6 Direct Selling Companies with Humble Beginnings

Rich DeVos and Jay Van Andel mixed their first product, LOC Cleanser, in their bathtubs when they began their business.Aerodynamically, the bumble bee shouldn’t

be able to fly, but the bumble bee doesn’t

know it so it goes on flying anyway.

Mary Kay Ash

Humble Beginnings

Can you become the “million-dollar earner?” Don’t sell yourself short just because you’re starting fresh in the multilevel marketing business. History tells us that, in America, many billion-dollar businesses – including MLM – have been started on a shoestring budget in garages and basements. Cases in point: Bill Gates of Microsoft, Phil Knight of Nike shoes, and Steve Jobs of Apple Computer. There are countless inspiring network marketing success stories about individuals whose companies or distributorships had very humble beginnings, such as:

1) The Bathtub?

Continue reading

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4 Tips to Become a Top-Selling MLM Distributor

MLM Company EventLet’s face it. Sales isn’t easy. It’s no different in multilevel marketing. But that’s you goal! You want to become a top-earning distributor in your MLM company. It’s not impossible. After over 30 years in the legal MLM business, we’ve seen how successful distributors achieve results. We’ll share some of that knowledge with you here.

It’s always a good idea as a MLM distributor to keep yourself encouraged and engaged in your career by participating in company-offered training events. Company training events are meant to enhance your sales skills and increase your motivation. Enthusiastic network marketing companies will offer their distributors tools and seminars to help you improve and grow your business. Many MLM companies offer training tools in an online, back-office environment, while others will host elaborate in-person events in select cities. Continue reading

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2 Ways Distributors Earn Income in MLM

2 Ways Distributors Earn Income in MLMHow do distributors earn income?

Distributors working for MLM companies earn income slightly differently than a typical employee. Here are two basic ways that distributors earn income in MLM:

1. Retailing – They buy products from their companies at wholesale prices, sell them at retail prices, and keep the difference. Or, they simply take orders and receive commissions. This is basically the same compensation offered by conventional marketing Continue reading

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13 Ways Direct Sellers can avoid the Dreadful Audit

The deadline is nearly here. It’s tax season! Are you’re overjoyed or pulling your hair out? Regar13 Ways Direct Sellers can avoid the Dreadful Audit dless of your perspective, nothing could rain on your parade more than being audited.

You probably do your best to remain inconspicuous, which is a good thing. But some factors are beyond your control. It’s a fact. The more money you make, the more likely you’ll be audited. Those who are self-employed, like network marketers, have a higher statistical probability of misstating their income and deductions compared to salaried individuals. Of course you’re not going to limit your income or change your business plan in order to decrease the chances of being audited! So we’ve decided to put together a target list of 13 [unlucky] red flags that spark interest from the IRS.

  1. Business expenses are especially important to direct sellers. Did you know that IRS examiners often refer to home office, business travel, entertainment, and business use of an automobile deductions as the kiss of death? Why is this? Well, these particular deductions are often abused and the IRS knows to scrutinize them closely. Keep strict documentation and proper records and be ready to defend your claims!
  2. Charitable contributions and casualty and theft losses. Taxpayers who donate property to charities, and taxpayers who have had property stolen or destroyed tend to overvalue it for tax purposes. The best defense to an IRS challenge is to get independent appraisal of higher-priced donated items.
  3. Bad debts. To claim a debt loss you must show that the debt was legal obligation, such as a contract or loan note, and that Continue reading
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10 Tips to Sponsoring Long Distance Recruits Successfully

10 Tips to Sponsoring Long Distance Recruits SuccessfullyIn the digital age, one thing is for sure, your network of friends, relatives and online acquaintances will reach far beyond your own city limits – even beyond your country! Even if you don’t call yourself a “technology person,” the distributors you recruit locally will likely know of other people outside of your locale.

Because we are globally-connected, you are bound to become involved in long distance sponsoring.

Embrace the opportunity to recruit beyond your city walls. You never know if – in a city a thousand miles away – long-distance sponsorship will be your most productive downline.

Like everything else in this business (in life); however, there are right and wrong ways to go about long distance sponsoring. Continue reading

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Is the FTC ramping up regulation of the MLM Industry?

Fact Checking the FTC’s New Legal GuidanceFederal Trade Commission Chairwoman Edith Ramirez argued on October, 2016 at the DSA Policy Conference that it was time to ratchet up regulation of the direct selling industry, and not a time to “put the brakes” on more regulation of the $36 billion industry and its 20 million strong sales force.

The FTC and the Direct Selling industry are clearly of the same opinion of the basic goal that the direct selling industry should prosper through effective and ethical practices. However, FTC Chairwoman Edith Ramirez emphasized new legal standards that would abandon a 40-year old gold standard, the Amway Safeguards Rule, and that would also upend and call into question decades of industry accepted business practices.

Briefly, the Chairwoman argued for: Continue reading

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21 Ways to Provide Legal and Ethical MLM Training to Distributors

21 Ways to Provide Legal and Ethical MLM Training to DistributorsYou can look at MLM companies from several perspectives to get an idea if they are running a legal business or a pyramid scheme. In this post, we cover how legal MLM companies approach training their distributors. Legal direct selling companies will encourage distributors to run their business with ethical standards and realistic expectations.

A good MLM company, seeking longevity in the marketplace, will put a lot of effort into training their distributors on how to manage and build their business. Businesses will provide online training, event training, and incentives.

Not every MLM company has the same opportunity, or compensation plan. There are many types of compensation plans and many variations on the original compensation plans (stairstep, unilevel, breakaway, matrix, binary). Each compensation plan and MLM company is unique in how it approaches consultant training.

Regardless of what compensation plan you’re using, there are common distributor training techniques among all companies and compensation plans. From a legal perspective, MLM companies must be realistic about their distributors’ statistics for success. It is not easy to become a MLM multimillionaire. Only a small percentage of distributors achieve such high success. Therefore, when legitimate direct selling companies present their training, management and support programs to encourage and train distributors they use some (or all) of the techniques in the list below.

If distributor training in your company sounds a little like this list, then it is likely looking good from a legal perspective. A MLM company opportunity should prioritize some or most of the following: Continue reading

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9 Characteristics of a Successful Network Marketer + Videos!

9 Characteristics of a Successful Network MarketerNot every person is right for the direct selling business. Are you right for MLM? Here is a list of 9 characteristics of a successful network marketer:

1. You must be able to meet people! This is a people business. The only way you’ll find recruits and customers is by getting out there and marketing! If you’re not a people person, this business likely isn’t for you!

2. Do you believe in the products you’re selling? You must be excited about the product you are selling. If you don’t believe in the product it will impact your sales results. You must be the type of person who gets enthusiastic about sharing your product with others. Excitement plays an important role in a purchase decision in the network marketing business! Continue reading

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Watch out for Pyramid Schemes! Some Warning Signs

Warning Signs of Pyramid SchemesHow can you tell if a company is an pyramid scheme, unintentional cash gifting pyramid scheme, or otherwise downright illegal? Well, there is no single authority on the on the subject. There’s not really one single definition either. However, there are certain warning signs that can cause law enforcement agencies to investigate a company. Here are a few warning signs to look for when starting, joining, or even investing in a direct selling, MLM company:

– Promotions where the business opportunity is the product. If no legitimate product or service is being sold, but only the opportunity itself, chances are that the company is operating a pyramid scheme.

Products are sold at inflated prices. Pyramid promoters try to mask their true intentions by selling a product. Often, the product will be vastly over-priced, and unlikely to generate much retail activity. This is a sure tip-off that the real “product” being sold is the compensation opportunity. Continue reading

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Create a Prospect List!

How to find network marketing leadsPotential Distributors are quite literally all around you. Friends, relatives, neighbors, PTA, people you run into at the post office and grocery store. They are everywhere! Consider using this list to develop your own prospect list, and remember, these folks may know others who are also potential customers!

Workplace Prospects:

– People who need to earn extra income

– People who are intrigued by new opportunities

– People who are in a similar line of work, like sales

– People who are high-energy and gregarious

Neighborhood Prospects: Continue reading

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