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(DISTRIBUTOR CHECKLIST TO USE WHEN CHOOSING A COMPANY : MLM Network marketing secrets - is another great article about mlm, multi level marketing and a little about multilevel marketing on DISTRIBUTOR CHECKLIST TO USE WHEN CHOOSING A COMPANY Perspectives from a network marketing attorney whose practice emphasizes distributors rights. By David G. Eisenstein, Esq. Have you ever heard, "I...)

DISTRIBUTOR CHECKLIST TO USE WHEN CHOOSING A COMPANY

Perspectives from a network marketing attorney whose practice emphasizes distributors rights.
By David G. Eisenstein, Esq.

Have you ever heard, "I didn't quit the company, the company quit on me?"

Often, the companies are helped to "quit" by regulators due to glaring weaknesses and outright illegalities in the companies' structures and/or operations. 

Company weaknesses such as failure to emphasize retail sales, assure strong buy-back protection for distributors, prohibit front-loading, and, in particular, earnings misrepresentations by the company and/or its distributors, will continue to lead to regulatory attacks on the legality of such companies' operations.

Now, how can a Networker avoid involvement with companies that will "quit" on them or be forced to stop doing business by regulators?

Before starting with a new company or continuing with your existing company:

1. Do make sure the company has a one year buy-back of products guarantee for at least 90 percent of the purchase price for at least one year contained in its distributor agreement.
2. Do make sure the company actually emphasizes sales to third parties as a part of the company's institutions in place, that it's not just giving lip service to retail sales in its policies and procedures but  it has a track record of retail sales and trains with an emphasis on such sales, and has extremely reliable and highly verifiable ways of measuring these sales.
3. Do make sure the company and its distributors are not involved in front-loading ("garage qualification") in order to qualify distributors for commissions.  Legal network marketing companies require relatively little up front in the way of purchases from their new distributors.
4. Do make sure the personal maintenance requirement is an amount of the company's product purchases which is no more than would be "reasonably" necessary for a distributor and his/her family to comfortably consume each month.
5. Don't sign up with a company which makes, or can't or won't keep its distributors from making, earnings representations which are not fully documented and disclosed as median or average earnings for a particular level of attainment within the company's distributor ranks.
6. Don't make any earnings representations yourself, and that includes waiving that commission check around.  This information is considered inherently unreliable and misleading in that it does not reflect at all on the actual facts of what an average or median earnings figure is for distributors in the company.

Source: Law Offices of David Eisenstein, Esquire. - As a Supplier Member of the Direct Selling Association - DSA - Mr. Eisenstein is available to consult with or represent MLM, network marketing companies with legal needs such as lawsuits in the courts and problems with the FTC (Federal Trade Commission), state AG - Attorney General. Click here for more information