What Should I Look for in a Company When Choosing Back Office Software?

Charity — Thu, 22 May 2014 22:48:18 +0000

It is recommended that companies seek references and contact those references to learn about past performance record of the software provider.

Virtually all new startup direct selling companies utilized an outsourced technology solution for managing genealogies and commission payouts. In addition, such technology serves distributors by providing back office access for reviewing sales performance, commissions, etc.; replicated websites; communication tools, etc. The software is hosted on the server of the technology provider where it is maintained 24/7. As companies grow to substantial size, they typically may purchase a source code license and run the software on company computers.

There are many good software providers in the direct selling industry. For a list of some of various direct selling vendors, see the MLM Resources section at www.mlmlegal.com.

Choosing the right provider presents an important task because, the technology solution is integral to a successful business. Not only should the platform serve all the internal IT needs, but also, it should demonstrate that it can integrate with other outside software applications such as ecommerce and sales and use tax compliance.

The search process should be deliberate. It is best to seek the advice externally or internally of an advisor with significant IT experience, preferably in direct selling. Companies should interview multiple software firms to examine the offerings, the service record and the right personal connection. It is recommended that companies seek references and contact those references to learn about past performance record of the software provider.

Watch our videos on software and technology.

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

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Why Do I Need an Experienced Network Marketing Attorney?

Charity — Tue, 01 Oct 2013 17:14:30 +0000

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.