In 2014, I wrote a prophetic post about the need for network marketing companies to have retail customers. Retail customers are people who buy and are not distributors or consultants of a direct selling company. I called this post The Elephant In The Room. If you can, read it first because, in 2016, the elephant is…
Ask Victoria: What Is The Most Dangerous Thought?
In business, the most dangerous thought is “My problems will go away by themselves.” Unfortunately, wishing problems away rarely works. Fortunately, there is a better way to make your problems go away. We Understand Thinking that the problems will go away by themselves is a topic that we discuss with many of our clients. The…
What Will I Learn At Direct Selling Edge?
The Direct Selling Edge Conference has become the best and most informative two-day school for new and young network marketing and party plan companies. MLM lawyer Kevin Thompson of ThompsonBurton and MLM compensation plan consultant Jay Leisner of Sylvina Consulting invite owners and employees of network marketing and party plan companies to attend their two-day direct…
Ask Victoria: Is There A Legal Requirement For Customer Sales?
Party plan companies don’t ask this question, because almost all of their sales are to customers. If yours is a network marketing company, however, this is an important question to which you need to know both the short and the long answer.
Ask Victoria: Where Can I Send My Employees To Learn More About Direct Selling?
Did you know that the average employee of a direct selling company has never worked for a network marketing company or a party plan company like yours before? This means you have employees who don’t know enough about direct selling. Where can they go to learn what they need to know to make big contributions…
Ask Victoria: What Is The Cooling Off Rule?
As a direct selling company, you need to know about the Federal Trade Commission’s Cooling-Off Rule. There are very specific steps you must follow to be in compliance with this federal law. It’s All About Changing Your Mind If a customer buys something at a store and later changes his or her mind, the merchandise…
Ask Victoria: In Which States Must I Register My Direct Selling Company?
In the USA, most states don’t require that multilevel distribution companies register with them. However, five states require them to file and/or register. If yours is a party plan company, you are still required to file or register if you have a multilevel compensation plan. To be legally compliant in these states, you or your…
The Elephant In The Room – Lack of Retail Customers
One of the elements of a pyramid scheme is the lack of retail customers. Pyramid schemes are illegal. A good number of network marketing companies have few retail customers who aren’t also independent representatives. This is the elephant in the room. In the Omnitrition, Trek Alliance, Equinox, and Burn Lounge cases, courts found problems with…
Direct Selling Edge #5: With Special Additions
Since 2011, MLM Attorney Kevin Thompson and Sylvina Consulting have sponsored the best educational conference for new and young network marketing and party plan direct selling companies. We are pleased to announce the dates for our 5th conference. It will be held in Las Vegas on Thursday and Friday, May 30-31, 2013. This two-day conference…
FTC Closes Fortune Hi-Tech Marketing
The Federal Trade Commission (FTC) works for consumers to prevent fraudulent, deceptive, and unfair business practices. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits unfair or deceptive acts or practices in or affecting commerce. Misrepresentations or deceptive omissions of material fact are deceptive acts or practices that are prohibited by Section 5(a)…
New FTC Business Opportunity Rule
This month, I attended the 2012 Global Regulatory Summit held by the Direct Selling Association in Washington, DC. It is an annual event attended primarily by lawyers and employees of direct selling companies who are responsible for legal compliance. In March 2012, the Federal Trade Commission or FTC promulgated a significant new Business Opportunity Rule known as…
What Is A Pyramid Scheme?
Pyramid schemes are clearly illegal, but what exactly is a pyramid and what is not? In the United States, the Federal Trade Commission is one of the governmental bodies that have the power to shut down pyramids. According to the FTC, one sign of a pyramid scheme is if distributors sell more products to other…