Incentivize to Increase Company Sales in Network Marketing

Incentivize to Increase Company Sales in Network MarketingIncentivize to increase sales across your business. There are vastly different types of incentive programs.

The most assumed and expected incentives are monetary and come in the form of bonuses and commissions. Since direct selling companies are trying to incentivize different types of consultant behavior, the compensation plans of MLM companies are often complex and multi-task to provide incentives for retail selling, preferred recurring customers, building wide, building deep, Continue reading

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Legally, are all Compensation Plans Viewed the Same?

Legally, are all Compensation Plans Viewed the Same?Being in the MLM law business for over 30 years, we’ve been asked this question countless times. Direct selling business owners – especially MLM startup company owners – want to know which compensation plan structure will be the most supportive in the eyes of federal regulators. The answer is somewhat simpler than you’d imagine.

Whether your compensation plan is binary, matrix or an Australia 2-Up, and regardless whether your products are financial services, educational, health products, or vitamins, the answer is: The same legal principals apply no matter what your compensation plan is and no matter what your product is. Continue reading

Posted in Compensation Plan, Compliance Guidelines, Consultants, Consumer Protection, Direct Selling, Distributor Education, For MLM Executives, Home-Based Business, Legal, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM Startup, Network Marketing, Party Plan, Personal Use, Products, Pyramid, Startup, Videos | Tagged , , , , , , , , , , | Comments Off on Legally, are all Compensation Plans Viewed the Same?

The Thorny Issues of “Personal Use” in Direct Selling

The Thorny Issues of “Personal Use” in Direct SellingThere exists tension between the direct sales industry and industry regulators as to the role of “personal use” of products and services by distributors of MLM companies. The broad and ambiguous language in pyramid legislation has contributed to the problem. Pyramid statutes have always prohibited the payment of commissions in a multilevel program unless based upon the “sale of goods or services.” To whom must those goods or services be sold in order to avoid being a pyramid? The distributor, the end-consumer, or both?

Almost all major direct selling companies have defined “retail sales” to include sales to non-distributors, as well as sales to distributors for actual use or consumption (distributors like to use the products they sell too). Many regulatory officials, however, have maintained that the “mark of legitimacy” is found in the programs where primary sales revenue comes from sales to non-distributors, i.e. consumers. Continue reading

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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

Posted in Direct Selling, Distributor Education, Distributors, Home-Based Business, Just for Fun, MLM, MLM Articles, MLM Companies, MLM Startup, Network Marketing, Part Time, Party Plan, Recruiting, Sales Tools / Kits, Sales/Selling, Social Networking, Startup, Success, Training | Tagged , , , , , , , , , , , , , , , , , | Comments Off on 10 Tips to Sponsoring Long Distance Recruits Successfully

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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