MLM Compliance: The Heroes Who Protect Our Paycheck

by limitlesslaura

I’m sure if you’ve been part of an MLM company or The Network Marketing industry for any length of time, you have heard these words MLM Compliance. If you’re a seasoned networker you know that these are the lawyers who maintain a watchful eye over the rules, procedures, policies and operations of your company, how it is promoted in the public, how the money is distributed, how the copyrights are used, and so on. If it has to do with anything legal, it’s part of compliance.

When you first join a company, you should always read through the policies and procedures thoroughly. Why? You need to know these in case something ever comes up that challenges one of them, or simply is needed as a reference. If you are treating your business like a real business, you look through the policies once a year and read any revisions. There might be changes, updates, and new rules that you must adhere to, and update your distributors on.

Some of the most common mlm compliance issues that have gotten network marketing companies in trouble or even shut down by their State Atttorney’s General are:

  • Over Inflated Income Claims from Distributors
  • Health Claims
  • Front Loading Of Products
  • Compensation Plans That Sell An Opportunity with No Product (A Pyramid or Ponsi Scheme)
  • Compensation Plans That Rely Heavily on Recruiting and very little on Customers if any

Our sponsor sent out a fantastic article this morning from and the very well known mlm industry attorney for our Network Marketing company, Jeffrey Babener.

Click Below To Open The PDF

Ten Common Mistakes Distributors Make

By Jeffrey Babener, ©  1998

“…it’s a question of expectations. And, sometimes those expectations can get in the way of a successful career in the MLM business.”


I goes without saying that we count on our precious paychecks coming (or our debit cards being loaded) week after week, month after month, in our fantastic opportunities. We only have a certain amount of control when it comes to the longevity and successful growth of our companies, and compliance is definitely one of the big ones! Just miss a paycheck, or even worse, have your company close (ouch!) because a group of distributors, or even the executives ruined it for the entire company and you’ll feel how important compliance really is. Adhering to the policies and procedures, walking the line and duplicating those rules with our people will ensure that our teams will grow strong. You have a choice about the kind of leader YOU want to BE and want to attract. YOU have a choice what kind of organization you want to run. We don’t like to talk about this “sobering subject”… the rules, but they are the foundation of our precious company’s longevity. Look at it in a positive way and be a crusader for the long life of your family’s stability.

Two guys who are honest crusaders and watchdogs for the MLM Industry happenings, are Rod Cook with  and Len Clements with You can subscribe to their newsletters and get notified of industry news, and learn more about compliance and this subject.

P.S. Here’s an excellent post by an expert on the subject, my friend Attorney Nancy Burke Barr, also a Network Marketer, a very nice lady, and well known as “Mentor Mama” in the marketing world online  Click HERE TO READ

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I’m a sensitive spiritual, heart centered woman who just doesn’t believe there’s an impossible anything. My joy comes from inspiring growth, and empowering others to bust through their limits. I have fought and overcome chronic illness in my life, and many obstacles while pursuing and living my dreams, with persistence and determination. Mental health awareness and ending the stigma associated with it is a cause that’s very important to me. This blog is dedicated to the beautiful life of Robin Williams and all he gave to the world.

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