Many network marketing companies are rightfully concerned about consultants making unauthorized medical and earnings claims on their own websites, as well as creating keyword confusion in the search engines. Therefore, many leading MLM companies provide authorized replicated websites for their consultants and actually prohibit individually-created websites. Therefore, if you’re a consultant, chances are high that you will not be allowed to purchase, design or build your own website. Instead, you’ll be given access to your own replicated website, provided by the company, which is a website that looks much like the company’s main website, but has a unique URL that you can send your customers to so that they can order products through you.

The primary reasons why companies don’t allow consultants to host their own websites are:

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One common question that we hear is in regards to event sales; such as fairs, kiosks, vending machines, and other alternative means of sales, am I authorized to sell my company’s products at such places and events?

Most companies would prohibit sales in flea markets, swap meets, vending machines, or garage sales. It is generally viewed that such locations dilute the value of the company’s products and opportunities. Companies typically prohibit sales in retail stores, but the purpose for this rule is to avoid the appearance of the company being in competition with the direct selling channel of its distributors, a model that is really based on person-to-person marketing.

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Every business should be concerned about market saturation. The direct selling industry is no different.

The direct selling industry thrives on marketplace competition in order to continue to deliver high-quality goods and services, especially as the population grows and consumer demands change.

In one significant legal case, regulators argued that a direct selling company was bound for failure by the prospect of saturation in the marketplace, both for product, as well as for distributor recruitment. In that landmark case, the court took notice of the concept of “saturation,” but it rejected the concept as an obstacle to success of the particular direct selling company involved. The court took note of a large market for particular products and explained that the direct selling company was merely taking its place in the competitive marketplace.

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