At the time of ordering by a distributor, don't order more inventory unless you have sold or personally used at least 70% of what you have previously ordered.

At the time of ordering by a distributor, don’t order more inventory unless you have sold or personally used at least 70% of what you have previously ordered.

The 70% rule derives from the 1979 FTC Amway decision in which an administrative law judge recognized that Amway’s 70% rule helped prevent inventory loading (it is not a retailing rule). Basically, the Amway rule provided: at the time of ordering by a distributor, don’t order more inventory unless you have sold or personally used at least 70% of what you have previously ordered. This is one of the Amway “safe harbor” rules that you will see in the policies of leading direct selling companies.

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Invite your friends on Twitter, Facebook, LinkedIn, and Instagram to try your product or to join your company.

Invite your friends on Twitter, Facebook, LinkedIn, and Instagram to try your product or to join your company.

Obviously, there is no substitute for your warm market. Network marketing is a relationship business. And, to a certain extent, recruits sign on with you and customers buy from you based on your relationship credibility which means that you are putting your credibility on the line. For this reason all network marketing companies ask consultants to make a prospect list which is first led by the “low lying fruit:” family, friends, neighbors, co-workers, business associates, church members, PTA members, club members, Facebook friends, etc.

Beyond the “low lying fruit,” head to your social networking contacts on the web. Invite your friends on Twitter, Facebook, LinkedIn, and Instagram to try your product or to join your company. Try to get the most use out of these social networking websites by marketing in the ways that those who join these sites like to be marketed to… For instance, when you receive a fresh batch of cosmetics or a new pair of shoes from your

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Jeffrey Babener’s – Editor of MLMLegal.com and MLMAttorney.comYoutube channel has surpassed 80,000 views! As the leading MLM industry expert, Jeff Babener has launched over 80 educational and informational videos for MLM, network marketing, direct selling, party plan executives and distributors (consultants, representatives, members, etc.). The videos cover topics from pyramid schemes to recruiting, to MLM success to finding the right product, to legal opinion to compensation plans, etc.

The various network marketing topics discussed on Mr. Babener’s Youtube channel are vast and highly educational. For years he has been compiling educational videos on the direct selling industry as a service to MLM company owners and distributors. Do you have a question about the network marketing industry? Attorney Babener answers your MLM legal questions! Click on the links below to watch his videos!

Do You Ever Wonder What a Real MLM Trial Is Like? Watch one for yourself!

http://mlmlegal.com/trialvideo.html

Executive Interview Forum Questions and Answers (Q&A) NEW!

Executive Interview by the DSWA – “Legal Hotspots for Direct Selling Companies” with Jeff Babener NEW!

Attorney Jeff Babener, Discusses Various Topics in a MLM Compliance Training Session NEW!

Earnings Claims and Consumer Protection Laws

Interviews with Expert MLM Attorney, Jeffrey Babener

Short Course on Network Marketing: Q&A with Jeffrey Babener on Pyramid Schemes NEW!
The Difference between MLM Earnings Calculators and Earnings Claims
From a Legal Perspective: The Difference between a Pyramid Scheme and Legitimate MLM
Compliance Guidelines for Direct Selling Companies and Network Marketers

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