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?

The co‑founders of Amway, also known as Quixtar, network marketing’s largest multi-billion-dollar company. Rich DeVos and Jay Van Andel mixed their first product, LOC Cleanser, in their bathtubs when they began their business. Starting out as distributors for a vitamin company, Nutrilite, their Amway Corporation later bought Nutrilite, which today is their division for nutritional supplements. Amway has gone on to become the largest seller of dietary supplements in the world with consistent sales in the billions.

2) Door Knocking?

The founder of Avon (a cosmetic conglomerate), David McConnell, wasn’t even in the cosmetics business in 1886. He was selling Bibles door-to-door, and giving away free perfume samples as a way to get into the homes of prospective customers. As it turned out, his customers showed much more interest in the perfume samples than in the bibles. So, he began the California Perfume Company, later renamed Avon.

Today, Avon, trades on the New York Stock Exchange, operates in more than 140 countries with sales in excess of $7 billion, and is one of the largest sellers of cosmetics in the world.

3) Nothing, really?

After a successful career as a top distributor for the direct selling company, Stanley Home Products, Mary Kay Ash started her own small business in 1963, named Mary Kay. She created products with ingredients like hide tanner (used to cure animal hides) and became the most famous face of direct selling and network marketing. Mark Kay lecturing around the world and was even included in a case study at Harvard Business School.

Mary Kay Ash was one of three alumni distributors of Stanley Home Products that established multi-billion dollar companies. Her colleague, Brownie Wise, went on to help establish Tupperware, and Mary Crowley founded Home Interiors.

Clearly, their MLM distributor experiences allowed them to accept and succeed in new challenges that would likewise impact millions of lives and inspire other entrepreneurs to develop successful distributorships and found their own companies today.

4) Liniment?

Consider the origins of Watkins Products back in 1868. Today, Watkins sells a full line of products, from spices to cosmetics, to health care items. In 1868, however, the founder of the company, Joseph R. Watkins, was selling only one product: liniment. From that single product was built, perhaps, the longest-running direct selling success story of the industry.

5) Football?

How improbable! Art Williams was a high school football coach making little more than $10,000 per year when he applied principles of multilevel marketing to the sale of term insurance.

A. L. Williams went on to become the largest seller of term insurance in the U.S., eventually evolving into today’s Primerica, a division of one of America’s largest financial institutions, Citibank. Sales of financial products by Primerica run into the billions of dollars every year. And, all from a football field!

6) Big Dreams!

Modern-day network marketing successes – whether they are companies or individual distributors – all have their own startup story, starting on a shoestring budget. This business was meant to grow from the humble beginnings of one person’s dream. Hand-to-hand marketing is the nature of the direct selling business

And the successes of those that have started billion-dollar companies are paralleled over and over among the millions of network marketing distributors. Look around at the top distributors for major companies today and you will find individuals, who in their prior lives, were teachers, plumbers, lighting salesmen — all with modest employment incomes and equally-modest prospects in life.

What it Takes: A Positive Mindset

This is a mindset business. Your attitude is often a self-fulfilling prophecy. There is some real truth to the veterans’ advice which notes, “If you think you can, you’re right; If you think you can’t, you’re right!”

So, the next time you think you can’t do it, think again! Make sure, however, that you have access to one of the following tools:  a bathtub, a garage, a bible, or a dream.

Do you want more inspiration? Watch these video titles from the 30+ year direct selling industry veteran, Jeff Babener:

Are There MLM Companies That Have Achieved Success on a Low Budget?

How Much Does It Cost to Start a MLM Company?

Visit us at www.mlmlegal.com to learn more.

Interviewer: Jeff, let me ask you this question. The industry has come a long way in the last several decades. Can you share with me your experience on how the industry is viewed today versus how it was viewed decades ago?

Babener: Yes, if you’ll indulge me a little bit. I’m going to give you a mini history of what happened in the direct selling industry and where the industry is going. From both a legal and industry standpoint, the origins of the MLM industry go all the way back to the 1800s to the days of the Yankee Peddler. Yankee Peddlers were direct sellers because they sold directly to the public.

From a legal standpoint, there have been three points in time in our industry where issues have become complicated and differentiated. In the days of the Yankee Peddler there was an issue with the product; there was the perception that salesmen were selling snake oil off the back of a wagon and then skipping town.

During the first half of the 20^th century, salespeople were going door-to-door selling vacuum sweepers or encyclopedias, like the famous Fuller Brush man. Whether they were selling high-ticket items, like vacuums, or encyclopedias, they would go in, make high pressure sales, and then disappear. So, during the first half of the twentieth century the direct selling industry had problems that related to the presentation to the consumer. The net result was that somewhere after the 1950s-1960s, the states adopted what was called the “Cooling-Off Rule.” This was intended to resolve the problem of high pressure consumer sales tactics in the home.

Interviewer: Buyer’s remorse, right?

Babener:  Yes. The Federal Trade Commission (FTC)’s “Cooling-Off Rule” basically stated that if a salesperson comes to your home and sells you something, and you pay a significant amount of money in the excitement of the moment, then you have three days to change your mind. It’s called the Three Day Right of Rescission. You have three days to cancel the transaction.

The methodology of direct selling changed in the 1950s, allowing distributors/marketers to not just sell person-to-person, but also they became allowed to recruit other people into their sales team. This was a novel approach. And, it all started with Mary Kay, Shaklee, and others.

This did really well in the 1950s. They stumbled upon a great method of marketing. This is partially what makes up our 30 billion dollar U.S. industry today with 16 million direct sellers, and perhaps, more than 100 billion in sales and 60 million salespeople around the world today. It was very successful.

Now, with successful models often come the charlatans. In the 1960s, along came a program called Dare to be Great, by Glenn Turner. Companies like this one were parading around as if they were direct selling companies but really all they were doing is moving money.

In the Dare to be Great program, individuals were invited to a seminar where they paid $5,000 where they were taught to recruit others to come to the seminar and pay another $5,000. Lo and behold, this marketing system really tainted the direct sales model.

They tainted the MLM business model so much that pyramid laws were adopted all over the country. The business model was tainted so badly that in 1975, the FTC looked at Amway and questioned its validity, accusing it of being a pyramid scheme. Although the company was not a pyramid scheme it still spent four years in litigation with the FTC.

In 1979, a FTC administrative law judge looked carefully at Amway, and for various reasons, proclaimed it not to be a pyramid scheme. Some of the reasons included the reasonable buyback policy for those leaving the business, the adoption of the 70 Percent Rule and the company’s fair customer rules.

The 70 Percent Rule basically stated that distributors shouldn’t buy more products for resale unless they’ve sold or used at least 70% of what was previously purchased. After reviewing Amway, the FTC judge decided it was a legitimate company. Had Amway not won that case in 1979, there would be no direct selling industry today.

Ever since, there has been a constant ebb and flow – a tug and pull – between our FTC and attorney generals and the MLM industry.

I’d say that until the 1990s, the MLM industry still had a negative image. People would read nothing but bad press about the direct selling, network marketing, party plan industry. There remained bad images because there were some abuses in the system. Yet, all of sudden in the 1990s, people started to pay attention to the direct selling model. Then, MLM companies started to explode around the world.

Companies like Avon today are doing 12, 13, 14,000,000,000 around the world in sales with 1,000,000’s of distributors. Amway doing better than 10,000,000,000 around the world. All of a sudden we have companies like Herbalife being traded on the New York Stock Exchange.

Shaklee was bought by Wall Street investment houses. Warren Buffet stepped into the picture, spending hundreds of millions to buy Pampered Chef.

All of a sudden the press began to turn positive, and we were known in the industry as entrepreneurs.

We were known as the industry that capitalized on the things that had become important. Everybody realized that all new jobs in America came from small businesses. Direct sales is a great micro business.

Just when our industry began to come into its own we went into a major recession when our stock market collapsed in 2008. Many companies might have thrown in the towel but some of the largest direct sellers, like Avon and Amway, saw it as an opportunity for their time to shine.

If you saw the 2009 Super Bowl you would have noticed something interesting. The first commercial of the Super Bowl was an Avon commercial. And, it wasn’t a commercial for the company’s products, but for its opportunity. Avon was making a statement that they were credible and they were serious. They were telling viewers that they had an opportunity for you. They were the new Plan B.

This resonated with folks who lost their 401(k)’s, saw their retirements disappear, their bubbles burst, or had reach glass ceilings. The company was telling viewers that they had something real to offer; a good part time business with good products.

Avon, of course, stuck around. The national anthem was then sung by Jennifer Hudson, the spokesperson for Avon. This was not a mistake. Avon had realized that Amway had spent a fortune on promoting its brand. Whereas, Avon had been absent on its branding for some period of time. The company began taking great pride in its products and its successes.

While America was having problems around the world with all of our money going floating away, guess what has been one of America’s most successful exports? We have taught the world direct selling. We have taken it everywhere. Direct selling is almost like basketball. It is indigenous to America, but it does well in Japan and China. Even in China, MLM isn’t allowed, and the industry still does well.

Today, Amway does billions in sales. All of a sudden there was a message being heard on Wall Street. MLM companies were being traded on the NYSE. The industry came into its own.

When you have companies like Excel sign on four million customers, or Network 2000 that sign on two million customers for Sprint, or you see major companies, from Texas and other states selling deregulated energy, and having tremendous success then there is some pride to be taken there.

Everybody is discovering that the principles behind direct selling, network marketing, MLM, and party plan. This method of marketing can be quite successful if done with integrity and done with ethics. And today, the industry is now very well accepted. And it’s also well accepted around the world.

Interviewer: Awesome. Thank you for sharing that.

Make sure to visit our blogs for the latest information on the direct selling industry: MLMLegal Blog Home and MLM Attorney Blog Home

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And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference will be here before you know it! On May 16^th and 17^th, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 64^th annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Keep an eye out for our October and February conferences as well.)

Visit us at www.mlmlegal.com to learn more.

Every once in a while, those looking at our company have questions about the legitimacy of this industry. What would be your advice on what we should say to them?

MLM/Direct Selling/Network Marketing: Millions of Participants Make for a Veritable Industry

People have always asked the question, “Is this industry for real?” “Is direct selling/network marketing a real option for individuals out there?” Keep in mind we have nearly 16 million people in the United States selling consumer products and services in the range of $30 billion and more than 90 million people around the world doing this with sales exceeding $150 billion. This activity penetrates the fabric of our society. Earlier statistics, presented by the Direct Selling Association, have indicated that, perhaps, one in ten households have somebody who is doing this part-time.

In today’s constant discussion of the competitiveness of the U.S. in the global economy, don’t sell the U.S. short. The U.S. is the undisputed leader, accounting for 20 percent of the world revenue. In the other leading markets in Japan, China and Europe, the U.S. companies shine as the dominant players. In a world where the U.S. is looking for every example of where it leads and creates new economic opportunities globally, ranging from Apple to Google, to Amazon.com to Twitter, it is the U.S. that effectively invented the concept of direct selling/network marketing and exported the concept to the rest of the world. Global and N.Y. Stock Exchange traded companies like Avon, Tupperware, Herbalife, Primerica, etc. are only a few of the U.S. companies that have exported “economic democracy” to millions and millions of individuals in industrialized, emerging and third world economies.

And at home, here in the U.S., the network marketing industry has been a lifeline for millions to make that mortgage payment or education savings or to bridge the gap between a “barely getting by” life to one with less stress and perhaps even robust and enjoyable.

Visit us at www.mlmlegal.com to learn more.

I like to write. Those that visit www.mlmlegal.com will see the wealth of information. I lecture at universities and at trade conferences around the country, and over time, we started to represent increasingly larger companies. Over time, we ended up representing and advising companies as large as Avon and Discovery Toys. We got involved at a pivotal point in our industry’s history, when some of our clients were in their infancy. We were involved in the startups that now represent some of the largest global MLM companies. Some of the startups we were involved with were U.S. companies, such as Nikken, Melaleuca, USANA, New Vision, and Excel Telecom. We were in a unique position to really learn about the industry, to become a student of the industry, which has expanded over time to the practice that we enjoy today.

We didn’t do it overnight. It has been a rewarding journey. In the end, we have become a very important part of our clients’ business team. In reality, more than half of the discussions we have with our clients are about the business, even though we wear the “Legal Advisor” hat. For some of our clients, we assist to establish them successfully in the U.S. and then successfully around the world. We build them from $0 to $1 billion. Often times we become their most important business advisor and we have enjoyed having that positive role within the industry.

To learn about Attorney Jeff Babener, visit the following links:

Scope of Services

Experience

Business Background

Mr. Babener is also the Chairmen of the Starting and Running the Successful MLM Company Conference. The MLM Conference takes place three times per year, in February, May and October. The next MLM Conference takes place February 21^st and 22^nd, 2013. Anyone who is starting or running an MLM, direct selling, network marketing, party plan company is invited to join us. Read the bios of the speakers. Or, call us at 800-231-2162 to register.

Lastly, watch the companion video to this blog post, titled How Does a Business Lawyer become a MLM Lawyer?

As always, for a plethora of information regarding the direct selling industry, visit MLMLegal.com, or visit Mr. Babener’s sister website, MLMAttorney.com, where you can following him on his social networks, watch videos and have fun.

Visit us at www.mlmlegal.com to learn more.

Mona Ameli with Belcorp

Dr. Oi-Lin Chen with Sunrider

Angela Loehr Chrysler with Team National

Kathy Coover with Isagenix

Marjorie Fine with Shaklee

Shelli Gardner with Stampin’ Up!

Marla Gottschalk with The Pampered Chef

Jessica Herrin with Stella & Dot

Andrea Jung with Avon

Bonnie Kelly and Teresa Walsh with Silpada Designs

Wendy Lewis with Jeunesse Global

Tami Longaberger with Longaberger

Candace Matthews with Amway

Cindy Monroe with Thirty-One Gifts

Kay Napier with Arbonne

Joani Nielson and Jill Blashack Strahan with Tastefully Simple

Connie Tang with Princess House

Heidi Thompson with Scentsy

Direct Selling News also mentioned the trailblazers of the industry, who include:

Mrs. P.F.E. Albee (1836-1914)

Mary Kay Ash (1918-2001)

Doris Christopher

Mary Crowley (1915-1987)

Jan Day (1920-1997)

Jinger Heath

Joan Horner (1925-2010)

Cheryl Lightle and Rhonda Anderson

Brownie Wise (1913-1992)

Read the full article here. And tell us which women were influential to you in the direct selling industry. For more information on the direct selling industry, visit mlmlegal.com.

Visit us at www.mlmlegal.com to learn more.

The number one direct selling company is Avon Products, Inc. with net sales of $11.3 billion in 2011. Avon is the global leader in direct selling, specializing in beauty, fashion jewelry and apparel. Here are Avon’s statistics, provided by DSN:

1. Avon Products, Inc.

2011 Net Sales: $11.3 billion
Country: USA

Avon is the founder of modern direct selling and the acknowledged world leader in cosmetics, fragrances and toiletries. Avon’s well-known product lines include Avon Color, Anew, Skin So Soft, Advance Techniques Hair Care and Avon Naturals and mark.

2010 Rank: 1
2010 Net Sales: $10.9 billion
Sales Method: Person-to-person
Compensation Structure: Single-level and multi-level
Products: Beauty, fashion jewelry, apparel
Markets: 100
Salespeople: 6.5 million
Employees: 42,000
Headquarters: New York, N.Y.
Executive: Sheri McCoy
Year Founded: 1886
Stock Symbol: AVP—NYSE
www.avon.com

Coming in a close second is Amway. Amway is well-known and a history-rich direct selling company. In 2011, the company’s net sales was $10.9 billion. Here are Amway’s statistics, provided by DSN:

2. Amway

2011 Net Sales: $10.9 billion
Country: USA

Amway offers consumer products and business opportunities in more than 80 countries and territories worldwide through more than 3 million distributors. Top-selling brands for Amway are NUTRILITE vitamin, mineral and dietary supplements, ARTISTRY skin care and color cosmetics, and eSpring water treatment systems. Alticor is the parent company of Amway.

2010 Rank: 2
2010 Net Sales: $9.2 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, personal care, food and beverage, home care, wellness
Markets: 80
Salespeople: 3 million
Employees: 20,000
Headquarters: Ada, Mich.
Executives: Steve Van Andel and Doug DeVos
Year Founded: 1959
www.amway.com

What company would you guess would come in third place? Tupperware? Mary Kay? Nope. The third largest direct selling company in the world is Herbalife Ltd., with net sales of $3.5 billion in 2011. Herbalife is a leader in cosmetics and personal care products. Here are Herbalife’s company statistics, provided by DSN:

3. Herbalife Ltd.

2011 Net Sales: $3.5 billion
Country: USA

Herbalife is a global nutrition company that sells nutritional supplements and weight-management and personal-care products. Its products have been developed by scientists, physicians and nutrition experts, including Nobel laureate in medicine Louis Ignarro, Ph.D.

2010 Rank: 5
2010 Net Sales: $2.7 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 79
Salespeople: 2.7 million
Employees: 5,000
Headquarters: Los Angeles, Calif.
Executive: Michael O. Johnson
Year Founded: 1980
Stock Symbol: HLF—NYSE
www.herbalife.com

The fourth largest global direct selling company is Natura Cosmeticos SA, a Brazilian company. In 2011, Natura’s net sales were $3.01 billion. As a fierce competitor, Natura has expanded internationally and distributorships are available in the United States. Here are Natura’s company statistics, provided by DSN:

4. Natura Cosmeticos SA

2011 Net Sales: $3.01 billion
Country: Brazil

Natura is a direct sales company in the cosmetics, personal hygiene and perfumery sector, committed to the quality of relationships, innovation and constant improvement of its products and services based on a sustainable development model of business.

2010 Rank: 3
2010 Net Sales: $3 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 7
Salespeople: 1.4 million
Employees: 6,800
Headquarters: São Paulo, Brazil
Executive: Alessandro G. Carlucci
Year Founded: 1969
Stock Symbol: NATU3.SA—São Paolo
www.natura.net

Remember Vorwerk (technically Vorwerk & Co. KG)? Or, perhaps you’ve never forgotten about them? Vorwerk was started in 1883 and is still going strong. The company began in Germany, but is accessible around the globe. With $3.0 billion in net sales in 2011, Vorwerk comes in as the fifth largest global direct selling company. Here are Vorwerk’s company statistics, provided by DSN:

5. Vorwerk & Co. KG

2011 Net Sales: $3.0 billion
Country: Germany

Vorwerk is a 129-year-old, family-owned, German-based company that has been focusing on the direct sales channel since 1930. Products include household appliances as well as high-quality cosmetics. Vorwerk & Co. KG is a global group that includes JAFRA Cosmetics, which reported sales volume of nearly $600 million (USD).

2010 Rank: 4
2010 Net Sales: $2.9 billion
Sales Method: Person-to-person and party plan
Compensation Structure: Multi-level
Products: Cosmetics, household appliances, home care
Markets: 76
Salespeople: 600,000
Employees: 23,000
Headquarters: Wuppertal, Germany
Executives: Walter Muyres and Reiner Strecker
Year Founded: 1883
www.vorwerk.com

What about Mary Kay? Well, she’s come in sixth place, with $2.9 billion in net sales in 2011. Not bad, considering Mary Kay is one of the most recognizable direct selling brands in the United States. Here are Mary Kay’s company statistics, provided by DSN:

6. Mary Kay Inc.

2011 Net Sales: $2.9 billion
Country: USA

Mary Kay was founded in 1963 by Mary Kay Ash with the goal of helping women achieve personal growth and financial success. The company’s skincare and color cosmetics products are sold in more than 35 countries around the world.

2010 Rank: 6
2010 Net Sales: $2.5 billion
Sales Method: Person-to-person
Compensation Structure: Single-level
Products: Cosmetics and personal care
Markets: 35
Salespeople: 2.4 million
Employees: 5,000
Headquarters: Addison, Texas
Executive: David Holl
Year Founded: 1963
www.marykay.com

In seventh place is Tupperware Brands Corp., with $2.6 billion in net sales in 2011. Tupperware was started in 1946 by Earl Tupper, with the initial help of Brownie Wise, who made door-to-door selling into a movement for American housewives. The Tupperware brand is so successful that even today the general populace refer to their plastic storage containers as “Tupperware.”

7. Tupperware Brands Corp.

2011 Net Sales: $2.6 billion
Country: USA

Tupperware is a global direct seller of innovative, premium products across multiple brands and categories through an independent salesforce. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home as well as beauty and personal-care products.

2010 Rank: 7
2010 Net Sales: $2.3 billion
Sales Method: Person-to-person and party plan
Compensation Structure: Single-level and multi-level
Products: Storage and serving products; beauty, personal care
Markets: 100
Salespeople: 2.6 million
Employees: 13,500
Headquarters: Orlando, Fla.
Executive: Rick Goings
Year Founded: 1946
Stock Symbol: TUP—NYSE
www.tupperware.com

In eight place is Oriflame Cosmetics, with $2.1 billion in net sales in 2011. Headquartered in the small city of Luxembourg, this company has risen to reputable heights. Oriflame’s beauty brands are popular around the world, including in Europe, Asia, Africa, and Latin America. Distributors in the United States may want to keep an eye on this company in case it expands into North America. Here are Oriflames’s company statistics, provided by DSN:

8. Oriflame Cosmetics SA

2011 Net Sales: $2.1 billion
Country: Luxembourg

Oriflame is one of the fastest-growing beauty companies in the world. The company operates in 67 countries and is the market leader in more than half. Although it has no U.S. presence, Oriflame has a presence in Mexico, Central America, South America, Europe, Asia and Africa.

2010 Rank: 8
2010 Net Sales: $2.2 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Beauty
Markets: 67
Salespeople: 3.6 million
Employees: 7,900
Headquarters: Luxembourg, Luxembourg
Executive: Magnus Brännström
Year Founded:1967
Stock Symbol: ORI-SDB.ST—Stockholm
www.oriflame.com

In ninth place is Nu Skin Enterprises, Inc., with $1.7 billion in net sales in 2011. Nu Skin’s anti-aging and cosmetics products have made the company stand out amongst the competition. Here are Nu Skin’s company statistics, provided by DSN:

9. Nu Skin Enterprises, Inc.

2011 Net Sales: $1.7 billion
Country: USA

Nu Skin demonstrates its tradition of innovation through its comprehensive anti-aging product portfolio, independent business opportunity and corporate social responsibility initiatives. The company’s scientific leadership in both skin care and nutrition has established it as a premier anti-aging company, evidenced in its unique ageLOC® science that addresses aging at its source.

2010 Rank: 10
2010 Net Sales: $1.5 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 52
Salespeople: 855,000
Employees: 3,500
Headquarters: Provo, Utah
Executive: Truman Hunt
Year Founded: 1984
Stock Symbol: NUS—NYSE
www.nuskin.com

In tenth place, but by far not last place, is Belcorp. (Why don’t we have a company profile for Belcorp? Once the company provides an English-version of their website, then we will.) Belcorp racked in $1.6 billion in net sales in 2011. Based out of Peru, this is another successful direct selling company offering cosmetics and personal care products. Here are Belcorp’s company statistics, provided by DSN:

10. Belcorp

2011 Net Sales: $1.6 billion
Country: Peru

Belcorp boasts a rich heritage and product portfolio. The company helps put women in touch with their ideal of beauty and self-fulfillment by empowering and strengthening women to change their lives. Belcorp’s Beauty Consultants offer beauty and lifestyle products through three distinctive brands: L’bel, Èsika and Cyzone.

2010 Rank: 11
2010 Net Sales: $1.3 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 16
Salespeople: 938,000
Employees: 8,695
Headquarters: Lima, Peru
Executive: Eduardo Belmont
Year Founded: 1968
www.belcorp.biz

There you have it. The top ten global direct selling companies. Note that Attorney Jeff Babener has represented many of the above mentioned companies. See his biography page for more information.

Visit us at www.mlmlegal.com to learn more.

People have always asked the question “Is this industry for real?” “Is MLM a real option for individuals out there?” Keep in mind we have more than 16 million people in the United States selling consumer products and services in the range of $30 billion, and more than 90 billion people around the world doing this with sales exceeding $100 billion. This activity penetrates the fabric of our society. Earlier statistics, presented by the Direct Selling Association, have indicated that, perhaps, one in ten households have somebody who is doing this part-time.

Network Marketing is Plan B for Most People…

Keep in mind that 90 percent of the people who do this are looking for auxiliary income. Basically, this is not a place where you would be looking for a full-time job, although many people have been successful in that way. However, we have noted a recent “sea change.” When the U.S. economy collapsed in 2009, we started seeing speeches, talks and articles about the attraction of the network marketing opportunity as a viable part time income option. And, here, we’re talking about companies that offer a real opportunity, with real products, not fly-by-night scams.

Avon Recognizes the Silver Lining in the Recession Cloud…

 Avon recognized that lemons make lemonade.   People started to talk about Plan B as the new Plan A as baby boomers saw downsizing at their employment, as they saw their 401K’s and their pensions cut in half. Everybody was looking for an auxiliary source of income and they were looking for a real business activity.

In 2009, something interesting occurred. Companies like Avon, which had very real opportunities to offer individuals during this very difficult economy, decided “this is our time.”  In the 2009 Super Bowl, the programming led off with an Avon commercial. Not for the cosmetics, but for the opportunity, a first in the direct selling industry. Perhaps Avon was hoping to attract all of those ladies that basically were watching just before they went into the kitchen to make nachos for the guys, but interestingly enough, right after that commercial, the National Anthem was sung by Jennifer Hudson of the movie Dream Girls.  And coincidentally, Jennifer Hudson was also a spokesperson for Avon, a very good move by the Manhattan-based company. Other companies, such as Amway, also saw that in 2009, during the collapse of the economy, it was time to present real opportunities to Americans and a time to get back to promoting their brand. As a result, in 2009, we saw a tremendous growth in recruitment all over the country. Americans were obviously hungry for something real.

Yes, Network Marketing is Real… Put the Foot on the Pedal…

Is MLM/Network Marketing still relevant? Well, if the opportunity is “real,” prospective recruits will answer with a resounding “yes.” It isn’t the next real full time job for most, but with a little perspective, it is obvious that this channel of distribution offers most people a part time opportunity that may make the difference in their next mortgage payment or payment of those notorious credit card bills. Plan B may not be the answer… but it is a piece of the puzzle.

Watch the companion videos to this blog post: From a Legal Perspective: The Difference Between a Pyramid Scheme and Legitimate MLM and Is the MLM Industry “for real” in the Business World?

You may also find the following articles helpful: “Is This a Pyramid or a Legitimate MLM?” and “Network Marketing Legal Issues.”

Visit us at www.mlmlegal.com to learn more.

Can you make it just by starting small or do you have to start big? The fact is, the most successful direct selling companies of all time all started small. That’s why we have done more than 60 conferences on Starting and Running the Successful Direct Selling Company with 5,000-6,000 people in attendance. We have started companies with “moms and pops” at the conference table, and watched some of those companies grow to sell billions of dollars in sales over the years.

A few good stories to inspire everyone….

Look at the history of some of our industry leaders; let’s say you take a company like Amway, a company that sells in excess of $10 billion dollars a year globally. This is a company in which, basically, the owners started mixing biodegradable soap in their bath tub.

Somebody like Doris Christopher, started Pampered Chef, and spent the first few years in her basement. Of course, later on, it was taken over for a huge fortune by Warren Buffet and Berkshire Hathaway.

Longaberger Basket Company, whose sales have been in the billions, was started by creating a small assembly line in the backyard. The owner at the time was a manager of an IGA grocery food store.

Discovery Toys was started by Lane Nemeth. She basically was in early education, and she had a passion for shopping for educational toys when she traveled. She brought the toys back and showed them to her fellow teachers and parents, which resulted in the development of a huge company, built from scratch.

Cheryl Lytle, of Creative Memories, was basically doing demonstrations and supplying various sorts of supplies for scrapbooking and ended up building a company with sales in the hundreds of millions of dollars.

Very few people know this, but a young man named David McConnell, around the turn of the century,  was a door-to-door book salesman in the South; and in order to get the ladies to buy the bibles, he gave them a small complimentary bottle of perfume. After a while, he figured out that, actually, the ladies liked the perfume more than the books, and he grew his company from there forward. He named it the “California Perfume Company.” After some consideration, he decided he needed the name to be more upscale. He noticed that Shakespeare plays were performed at Stratford on Avon, and so he renamed the company Avon. More than 100 years later, Avon does better than $10 billion in sales as a New York Stock Exchange traded company in more than 150 countries. So what you really know now is that Avon is actually a door-to-door bible sales company.

Most recently the industry witnessed a tremendous success story.  Two ladies in Kansas started a company called Silpada Jewelry. During their first year, they did less than $100,000 in sales, with a handful of distributors. In just over 10 years, they built their company to hundreds of thousands distributors, hundreds of millions of dollars in sales, and in July of 2010, they were acquired and became part of Avon………… and they were paid $650 million.

Start Small…Think Big….

So if the question is “Can you start small and make it?” ……. With dedication and hard work, the answer is a resounding “Yes!”

For more information, watch the video Factors that Make an MLM Company Successful, or one of our many other MLM, network marketing, direct selling educational videos.

These articles also address ways in which to achieve success in direct selling: “MLM Consulting: Starting Your MLM Company,” “MLM Consulting: How to Build a Successful Direct Selling Company” and “MLM Corporate Startup Essentials: Part II.”

Expert MLM Attorney Jeffrey Babener has authored many books on MLM and direct selling. Check out Network Marketing: What you should know and The Network Marketer’s Guide to Success.

Visit us at www.mlmlegal.com to learn more.

Obviously, in network marketing, no one starts at the top. On the other hand, it is truly the equal opportunity business channel, and networkers, who sometimes don’t realize the value in the opportunity, often sell themselves short.

Take the case of two ladies from Kansas and their 10-year run in the MLM business.

A Tale of Two Ladies from Kansas

In July 2010, U.S. newspaper readers were surprised to wake up to a story of two ladies from Kansas, Bonnie Kelly and Teresa Walsh, selling their barely 10 year old network marketing silver jewelry business, Silpada Designs, to the direct selling giant Avon for $650 million.

The two ladies started their fledgling business in 1997 and during their first year felt lucky to build the business to $95,000 in sales, 14 distributors and three employees. Hard work and networking paid off. After a little more than ten years, Silpada had grown to 232,000 distributors and $230 million in sales. Avon was understandably rightfully impressed and planned purchase Silpada, leaving its sales force intact.

Can it happen today? The answer is obviously yes for the two ladies from Kansas. Welcome to America and Network Marketing… where economic dreams can come true.

Avon…Door-to-Door Bibles…

Avon’s story, itself, is just as impressive. The founder of Avon, David McConnell, wasn’t even in the cosmetics business in 1886. He was selling Bibles door-to-door in the South, and giving away free perfume samples as a way to get into the homes of prospective customers. As it turned out, his customers showed such attraction to the perfume samples that he started the California Perfume Company, later renamed Avon. Today, Avon, trades on the New York Stock Exchange, operates in more than 100 countries with more than six million distributors and sales in excess of $10 billion; Avon is one of the largest sellers of cosmetics in the world.

Welcome to Network Marketing

And so, the answer is yes! You may be starting at the bottom, but try to imagine where you could be in ten years… Maybe, time to move to Kansas?

Read more about achieving success in the direct selling industry in the article “How to Build a Successful Direct Selling Company” or register for our MLM Startup Conference (for executives of MLM, network marketing and direct selling companies): Starting and Running the Successful MLM Company Conference.

Leading MLM Attorney, Jeffrey Babener, has provided an extensive series of educational videos for both distributors and MLM executives.

The company profiles of Avon and Silpada Designs are also available on our website.

Or, read the story of Tupperware, another successful giant in the MLM industry.

Visit us at www.mlmlegal.com to learn more.