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You are here: Home / Archives for Legal

Be Careful About Income Claims

September 11, 2023 By admin Leave a Comment

Sometimes new or young companies want to show how much income a representative can earn with a good downline. The problem is that at the moment, no representatives with a good organization exist yet. What Should A Company Do? I do not believe it is ever a good idea for a direct selling, referral marketing,…

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Video: One Hour of Direct Selling Legal Education

September 11, 2023 By admin Leave a Comment

Did you know that the laws governing the direct selling and referral marketing channels are a complex tapestry involving state and federal statutes and an array of regulations? While direct selling attorneys are truly the experts when it comes to these laws, it is important for you if you operate or will soon operate a…

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Have You Visited Our Vimeo Channel?

July 6, 2023 By admin Leave a Comment

Sylvina Consulting is a publisher of great educational content for new and established direct selling, network marketing and referral marketing companies. In addition to their top-rated 250-page book, Start Here: The Guide To Building And Growing Your Direct Selling Company, and their Amazon Kindle e-book MLM Software: What You Need To Know, Sylvina Consulting also…

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Must Direct Selling Companies Treat All Reps The Same?

March 30, 2023 By admin Leave a Comment

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 which…

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5 Ways To Get More Customers

January 1, 2023 By admin Leave a Comment

There was a time when network marketing companies sold most of their products to their independent representatives for their personal use, and this was not a problem. Back then, companies didn’t worry about having customers who were not representatives. Network marketing companies focused 99% of their attention on selling products or services to their representatives. …

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Compliance Is Necessary

October 1, 2022 By admin Leave a Comment

Compliance is never a favored topic. However, in the direct selling industry, it is a necessary one. When the public is provided with a product that is intended to be distributed and may attract high visibility, there needs to be company ownership. In fact, regulation states and legal action sets precedent that the company does…

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Why FTC Decisions On Vemma and Herbalife Matter To You

September 6, 2022 By admin 2 Comments

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…

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Why You Should Get Into Your Learning Zone

September 6, 2022 By admin Leave a Comment

There are two worlds in which you live – the “Performance Zone” and the “Learning Zone.” In his TED talk, Eduardo Briceño talks about these two zones and why you need to spend time in both of them. When we go into the Learning Zone, we decide to spend some time learning so that when…

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For Your Success, Remain Teachable

August 8, 2022 By admin Leave a Comment

In the world of direct selling, you will always be teaching others. Did you know that students make the best teachers? Always be open to learning more. Never stop learning. The more you know, the smarter you get. What if you could go somewhere fun where you could also learn more about how to build…

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Should Party Plan Companies Worry About FTC Actions?

July 18, 2022 By admin Leave a Comment

Most of the sales of products by party plan companies are made to people who are not consultants. In 2015 and 2016, the Federal Trade Commission (FTC) filed orders against Vemma and Herbalife, each of which is a network marketing company.  One of their concerns was the lack of customers who were not representatives themselves.  Another…

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The Cooling-Off Rule: How It Applies To Your Company

July 15, 2022 By admin Leave a Comment

As a direct selling company, you need to know about the Federal Trade Commission’s Cooling-Off Rule.  There are very specific steps you must follow to be in compliance with this federal law. To learn more about how the Cooling-Off Rule applies to your company, watch our video below.    How To Comply Most direct…

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In Which States Must I Register My Company?

June 4, 2022 By admin Leave a Comment

In the USA, most states don’t require that multilevel distribution companies register with them.  However, five states require them to file and/or register. If yours is a party plan company, you are still required to file or register if you have a multilevel compensation plan. To be legally compliant in these states, you or your…

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