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Tag Archives: compensation plan


6 Common Reasons Your Startup Is Going to Fail

February 12, 2018

The initial ideas sounded great so the expectations were set so high. The first reactions from the field were also very promising. Products were moving out and the sales force was happy as the members received increasing commissions… for a while. It is not uncommon for a startup in the direct selling industry to have […]

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The New FTC Direct Selling Guidance… Imperfect, But a Good Start

January 22, 2018

Guest author Jeffrey A. Babener, of Portland, Oregon, is the principal attorney in the law firm of Babener & Associates. For more than 30 years, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the U.S. Direct Selling Association. He has served as legal advisor to various major direct selling […]

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10 Common Questions About Compensation Plans

December 11, 2017

Throughout my career within the direct selling industry, I have received many questions on one of the main components of any direct sales business: The Compensation Plan. Some of these questions aimed at understanding what this “mysterious plan” was all about. The intentions behind some others were to have a good, solid, competitive plan and […]

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FTC and Direct Selling Come to the Table as Stakeholders: H.R. 3409

December 4, 2017

Guest author Jeffrey A. Babener, of Portland, Oregon, is the principal attorney in the law firm of Babener & Associates. For more than 30 years, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the U.S. Direct Selling Association. He has served as legal advisor to various major direct selling […]

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An Overview of Direct Sellers’ Compensations

November 6, 2017

Is it possible to make a six-figure income through network marketing? Do all participants earn substantial amounts? Are high-earners so few? How are companies’ commission payouts distributed? Let’s find out the answers in 10 direct sales companies’ own reports. These 10 companies covered in this review are of varying sizes in sales volumes. Unless otherwise […]

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Search for Certainty in Direct Selling: A Legal and Business Rationale for H.R. 3409

October 9, 2017

Guest author Jeffrey A. Babener, of Portland, Oregon, is the principal attorney in the law firm of Babener & Associates. For more than 30 years, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the U.S. Direct Selling Association. He has served as legal advisor to various major direct […]

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Fact-Checking the FTC’s New Legal Guidance

December 12, 2016

Jeffrey A. Babener, of Portland, Oregon, is the principal attorney in the law firm of Babener & Associates. For more than 30 years, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the Direct Selling Association. He has served as legal advisor to various major direct selling […]

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The FTC’s Perspective and the Key Takeaways

November 14, 2016

The participants at the U.S. Direct Selling Association’s Business & Policy Conference a few weeks ago listened to an important speech. The speech was given by the Federal Trade Commission’s Chairwoman Edith Ramirez. It was dedicated to the FTC vs Herbalife Settlement and more importantly, how the Commission would take it from there. Highlights From […]

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Understanding Pyramid Schemes, Ponzi Schemes, and Network Marketing

September 26, 2016

Many articles have been written on this subject. Despite all this, borders between these three concepts remain fuzzy in many minds. This lack of clarity in general public is important because it leads to unfair criticisms pointed out to legitimate businesses. Below I will explain how I differentiate these three ways of making a “business” […]

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FTC v. Herbalife: Post-Settlement Legal Guidance for the Direct Selling Industry

August 22, 2016

This guest post is from Jeffrey A. Babener, the principal attorney in the law firm of Babener & Associates. For more than 25 years, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the Direct Selling Association. He has served as legal advisor to various NYSE direct selling companies, including […]

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