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You are here: Home / Archives for Legal

Why You Should Read Our Book

January 4, 2022 By admin Leave a Comment

What is… a map to get to your gold? a bible for all direct selling companies? a consultant in a book? the most valuable $300 you’ll ever spend on your business? Our “Start Here” book is all of these and more. If you are starting or growing a network marketing or a party plan company,…

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Is There A Legal Requirement For Customer Sales?

January 4, 2022 By admin Leave a Comment

Party plan companies don’t ask this question, because almost all of their sales are to customers. If your company is a network marketing company, however, this is an important question to which you need to know both the short and the long answer. The Short Answer There is no legally mandated requirement that at least…

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8 Reasons Why You Need To Have A Compliance Department

April 22, 2019 By admin Leave a Comment

Would you rather go to the dentist, or set up your direct selling company’s Compliance Department?  Whether you would prefer to go to the dentist or not, this video is for you! Compliance Department There are many reasons why your network marketing, party plan, or social selling company needs to have a Compliance Department.  In…

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Is Your Company A Bad Actor Or A Good Actor?

January 9, 2019 By admin Leave a Comment

A bad actor is a direct selling company that is operating illegally, unethically, or both. How do you know if your company offers a “get rich quick” pyramid scheme or a legal and ethical direct selling income opportunity? One way to find out is to thoughtfully evaluate your company using our “Don’t-Do” list. You may…

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15 Reasons To Attend The Direct Selling Edge Conference

December 10, 2018 By admin Leave a Comment

Q: What is the Direct Selling Edge Conference? A: This conference is a unique two-day school for new and established direct selling company owners and employees to learn how to better operate their businesses. Q: Who should attend? A: If you currently are, or will be, an owner, executive, or employee of a network marketing,…

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Legally Speaking: How Many Real Customers Do You Need?

April 16, 2018 By admin Leave a Comment

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…

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New Problem: Joining For Product Discounts

February 6, 2018 By admin Leave a Comment

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…

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8 Reasons To Have A Compliance Department

February 6, 2018 By admin Leave a Comment

By Donna Marie Serritella, Direct Selling Solutions Would you rather go to the dentist, or set up 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…

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Direct Selling: Are You A Bad Actor?

June 16, 2017 By admin Leave a Comment

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…

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Are Simple Compensation Plans Safer?

March 19, 2017 By admin Leave a Comment

direct selling edge

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…

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Ask Victoria: Should Party Plans Worry About Recent FTC Actions?

December 26, 2016 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 themselves representatives.  Another…

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FTC: What Is A Real Customer?

December 26, 2016 By admin Leave a Comment

In October 2016, FTC Chairwoman Edith Ramirez spoke for 45 minutes at the DSA Business and Policy Conference about misleading income representations and business structures that are unfair or deceptive because they’re not focused on real sales to real customers. Her remarks were important to hear, as recent FTC actions against Vemma (August 2015) and…

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