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Herbalife: What Short Sellers Missed on the Way to the Press Conference…
The Personal Use Issue in Pyramid Analysis; Who is an Ultimate User?
An excerpt from the article and link to the full article at www.mlmlegal.com
An excerpt from the article and link to the full article at www.mlmlegal.com.
Déjà vu, all over again … Yogi Berra
History repeats itself.
The 2012 billion dollar short seller attack on Herbalife, a 32 year old NYSE listed direct seller of nutritional products in 80 plus countries with annual sales in excess of $3 billion, is akin to a replay of seminal challenge to the MLM/Direct Selling model, won by Amway in 1979. In the Matter of Amway, 93 F.T.C. 618 (1979).
In the 1970’s FTC challenge, the criticism went to whether or not the core of the MLM referral selling model was a “deceptive” way to market. In the 2012 short seller attack, along with other criticisms, a principal complaint is that evidence of “substantial personal use and consumption” of company products by distributors themselves, renders an MLM/Direct Selling model inherently deceptive and an illegal pyramid scheme.
Memo to short sellers and algorithmic financial bloggers:
It may be time to reassess.
Some very salient facts and cases may well have been missed in the rush to challenge direct sellers.
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At MLMLegal.com, we are continuously working on a project of maintaining over 700 MLM, direct selling, network marketing, party plan company profiles and keeping them accurate and up-to-date. Our unbiased MLM company profiles offer summary information about each company’s founding story, its impact on the MLM industry, products, compensation plan, as well as its growth and sales volume figures.
Please welcome ten new MLM company profiles to MLMLegal.com.
In addition, we work tirelessly to add new MLM companies as they launch into the U.S. and global marketplace. We hope that the simplified MLM company profiles help to provide readers with quick information about individual companies without requiring readers to have to wade through each company’s, sometimes complex, websites and compensation plans/opportunities.
Please welcome ten new MLM company profiles to MLMLegal.com:
SnackHealthy Continue reading »
LydiaStyle
Beauty Society
Rastelli Foods Group – Rastelli Direct
NYR Organic US
YouDazzle
Xplocial
Frezzor, Inc.
Solavei
Nutrazon International, Inc.
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:
Many studies have shown that recruitment is essential to success, particularly studies done by the Direct Selling Association.
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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This blog post was created to bring you all the web pages, videos, and informational material about pyramid schemes vs. legitimate (legal) MLM companies from MLMLegal.com and MLMAttorney.com together in one place, for your convenience. This post is accurate to its publication date. Keep checking www.mlmlegal.com and www.mlmattorney.com for updates on the direct selling industry and pyramid schemes!
Here is a list of all the links within MLMLegal.com and MLMAttorney.com that focus primarily on pyramid schemes.
Videos
Short Course on Network Marketing: Q&A with Jeffrey Babener on Pyramid Schemes
From a Legal Perspective: The Difference Between a Pyramid Scheme and Legitimate MLM
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There aren’t special network marketing laws regarding divorces. The same laws that regulate dissolutions of marriage in each state regulate the fate of a distributorship in a divorce situation. In court proceedings, valuations are placed on the distributorship just as other assets are valued. Network marketing companies, however, commonly ask distributors to inform the company who will be the successor distributor after a divorce.
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WHAT?
The next Starting and Running the Successful MLM Company Conference is quickly approaching! On February 21st and 22nd, 2013 we are hosting the MLM Conference for the 25th year! This is now our 63nd annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener.
MLMLegal.com has worked since 2009 to research, write and collect information on MLM, network marketing, direct selling, and party plan companies in order to compose the “MLM Company Profiles” webpage. To date, there are over 700 active MLM company profiles at MLMLegal.com. The editors of MLMLegal (the website hosted by long-time MLM Attorney Jeffrey Babener of the Law Office Babener & Associates) are constantly updating the profiles, removing companies that have gone out of business and adding newly-launched network marketing companies. Hundreds of MLM companies have come and gone throughout the years, but many have proven they have the longevity to succeed. Visit http://www.mlmlegal.com/profiles/index.html frequently to see for yourself.
We’ve taken the time to organize the hundreds of MLM companies alphabetically and by products sold. Each company profile contains a logo, a brief description of the company’s history, its impact on the industry, an overview of its products, a discussion of the opportunity, and a discussion of the sales and distributor base (if that information is available). These profiles offer a quick way to compare compensation plans between companies or to find a company that offers a unique product that is perfect for your taste. Our research has also shown that no product is immune to direct sales (unless the company has no tangible product at all, in which then you should consider reading about illegal pyramid schemes). MLM companies are selling everything from medical marijuana to maternity products.
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