What does failing mean to you?
What is the meaning of failure? If a distributor only makes a few hundred dollars a month, does that mean they have “failed?” What would that make the distributor who doesn’t make any money from network marketing at all? Or the one who loses money?
It’s difficult, in a sense, to lose money as a network marketing distributor in today’s world. This is due to the policy changes in direct selling companies. Most network marketing companies offer a full refund (or at least a 90% refund) to distributors who have changed their minds and want to return their starter kits.
In addition to policy changes within the company, the majority of leading MLM companies offer earnings disclosures on their websites which disclose the level of earnings and average earnings of all active distributors. Some consultants join a direct selling company to simply become discount buyers of the company’s products. These sorts of independent business owners don’t actually make money with their distributorship since they aren’t pursuing the opportunity to begin with. Continue reading
Posted in Capitalization, Commission, Compensation Plan, Consulting, Direct Selling, Distributor Education, Distributors, Home-Based Business, Just for Fun, Marketing, MLM, MLM Articles, Network Marketing, Part Time, Party Plan, Recruiting, Sales Tools / Kits, Sales/Selling, Startup, Success, Videos
Incentivize 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
Posted in Capitalization, Consulting, Direct Selling, Distributors, For MLM Executives, Just for Fun, Marketing, MLM, MLM Articles, MLM Companies, MLM Startup, Network Marketing, Party Plan, Recruiting, Sales/Selling, Startup, Success, Videos
Tagged business, cars, cash, direct selling, distributor, incentives, incentivize, increase, mlm, Multilevel marketing, network marketing, Sales, types of incentives, video
Many people look to make a little extra income to take home to their families. There are several ways to do that but one of the most common is through direct selling or work from home opportunities.
There are so many MLM, network marketing companies in operation. How do you know which one is a good fit for you? Have you thought about what type of product you’d like to sell? Or the compensation plan that would work best for you? Do you have a sponsor that will support you in growing your home-based business?
As you are researching your options, keep the following six questions in mind before you choose to sign up with a direct selling company. Continue reading
Posted in Compensation Plan, Consultants, Direct Selling, Distributor Education, Distributors, Home-Based Business, Just for Fun, MLM, MLM Articles, MLM Companies, MLM Startup, Network Marketing, Part Time, Products, Recruiting, Training, Videos
Tagged bonuses, compensation plan, consultants, distributors, join, payout, Product, questions, service, sign up, success, support, training, videos
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 binary, Compensation Plans, direct sales, direct selling, is my compensation plan legal, legal, matrix, mlm, multilevel marekting, network marketing, Pyramid
There 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
Posted in Commission, Compliance Guidelines, Consumer Protection, Direct Selling, Direct Selling Association, Distributor Education, Distributors, Earnings Claims, For MLM Executives, Law Cases, Legal, MLM, MLM Articles, MLM Companies, MLM History, Network Marketing, Party Plan, Personal Use, Pyramid, Sales/Selling, Videos
Tagged consumers, direct sales, direct selling, distributors, DSA, law, legal, legitimate, mlm, multilevel marekting, network marketing, personal use, Personal use regulations, Pyramid Scheme, regulators, videos
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
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?
Posted in Avon, Consultants, Direct Selling, For MLM Executives, Just for Fun, MLM, MLM Articles, MLM Companies, MLM History, MLM Startup, Network Marketing, Party Plan, Sales/Selling, Startup, Success, Success Stories, Videos
Tagged avon, basement, bathtub, big dreams, budget, direct selling, garage, mary kay, mlm, Multi-level marketing, network marketing, small budget, Startup, stories, success stories, Tupperware, videos
How 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
Posted in Commission, Distributor Education, Distributors, Home-Based Business, Just for Fun, MLM, MLM Articles, MLM Startup, Network Marketing
Tagged distributors, Home-Based Business, income, mlm, Multi-level marketing, network marketing, recruiting, retailing, selling, sponsoring
The deadline is nearly here. It’s tax season! Are you’re overjoyed or pulling your hair out? Regardless 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.
- 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!
- 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.
- 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
Posted in Direct Selling, Distributor Education, For MLM Executives, Home-Based Business, IRS, Just for Fun, MLM, MLM Articles, MLM Companies, MLM Startup, Network Marketing, Party Plan, Startup, Tax
Tagged 2017 taxes, audit, avoid audit, business expenses, charitable contributions, debts, Deductions, direct sellers, direct selling, Hobby Losses, IRS, mlm, network marketers, network marketing, party planners, red flags, Tax, write-off