respond to regulatory agencies, consultant complaints, vendor conflicts, etc. can be bad for any MLM business and its reputation.

Click here to watch the full video!

For more information, watch the video The Legal Issues of Starting and Running a MLM Company.

For more information about the importance of hiring a network marketing, visit Attorney Jeff Babener’s websites: www.mlmlegal.com and www.mlmattorney.com.

In addition, 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.

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

There are many factors that contribute to the early success of a company.

MLMLegal.com and Babener & Associates have been with many network marketing companies from the very beginning, from startup to stable. We were involved in early stages of a number of leading MLM companies, including some traded on the New York Stock Exchange (NYSE).

We aren’t just lawyers. We often know more about the direct selling business than most of our MLM clients. In many ways we have become partners with our clients since we’ve been in the industry for such a long time. We often take on a significant role as both a legal and business advisor for our clients.

Generally speaking, however, most of our clients try to cover all of their bases legally right at the beginning of launching. They often have their agreements in place, as well as their policies and procedures. Companies will secure a trademark early in development, which is very important. As is tax issues, regulatory compliance and relationships with their consultants. Multilevel marketing company owners are building a living organism that is constantly changing and growing, which is why so many of the companies that we represent have been with us for five, ten, even twenty years or more. For instance, in 1990 we assisted one of the largest direct selling companies, from Japan, to establish headquarters in the U.S. Today we represent them in nearly 40 countries. We have been their key legal advisor for almost 25 years.

Successful direct selling companies have a great product, they are able to recruit and they have adequate funding. There are many factors that contribute to the early success of a network marketing company. We are simply one arrow in the quiver of that success.

Watch the video MLM Startup Tips, Educational Resources, Answers to Network Marketing Questions attorney Jeffrey Babener offers quick MLM startup tips, answers, and resources, as well as access to additional educational resources for startup network marketing companies.

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

Find us on our social networks:

Google+

LinkedIn

Twitter

Facebook

Our next Starting and Running the Successful MLM Company Conference takes place May 15th & 16th, 2014 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.

As industry experts, MLM attorneys commonly know more about multilevel marketing and direct selling than most of their clients.

An experienced and seasoned direct sales attorney can be the single most valuable resource that a MLM company can ever utilize. Look for a professional who has represented leading direct selling companies as well as startup companies.

As industry experts, they commonly know more about multilevel marketing and direct selling than most of their clients. In fact, more than half of the conversations with clients involve discussions about the MLM industry, rather than mere legal aspects of running a direct sales company. And over time, such an experienced “consigliore” may become the most trusted business advisor to a company and a vital member of the business team.

Apart from tremendous insight into the “business,” an experienced network marketing attorney can answer in five minutes what would take a business attorney five hours to research. And, the business attorney would likely still not completely understand the issue, let alone the solution.

The direct sales industry has – for better or for worse – provoked vast amounts of legislation and regulatory control that multilevel marketing attorneys must navigate.

A brief list of regulations, legislation, and legalities that experienced MLM attorneys, such as Jeff Babener, of Babener & Associates, must commonly appraise include:

– Pyramid statutes

– MLM statutes

– Business Opportunity Rule

– Securities

– FTC regulations

– Postal regulations

– FDA rules and regulations

– Distributor relationships

– Vendor relationships

– Distributor discipline

– Trademark

– IRS and tax regulations

– International expansion

– Sales tax

– Marketing

– State law and registration

– And, legal review of sales kit contents, which include:

1) Consultant agreements

2) Policies and Procedures

3) Product brochures

4) Compensation plan

5) Marketing plan presentations

6) Forms, from receipts to multiple owner applications, etc

At the very least, a direct sales company should not enter the marketplace without legal review of its marketing program. Hiccups caused by having to respond to regulatory agencies, consultant complaints, vendor conflicts, etc. can be bad for any MLM business and its reputation.

For more information, watch the video The Legal Issues of Starting and Running a MLM Company.

Visit www.mlmlegal.com and www.mlmattorney.com for more information on recruiting MLM consultants.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

Our next Starting and Running the Successful MLM Company Conference takes place October 24th & 25th, 2013 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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

All gifting clubs eventually die because they run out of people (and therefore cash) to continue to “feed” the pyramid.

A gifting club usually begins unintentionally between friends, family and neighbors. Unlike the traditional pyramid scheme, gifting clubs are not promoted as an investment by fraudulent financial advisers. Gifting clubs are usually home-grown. Those involved believe that they are genuinely helping one another. However, there is no exchange of merchandise and someone always ends up on the losing end.

Those who join usually do so by investing anywhere from $2,000 to $5,000 and then recruiting others to join. As more people join beneath them, their “investment” grows. Cash flow is passed from new recruits to those higher in the pyramid. Those at the top of the gifting club pyramid usually leave with roughly eight times the amount they originally invested, while those on the bottom lose their money as new recruits decline and cash ceases to drive the pyramid. All gifting clubs eventually die because they run out of people (and therefore cash) to continue to “feed” the pyramid.

Unfortunately, and to the surprise of the founders and participants, they are engaged in an unintentional cash pyramid headhunting recruitment scheme. Such practices violate consumer protection laws and criminal laws in most states. And, also unfortunately, the end game sometimes is a criminal prosecution for the participants, all of whom might be your next door neighbors and “great” people under most circumstances. Basic greed has blinded their judgment however, and the price to pay is often very “expensive.”

Additional information on gifting clubs is available at MLMLegal.com.

Visit www.mlmlegal.com and www.mlmattorney.com for more information.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

Our next Starting and Running the Successful MLM Company Conference takes place October 24th & 25th, 2013 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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

Hi, I’m Jeff Babener of MLMLegal.com and I would like to talk to you today about MLM business experience. Do you possess it already or should you buy it?

Multilevel marketing is not just any business. It is not retailing, franchising, e-commerce, the internet, or .com selling.

Multilevel marketing, under all its names: direct selling, network marketing, direct sales, party plan, and multilevel marketing, is a unique beast. To launch this business you must have a substantial background in direct selling and be well grounded.

There are written and unwritten principles. If you know your product and you have a passion to bring it to the public, but you lack industry experience, then you must buy that experience. You may hire key employees in such positions as CEO, COO, sales, marketing, customer service, and distributor relations, etc. The payroll will add up fast, and unless your capitalization can sustain the ongoing cost, you should seriously consider outsourcing the solutions for this type of expertise.

The first suggestion that I would make is for you to consult with you MLM attorney, who is familiar with the best resources in the business. Such established industry experts in areas of MLM startup implementation, compensation plan design and software selection are often invaluable assets to your business team. Above all, don’t launch your company without in-house or outsourced MLM business experience.

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

For additional information on gaining experience in the MLM industry visit www.mlmlegal.com and www.mlmattorney.com, or visit the following links:

MLM Corporate Startup Essentials: Part II of III

Experience Counts

How Much Does it Cost to Start a MLM Company?

Choosing the Right Product for Your Direct Selling Company

MLM Executives Must Raise Capital in Order to Recruit Key Distributors

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

Are you Starting a MLM Company?

Starting and Running the Successful MLM Company Conference – May 16th & 17th, 2013

Why You Should Trademark Your MLM Company Name

Creating Clear Agreements Between MLM Company Owners

Recruiting Advice from an Industry Expert – The MLM Fairytale “Network Marketing and Frogs”

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

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: 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

And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference is quickly approaching! On May 16^th and 17^th, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 64^th 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 a look out for the October and February conferences as well! Call our office to register today!)

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

Hi, I’m Jeff Babener of MLMLegal.com, and I’d like to talk to you today MLMLegal.com. Don’t leave home without it.

At first glance, one might question the role of the MLM law expert in a marketing-driven industry. However, your MLM lawyer may be the single most valuable resource that you will ever utilize.

There are very few in the gene pool who have intimate, practical knowledge, as well as legal knowledge of the business; often understanding the business better than most of his or her clients. It is a unique blend of marketing, practical knowledge, and experience combined together, with practical legal experience, that may cause the MLM lawyer to answer questions (off the top of his or her head) in five minutes what would take a typical business lawyer five years to research. And, in which case, they would still probably not understand the issues, let alone the solutions. For better or for worse, the practices of the MLM industry have induced scores of legislation and regulatory control, such as pyramid statutes, MLM statutes, Business Opportunity, security, FTC, and postal regulation. Notwithstanding the success of the industry, there is always tension between the regulatory community and the MLM industry. Overzealous regulators and rouge operators guarantee that this state of affairs will always exist.

Later issues with distributor relations, distributor discipline, FDA, trademark, tax, and international expansion arise. It is easy to see why the MLM attorney is probably the first person with whom you should establish a relationship and with who you should grow. That person is a trusted business advisor and a member of your business team.

At a minimum, you would be premature to jump into the marketplace without a legal review by MLM Legal Counsel of the most basic of sales kit contents. The basics include representative agreements, policies and procedures, product brochures, marketing plan presentations, as well as various forms, ranging from retail receipts to auto ship, to multiple owner applications, etcetera.

Responding after the fact to regulatory agencies over deficient materials or answering distributor complaints for slip shot documentation is too little, too late. And it will be too bad for the start up MLM business.

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

For more information visit our websites: www.mlmlegal.com and www.mlmattorney.com.

Or, visit these links for more information:

Why You Should Trademark Your MLM Company Name

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

An Introduction to Direct Selling and The Basics of MLM

Recruiting Advice from an Industry Expert – The MLM Fairytale “Network Marketing and Frogs”

Jeffrey Babener’s Youtube Channel Reaches 60,000 Views

Short Course on Network Marketing: Q&A with Jeffrey Babener on Pyramid Schemes Video

Profile of a Leading MLM Law Firm – Babener & Associates Video

How Does a Business Lawyer become a MLM Lawyer? Video

Is a MLM Lawyer a Typical Lawyer? Video

What is the role of an Experienced MLM Legal Counsel? Video

CNBC.com Cites Legal Expert, Jeffrey Babener on FTC Business Opportunity Rule

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

Where to Find MLM Startup Tips and Answers from an Industry Expert

An Interview with Industry Expert and Advocate, Jeffrey Babener

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

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: 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

And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference is quickly approaching! On February 21^st and 22^nd, 2013 we are hosting the MLM Conference for the 25^th 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? Our next Conference takes place May 16^th & 17, 2013 in Las Vegas! Call our office to register today!)

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

Hi, I’m Jeff Babener of MLMLegal.com, and I’d like to talk to you today about your trademark. Imagine living your life without a name. To some extent, you define yourself and your existence by your name. Your trademark, in a sense, is your branding for life.

When others think of you they think of your name and vice versa. Your choice of name for your MLM company is equally important. Not only will you brand your business and product but what may be worthless today will be your most valuable asset in years to come. Just ask Coca-Cola, Marlboro, Microsoft, Avon, or Mary Kay.

And so, your company name deserves special emphasis in the beginning. A trademark search by your MLM lawyer is a must. You don’t want to be told three years down the road that you must give up your name because you did not bother to conduct a trademark search. It would be a devastating blow to your business. Also, it is essential that the name that you choose will suit expanding product or service offerings down the road.

So, what’s in a name? Everything.

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

For more information visit our websites: www.mlmlegal.com and www.mlmattorney.com.

Or, visit these links for more information:

MLM Consulting: How to Build a Successful Direct Selling Company

MLM Corporate Startup Essentials: MLM Trademark

It’s Our Name – Live With It

The Educated Networker: Trademarks and Network Marketing

Comparative Advertising

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

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: 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

And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference is quickly approaching! On February 21^st and 22^nd, 2013 we are hosting the MLM Conference for the 25^th 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.)

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