FTC vs. AdvoCare: A Teachable Moment for Direct Selling
MLMLegal.com » Network Marketing
by Charity
1y ago
FTC vs. AdvoCare: A Teachable Moment for Direct Selling By Jeffrey A. Babener © 2019 (First Published in World of Direct Selling)   History is Written by the Victor Ring the bells that still can ring Forget your perfect offering There is a crack, a crack in everything  That’s how the light gets in Anthem, Leonard Cohen Quiet Uncertainty It was like the calm of quiet uncertainty before the storm. In May, 2019, 26 year old leading direct selling company, AdvoCare, announced that it would exit MLM in favor of a one level direct sales model. It indicated that it was doing so, and “had no ..read more
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New Video – If I’m a New Distributor Then Should I Focus My Selling In Areas Where Other Distributors Are Successful Or Should I Focus On Untouched Territory?
MLMLegal.com » Network Marketing
by Charity
1y ago
If I’m a New Distributor Then Should I Focus My Selling In Areas Where Other Distributors Are Successful Or Should I Focus On Untouched Territory? Watch this video by expert MLM Attorney, Jeff Babener, for the answer to this complex question. For a full list of videos on the multilevel marketing industry, visit the Video Library. Visit us at www.mlmlegal.com to learn more ..read more
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New Video – What to Expect Working in Network Marketing
MLMLegal.com » Network Marketing
by Charity
1y ago
A Conversation with Jeff Babener Video Series: Multilevel marketing is a mature, professional industry. Choose a company with a good training program. There is an abundance of opportunity in this industry. As in any business, do your homework. Doctors, dentists, along with truck drivers and waitresses are known to participate in network marketing. There is plenty of opportunity for friendly, hard-working individuals. Watch the video. Check out the many educational videos offered by Jeff Babener at the Video Library. Visit us at www.mlmlegal.com to learn more ..read more
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Do Celebrity Endorsements Result in Increased Marketing Results and Sales? Watch this New Video!
MLMLegal.com » Network Marketing
by Charity
1y ago
This Video Explains Which Statement is True: Celebrity Endorsements Improve Marketing or Celebrity Endorsements are a Double-Edged Sword. In the conventional advertising world, celebrity endorsement is very effective. Among the factors for effectiveness includes the fame of the celebrity, the connection with the product or service, whether or not the celebrity is a user and whether or not the statements of the celebrity appear as truly authentic or merely a “pay for endorsement.” The use of celebrity endorsement is far less successful in the direct selling industry. In fact, the advertising m ..read more
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New Video: Current Regulatory Changes are Affecting Network Marketing Companies
MLMLegal.com » Network Marketing
by Charity
1y ago
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 ..read more
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Watch Attorney Babener’s Video on How to Price Your Network Marketing Products for Retail, Distributor and Direct-To-Consumer Sales
MLMLegal.com » Network Marketing
by Charity
1y ago
Your cost of goods is calculated as your acquisition or manufacturing cost. The more frequent question we come across relates to pricing. Most MLM experts agree that you must have adequate margins to pay commissions and to make a profit. Different products and services carry different profit margins. In addition, smaller margins may be satisfactory with high-priced products because there is still room for profit. Most MLM companies are likely to pay total commissions equal to between 30 and 45 percent of the price sold to distributors for resale, or prices for which consumers buy di ..read more
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New Video: If a Sales Kit or Startup Fee Is Several Hundred Dollars, Then Is This Considered “Frontloading”?
MLMLegal.com » Network Marketing
by Charity
1y ago
Front loading generally refers to a process in which a MLM company, or a sponsoring distributor, encourages a new distributor to purchase far more product than is commercially reasonable under the circumstances. Often the “push” is explained to the recruit as necessary to qualify in the plan. This is an unacceptable practice is often one indicia of a pyramid scheme. On the other hand, virtually all regulatory agencies recognize that a purchase of an “at cost” sales kit is an acceptable practice in the mainstream of leading direct selling companies. Such mandated kits are typically in the $50 ..read more
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Direct Selling: The Negatives are Drowned Out by the Positives
MLMLegal.com » Network Marketing
by Charity
1y ago
Sign up for the MLM News Global newsletter for top headlines, news stories, scam alerts, videos, articles, and more information on the network marketing industry. Vocal critics are abundant in the direct selling industry, but the positives drown out the negatives. It’s not hard to find a loud voice criticizing the direct selling industry through a quick Google search. And it is true… there are many pyramid/Ponzi schemes, primarily internationally based, that parade themselves as MLM/direct delling… and they are not. They are merely pyramid headhunting recruitment schemes that often use bogus ..read more
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Have You Signed Up for the MLMLegal.com Newsletter?
MLMLegal.com » Network Marketing
by Charity
1y ago
MLMLegal.com Launches New Newsletter: MLM News Global Sign up today at http://www.mlmnewsglobal.com/. This newsletter offers recent news, videos, company profiles, and weekly articles delivered to your inbox on a timely basis. Each newsletter contains top news stories in the network marketing industry, the most recent MLM scam alerts, timely articles on the direct selling industry, and so much more. Make sure you’re not the last to know about top MLM news stories, or to hear about the latest scam reports. Our timely headline reporting will keep you up-to-date on stories that affect everyone ..read more
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FTC vs. AdvoCare: A Teachable Moment for Direct Selling
MLMLegal.com » Network Marketing
by Charity
4y ago
FTC vs. AdvoCare: A Teachable Moment for Direct Selling By Jeffrey A. Babener © 2019 (First Published in World of Direct Selling)   History is Written by the Victor Ring the bells that still can ring Forget your perfect offering There is a crack, a crack in everything  That’s how the light gets in Anthem, Leonard Cohen Quiet Uncertainty It was like the calm of quiet uncertainty before the storm. In May, 2019, 26 year old leading direct selling company, AdvoCare, announced that it would exit MLM in favor of a one level direct sales model. It indicated that it was doing so, and “had no choice ..read more
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