MLM/Direct Selling Legal Articles


BRIEF MLM DEFINITION: A method of compensating independent representatives selling from other than fixed retail locations for both their own sales volume, and also for the sales volume of the additional representatives they introduce to the company.

    • 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.
    • 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
    • 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
    • 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.
      • 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