Front loading generally refers to a process in which a MLM company, or a sponsoring distributor, encourages a new distributor to purchase far more product than is commercially reasonable under the circumstances. Often the “push” is explained to the recruit as necessary to qualify in the plan. This is an unacceptable practice is often one indicia of a pyramid scheme.

On the other hand, virtually all regulatory agencies recognize that a purchase of an “at cost” sales kit is an acceptable practice in the mainstream of leading direct selling companies. Such mandated kits are typically in the $50-$100 range. They generally entail “hard copy” or online supply of sales and marketing materials as well as ongoing sales and marketing materials updates for a year. Typically the mandated sales kit does not include product and generally a company offers an optional deluxe kit that may include product. Such an optional kit, which is often referred to as a “fast start” kit, may contain several hundred dollars of product. This is not unusual. Although the same regulatory standards on upfront mandated purchases are applicable to party plan companies as they are to other companies, it is not unusual to see party plan companies mandate a beginning starter kit that contains a wide array of products, with a price tag several hundred dollars. Regulatory agencies are very liberal in their view of such mandated purchases in party plan companies because party plan companies are so overwhelmingly retail oriented and the movement of product to retail customers is the norm, and not the exception, for party plan companies.

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Learn more about the network marketing business at www.mlmlegal.com.

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

MLMLegal.com is famous for squashing MLM myths, spreading knowledge about the network marketing industry, and distributing resources to anyone who visits our website.

Teenage Mutant Ninja Turtles (depicted here in true Babener-fashion by Jeff Babener’s grandson, Sammy) are famous for battling petty criminals, evil overlords, mutated creatures, and alien invaders. MLMLegal.com is famous for squashing MLM myths, spreading knowledge about the network marketing industry, and distributing resources to anyone who visits our website.

Every year MLMLegal.com adds a comprehensive project to its website. Whether it is videos on network marketing, well-researched articles, library of legal cases, or a video miniseries, each year our website is expanded upon. This year is no different.

In 2014, MLMLegal.com committed the highly-regarded article “BurnLounge Appeal Decision: Guidance on Pyramid v. Legitimate MLM and the Role of Personal Use in Pyramid Analysis” to the website.

In 2015, we plan to add 63 new videos to our website and Youtube Channel on the topic of MLM education. Below are some of the topics to be discussed by MLM Attorney Jeff Babener in this new video series:

• What’s the Difference between MLM, Network Marketing, Party Plan and Direct Sales?
• What Is a “Pay to Play?”
• How Much Does It Cost to Start a MLM Company?
• How Do I Raise Capital to Start My MLM Business?
• What Is the Benefit of Recruiting Experienced Distributors?
• What about Gifting Clubs?
• Why Do I Need an Experienced Network Marketing Attorney?
• What Do I Do with Distributors Who Go Passive (for MLM Executives)?
• What Do I Do with Distributors Who Go Passive (for MLM Distributors)?
• What Key Factors Determine the Growth of Network Marketing Companies?
• Do You Have Some Tips for Generating Network Marketing Leads?
• Do You Have Some Tips to Become a Successful Network Marketing Distributor?
• Are There MLM Companies That Have Achieved Success on a Low Budget?
• Since You Are a MLM Attorney, Why Would You Host the MLM Startup Conference for the Executives of Startup and Existing Companies?
• If I’m a New Distributor Then Should I Focus My Selling In Areas Where Other Distributors Are Successful Or Should I Focus On Untouched Territory?
• I Own a MLM Company. How Can I Determine Cost of Goods? In Other Words, How Do I Price My Products for Retail, Distributor and Direct-To-Consumer Sales?
• Do I Need To Worry about Merchant Account Processing? Should I Have Just One Merchant Account?
• If a Sales Kit or Startup Fee Is Several Hundred Dollars, Then Is This Considered “Frontloading”?
• How Do I Create a Compensation Plan That Guarantees That I Am Legal?
• I’m Starting a MLM Company. I Am Going to Have Distributors Earn Income by
  Referring Others, Is This Legal?
• What Should I Look for When Hiring a Vice President of Marketing?
• What Is the Typical Price of an at-Cost Starter Kit in the Industry?
• Can I (as a MLM Executive) Pass the Costs of Website Development, Marketing Materials, Etc. Down to Distributors?
• How Do I Find Top Distributors?
• In an Absolute Nutshell, What Are the Two Main Causes of a MLM Company Failing?
• As a Distributor, Can I Use Display Booths to Sell My Company’s Products? Is There a Limit on the Time I Can Spend Selling at a Booth?
• In Regards to Event Sales, Such as Fairs, Kiosks, Vending Machines, Etc., Am I Authorized to Sell My Company’s Products at Such Events?
• Why Do MLM Companies Require Distributors to Use Replicated Websites Rather Than Distributor-Created Websites?
• What about Raising Capital to Start Your Network Marketing Company?
• How Many People Would I Need in My Organization to Make Over $10,000?
• Are Network Marketing Companies Mostly Moving to All-Digital/All-Online Starter Kits? Can It be Done in a Way That Ensures a High Perceived Value?
• What Regulatory Changes Are Affecting Network Marketing Companies?
• What Should I Look for in a Company When Choosing Back Office Software?
• How Important Are Celebrity Endorsements? Do They Help Marketing or Is It a Double-Edged Sword?
• How Often Should Companies Renew Their Policies and Procedures to Make Them Relevant in Today’s Marketplace?
• Do You Want to Attract MLM Professionals or MLM Junkies into Your Direct Selling Company?
• How Have Raiding Rules Evolved in Direct Selling Contracts and Policies and Procedures?
• What Happens if Consultants Raid Anyway?
• What Are the Most Important Things to Remember When You Host a Distributor Recognition Event?
• Do Incentives Increase Sales? How Worthwhile Are Consultant Incentives?
• What Do Startup Companies Think about Long Term Professional Relationships?
• What Is the U.S. and International Trend in Recognizing the Validity of Personal Use by Distributors in Pyramid Cases?

So, keep your eyes on MLMLegal.com this year. We will have a lot of new content added to our website and we want you to be a part of it! Run, learn and get lost at MLMLegal.com!

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

MLMLegal.com is bustling with educational content for direct sellers and startup/existing MLM companies! Be sure to visit us often!

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 27 and 28, 2016 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.

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

Join us for the first MLM Startup Conference of 2015!

LAS VEGAS, NV — (Marketwired) — 01/06/15 — For more than 28 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 February 26 & 27, 2015 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, can sign up to meet 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. 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 (via james). 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.”

If you don’t start it right, you can’t expect to get it right.

Each attendee will receive a FREE copy of the Starting and Running the Successful MLM Company Manual.

How do you find out more information?

Visit our website:

www.mlmlegal.com

Visit our blogs:

http://mlmlegal.com/MLMBlog/

http://mlmattorney.com/blog/

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: REGISTER TODAY! 503-226-6600 or 800-231-2162

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.

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, to Herbalife, to Melaleuca, to USANA, and to 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 64 national conferences on direct selling.

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

Such kits provide ongoing sales and marketing materials information over the course of the one year distributor agreement, and generally there is a modest renewal fee annually.

Historically, a typical “at cost” sales kit has been priced in the $50 range. Typically, such kits included forms, manuals, brochures, and CDs or DVDs. In recent years, sales kits have gone online and are often provided digitally or merely posted in the “cloud.” Such kits provide ongoing sales and marketing materials information over the course of the one year distributor agreement, and generally there is a modest renewal fee annually. In addition, most companies today, charge a modest monthly administrative fee for back office access to genealogy management, replicated website, and communication tools. In recent years, it has not been unusual to see the initial “starter kit” price migrate up to $100. Most companies with tangible products provide for optional “fast start kits.” In addition, many party plan companies mandate starter kits, with sampler product, in ranges of $199 to $299. Technically, only at cost sales and marketing materials should be in a mandated starter kit, but, because party plan companies are so retail driven, regulatory agencies are much more understanding of higher priced mandated sales kits.

MLMLegal.com has launched the Innovation Campaign for its February 2014 MLM Startup Conference. Read how to get your two free tickets by clicking HERE!

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

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Our next Starting and Running the Successful MLM Company Conference takes place February 27th & 28th, 2014 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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