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Another successful MLM Conference has ended! Were you unable to join us? No problem! Come to our next conference, in Las Vegas, in October! (Reserved for the executives of startup and existing MLM companies!) Visit our website for more information! www.mlmlegal.com
The MLM Startup Conference in Las Vegas takes place October 25th & 26th, 2012!
October 25th & 26th, 2012 – 9:00AM-4PM, and one-on-one time with the speakers from 4PM-7PM, both days
The MLM Startup Conference is an educational conference for executives of startup and existing MLM, Network Marketing, Party Plan, and Direct Selling Companies. This conference has been in existence for over twenty years and is hosted by the industry’s leading experts.
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Well grasshopper, first thing is first. If it is not working, take a deep breath and ask yourself what parts of it are working and what parts are not. Chances are that you will discover, in the words of Yogi Berra, “The ball went right where I hit it.” It may be that you need to dissect your approach.
First, ask yourself if you really believe in the product. Do you believe in the company? Do you believe in its basic mission statement? If you are not passionate about the products and the company, it will show as you try to sell the products and services to consumers or to recruit others into the business.
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The MLM Startup Conference is quickly approaching. Be sure to register for your seat at this educational event! More information is provided here.
The Non-Recognition of Personal Use is a Disconnect from the BurnLounge Court Opinion and from FTC Positions on the Subject… It Creates an Unnecessary Cloud on the Business Model and Operation of Many Major Direct Selling Companies …
BurnLounge Opinion vs. Final Order Disconnect on Personal Use
By and large, the Court’s statement of opinion accepted the FTC position that BurnLounge was a pyramid. However, there was a disconnect between the opinion and the “personal use” language in the Final Order. In fact, the thrust of the opinion was not based on criticism of the sort of “personal use” by distributors so common in many leading direct selling companies. Instead, the thrust of the opinion was that the motivation for distributor purchases of “packages” was incidental to creating a market for company product or services; rather the true purpose for purchases was to buy into qualification for commissions in the opportunity … a classic allegation in pyramid schemes.
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FTC v. BurnLounge: 10 point mini-primer and action plan on the “personal use” issue:
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Overreach of BurnLounge Final Order creates uncertainty on “personal use” issue… FTC stated policy has been to prosecute egregious pyramid schemes as opposed to mainstream direct selling. By and large, this has been the case since the famous 1979 FTC Amway unsuccessful prosecution.
- FTC and major court pyramid decisions, including FTC v. BurnLounge, focus on front-loading, large investments, products and services that do not stand on their own in the marketplace, payment of recruitment commissions for purchases of nonconsumer items such as sales tools, unsubstantiated earnings claims and programs where the motivation for distributor product purchases is driven by intent to “buy in” and qualify for commissions in the business opportunity … and is incidental to a real desire for product or service for resale or personal use.
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Although the many varieties of compensation plans (stairstep, unilevel, breakaway, matrix, binary, etc.) address issues of training and management in different ways, the following represents a brief summary of key elements which all types of plans, companies, and distributors should attempt to achieve in their training, management, and support programs in order for those programs to be taken seriously from a legal point of view:
- Enhance distributor self-image
- Enhance the image of the network marketing industry as a whole
- Educate distributors about the industry
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