No, this is not a joke title. One of our prospective clients recently asked me how many “real” customers he needed. He asked me this question as he was familiar with the Federal Trade Commission’s actions against Vemma in 2015 and Herbalife in 2016, each of which required sufficient volume from customers who were not representatives… [Read More]
New Problem: Joining For Product Discounts
Not so long ago, network marketing companies wanted people to join their companies just for product discounts. In fact, they set the prices for their starter kits, enrollment fees, and products perfectly so that it was easy to see how it was cheaper to join as a representative and buy products at the rep price,… [Read More]
8 Reasons To Have A Compliance Department
By Donna Marie Serritella, Direct Selling Solutions Would you rather go to the dentist, or setup your direct selling company’s Compliance Department? Whether you would prefer to go to the dentist or not, this article is for you! Compliance Department There are many reasons why your network marketing, party plan, or social selling company needs… [Read More]
Direct Selling: Are You A Bad Actor?
I bet you haven’t been asked this question before. At the Direct Selling Association Annual Meeting in Orlando this month, President Joe Mariano talked quite a bit about bad actors. A bad actor is a direct selling company that is operating illegally or unethically, or both. How do you know if your business is a… [Read More]
Are Simple Compensation Plans Safer?
At our Direct Selling Edge Conference this month, I was asked if simple compensation plans were safer. Before giving my answer, I took a big breath and then gave myself a few moments for an additional pause. This was an important question with an even more important two-part answer. A Legal Perspective Given the regulatory action… [Read More]
Why FTC Decisions On Vemma and Herbalife Matter To You
If your direct selling company has a multilevel compensation plan, it is in your best interest to be aware of the recent FTC actions against Vemma (August 2015) and Herbalife (July 2016) because your company and your compensation plan may have some of the same problems. Watch this video now to learn why these FTC actions matter… [Read More]
Must Direct Selling Companies Treat All Reps The Same?
By Kevin Grimes, J.D. The short answer is a very precise, lawyer-like “Yes and No”. The long answer depends upon the context of the question. If the question is about compensation plan issues, ranks, and the rights and privileges associated with each rank, the answer is “No”. In a direct selling model, the compensation for… [Read More]
Danger Ahead: Enrolling Customers As Representatives
In 2014, I wrote a prophetic post about the need for network marketing companies to have retail customers. Retail customers are people who buy who are not distributors or consultants of a direct selling company. I called this post The Elephant In The Room. If you can, read it first because in 2016, the elephant is… [Read More]
What Will I Learn At Direct Selling Edge?
The Direct Selling Edge Conference has become the best and most informative two-day school for new and young network marketing and party plan companies. MLM lawyer Kevin Thompson of ThompsonBurton and MLM compensation plan consultant Jay Leisner of Sylvina Consulting invite owners and employees of network marketing and party plan companies to attend their two-day direct… [Read More]
Ask Victoria: Is There A Legal Requirement For Customer Sales?
Party plan companies don’t ask this question, because almost all of their sales are to customers. If yours is a network marketing company, however, this is an important question to which you need to know both the short and the long answer.