The Best Sponsor

Ezine Articles -

What Do I Do If My Sponsor Sucks?
You get in and then you get very little support from your upline!

You don't know what to do or where turn and you start to feel like you're in this thing all alone.

Well I'm going to tell you something that I'm guessing you've never heard before!

You're lucky!!!!

Why? (the answer is here...)

Alticor Family of Companies Growing

On The Road With Dave -

Alticor Acquires Laura Mercier/Gurwitch Products
Alticor Inc. today announced that it acquired Gurwitch Products, a luxury cosmetics and skin care company that develops, manufactures and markets cosmetics under the brand name Laura Mercier®, from The Neiman Marcus Group.

Under the terms of the transaction agreement, Gurwitch Products will operate as a stand-alone, wholly owned subsidiary of Alticor, and maintain its current retail distribution channels through high-end department stores and online retailers.

Through its 100 percent ownership of Gurwitch Products, Alticor expects to enhance its insight into the luxury cosmetics marketplace, and leverage combined product development capabilities to realize enhanced growth opportunities in Alticor’s direct sales premium beauty business. With the support of Alticor’s global infrastructure and resources, Gurwitch Products will continue to grow the Laura Mercier business and add to its strong luxury brand portfolio. (more ...)

Don't Take Any Chances

Ochiltree Named CEO of Univera LifeSciences

From MLM Blog -

Oasis - Univera LifeSciences Announcement
Stuart Ochiltree has been named Chief Executive Officer of Univera LifeSciences™ effective today, July 25, 2006.

Bill Lee (ECONET Owner) made the announcement this morning to the staff at Univera West, thanking ECONET CEO and Vice Chairman Derek Hall for his many months of dedicated service and great success as acting CEO of Univera LifeSciences™.

Continue reading ...

Question About Blogrolls

I am hoping that a more educated reader can assist me with a question.

Which is better in terms of linking to favorite or recommended pages?

Blogrolls or line links?

I have mostly blogroll links on many of my pages but I am not sure whether this actually helps me or helps the service. Aside from being able to shift and sort the links and designate those pages that have been updated recently, I am uncertain about the benefit. I have noticed some pages never display an update yet I know the author is making multiple posts each day.

Can anyone help me understand this better?

Thanks.

We're International Baby!

Last week I mentioned the new team blog that I will be offering my contribution. Well, my first post is up today.

Hello Fellow Entrepreneurs -

This is Dave Stone and I wanted to take a quick moment to introduce myself. Let me first extend my appreciation to my host, Martin Lindeskog, for offering to let me make a contribution here and to any further discussions regarding Network Marketing.

Briefly, my background in the profession extends about nine years now. I have been fortunate during this time to have experienced our business from a few different vantage points. Here's the link...

I could be wrong but I don't think anyone is doing something like this. The concept of seeking a group of networkers, specifically from countries around the world, to discuss the business could produce some very interesting results. Given the differences in cultures, regional economics and political philosophy - I am anxious to experience the outcomes from our future discussions.

The Three "A's"

I love this post from re:invention! The author has correctly identified three distinctive characteristics in business in my opinion. Kirsten, great post!

My kind response: "P'shaw. There's a remarkable difference between an activist, an advocate, and an agent."

an activist is a warrior:
By definition, an activist is an individual who uses direct, confrontational action such as a demonstration or a strike in support of opposition of a cause. Activists often have exaggerated and overly negative qualities that make them less credible. They attack rather than portray the positive. Activists willingly burn bras, mark time with hunger strikes, sleep in the rain, and break fingernails. Nothing wrong with that. They have their place in this world.

an advocate is a voice:
By definition, an advocate is someone who speaks, pleads for a cause or on another's behalf. Advocates are interested in pursuing equity and have a clear value base of social justice. Advocacy can change community attitudes and misconceptions, providing a voice for those who have gone unheard.

an agent is a professional representative:
By definition, an agent is someone who is empowered to act as a representative on behalf of another. They have specific professional experience, knowledge, contacts, and training that they can put to work for you to help you achieve your goals. An agent is proactive; they do not simply act in response to their environment, they exhibit goal-directed behavior and take initiative to examine and explore opportunities for others. Here's the whole post ...

Is Upline Support The Key To Your Success?

How many times have you heard someone claim the reason they quit their MLM business was because they didn't get "upline support"? I dare say, this is perhaps one of the top five reasons people give for their lack of meaningful achievement.

I realize that what I going to discuss may rub some people the wrong way but .....

Unless you have been sponsored personally by the CEO or Owner of the company you are representing, claiming a lack of upline support is probably not a fair indictment. Now, in some companies, certainly one that I was involved with early in my experience, reps are corralled within "lines of sponsorship". The utilization of the LOS loyalty helps to control the flow and source of information which that leadership wishes to flower upon the downline. Some may recognize this as the "mushroom" effect. Keep them in the dark and spread crap all around them.

In this type of organization I would agree that there would be a greater likelihood of being abandoned by your upline. Where adherence to following the chain of command, so to speak, is taught as being "on system", the resilience of the business structure is susceptible for blow-outs.

But let's return to the majority of the companies in Network Marketing. You know, the one's where you are truly an independent business owner? The teams where they don't dictate an entrenched and outdated "system" that has long ago proven itself ineffective.

In these "real" networking companies, you are provided the contact information and access to many people upline. This list may even extend to the highest levels with the corporation. If you have the phone numbers of anyone in your upteam (other than your sponsor), you have the ability to secure the support you require. Unless you have persevered and sought your solution by calling "up" as far as you can, is if fair to blame the upline entirely?

We have a chance to make great associations and friendships within our business. Remember though, for most of us, it is still a business. If you embark on your path to create a legitimate and profitable business at the beginning, are you establishing yourself as an independent business owner or an obedient hobbyist?

Waiting For Comments Update

I have been checking for updates at the FTC comment site this week but .......nothing. I'll post the total registered comments when they are updated.

An International MLM Blog

I received an invitation to join a team blog to discuss MLM earlier today. What's cool about this opportunity is that the members of the blogging group reside in locations around the globe. Not only that, the members of this MLM blogging group do not all share a common organization affiliation.

The man putting this team together is Martin Lindeskog.

I have been a regular reader of Martin's site named, EGO since I first began blogging a couple of years ago.

EGO is a blog by an individualist located in Gothenburg, Sweden. The blogger is interested in philosophical ideas and he is an American in spirit.

Martin had recently decided to blog his MLM. My good fortune began when I had the chance to talk with Martin a few weeks ago. It was then that we briefly touched on the idea of forming an international team blog discussing MLM. I am honored to be included in this group. The site is Martin Lindeskog Market. (Check out the acronym.... M.L.M.)

Similarly, at Home Business Today, author Aaron Cook announced that he would be contributing to the MLM Blog, started by friend Ty Tribble.

My Comment

Here is a copy of the comment letter I submitted to the Federal Trade Commission. Realizing that there are several form letters in circulation, I opted to comment without a point-by-point articulation.

David Stone
(address removed)
Dave_S@mlmtoday.info

Dear Sir or Madam:
I am writing this letter because I am concerned about the proposed Business Opportunity Rule R511993. I believe that in its presented form, it could prevent me from continuing as an independent business owner and destroy my small business.
I have been an independent business owner in Network Marketing for almost 9 years. During this time, I have represented several different marketing companies. I have also been fortunate enough to have held an executive position with one networking organization. I have also spoken at training seminars, publish and contribute to several online journals on topics related to home business.

Originally, I started my Network Marketing enterprise for access to exclusive and exceptional products that would also allow me to earn some additional money. Now my family, along with other families within my company, is dependent on this extra income to supplement our budget. For many people, a home business in Network Marketing provides an ethical and viable means of income, the ability to contribute to the community at large, to exercise more control to affect the quality of life for themselves and others, and, for some, a home business represents a last hope. Please don't destroy my ability to provide this hope to others. It is sorely needed, perhaps more today than ever.

In my opinion, the component sections in the proposed rule would make it hard or almost impossible for me, and others, to market my products (and - or services).
With all due respect to the challenges faced by the Commission, the Board members and regulators, the adoption and inclusion of the Business Opportunity Rule R511993 and the proposed component sections will produce profoundly negative and irreparable consequences. I join others in the profession with their concerns regarding the impact the proposed action.

There already exists a history of FTC enforcements actions which demonstrates that the Federal Trade Commission has the current authority, mandate and capability to attack fraudulent and deceptive practices.

Sincerely,

David Stone

Update:Here is the link to the FTC Public Comment section on the Business Opportunity Rule R511993. This list is current only through June 30, 2006.

2nd Update:After viewing the list of current comments at the FTC site, there are 1527 comments recorded. My comment tracking number is 522418-10490. If I read it correctly, that would suggest there are nearly 10,500 comments on file. If you intend to weigh in, the opportunity to comment ends tomorrow, July 17, 2006.

Ghost of business future?

2 days until the comment period ends.

The "End of Network Marketing?" email

I am subscribed to a few marketing newsletters. One newsletter I receive is produced by Chris Zavadowski. In the email I received today, Chris wrote about the reaction by some to a recent mailing covering the pending Federal Trade Commission action. I contacted Chris and obtained permission to post it here, in it's entirety with the only condition that I leave any linking in tact, which I have done.

I thought it an interesting email. Chris doesn't hold back in offering his perspective of the issue.

Hi Dave,

Wow!

Thursday's newsletter has ignited a firestorm of messages coming into our office!

We've received everything from copies of powerful letters people sent off to the FTC...to nasty letters...to everything in between.

One former subscriber even got pissed off that I was using the article to sell my book....BUT the only problem is: I *do not* have a book...and there wasn't any pitch or offer in this article! (Guess he didn't actually *read* my
article.)

Now, if you haven't read the 100% content, and 0% pitch article, called "The End of Network Marketing?" (notice the QUESTION MARK), then check it out here to see what has everyone ignited:
http://www.instantmlmsalesletters.com/freedomatrisk.html

Keep in mind it's part of my regular newsletter, and the regular newsletter has everything from goofy adventure videos to announcements on new resources, f'reebies, etc.

Remember, I've lived in the DC area for 23 years, worked in DC, and grew up with a Dad who was a registered lobbyist.
I'm not totally clueless about how DC works. ;)

Anyway, we did receive some excellent emails, from people like Mary out in Texas who sent us a copy of her
*excellent* letter to the FTC. (Nice job, Mary!)

While some sent in great emails, others yesterday just showed off their ignorance about what's happened in our country with the FTC and regulations. (My apologies to people in other countries...I'll get to you in a second.)

Keep in mind my article is discussing what WILL happen, if the proposed rule is passed as it currently exists....which is exactly why we need to take advantage of the open comment period the FTC makes available.

Truth be told, regulations like this have already passed, as I pointed out in the beginning of the article. And there are more anti-business rules and laws being brought against small businesses all the time.

One of the things that keeps them at bay is people like YOU and ME who voice our opinion. The USA was founded on public comment and citizens taking an active role in the process.

If no one voiced their opinion...it's very likely laws like the one I wrote about yesterday *would* pass as is.

If you thought yesterday's email was a "sky is falling"
email, then you clearly didn't read everything I said very closely.

Look at the facts:

1) MLM has *already* been regulated and attacked by the FTC (in fact, look back to the 1975-1979 battle our industry had with the FTC).

2) The rule *is* on the table, and what I said would happen
*will* happen if it is passed in its current form. It's impossible to argue that.

3) And most importantly...if this wasn't something to be worried about, then why would *EVERY* direct selling organization (DSA, MLMIA, etc.) and some of the BIGGEST network marketing companies in the world be rallying their troops to send in comments about this?

Some are even providing sample letters to send and having keynote speakers make presentations on this. And many "legal"-related email lists for our industry have been talking about this very seriously.

To think this isn't a very real threat and something that threatens your livelihood is a dangerous, and inaccurate, assumption to make. People who were appointed politically
(*not* elected) are now trying to pass more regulations that will directly effect your networking profits.

Now, for those in other countries - it's likely many of this does not apply to you. BUT, if your company is based in the USA, then don't think that you won't feel a ripple effect of any regulation that passes. You will.

That's why, I highly encourage everyone to re-read my newsletter below, especially the article about all of this.

I provided many other resources for you to investigate which will show the much larger implications from what is happening in the government right now. (Especially check out the MLMIA link and Jonathan Emord recording.)

Here's the site again:
http://www.instantmlmsalesletters.com/freedomatrisk.html

Will it pass as is? Probably not, because every organization in our industry has been rallied against this, along with thousands of educated networkers who realize they need to speak up.

But will some version of this pass? Maybe.

And the next possible target? Online businesses (it's already happened before), reprint rights sellers and more.
If they can successfully pass rules like this in one industry, it becomes much easier for it to spread to another industry.

That's exactly why we need to voice our opinions and speak up NOW. Let these appointed "quasi-lawmakers" know what their idiotic, uneducated rulings would do to our businesses.

I've done everything I can to bring the facts, information and resources to your attention. The rest is up to you!

To your success,

Chris :)

P.S. - Again, check out the article and read all the details at the links I provided and then decide for yourself if you want to get involved. But to think that your liberties and freedoms aren't threatened every day is simply naive. Don't make that mistake.

Take an active role in the process and in defending your industry and business lifestyle!

P.P.S. - Regardless of what you do, I hope you all have a great weekend! I'm heading out on the water, so let's hope the weather holds out. :)

P.P.P.S. - Be sure to click the "COMMENTS" link on my blog and let me know what you thought about the recent newsletter (especially the "crazy adventures" video I made for you!).

http://www.instantmlmsalesletters.com/freedomatrisk.html

By The Way

3 days left until the July 17th comment deadline if you are intending to share your opinion with the Federal Trade Commission.

I will be posting a copy of my letter tomorrow Sunday.

Sorry, I should have added the link for comments. Here it is now.
https://secure.commentworks.com/ftc-bizopNPR/

Between The Lines

A couple of days ago, I published the official statement from the Federal Trade Commission regarding the pending R511993. There was one paragraph that I could not get out of my mind. Here is the paragraph:

The FTC has brought more than 200 enforcement actions against business opportunities using the Franchise Rule since it took effect in the 1970s, and numerous cases against work-at-home and multilevel marketing companies under Section 5 of the FTC Act. Since 1995, the Commission has conducted 12 sweeps on business opportunities.

Here's what bothers me about this statement within the context of the next actions the FTC wishes to embark.

The agency was intended to safeguard the public and maintain, at minimum, the ethical conduct of businesses. Through it's history, the Feds have created many, many, many, (get my emphasis?) rules and regulations advertised to achieve some level of confidence in the public perception.

If the profession of Network Marketing is so replete with fraud and unscrupulous shysters, why have there only been "more than 200 enforcement actions" since the 1970's?

If the best recommendation by the FTC today is to presume guilt of ALL those promoting a business opportunity and introduce extremely damaging regulations, why have there only been "12 sweeps on business opportunities" in the past 11 years?

The action brought by the Federal Trade Commission to address what is being advertised as a pervasive condition, in my opinion is the equivalent of trying to kill a fly with an F-22 fighter. There is no questions that it is easier to levy fines than it is to prove guilt.

Part of my reservations of this issue lies in the inclusion of ALL that market their business opportunity with honesty and integrity and are considered on equal footing with those that are truly screwing people. The honest business person, the family seeking a way to improve their quality of life or just earn enough to stay a step ahead of their debts; these are the people that will be hurt by R511993 as it stands today.

A Bumper Crop

Time to pick up that old garden weasel. This post from Ty Tribble at MLM Blog outlines what may well be the beginning of the end for the hidden agenda of tools.

MLM Blog -

The Quixtar Tool Garden
I am a big fan of posts under 100 words in length, but I feel that it is important to get all of this in one post. So here we go.

Based on some information that I have gathered over the last couple of weeks, I believe that the Quixtar Tools Garden is about to be weeded.

I'll walk you through what I mean...
Read this post ...

Ty, in addition to this being perhaps one of your best posts, it is sure to also be the longest. :)

Your Federal Trade Commission

Four days left to record your comments regarding the pending Business Opportunity Rule. In the meantime, the FTC web site provides some personal background of the five members.

Federal Trade Commission -

The current Chairman and Commissioners are: Deborah Platt Majoras , Pamela Jones Harbour, Jon Leibowitz, William E. Kovacic, and J. Thomas Rosch.

At the site, there are many resources as well as a section about the history of the FTC.

FTC - Official Statement Regarding Business Opportunity Rule

I am including the complete press release from the Federal Trade Commission Consumer web site. This statement was issued on April 5, 2006.

FTC Proposes New Business Opportunity Rule

The Federal Trade Commission is proposing a rule to protect consumers from bogus business opportunities and further enhance law enforcement efforts in this area. The rule would cover business opportunities commonly touted by fraudsters, while minimizing compliance costs for legitimate businesses. Currently, the FTC brings law enforcement actions against fraudulent business opportunities under two laws, the Franchise Rule and the FTC Act. Neither is specifically designed for the unique scams that occur frequently with business opportunities.

The FTC has brought more than 200 enforcement actions against business opportunities using the Franchise Rule since it took effect in the 1970s, and numerous cases against work-at-home and multilevel marketing companies under Section 5 of the FTC Act. Since 1995, the Commission has conducted 12 sweeps on business opportunities.

The proposed rule would eliminate the $500 minimum investment requirement from the Franchise Rule, meaning it would apply to all business opportunities, even if they have a smaller start-up cost. The proposed rule also would eliminate many of the 20 disclosures that are required for franchises (trademarks, for example), but do not apply to business opportunities. Instead, the proposed rule would require a one-page disclosure addressing five items: whether or not sellers make earnings claims; a list of any criminal or civil legal actions against the seller or its representatives that involve fraud, misrepresentations, securities, or deceptive or unfair trade practices; whether the seller has cancellation or refund policies and such policies’ terms; the total number of purchasers in the past two years and the number of those purchasers seeking a refund or to cancel in that time period; and a list of references.

The proposed rule would not require any business opportunity seller to make an earnings claim. However, if they did make an earnings claim, they would be required to provide additional substantiation in the form of an “Earnings Claims Statement.”

The proposed rule also would prohibit unfair or deceptive practices that are common among fraudulent business opportunity sellers, including:

* misrepresentations about the material terms of the business relationship;
* the use of shills;
* misrepresentations of endorsements or testimonials;
* failure to honor territorial protection guarantees; and
* failure to honor refunds.

The proposed rule takes into consideration the comments from the Advance Notice of Proposed Rulemaking issued by the Commission in 1997. The Commission is seeking comment on the proposed rule for 60 days after the Notice of Public Rulemaking is published in the Federal Register, followed by a 20-day period for rebuttals. The comment period will close on June 16, 2006, and the period for rebuttal comments on July 7, 2006. Comments should be addressed to the FTC, Office of the Secretary, Room H-135, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC is requesting that any comment filed in paper form be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions.

The Commission vote to approve a notice of proposed rulemaking was 5-0.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint in English or Spanish (bilingual counselors are available to take complaints), or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov/ftc/complaint.htm. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

MEDIA CONTACT:

Jacqueline Dizdul
Office of Public Affairs
202-326-2472

STAFF CONTACT:

Steven Toporoff
Bureau of Consumer Protection
202-326-3135

(http://www.ftc.gov/opa/2006/04/newbizopprule.htm)

DSWA Weighs In on R511993

With only five days remaining to submit comments regarding the Federal Trade Commission proposed Business Opportunity Rule (R511993), here is a clip from the Direct Selling Women's Alliance (DSWA) FAQ page.

Direct Selling Women's Alliance -

#2: What does this proposed rule mean for distributors?
The required disclosure and earnings statements and the required list of all distributors who have cancelled their distributorship in the previous last two years may cause the sponsoring process to become cumbersome and difficult.
These requirements may create unnecessary alarm and concern about the legitimacy of the profession and your business opportunity to prospective distributors.
The proposed seven day waiting period between receiving the disclosures and enrollment would likely cause a potential distributor to lose their enthusiasm for joining your company.
The costs of complying with the requirements would increase expenses to the company which may be passed on through the selling price of goods or services we offer.
In fact, the very nature of this ruling is evidence that the FTC does not truly understand that the vast majority of distributors conduct business ethically and honestly every day and that such a ruling threatens the livelihood of these individuals.
Is it right that the more than 13 million independent distributors be wrongfully penalized because a very few people have caused the FTC to look negatively at our profession? No!
More FAQ's ...

If you wish to submit your comments to the Federal Trade Commission on this matter, here is the link:
https://secure.commentworks.com/ftc-bizopNPR/
The deadline for comments is July 17, 2006 and you may post your objection or support at the link listed and/or via mail. Here is the address for mailing your position:

Send your letter to:
Federal Trade Commission/Office of the Secretary, Room H-135 (Annex W)
Re: Business Opportunity Rule, R511993
600 Pennsylvania Avenue, NW
Washington, DC 20580
RE: Business Opportunity Rule, R511993

*Note: Two copies of the letter need to be sent if sending via US Postal.

Watch The Skies

I had a visitor today.
The url contained a .gov extension(?) and entered through a google search containing "business opportunity rule" ftc congress".
I am considering starting to post here via email.


Update: 7/13/06

VISITOR ANALYSIS
Referring Link http://www.google.com/search?hl=en&q=FTC%27s proposed %22Business Opportunity%22 rule %2816 CFR Part 437%29.&btnG=Google Search
Host Name housegate10.house.gov
IP Address 143.231.249.141
Country United States
Region New York
City New York
ISP Information Systems U.s. House Of Representatives
Returning Visits 0
Visit Length 2 hours 39 mins 3 secs

Upside / Downside

This snip from a Work At Home Dad site. The author offers some initial explanation of what distinguishes a legitimate biz-op vs. pyramid. I have clipped his summary of what he feels are the positive and negative aspects of a network marketing business.

Dads Connect.com

The Benefits Of MLM:

Successful MLM companies understand the importance of training their distributors and creating systems that assist their distributors in making sales and building their businesses, online and off. With A good MLM company, you receive support from your upline (the person that originally brought you into the company) as well as the company itself.The systems provided are usually easy to follow and duplicate with little technical skill.

The Downside of MLM -

There are two main downsides with MLM, the main one is that a lot of people have misconceptions about what it really is. Many people want to lump true, legitimate multi-level marketing companies with the illegal scams and pyramids. Fortunately, as the growth of MLMs online has expanded - this myth is being quickly reversed, as ordinary people are changing their lives through network marketing online!

The second issue? MLMs DO require a monetary, and usually ongoing investment. But don’t let this deter you - some of our most successful ventures have had very minimal expenses, and most of them are for products and services that we spend money on monthly anyway. The expense was already in our budget - but now we have the added benefit of building a business with those dollars at the same time!
Full post ...

Top of the Heap

At Network Marketing for Women, author Kim Klaver has compiled a list of the Top 50 Network Marketing companies. The list is based on internet popularity as determined by Alexa. I'm not going to steal all of Kim's thunder but here is part of the list from her post.

The bottom 10 from the list of Top 50

40. Pharmanex 73,875 -1
41. Neways 74,225 -1
42. Nikken 75,780 -6
43. Immunotec 84,985 -1
44. Nature's Sunshine 86,022 -3
45. Unicity 87,498
46. Send Out Cards 91,091
47. Young Living 94,947
48. Life Wave 101,071
49. Vita Mark 115,277
50. Reliv 117,186

NOTE: This list does not include affiliate programs. No enroller sites, landing pages or distributor websites. No shopping discount programs if they are not really network marketing. We correct and update errors as we find them.

If a company has gone up or down in rank, we indicate the change as + or -. Those whose ranks did not change have no mark...
Check out the complete list at Kim's site.

Top Earnings

I found this item on a search. This article was written in 2003 but I am sure the numbers have not changed very significantly.

Who gets paid six figures?
Six-figure jobs aren't always easy to come by, but they're out there.
September 9, 2003: 4:48 PM EDT
By Jeanne Sahadi, CNN/Money Senior Writer

NEW YORK (CNN/Money) – When it comes to "making good money," what's considered "good" is usually relative – to what those around you make, to the cost of living in your area, or to your preconceived notions of what "good money" means.

But usually the phrase "six figures" connotes "good" in most circles, even downright "great" if you make your Benjamins in places outside of high-cost areas such as New York and San Francisco.

Those making six figures are very definitely in the minority nationwide. Only 4.2 percent of U.S. workers with earnings reported making $100,000 or more in 2001, according to the latest data from the Census Bureau. The median annual wage, meanwhile, was $26,002.
Continued ...

Equalization of Opportunity?

Is it reasonable to maintain an expectation of success with every opportunity? We certainly hope that we will prevail in any endeavor we undertake but the reality is that this will not occur. Why?

Obviously, some opportunities are better than others. Fairly clear, right? Among rational thinking people, this would be a given but I am finding there exists a mindset that an opportunity cannot be valid unless it contains some form of guarantee. I spend a fair amount of time working with cold market leads and I have encountered more than my share of people seeking that form of reassurance from me.

I have commented in several posts about the pending FTC rule this past week. As I visit other sites, I am honestly surprised by few things I have discovered.

• First, there is an almost apathetic reference to the pending rules by those that claim to be the "ambassadors" of the profession.
• Second, the comments by some that had not achieved their goals within a particular company suggest some form of retribution is their pursuit.
• Third, the myopic view of some networkers willing to accept these rules incrementally.

To those that support the Federal Trade Commission's attempt to equalize all business opportunities, I have this question;

Exactly, how will these new requirements improve the likelyhood of anyone's success in a home based business?

Fifty-six

In honor of the 56 that risked everything. Here are some thoughts from men of the day.

They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety.
Benjamin Franklin (1706-1790)

Liberty cannot be preserved without a general knowledge among the people, who have a right…and a desire to know; but besides this, they have a right, an indisputable, unalienable, indefeasible, divine right to that most dreaded and envied kind of knowledge, I mean of the characters and conduct of their rulers.
John Adams (1735-1826)

While Gen'l Howe with a Large Armament is advancing towards N. York, our Congress resolved to Declare the United Colonies free and Independent States. A Declaration for this Purpose, I expect, will this day pass Congress...It is gone so far that we must now be a free independent State, or a Conquered Country.
Abraham Clark (1726-1794)

An Independence Dedication

I have been given to thinking recently about a man who had been a mentor to me beginning in the early 1980's. His name was Mark Scott. Mark was a talk radio host in my hometown of Detroit and I began listening to his show about 1981. I learned a great deal through the information and guests he had on his show. Most importantly, Mark stressed doing one's own research and form your opinion based on the best available information at your disposal. Unlike many talk show's today, Mark Scott did not want listeners to be lemmings.
Mark Scott passed away in April 2005.

There were two particular sayings that Mark would use that I have adopted as my own. For those that may have communicated with me via email, I close with the exclamation,
"Excelsior" a statement that Scott would use to close his show. The other was an expression that he probably did not create but was very significant.

With this being the 230th Anniversary of the US Declaration of Independence, I share this now, in honor of the man who passed before and all those, particularly the 56 signers of the document we should hold dear. Those that pledged their lives and their fortunes to the prospect of achieving freedom for all peoples of the United States or be hung in the gallows; and to those that love their freedom as they do their last breath of air -

"I love my country .... but I fear my government."


Mark Scott 1936-2005

MLMIA Retains Jonathan Emord

Here is an audio post from the Multi-Level Marketing International Association (MLMIA) web site. The speaker is attorney Jonathan Emord, who has been retained by the MLMIA in the matter of FTC R511993 and, I am certain, the legal challenges that will undoubtedly result if the commission moves forward with the provisions as they stand today.

Mr Emord is no stranger to legal matters involving this agency and other appointed boards in our US government. Here is some bio information from his firm's web site.

Emord & Associates, P.C. is an "AV" rated law firm (Martindale-Hubbell rating service) located at 1050 17th Street, N.W., Suite 600, Washington, D.C. 20036 and at 1800 Alexander Bell Drive, Suite 200, Reston, VA 20191. The firm represents over 400 dietary supplement designers, manufacturers and distributors; food manufacturers and distributors; scientists; physicians; nutritionists; health care associations; and citizen groups.

The firm’s attorneys represent clients in constitutional and administrative law cases before the Food and Drug Administration, the Federal Trade Commission, the Department of Justice, the Department of the Interior, the Bureau of Land Management, the National Park Service, the Equal Employment Opportunity Commission, the Environmental Protection Agency, and the Federal Communications Commission.

The firm's attorneys also represent clients before the federal courts.

Jonathan Emord spoke recently at an MLMIA convention on the topic of the proposed Business Opportunity Rule as well as issues pertaining to the Food & Drug Administration (FDA). This speech runs just over 72 minutes, most of which, Mr Emord discuss the pending FTC issue. Here's the link - Federal Regulation of Network Marketing

FTC Statement - May 1998

I have been researching for information that documents the total number of "successful" prosecutions of pyramid-schemes by the Federal Trade Commission. I did locate this statement by Debra Valentine, then General Counsel for the FTC. This statement was issued on May 13, 1998. It outlines the history of the agency, defines pyramids, discusses "landmark" cases and details the recent activities of the agency at the time of this statement. You can read the entire statement - HERE.

I have selected a section that I think correctly identifies that the solution lies in education, both the public and the business owner.

Consumer Education

Law enforcement is the cornerstone of the Commission's fight against pyramid schemes; however, we also try to educate the public so that they can protect themselves. In our educational efforts, we have tried to take a page from the con artists' book and use new online technology to reach consumers and new entrepreneurs. For example, on the agency's web site at "www.ftc.gov", the Commission has posted several alerts regarding pyramid schemes and multilevel marketing problems. The Commission records over 2 million "hits" on its home page every month and receives several thousand visitors on its pyramid and multilevel marketing pages.

The staff of the Commission also has posted several "teaser" web sites, effectively extending a hand to consumers at their most vulnerable point -- when they are surfing areas of the Internet likely to be rife with fraud and deception. The "Looking for Success" site is one example. It advertises a fake pyramid scheme. The home page of "Looking for Success" promises easy money and talks in glowing terms about achieving "financial freedom." On the second page, the consumer finds a payout plan common to pyramid schemes, as well as typical buzz words like "forced matrix," "get in early," and "downline." Clicking through to the third and final page in the series, however, brings the consumer to a sobering warning: "If you responded to an ad like this one, you could get scammed." The warning page provides a hyper-text link back to FTC.GOV, where consumers can learn more about how to avoid pyramid schemes.

A Picture Is Worth $1000 Fine?

Pictured below are items that the proposed Business Opportunity Rule - FTC R511993 consider to be an income claim. Here is a link to the pending action - https://secure.commentworks.com/ftc-bizopNPR/notice.pdf
see page 13 for the following,

Proposed section 437.1(h) would define the term ‘‘earnings claim’’ as ‘‘any oral, written, or visual representation to a prospective purchaser that conveys, expressly or by implication, a specific level or range of actual or potential sales, or gross or net income or profits.’’120 It is intended to cover all variations of earnings representations that the Commission’s law enforcement experience shows are associated with business opportunity fraud.

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Continuing -

The definition also provides examples of communications that constitute earnings claims. The first of these examples is taken from the UFOC Guidelines’ description of common types of potentially fraudulent earnings claims: ‘‘a chart, table, or mathematical calculation that demonstrates possible results based upon a combination of variables.’’ UFOC Guidelines, Item 19, at i.121 This is intended to clarify that sales matrixes that purport to show income from an array of ‘‘vends’’ per day from a vending machine, for example, would constitute an ‘‘earnings claim’’ under the proposed Rule.122
The second example incorporates the principle, as expressed in the Interpretive Guides to the Franchise Rule, that ‘‘any statements from which a prospective purchaser can reasonably infer that he or she will earn a minimum level of income’’ constitutes an earnings claims. Such implied claims are at least as likely to mislead prospective purchasers as express claims. The proposed definition includes three specific examples illustrative of this type of earnings claim, as follows: ‘‘earn enough to buy a Porsche,’’ ‘‘earn a six-figure income,’’ and ‘‘earn your investment back within one year.’’ 123 Each of these three illustrative examples imply a minimum value—the cost of the lowest priced Porsche in the first example, at least $100,000 in the second, and an amount equal to the purchaser’s initial investment in the third.124 Accordingly, the proposed language makes it clear that these types of representations are indistinguishable from direct, express earnings claims.

Essay on Independence Day

Here is a copy of an email I received today. Though it is not related to MLM, it is within the topics I have been writing recently.

Birthday Blips: Are Americans Really Free & Equal?
[This commentary appeared in the Washington Times on July 3, 2006.]

Birthday Blips
by Edward Hudgins

On July 4 we celebrate the creation of the United States of America. Our birth certificate, the Declaration of Independence, reads, "We hold these Truths to be self-evident, that all Men are created equal." It states that we're each endowed with "certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of Happiness." It concludes that "to secure these Rights, Governments are instituted among Men, deriving their just Powers from the Consent of the Governed."

Most Americans give lip service to these sentiments. But how many of us understand what these words really mean? Equality? Rights? Americans in spirit must hold these principles in their hearts and minds, and use them as guides in society. So it's appropriate to take a few minutes to reflect on what our Founders meant when they created the opportunity for this annual occasion of families, friends, picnics and fireworks.

Let's start with the concept of equality. The Founders understood that equality does not mean that we're identical in any of our many particulars. In fact, "equality" seems a paradoxical term to use, since a guiding principle of those Founders was individualism. See for a moment what they saw. Look around you. Everyone you know is different from everybody else. We all look different. We're male and female, blond, brunette and redhead, tall and short. We have different capacities, temperaments, likes, dislikes, goals and aspirations. So where is this equality?

A hint is found in the fact that the most important things that distinguish us from one another are not accidents of birth. As philosopher Ayn Rand put it, "As man is a being of self-made wealth, so he is a being of self-made soul."

Therein we find our real equality. We each have a free will and rational capacity to direct and take charge of our own lives. We are all creators. We can and must produce the means for our physical survival -- we grow food; build houses; drill oil wells; manufacture trains, planes and automobiles; write novels, poems, screenplays and business plans; discover cures for diseases and the secrets of the universe. But our most important creations are our moral characters and intellectual habits. These allow us to do all those other things. As writer William Ernest Henley put it in his poem Invictus, "I am the master of my fate; I am the captain of my soul."

Sure, some might do better in certain areas and pursuits than others. But all of us are equally human, equally dependent on our choice to think and to reason in order to live and flourish.

That brings us to the concept of rights. We all potentially benefit in society with others. As we all pursue our self-interest to the best of our abilities, we enrich, entertain, educate, enlighten and inspire one another as well. But this will only be the case if we respect the equal rights of others -- that is, if we deal with each other based on mutual consent.

The Founders really meant it when they said "the pursuit of happiness." You do not, for example, have the "right" to a house that might make you happy. That would entail violating the equal rights of others, forcing someone else to turn over their house to you, to build one for you or to pay for one for you. But you are at liberty to earn the money to buy a house by producing goods and services and trading them with others.

That brings us to government. The Founders were quite clear that governments are supposed to protect those equal liberties. And if you look around, you see governments have strayed far from this purpose because too many Americans have forgotten the true meanings of "equality" and "rights."

So as you enjoy yourself on Independence Day, look around at your friends and neighbors. Remember that you find your equality with them in the fact that you and they are human beings, unique individuals with your own wills, purposes and wonderful possibilities. And remember that you and they should have liberty to live your lives as you see fit. And remember that if you want to continue to enjoy those liberties, you had better understand the need to rein in the government and return it to the limited purpose of those foresighted Founders.

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Edward Hudgins is executive director of the Atlas Society and its Objectivist Center, which celebrates human achievement.

The Atlas Society & The Objectivist Center

FTC - R511993 vs Do Not Call

Is the Federal Trade Commission actually encouraging the violation of the "Do Not Call" program with the mandatory submission of names and PHONE NUMBERS provision of the proposed Business Opportunity Rule?

The courts have already ruled that individuals have a right to, essentially, control who calls their home phone. Unless there is a previous business relationship with the caller within the past 18 months, solicitation calls are strictly forbidden with substantial FINES to be levied for each violation.

For the names of people that will appear on this proposed references list, there is no such relationship with the parties that may place these calls.

Failure to provide the names on the reference form = $ collected for the Federal coffers.
Violating the Do Not Call = $ collected for the Federal trust.

Winners = US Government
Losers = US citizens
(or Business As Usual)

Belated Anniversary for MLM Today

Earlier today, I was asked how long I have been writing this blog. My answer was that I started MLM Today about two years ago, despite some long posting gaps and page design changes. From my own curiosity, I went through the page archives and discovered I missed my own two-year anniversary.

Here is a repost of my first entry from June 7, 2004.

Hello All MLMer's and Interested Parties

My name is Dave Stone and I have been involved in MLM for the last 6 years. After very limited success in my initial forays into MLM land, I found the need to expand my business education relied more on my ability and willingness to talk with others in the field. Furthermore, I realized that I needed to learn from people outside of the current business environment I was involved with to tap into the innovative concepts being used by successful business builders. Lastly, having had experiences myself that taught me some valuable lessons, I feel compelled to share with others and, perhaps offer support and assistance.

Michael Oliver re: FTC

At Natural Selling blog, author/coach Michael Oliver shares information related to the Multi-Level Marketing International Association.

Last week I mentioned that the US Federal Trade Commission ("FTC") is proposing to introduce a "New Business Opportunity Rule" that could potentially have a damaging impact on the Network Marketing, MLM and Direct Selling industry.

The Multi-Level Marketing International Association ("MLMIA") has established a legal fund to campaign against this threat to the industry and you can get more information at the MLMIA website (www.mlmia.com).

Here is a link to the ealier post that Michael references.

I will be posting information from the MLMIA and Direct Selling Women's Alliance (DSWA) as well in an upcoming entry.

Other MLM blog opinions

This post from Best MLM Resources blog author, Michael Lemm.

I have my opinions of what this all means....or may mean to you and I. But I'll let my friend Tony Rush's words make my point for me.

"I think the 7-day waiting period is silly.....but I have no problem with most of what they're proposing. In fact, disclosures such as what they're asking for will do a lot to clean the riff-raff out of the industry and make things much more transparent.

If I had to guess, I'd say that the 7-day requirement and the "10 previous customers" requirement will get thrown out at some point. When you consider that the waiting periods for buying a house or buying a gun aren't that strict....it seems silly to tell a lady that she has to wait 7 days before she can sign up in Avon. Full post.

I do not think it is wise to allow this issue to be adopted incrementally. We should not tolerate the erosion of our freedoms and barter for the lesser of the evils.

At the close of the Constitutional Convention in Philadelphia on September 18, 1787, a Mrs. Powel anxiously awaited the results, and as Benjamin Franklin emerged from the long task now finished, asked him directly: "Well Doctor, what have we got, a republic or a monarchy?" "A republic if you can keep it" responded Franklin.

White Blackmail

Below is an excerpt from a book published in 1957. In my opinion, this one paragraph describes, through what was a fictional account, the continuing threat through the promelgation of regulations like the FTC R511993.

"Did you really think we wanted those laws observed?" said Dr. Ferris. "We want them broken. You'd better get it straight that it's not a bunch of boy scouts you're up against - then you'll know that this is not the age for beautiful gestures. We're after power and we mean it. You fellows were pikers, but we know the real trick, and you'd better get wise to it. There's no way to rule innocent men. The only power the government has is the power to crack down on criminals. Well, when there aren't enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws. Who wants a nation of law-abiding citizens? What's there in that for anyone? But just pass the kind of laws that can neither be observed nor enforced nor objectively interpreted - and you create a nation of law-breakers - and then you cash in on guilt. Now that's the system, Mr. Reardon, that's the game and once you understand it, you'll be much easier to deal with."
From Atlas Shrugged by Ayn Rand

With the adoption of these new provision by the FTC, over 13 million law-abiding citizens will be denied their right to due process and their 5th amendment rights. Hmm. Just in time for Independence Day. Go wave a flag.
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Free Leads From The FTC

You read that right. You may be wondering what you have to do to cash in on what will be a tidal wave of prospects? Do NOTHING! In short order, the Federal Trade Commission will do it all for you.

Here's how it works:
1. Visit any lead capture site or home business page offering a free newsletter or magazine.
2. This will automatically place your contact information in the database of people seeking information about home business opportunities. (You will only need to do this one time. This program is incredibly viral.)
3. Wait for the phone calls from aspiring marketers from several different marketing companies. (Leads lists are notorious for being sold many times over to several different organizations, often within the same company.)
4. The Business Opportunity Rule (R511993) will require ALL marketers to provide you with a list of the last ten people who purchased their biz-op. (These are guaranteed FRESH leads, by the way.)
5. Poof! Instant FREE leads courtesy of the Federal Trade Commission.

And who says the government isn't working hard for you.

Federal Trade Commission To Violate Your Privacy

Within the currently proposed Business Opportunity Rule floated by the FTC, the provision that will require EACH marketer to provide the name, address, and phone number of the last ten (10) purchasers of your business opportunity is clearly a threat to your privacy and your ability to preserve your family's security.

Does any other seller of a product or service follow such legal requirement? Image a car dealership having to provide, under the threat of law, a list of the last ten people who purchased a vehicle. How about a realtor?

Consider the near impossibility of maintaining a "current" list of the last ten purchasers in your area of your business opportunity. How often would this change? This list could be outdated on an hour-to-hour basis, particularly if you have a large organization.

How about we also publish the home addresses of the Federal Trade Commission Board Members and ALL the regulators as well?
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Comments to the FTC re: R511993

You can make your voice heard and your opinion count! The Federal Trade Commission is encouraging comments of all interested parties on the matter of the proposed Business Opportunity Rule (R511993). The dealine to submit your thoughts on the matter is rapidly approaching. Below is a link to the FTC web site Comment form.
https://secure.commentworks.com/ftc-bizopNPR/

If you are involved in network marketing and wish to lend your voice on this issue, you may want to review a suggested outline at MLM.com. Click HERE to read a recent article written by Spencer Reese.

DSA Summary - R511993

From the web site of the Direct Selling Association (DSA), here is a clip from a FAQ section pertaining to the proposed Federal Trade Commission Business Opportunity Rule (R511993).

Direct Selling Association -

Frequently Asked Questions: Proposed Business Opportunity Rule

Q: What is the proposed rule?
A: The proposed rule is a set of suggested regulations drafted by the Federal Trade Commission (FTC) that may place certain limits on the way you do business. Like some current state laws, this rule proposes to place limits and/or additional requirements concerning earnings statements and the dissemination of information to potential sellers, among other things. This proposed rule, however, adds additional requirements on direct sellers that exceed any current state or federal law.

Q: How will the proposed rule impact my business?
A: If enacted as currently drafted, the proposed rule will do several things:

1. Require all prospective sellers to be provided with a disclosure document. This document must include information including (but not limited to):
a. The distributor’s identification information
b. Legal actions involving deceptive practices or other matters filed against the seller and/or the company in the last 10 years
c. Whether or not earnings claims are made (see section 3 for more on earnings claims);
d. The number of all direct sellers who have canceled within two years; and
e. A list of the 10 closest current or past distributors to the prospective purchaser, with personal information so that prospective purchasers may contact these references

2. Require that the disclosure document discussed above be given at least seven days before any potential seller signs a contract or makes any form of payment;

3. Under the proposed rule, an earnings claim can be considered anything from a picture of a boat or car purchased with earnings from direct sales activities, to actual dollar amounts. If earnings claims are made, additional information must be provided, including:
a. The beginning and ending dates when the earnings were achieved;
b. The number and percentage of all sellers represented by the claim; and
c. All “special characteristics” of those who made such earnings that may distinguish those sellers from others, such as geographic location. Read other questions and answers here.

About DSA -

The Direct Selling Association (DSA) is the national trade association of the leading firms that manufacture and distribute goods and services sold directly to consumers. More than 200 companies are members of the association, including many well-known brand names.

The Association's mission is "To protect, serve and promote the effectiveness of member companies and the independent business people they represent. To ensure that the marketing by member companies of products and/or the direct sales opportunity is conducted with the highest level of business ethics and service to consumers."

The cornerstone of the Association's commitment to ethical business practices and consumer service is its Code of Ethics. Every member company pledges to abide by the Code's standards and procedures as a condition of admission and continuing membership in the Association.

FTC R511993 - Disclosure Form

Here is a scanned copy of the Business Opportunity Disclosure form as proposed by the Federal Trade Commission.


Sorry for the image size. I will replace this image with one more functional shortly. In the meantime, you can view it on page 39 at this link:
https://secure.commentworks.com/ftc-bizopNPR/notice.pdf


Everyone operating ANY business opportunity, will be required, under penalty of law, to provide this disclosure to EACH person to whom they present. In the next couple of entries, I will cover each specific requirement within the proposed disclosure.

FTC Business Opportunity Rule - R511993

To begin my focus on the Federal Trade Commission Business Opportunity Rule (R511993) proposal, here is a summary of the proposal and a link to the full documentation.

FEDERAL TRADE COMMISSION 16 CFR Part 437
Business Opportunity Rule
AGENCY: Federal Trade Commission.
ACTION: Notice of proposed rulemaking.

SUMMARY: The Federal Trade Commission (the ‘‘Commission’’ or ‘‘FTC’’) is commencing a rulemaking to promulgate a trade regulation rule entitled ‘‘The Business Opportunity Rule’’ (or ‘‘the Rule’’), based upon the comments received in response to an Advance Notice of Proposed Rulemaking (‘‘ANPR’’) and other information discussed in this notice. The proposed Business Opportunity Rule would prohibit business opportunity sellers from failing to furnish prospective purchasers with material information needed to combat fraud and would prohibit other acts or practices that are unfair or deceptive within the meaning of section 5 of the Federal Trade Commission Act (‘‘FTC Act’’). DATES: Written comments must be received on or before June 16, 2006. Rebuttal comments must be received on or before July 7, 2006.

You can view and download a pdf of the actual 44-page document by clicking
https://secure.commentworks.com/ftc-bizopNPR/notice.pdf

*Note: The FTC published on June 1st that it is granting a one month extension to the comment deadline for the proposed business opportunity rule. That bumps the June 16 and July 7 deadlines each by one month to July 16 and August 7.

New FTC proposed regulations - Introduction

This week, I will be sharing information related to the Federal Trade Commission proposals for new and expanded regulations for ANYONE presenting a business opportunity, which includes EVERY person involved in Network Marketing but certainly not limited only to a multi-level marketing (MLM) model.

This is a huge issue for all Americans, not just those involved in networking. Regardless of where you may stand with respect to your thoughts and feelings about MLM, regardless of your thoughts and experiences with a particular company; the adoption of these proposed regulations have more far reaching effect than merely providing "consumer protection".

The FTC is continuing to solicit comments from those that wish to do so. It is important to note that this issue has received a deadline extension. The Federal Trade Commission was petitioned by concerned citizens and organizations to extend the original deadline of June 16, 2006. These proposals were first published on April 12, 2006.

Stay tuned for Part One.