Network Marketing, also known as Multi-Level Marketing (MLM), is part of the direct selling industry. Accounting for over $100B in economic impact in the US, $200B globally, it is growing at a 6%+ rate annually. Almost half of that is in Asia/Pacific, with a high product concentration in Health and Wellness: Weight loss, dietary supplements, skin care, beauty.
Known by their most famous incumbents, Amway, Herbalife, and Nu Skin, multi-billion dollar enterprises, some of them are public companies. However, most are privately held. A special class of dynamic entrepreneurs start these companies, but many struggle to make it past 6 years in business. That doesn’t deter the newcomers, who are sure they can correct the mistakes of those that fail. The need for expert legal guidance for these companies continues to expand rapidly, helping them avoid early legal pitfalls, while giving them a competitive advantage with legal room to grow.
For an attorney or law firm representing these companies, the legal challenges begin in the startup phase and accelerate quickly thereafter. Even with faltering progress, special legal expertise is needed as they get acquired by other MLM companies, or get liquidated. There is no single body of law that covers these companies, and the breadth of law for which they need legal counsel. There is also the real and perceived conflict of interest in representing more than one MLM company at a time the need to be resolved.
