MLM Attorney Jeffrey A. Babener: Guidance on Pyramid v. Legitimate MLM and the Role of Personal Use in Pyramid Analysis

Jeffery BabenerLast week Jeff Babener, like Kevin Thompson before him, wrote a great analysis on the Burn Lounge decision handed out by the 9th Circuit. I believe there is much to be learned fro this decision no matter how one views network marketing if they are willing to study the courts decision.

BurnLounge Appeal Decision:
Guidance on Pyramid v. Legitimate MLM and the Role of Personal Use in Pyramid Analysis

By Jeffrey A. Babener
© 2014

You can read the full article at MLM Legal! Here at MLM Help Desk, I am going to print what I feel are the most important points Babener makes. 

Troy Dooly

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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Does “Freemium” work in the Affiliate or Network Marketing Communities?

Free MembershipOver the last 18 months I have viewed, reviewed and even worked with several executive teams who have plans to launch or have launched a business based on the Freemium business model. Very quickly some have realized the challenges of this type of business model and have survived while others never got off the ground. Based on this experience I decided to write this small piece.

Freemium: The combination of free and premium levels of services.

I would say that over the last ten to fifteen years, and especially in the last five we have seen cloud based, SaaS, PaaS and mobile app development companies dominantly use the freemium business model to launch their platforms.

In most cases there is a small set of free services for basic users, while premium users get additional upgraded services. In several cases, the free users are inundated with ads, while the premium subscribers can opt-out of the ads.

Troy Dooly

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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Is Wikipedia Really Neutral When It Comes To Network Marketing – Do The Wiki Five Pillars Apply To MLM?

Over the last few months I have been studying the Wikipedia site so I could get a better understanding on how to apply it to my own work. Like most I have used Wikipedia for years and like Google classify it as an authority site. However, I have also found that when using Wikipedia I must be very careful to verify ALL the information before I quote any of it. Although they see themselves as a live encyclopedia, they sure aren’t World Book or Britannica.  Here is what I have found…

Troy Dooly

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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Why Do Network Marketing Companies Fail Abroad?

Network Marketing CultureHakki Ozmorali, editor of World of Direct Selling wrote a great article on why network marketing companies have a hard time making it outside of their homeland. He came up with six common denominators on why this happens more often than anyone really wants to admit. 1. Wrong Partner 2. Wrong Local Management 3. Wrong Ex-Pat Management 4. Ignoring Cultural Differences 5. Leaving It To International Leaders 6. Lack Of Proper Supervision I want to focus on just one if the six reasons Ozmorali talks about… Ignoring Cultural Differences!    

Troy Dooly

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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Why Would A New Network Marketing Company Launch With Mulitple Products?

A week or so ago we launched our uTHRiV series talking with the two founders Joe Tessin and Brian Dee. If the first article we covered the real story behind how thee two connected to launch uTHRiV. (click here to read) Today I want to cover why uTHRiV decided to launch with multiple products in four unique segments of the market.

Troy Dooly

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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The MLM Attorney Kevin Thompson: (ARTICLE FEATURED IN SEEKING ALPHA) Battle Over BurnLounge: Both sides claim victory

Below is an excerpt from my article about the Ninth Circuit opinion on BurnLounge.  The article can be read in full over at Seeking Alpha.  It’s an important subject.  Click here to read it.

Summary

  • The Court successfully threaded the needle on the issue of “ultimate users,” essentially creating two classes of participants.
  • The Court provided several factors throughout the opinion to help outsiders deduce the motivation driving consumption. This is especially helpful in assessing $HLF.
  • The Opinion will require the FTC’s pyramid scheme expert to create another analytical framework to distinguish pyramid schemes from legitimate direct selling companies (assuming they need one).
  • The Court adopted the logic provided by the FTC in its 2004 Staff Advisory Opinion.
  • The Court eliminated all confusion regarding Omnitrition as it completely ignored the widely referenced dicta that consumption from participants cannot count as sales to “ultimate users.”

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Richard Brooke: An Education You Can Take to the Bank

Blog 6.16.14

I listen with interest each year, as parents share their angst over the rising costs of sending their kids off to college. It’s not just parents of college-aged kids; it’s a topic on the hearts and minds of nearly every parent at some point. After all, doesn’t a college education guarantee a successful future? After barely graduating high school with a D average (and only after I cheated off my best friend’s Civics final), it was no surprise that college wasn’t in the cards for me. It’s not that I didn’t have the intelligence or ambition. In fact, I wanted the benefits of a lucrative career. I just lacked the patience to muddle through more of what I had just escaped. Sound familiar to any of you?

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