David Van Sambeek

Operating an MLM post-Herbalife and post-Vemma

By David VanSambeek, Esq.*

A few months back the FTC and Herbalife concluded an investigation that many projected would “reshape the MLM regulatory landscape.” The Herbalife settlement just reconfirmed many of the regulatory principals that we have been advising on for years. The biggest, or most unusual, industry-relevant component of this settlement was Herbalife’s acquiescence […]

By |December 22nd, 2016|Articles, David Van Sambeek|Comments Off on Operating an MLM post-Herbalife and post-Vemma|

Which type of entity is right for your business?

Choosing the right entity is an important decision facing many small business owners and entrepreneurs. There are several business forms to choose from, each of which create different legal and tax consequences. Most importantly, there is no simple answer as to which entity is appropriate for each type of business owner or business industry.
By |January 12th, 2013|Articles, David Van Sambeek|Comments Off on Which type of entity is right for your business?|

Selling a Founder Position

With many entrepreneurs, having the capital to successfully launch their new business is one of the biggest hurdles to overcome.  This is no different when starting a network marketing or direct sales business.  One significant mistake, that I see time and time again, is a new Network Marketing company selling their top business positions in the genealogy for prices in excess of that which a normal distributor would pay to become a distributor.
By |January 12th, 2013|David Van Sambeek|Comments Off on Selling a Founder Position|

Is This a Pyramid, a Ponzi, or a Legitimate MLM?

If you have been following the news lately, I am sure you have heard of multi-billion-dollar fraud schemes that have left hundreds, possibly thousands, of investors broke.  Despite all this recent media attention, I have noticed that many individuals, including those in the media, haven’t grasped the differences between an illegal pyramid and a ponzi scheme (and NO, they are not the same thing).
By |January 12th, 2013|Articles, David Van Sambeek|Comments Off on Is This a Pyramid, a Ponzi, or a Legitimate MLM?|
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    What can an MLM company do when a former distributor cross-recruits?

What can an MLM company do when a former distributor cross-recruits?

Many times we receive calls from our MLM clients asking what can be done when a former distributor is poaching or cross-recruiting distributors to participate in his or her new MLM company.  We will assume that the former distributor has  already been terminated or resigned from the original MLM company.
By |January 12th, 2013|Articles, David Van Sambeek, Scott Wellman|Comments Off on What can an MLM company do when a former distributor cross-recruits?|