Due some due diligence before joining a MLM company.It is not required that you consult with any particular person prior to joining a network marketing company. However, it is a good idea to perform some due diligence. Check to see if the company has a good reputation online. Do a search to see if there is generally a good buzz surrounding the company and its operations. You can also check the DSA’s website to see if the company is a member. If the company is a member of the DSA then it abides by a code of ethics that are ethical industry wide.

Other to do items: Talk to others in the business. Talk to customers. Do a Google and Google News search. Do an online blog search. Watch YouTube videos. Look to websites such as www.mlmlegal.com that profile companies. Attend a business

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The MLM industry has, during the last 20 years, developed positive working relationships with regulatory agencies such as attorneys general and the FTC (Federal Trade Commission). There was a time, however, back in the 1970s, when the FTC challenged the legitimacy of the direct selling industry as being a pyramid scheme. They accused Amway of operating illegally and Amway prevailed in a very famous 1979 case [below] where it was held that the network marketing industry is a legitimate business model and the business opportunity is not a pyramid scheme.

No legal ruling has been more impactful on the direct sales industry than The Landmark Amway Case.

Afterwards, regulatory agencies and the industry went quiet until the 1990s when it was questioned whether or not product-using consultants were a legitimate end-destination for products or whether consultants were simply retail customers. There has been an ongoing tug of war between the MLM industry and the FTC in terms of determining whether or not personal use should have an impact on a company’s legitimate operations. The industry, with the cooperation of attorneys generals in more than a dozen states, were able to amend legislation in those states to recognize that personal use of product by distributors is a legitimate end-destination, just as if it were a retail sale.

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Our conference is not a vendor event. It’s an educational event. Our conference offers you the chance to speak with all of the industry experts at one time and walk away with a wealth of information.

Our conference is not a vendor event. It’s an educational event. Our conference offers you the chance to speak with all of the industry experts at one time and walk away with a wealth of information.

Did you miss the February MLM Startup Conference? In attendance were over 100 people, representing 65 companies from 20 states and five countries (Canada, South Africa, Mexico, Brazil, and the United States). The companies in attendance represented the entire spectrum of company ages, from startups to established companies. All attended to learn more about the network marketing industry, to grow their companies, to meet experts in the industry, and to educate themselves on the MLM industry.

If you didn’t get a chance to attend February’s conference, don’t fret! Our next conference takes place May 14 and 15, 2015 in Las Vegas. At the conference, you will learn how to structure your compensation plan, build a legal MLM company, recruit key consultants, write a business model, generate leads, find funding, build your website, develop your back-office software, and so much more.

In addition, attendees get the opportunity to chat one-on-one with industry experts representing their specific field (i.e. legal, software, technology, recruiting, etc.). You choose who you’d like to spend valuable one-on-one time with and they will answer the questions you have that are specific to you and your company.

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According to the Direct Selling Association (DSA), shares of wellness and services products have gradually increased over the past several years. This, of course, doesn’t mean that wellness and services are always going to be the most successful products in an MLM business model but they are right now. The DSA states the following about current MLM product success:

Wellness (including weight management products, nutritional supplements, health foods and beverages, etc.) and Services (including utilities, and financial products) has steadily increased for the last several years…

Easy access to information about health and wellness has contributed to increased consumer interest in such products… Direct sales not only offers desirable products in this category, but has the value-added benefit of personal interaction with a knowledgeable representative to help the consumer make their purchasing decisions.

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This blog post is the companion post to the video: Why Do Distributors join MLM Companies? The following is the transcript of MLM Attorney Jeff Babener’s own words:

A common question we get is “why do people join direct selling and network marketing companies?”  Many studies have shown that recruitment is essential to success, particularly studies done by the Direct Selling Association. Many would be surprised at the results. One may think that most people join MLM companies for the money. However, believe it or not, money as motivation ranks as four, five and six on polls.

The polls have showed that the number one reason why people join MLM companies is because they relate to the product. The second reason they join is because they relate to company management; the person who founded the company. The third reason distributors join is because they relate to the company vision. If the company proclaims women’s empowerment or wellness, then distributors will relate to that as well. It is also important that distributors relate to the field leadership and the people that brought them into the company.

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CNBC Senior Stocks Commentator, Herb Greenberg, evoked the expertise of leading MLM attorney, Jeff Babener, in the Commentator’s blog post “How Multi-Level Marketers Dodged a Bullet.”

CNBC – January 9, 2013

In his article, Commentator Greenberg discussed the effect lobbying dollars spent by the Direct Selling Association (DSA) and Herbalife assisted in the exclusion of consultants from the Business Opportunity Rule, enacted by the Federal Trade Commission (FTC).

Attorney Babener’s (editor of www.mlmlegal.com and www.mlmattorney.com) widely read article titled “The New FTC Business Opportunity Rule – MLM/Direct Selling Exemption Recognized” was quoted saying:

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In early December, 2013, the Direct Selling Association released five new direct selling companies that gained membership into the Association. The new members include:

The DSA’s Board of Directors recently approved two new member companies to full members of the Direct Selling Association: K&K Designs and Stream Energy are now full members of the Direct Selling Association and abide by the Association’s Code of Ethics.

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Although AtHome America has not made any official statement on their website, the Direct Selling Association has reported that the company has gone out of business. The phone number posted on the company’s website – 1.800.928.4663 – is no longer active. Apart from the Direct Selling Association’s mention, no other information is available.