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]
MLM Startup Guide
If you are starting or growing a network marketing or a home party plan company, you need the best resources to help you to create, launch and grow your new business. Your goal is success, and to be successful you will need to do many things well. Start Here Start Here is our 250-page direct selling textbook with forms… [Read More]
Pruning Your Tree: When To Deactivate Your Reps
Terminations, deactivations, and reclassifications are all terms used to describe the process used by network marketing and party plan companies to end the businesses of their independent representatives due to insufficient activity. Having consulted with direct selling companies for almost 30 years, I have seen a wide variety of approaches used by direct selling companies… [Read More]
Product Returns and Commission Adjustments
Upon fully paid orders, commissions and bonuses are paid out. But what happens when a commissioned order is canceled or product is returned? What should you do? The good news is that you have some good choices. There are three approaches that network marketing and party plan direct selling companies use in responding to canceled orders… [Read More]
MLM Legal: Be PRO(active)
The laws governing the network marketing industry are a complex tapestry involving state and federal statutes and an array of regulations. With all of the legal requirements, it’s not easy for companies in the industry to safely navigate the terrain. Based on my study of the law and countless cases, if a… [Read More]
Policies and Procedures: Sale or Inheritance of an Independent Representative’s Business
Introduction Policies and Procedures are the rules that govern the relationship between a direct selling company and its independent representatives. When fully completed, they comprise about 60 different topics. In this post, we will tackle one of the Policies and Procedures topics. That topic is “Sale or Inheritance”. Sale or Inheritance Most businesses with revenue streams… [Read More]
Policies and Procedures: Sponsor Changes
Introduction Policies and Procedures are the rules that govern the relationship between a direct selling company and its independent representatives. When fully completed, they comprise about 60 different topics. Needless to say, this relationship is complicated! In this post, we will tackle one Policies and Procedures topic. That topic is “Sponsor Changes.” Sponsor Changes Direct… [Read More]
Ask Victoria: Why Charge A Renewal Fee?
Some direct selling companies charge their independent representatives annual renewal fees. Each company that charges a renewal fee does so usually for one of the following reasons: They provide their distributors with something of value, for example, a monthly magazine or a replicated website that they wish to charge them for, but not on a… [Read More]
Social Media and the FTC
Social media is not going away anytime soon. How should we use it to help us, not hurt us? Out of Control You may have heard horror stories about social media being used by representatives to inaccurately promote income opportunities or products. Unhappy distributors or customers sometimes express their grievances publically for all to see. … [Read More]
Wisdom: Even The Best Teams Have A Coach
Did you know that top performing athletes have difficulties seeing their own mistakes? Unfortunately, the same can be said for direct selling executives. All top performing athletes each have a coach. Do you have one?