Laws applicable to network business vary from country to country and region to region. Failure to comply with these rules may result in administrative or even criminal penalties for the company and its founder. Therefore, if you are launching an MLM startup, scaling or relocating your business to a new country, we recommend:
engage a contractor company to verify documents and provide legal support for the company's activities;
consult with an expert in the regulations of the target region, including tax and labor law;
to train partners in basic regulations, laws and standards line data that relate to the field of network marketing and, in general, doing business in a particular country.
№7. Security and data protection
Ensuring the security of all processes and data protection is one of the main tasks of any business. The safety of both the company's tangible and intangible assets directly depends on this - the stability of the company's MLM platform, the continuity of work processes, the integrity of the partner structure, customer trust, etc. To minimize possible risks, we recommend:
use specialized software that ensures the isolation of the company's working environment from other platforms;
install an SSL certificate on the hosting and connect to special services for protection against DDos attacks (for example, Cloudflare);
provide two-factor authentication for financial transactions, in accordance with the PCI DSS standard;
develop a system for monitoring management processes in order to automatically track and promptly stop suspicious activity;
log critical sections of the project's algorithm in the blockchain.