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© 2011 MLMAttorney.com - Sponsored by Jeffrey Babener
According to an article at MSN’s website titled “Queen Elizabeth’s eating habits revealed,” former royal chef Darren McGrady states that Queen Elizabeth enjoys a bowl of cereal every morning topped with fruits or nuts from her garden, which are stored in one of the most popular direct selling products, Tupperware. Perhaps even the Queen of England owning and using Tupperware products shouldn’t be a surprise considering Tupperware was ranked the seventh largest direct selling company in 2010, with $2.3 billion in net sales.
As one of the largest MLM companies in the world, Tupperware operates in over 100 countries and has over two million salespeople.
As one of the largest MLM companies in the world, Tupperware operates in over 100 countries and has over two million salespeople. Tupperware’s top five consumers are Germany, America, Mexico, France, and Australia. The company itself was founded in 1945 by Earl Tupper and grew to be quite competitive with its “burping seal” technology.
The top ten largest global direct selling companies include 1) Avon Products, Inc., 2) Amway,
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The Next MLM Startup Conference Takes Place May 16 and 17, 2013 in Las Vegas
May 16-17, 2013 - $195 (Second Attendee just $150) - Las Vegas
PORTLAND, OR–(Marketwired – May 07, 2013) – For more than 25 years, leading industry experts have educated the executives of starting and existing MLM, direct selling, network marketing, and party plan companies on how to structure their compensation plans, legalize their companies, recruit key employees and top-ranking distributors, develop business models, generate leads, fund their business, establish their website and technology platforms, better understand the direct selling industry, and so much more. View the conference flyer page at http://www.mlmlegal.com/srs2.html to learn more.
This is the original MLM Startup Conference — responsible for launching many industry-leading companies — perfected over the course of a quarter of a century to ensure the highest quality of information, the most knowledgeable experts and the most practical advice from practiced experts.
Over the course of two days, attendees will hear from more than a dozen industry experts who have served as “behind the scenes” advisors to many of the direct selling industry’s leading companies. A full list of speakers and their biographies/credentials can be found at http://www.mlmlegal.com/bio.html.
In addition, the conference will discuss the recent analysis article on the role of “personal use” in pyramid and direct selling analysis: ”Herbalife: What Short Sellers Missed on the Way to the Press Conference… The Personal Use Issue in Pyramid Analysis; Who is an Ultimate User?”
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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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Visit www.mlmlegal.com for your FREE copy of the Starting and Running the Successful MLM Company manual.
Click this image for an up-close view of the manual cover
The “How To” Manual: Starting and Running the Successful MLM Company – FREE (For qualifying executives of direct selling, network marketing, MLM companies only. Click HERE to see if you qualify.)
Some Chapters Topics Include:
Legal Issues
MLM Law in 50 States
FDA Health Claims: The Final Rules
The Snail that got Mugged: FTC v. Direct Selling
Start-up Issues
Incorporating the Network Marketer
Five Dynamics that Drive An MLM Company
Product
Creating Your Next Million Dollar Product
Treasure Hunting for New Products
Compensation Plans
Comp. Plan Conversion: Direct Sales to MLM
Your Compensation Plan’s Competitive Edge
Communications and Media
Focus on the Mission…Not the Commission!
When the Media Calls… Who Answers the Phone?
Some of the Key Corporate Issues included in the manual are:
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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.
The the March issue of The World of Direct Selling‘s newletter, the editors asked, “‘Do you think the direct selling industry has an image problem that needs to be worked on? What makes you think that way?’ was the question we asked some of the experts.” MLM industry expert, Jeff Babener, provided his two cents, as shown below:
Jeffrey Babener, Legal Counsel at Babener and Associates
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“Short term answer: Absolutely. However, as noted by famed Univ. of Chicago economist, Milton Friedman, the future is longer than the present. In the current financial markets furor of hedge fund titans bashing direct selling, with the financial press piling on, a slightly dejected industry should take note that in the ‘big picture,’ it actually isn’t doing so bad at winning the ‘hearts and minds’ of consumers and potential recruits. With some blips, long term image trends are good. In the past two decades, just witness direct selling’s extraordinary international expansion, its emergence on the NYSE and as acquisition target by NYSE companies.”
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 is the companion post to the video: Why Choose the MLM Model for Your Business? – A CEO Interview. Find out what makes MLM, direct selling, network marketing, and party plan business plans desirable to so many CEO and executives.
I believe one thing that is really going to change the climate today and that is if we create a way to support the entrepreneurs of this country.
Babener: It’s my pleasure to be speaking with Kris Krohn, he is one of the Founders of Strongbrook (REIC). When www.mlmlegal.com sponsors conferences in Las Vegas, we often have the CEOs of companies attend because it’s important to know what makes MLM companies great. And, of course, my observation is that nobody starts on top.
Kris: That’s right. Everybody starts at the bottom.
Babener: I’m curious, Kris. Tell me about Strongbrook, tell me about its origins, tell me about the triumphs and difficulties you had in creating this company.
Kris: I appreciate that, Jeff. I’ll tell you, Strongbrook is five years in the making. And, in fact, I can tell you that for the first four years we kept tweaking our formula because we have a very complicated product that produces amazing transformations for people who leverage and use it. And, it took a long time to really dial that in. It came down to very humble beginnings where we started with absolutely nothing. We were encouraged to keep formulating our product in helping people achieve success through real estate investment with the feedback we would get from our clients.
Then we would bring them more clients. And then we would tweak our program so more. And then we’d figure out how to help them successfully purchase more real estate. We learned along the way things like sleep-well-at-night accounts. There’s a certain amount of money that people want to have in bank accounts to feel comfortable. And really, it comes down to an amazing team and culture here at Strongbrook; where everyone works together very, very well. We have a culture of being very hardworking and putting the client first. That is a really short answer for our history over the last four years. It was about a year ago when we finally said, “You know? With this product we have helped over 1,000 people experience some pretty powerful principles, concepts and even financial changes. It has been a major influence in their lives and created some very positive changes.” We decided that we were not going to tweak our formula anymore.
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This blog post is the companion post to the video: Role of Compensation Plan in a Successful Direct Selling Company. The following is the transcript of MLM Attorney Jeff Babener’s own words:
Hi, I’m Jeff Babener of MLMLegal.com. I’d like to talk to you today about the compensation plan. It better be good.
There are obviously significant legal issues in evaluating and implementing compensation plans. Review of the compensation plan a competent MLM lawyer is essential.
Does a compensation plan make or break a startup MLM company? History suggests that a good compensation plan is helpful and absolutely necessary. Does it drive financial success? Probably not. Will a bad compensation plan contribute to failure? Probably, together with other unlucky breaks. As industry expert Michael Sheffield notes with respect to a good compensation plan, “Its absence will be noted more than its presence.”
Is there anything new under as far as compensation plans are concerned? Probably not. The goal is always the same regardless of the type of compensation plan: motivate varying behaviors of distributors, ranging from direct sales, to building wide to building deep, to supporting a downline, to maximizing sales volume production and retention.
It is of key importance is that the compensation plan is easy to explain to recruits and that it is perceived as fair and balanced.
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We are often asked about overall costs of the basic infrastructure for starting and running an MLM/network marketing company. Very good explanations of these components are in articles and videos at www.mlmlegal.com.
However, below we have provided further explanation:
During the first year (not the first month) it is not unreasonable to expect the above four components to be in the range of $100-$200k
MLM/Network Marketing Direct Selling Infrastructure Components
During the first year (not the first month) it is not unreasonable to expect the above four components to be in the range of $100-$200k
Four key infrastructure components are involved in moving forward with an MLM/network marketing company:
- Legal and industry advisor and coordinator of resources (such as our firm).
- Technology… management of genealogies, back office access, replicated websites, communication tools, etc.
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