MLM: The Lingo of Network Marketing: Terms You Should Know. Part 2
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.
Consumer Protection Statutes - Virtually every state has adopted unfair trade practices statutes. These statutes are generally oriented to deceptive advertising and deceptive representations. Companies that run afoul of other legislation will probably also run afoul of these state statutes.
Downline - All distributors sponsored directly by a distributor, as well as distributors sponsored below by other distributors.
Front-End Loading - A frowned-upon practice in which distributors cause other distributors to buy unreasonable amounts of inventory in order to generate more commissions and overrides.
FTC (Federal Trade Commission) - the government agency that has long regulated this industry sometimes wisely, sometimes overreaching, at one time charging Amway as an illegal pyramid-it lost. The FTC is most concerned about deceptive advertising and lately has been most active in the field of earnings misrepresentations as well as arguing with the industry on the issue of whether "distributor personal use" is a legitimate end destination for products of MLM companies (stay tuned). The FTC's ruling on door-to-door sales, or the "cooling off period" sets the standard for direct sales involving more than $25.
Generation - In a stairstep plan, a person who qualifies to breakaway from his upline, and becomes a first-generation breakaway.
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.