MLM Definition Articles

Differentiating Customer Satisfaction, Right To Cancel and Buy-Back

The three terms, customer satisfaction, right to cancel and buy-back, are at times used interchangeably and they should not be. They serve different purposes and have different legal consequences. The purpose of this article is to help clear up some of the confusion existing between the terms. The information below is in the context of …

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The Mail/Telephone Order Merchandise Rule – Sometimes Called the “30 Day Rule”

This rule is enforced by the Federal Trade Commission, and covers merchandise ordered by mail, telephone, computer and fax machine. The rule is of utmost importance to the Direct Marketing Industry, but is applicable to everyone. As more and more Direct Sellers “direct fulfill” – careful attention should be paid to this rule. The rule …

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The Integrity of the Lines of Sponsorship

A direct selling company is a company selling products and services through independent contractors. The company offers its independent contractors a financial incentive — bring the company business, and get paid in some way for doing so. A direct selling company becomes a multilevel direct selling company, when it offers its independent contractors a second, …

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About “Agents”

I represent direct selling companies with a multilevel form of compensation. By definition, all of my clients have chosen independent contractor representatives as their channel of distribution. I advise ALL of my clients to NEVER call their independent contractor representatives “agents,” or to use the word “agent” in combination with other words in the name …

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Database Confidentiality

To what degree can a name, address or phone number be kept confidential? While a company has a direct contractual relationship with each of its distributors, the distributors within the organization are connected to one another only in their company’s database. Serious confidentiality issues may arise when personal contact information is made available to everyone …

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