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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Each direct selling company has its own rules about what distributors can say and do on the internet. It is common for MLM companies to closely guard their trademark(s) and the company has the right to regulate the usage of all of their media, whether it appears in print or online.

The internet has opened up incredible opportunities for both MLM companies and distributors. However, at the same time, MLM companies often wrestle with these opportunities. For instance, some MLM companies will provide a location on their homepage for distributors; some will require a link from the distributors’ homepage to the company’s main website. And, in some cases, direct selling companies won’t allow distributors to promote the company’s product or opportunity (compensation plan) on the internet at all. There are two reasons for this. If the company name appears on each distributor’s homepage then search engine results will produce thousands of “hits” on distributors’ websites instead of the company’s homepage. Amid the thousands of searches, MLM companies may be concerned that people won’t be able to find the company’s homepage.

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Why there are Consumer Protection Laws and how they Affect Distributors

Millions of individuals who are going into network marketing are doing so part time. Generally, they are amateurs. They are not professional sales people. They are not manufacturer’s representatives. They are not going to be employed by the company, and therefore, they are viewed as the vulnerable purchasers of an opportunity. And that’s why the opportunity, the business, is regulated by consumer protection statutes; to protect the distributor, the amateur, who is about to be involved in a business.

Making Unauthorized Medical Claims and the FDA – Why Distributors Cannot Make Unauthorized Medical Claims

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