MLM/Direct Selling Legal Articles

• Yet another way to define what exactly is MLM. Everyone has an opinion, What Is MLM? My Biased View.
  
  
• Products can be priced at what the marketplace will bear. But an additional factor comes into play for direct selling companies. Are They Worth It?
  
  
• When someone sponsors someone, the money flow needs to start when the second someone generates business volume. Business Volume - Its Critical Importance
  
  
• The very beginning approach to Direct Selling needs to be right. See why in this newer article The Thinkin' Needs Fixin'
  
  
• This short article, The MLM Legality Test 2005 is a must read for people signing up to become an independent contractor for a direct selling company. A simple to apply test, begins the process of defining a legal venture.



• Want a big picture of what IS and IS NOT ? MLM? This article The Legal ABC's of MLM defines the ONLY model (the Author's view) of a legally structured direct sales company with multi-level compensation.



• Most direct sales companies do NOT offer business opportunities meeting legal definitions requiring registration. Find out why by reading this article: Business Opportunity - What do the words mean?



• An additional concern regarding avoiding the Business Opportunity definitions involves the first six months of operations. Read where this additional twist applies in Business Opportunity - The Six Months Issue
  
  
• Ponzi and Pyramid and two different things, although sometimes the words are used interchangeably. This is an error. Find out the differences in this article: Ponzi or Pyramid



• Regulators will not be fooled by legally designed programs that are implemented in the field in ways not intended by the corporation. Learn about this issue in the article: Looking Past The Paper



• The Internet has changed, forever, the way we do business. The issue of becoming a distributor is discussed in: Paper-less Sign Up



• Where does direct selling leave off and multi-level direct selling begin? Not everyone agrees, but my view regarding Affiliate programs is in this article: Are Two-Tier Affiliate Programs Multi-level?



• Direct Selling needs to be PRIMARILY about products and services moving to consumers. Read why here: Prohibited Activities, State by State



• Direct sellers need to be selling something “of value.” Seems very basic, but read about why the question is even raised in: Do The Products Have Intrinsic Value?



• There is no direct selling “business.” The business is defined by the product or service being sold. Direct selling is the channel of distribution. Read why the author places such importance on this in: Ramblings of a tired lawyer OR Where have all the products gone?



• There is a part of the famous Amway case that is little known or talked about. Read more here: The Amway Case, from the Price Fixing Perspective



• The independent contractor is at the very core of direct selling. Some important issues are discussed in Independent Contractors—Things to Think About
  
  
  
  ADDITIONAL ARTICLES BY MR. NEHRA & MR. WAAK
  
  
  
  


• Some MLM Companies and opportunities confront serious legal scrutiny and survive. Others do not. Read about the difference here: Is Your MLM Opportunity Legal?


• The Federal Trade Commission claims to have reversed itself by excluding the MLM business from coverage under its rewritten proposed version of its new Business Opportunity Rule. But did it really? Read: The FTC gets it right (almost)!


• For several years the Payment Card Industry's program rules for protecting security of customer data have applied only to larger merchant account users. Now those rules are applicable to all card merchants. Learn what the small account user must do: Data Security Compliance 101


• What could possibly be wrong with offering your customers free merchandise? Find out here: Never a "Free" Lunch?


• Paying commissions on sales aids is not illegal, but comes with risks. Another Looko At Commissions on Sales Aids
  
  
• Do direct selling companies have to worry about where they incorporate - because they are a direct selling company? Find out Where to Incorporate.
  
  
• Is Louisiana a part of the United States? One would hope so, but read Louisiana-It's Different Down There.
  
  
• The names and addresses of distributors are valuable assets of direct selling companies, and need to be protected. Read about some of the issues in: Confidentiality of Names & Addresses



• The use of the word “agent” is NOT recommended and is to be avoided by Direct Selling Companies. Read why in About “Agents”
  
  
• Who sponsors who is the life blood of multi-level direct selling. Read why it is so vitally important in The Integrity of the Lines of Sponsorship
  
  
• You need to know about this Unique tax in Michigan. You do not want surprises.
  
  
• Instead of a product, give them a piece of paper to redeem for a product later. But know the risks and do it right or do not do it. Read about the pieces of paper in - Coupons, Vouchers, Gift Certificates, and Down Payments
  
  
• What happens if you promise to ship within a certain time, and cannot? Or what if you do not even specify a time? There is a law that more than likely applies, which you shopuld know about: “30 Day Rule”
  
  
• Customer Satisfaction, Right To Cancel and Buy-Back are all the same thing, Right? Not so - Differentiating Customer Satisfaction, Right To Cancel and Buy-Back.
  
  
• Some basic information everyone should know about Trademark Usage.
  
  

  ARTICLES BY OTHERS

  (All used with permission.)
  
  
• What are the differences between party plan and network marketing companies? by Jay Leisner.



• Will you grow? And how fast? Read The Best Measurement for Predicting Growth by Jay Leisner.



• Understanding Your Compensation Plan by Jay Leisner.



• Can you start on a shoe string? Or do you need a million? How much does it cost to start a direct selling company? by Victoria Dohr.



• Industry Definitions by Dan Jensen



• Principles of a Successful Compensation Plan by Dan Jensen



• The 10 Most Common Mistakes in MLM by Dan Jensen



• Compensation Plan Types by Dan Jensen



• Are you wasting your hard-earned commission dollars? by Dan Jensen



• Compensation Plan Breakage - Why and How by Dan Jensen



• Is this a Pyramid Scheme? by Leonard Clements who has concentrated his full-time efforts over the last six years on researching and analyzing all aspects of Network Marketing.



• WOLF! WOLF! WOLF! by Doug Cloward Read what this compensation plan expert has to say on training programs and similar business tools.



• Business Plans and Budgets - Who Needs Them? by Jay E. Leisner



• Considering expanding into Japan? You need to read carefully what this "Entering Japan Expert" has to say. Read Consider Japan by Richard Dean Sr.
  
  
  
  MLM DEFINITION ARTICLES in French, German, Italian, and Spanish
  
  
  
• Les Produits Ont-Ils "La Valeur Intrinseque"?, Do The Products Have Intrinsic Value? in French



• Verkörpern Die Produkte Einen 'Eigenständigen' Wert'?, Do The Products Have Intrinsic Value? in German



• El ABC del Multinivel, Do The Products Have Intrinsic Value? in Spanish



• Cosa Rende il MLM Legale?, The MLM Legality Test in Italian



• I Prodotti Hanno "Valore Intrinseco"?, Do The Products Have Intrinsic Value? in Italian