MLM: The Lingo of Network Marketing: Terms You Should Know
An Introduction to Network Marketing
By Jeffrey A. Babener
MLM consultant practice tips. An experienced MLM Legal Expert and MLM Law Advisor may become the most important part of an MLM Corporate team. This person has experienced almost every MLM Business and Legal Issue and will likely provide experienced MLM Insight and guidance on MLM Business and MLM Law Related issues. MLM Legal and MLMLegal.com and Babener and Associates provides expert MLM Consultant and MLM Consulting advise on MLM corporate, MLM software, MLM Compensation, MLM Taxes, etc. MLM Consulting is an important component for MLM startup.
Active Distributor - A distributor whose monthly sales activity qualifies him or her for bonuses or override commissions.
Binary - A compensation plan in which a distributor is allowed one or more "business centers," each limited to two downline legs, and in which compensation is paid on volume of the downline legs rather than a percentage of sales of multiple levels of distributors.
Business Opportunity Legislation - The classic business opportunity statute is California's Seller Assisted Marketing Plan Act (SAMP Act). Companies that offer business opportunities for fees in excess of threshold amounts must comply with this legislation. The majority of states have adopted these statutes. At-cost sales kits are generally exempt under this legislation, but initial inventory purchases are not. Companies should be very careful not to trigger this legislation because it carries civil and criminal penalties.
Buy-Back Policy - Most legitimate companies adopt a policy of repurchasing unsold inventory for a reasonable period of time from distributors who choose to terminate their participation. Typical repurchase is 90 percent of net cost for a period of 30 days to a year.
Co-Op Ads - Network marketing distributors frequently pool ad media money and share the leads generated by ads in magazines, infomercials, etc.
MLM Consultant Practice tips. Proper MLM Capitalization is essential to the MLM Startup and MLM corporate business. The need for capital is in inverse proportion to the ability of the MLM to recruit distributors. MLM Legal and MLMLegal.com and Babener and Associates provides expert MLM Consultant and MLM Consulting advise on MLM corporate, MLM software, MLM Compensation, MLM Taxes, etc. MLM Consulting is an important component for MLM startup. Careful Choice of MLM Software is another component of MLM Corporate. An MLM Consultant and MLM Law and MLM Legal is part of the MLM Startup Team. MLM Compensation must be reviewed by an MLM Consulting standpoint by a MLM Consultant and MLM Legal and MLM Law professional and programmed by a MLM Software and MLM Technology provider.