Your cost of goods is calculated as your acquisition or manufacturing cost. The more frequent question we come across relates to pricing. Most MLM experts agree that you must have adequate margins to pay commissions and to make a profit. Different products and services carry different profit margins. In addition, smaller margins may be satisfactory with high-priced products because there is still room for profit. Most MLM companies are likely to pay total commissions equal to between 30 and 45 percent of the price sold to distributors for resale, or prices for which consumers buy directly from the company. A typical company will try to achieve a minimum 5-7 times markup to allow for commissions, overhead and profit. Typical markup for resale by distributors is 25% of their purchase price. A good place to visit this issue is at the MLM Startup Conference, offered by www.mlmlegal.com, where experts discuss margins, pricing, profit, proformas, and a whole lot more.

Learn more business tips at www.mlmlegal.com and www.mlmattorney.com.

If you are interested in attending the Starting and Running the Successful MLM Companyconference visit our conference page, view our speaker list, or get more details. All executives/owners of direct selling companies are welcome to attend. Call 800-231-2162 to register.

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

A Conversation with Jeff Babener Video Series: Is cross-sponsoring legal? What rights does the distributor have? What rights does the MLM companies have? Can a company legally ask that distributors only work for one company at one time? Distributors are independent contractors. But companies may lose distributors through raiding. What are your rights? And if cross-sponsoring is legal, is it a good idea?

Watch the video to learn the legalities of cross-sponsoring from both the distributor’s and the company’s perspective. To view more videos in this series, visit MLMLegal.com.

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

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.  

1. Does the direct selling company have a valid product or service that you believe in—that you are passionate about selling?
2. Does the company management have proven experience in network marketing?
3. Does the compensation plan provide retail profit to the distributor and pay bonuses for developing a downline organization?
4. Does the MLM company offer top quality promotional and support materials?
5. Does the network marketing company offer ongoing field training and support available throughout the country?
6. Do you have a sponsor that is willing to work with you and help you in your efforts?

These questions are all imperative to the success of your distributorship business. Weigh your options carefully. Network with other distributors about the companies in which they’ve had success. Do your research, compare each company apples to apples, or apples to pears. Make sure that you choose a company that you are not only passionate about, but that is also supportive of its distributors.

Watch some of our most popular videos to learn more about network marketing and MLM.

Do You Have Some Tips to Become a Successful Network Marketing Distributor?

If I’m a New Distributor Then Should I Focus My Selling In Areas Where Other Distributors Are Successful Or Should I Focus On Untouched Territory?

If a Sales Kit or Startup Fee Is Several Hundred Dollars, Then Is This Considered “Frontloading”?

Why Do MLM Companies Require Distributors to Use Replicated Websites Rather Than Distributor-Created Websites?

What Do I Do with Distributors Who Go Passive (for MLM Distributors)?

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

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.

The questions you should be asking are “What is it that people are paying” and “Why are they paying it?” If you’re selling a quality product at a fair price to consumers then you are likely operating legitimately. If you’re running a program in which you are merely moving money or are selling overly-priced products to distributors who are buying into the compensation plan only to quality, then you probably have an illegitimate compensation plan structure.

State agencies and the FTC took a look at compensation plans and products in various spectrums. On a spectrum of compensation plans, a party plan that is retail-oriented is at the favorable end of the spectrum.  As we move across the spectrum, binary plans, particularly binary plans that have distributors buy multiple business centers moves to the far end of the spectrum, nearer to the territory of being a pyramid.

Companies that are marketing different types of products are looked at differently in terms of “Live and Let Live.”  At the conservative end of the spectrum, products that are used for daily household use, telecom, dietary supplements and vitamins – even if there is substantial personal use – state agencies understand that the product is being used and there is little to lose.  At the other end of the spectrum, and one that involves intense scrutiny, are products that are high-ticket items, like financial seminars, financial education programs, consumer benefit programs, and particularly, things that are intangible; states look at these and they ask the question “Who is buying it and why?”

If you think you can operate a legal business selling prayers or wishes you’re dead wrong.

States want to know that retail sales are making it to the end-consumer (not just the distributor).

For more information on compensation plans, check out the article “How to Analyze Compensation Plans.”

Expert MLM Attorney, Jeff Babener, has put together a lot helpful videos on compensation plans. Here are just a few. Visit our main website, mlmlegal.com, for more information on all aspects of running a legitimate direct selling business.

How Do I Create a Compensation Plan That Guarantees That I Am Legal?

What Compensation Plans Do Distributors Generally Prefer?

Role of Compensation Plan in a Successful Direct Selling Company

Is the Compensation Plan the Driving Force of Success?

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

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!

3. Have patience. It takes time to grow your business, as it does with any other business. Give yourself at least two years to succeed. Try. Try. And try again. Create goals lists. Take small goals and turn them into huge goals. It make be slow, but you can grow!

4. Attend company training programs. Network marketing / MLM companies often offer training programs to help you succeed in recruiting and training new consultants. Take advantage of the training programs your company offers. Don’t let those valuable networking opportunities go to waste either!

5. Work with your sponsor, and work with those you sponsor. You should soak up as much experience as you can from your sponsor and pass that knowledge down to those that you sponsor. A successful sales organization has successful distributors. If you’re not willing to help others and be helped, this business is not for you.

6. Think positively. Remember, the MLM business will subject you to a lot of motivational speakers, sales and promotional materials. Some of it will be useless, while some of it won’t. When things don’t go smoothly keep yourself in a positive frame of mind. On average, you’ll have to make ten presentations to make just one sale! You need to be able to positively deal with rejection. Maintaining a positive attitude will go a long way in keeping you motivated and encouraged to succeed!

7. Get organized. Set aside a place in your home that is used just for business. Make good use of the incredible amount of free computer software and apps. Keep a daily planner. Keep track of customers, prospective customers, etc. Send out those emails and reminders. Stay organized!

8. Be loyal. Don’t become a “multilevel junkie!” Some distributors fail because they bounce from one network marketing opportunity to another – again and again. This is a prescription for failure! While many successful distributors may be involved in promoting two or three direct selling product lines at once, the most successful distributors are those who focus on promoting the products or services of a single network marketing / MLM / direct sales company over a long period of time. Find the right company for you, and then stick with it! Loyalty pays.

9. Work hard! Network marketing is not a quick, easy path to a lifetime of prosperity. Nor is it a free ride to wealth that requires absolutely no effort on your part. It doesn’t work that way. In fact, it doesn’t work at all unless you do! You have to devote time and effort to it especially in the very beginning. It can pay out huge rewards. But regardless of what everyone tells you, you must work for those payoffs! Work as hard as your competition is working – then harder!

Want to learn more?

MLMLegal.com has tons of resources to help and motivate successful distributors. Here are just a couple of videos out of the Video Library that you may find helpful!

What is the Benefit of Recruiting Experienced Distributors?

Tips to be a Successful Network Marketing Distributor

What do I do with Distributors who go “Passive?”

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

It is common for distributors to be recruited based on an attractive compensation plan. Instant monetary benefits, promises of instant wealth, and enormous payouts are often advertised by companies. However, no company has ever been successful based on its compensation plan alone. An out-of-this-world compensation plan often gives the company an initial jump start, but time will prove that a great compensation plan alone isn’t enough to sustain a company.

Of course, a competitive compensation plan with great incentives are important, but “ground breaking” plans are more often a mirage for poor products, that you may have a hard time selling, or poor company management.

In the short term, “unprecedented” compensation plans may work, but they are not sustainable in the long term. Great products, which attract quality distributors and customers, and an organized management team, are what carry a company long-term.

For more information, visit www.mlmlegal.com.

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

Historically, the products sold by direct selling companies are in the categories of personal care, health/nutritional, cosmetics, jewelry, household products, and technology, etc. These types of products are not only marketed to the end consumer, but the end consumer is often the best candidate to pursue a part-time opportunity in marketing those products as well. And, thus network marketing is not only best suited for consumer (as opposed to business) sales, but the potential pool of recruits is to be found in the thousands, millions of end consumers.

This is not to say that network marketing is not involved in a wide array of both consumable and one-time use products and services for end consumers. In fact, certain markets have been created by direct sellers, including water treatment devices, magnetic products, pre-paid legal services, home food storage containers, etc. In addition, the industry has established great success in the marketing of telcom, energy and various insurance/financial products.  Its imprint can even be found in application to the real estate industry. Sales of the U.S. network marketing industry exceed $30 billion and the number of participants is approaching 20 million.

See Hard Facts about a Growing Industry – 2015 for current statistics on the direct selling industry.

MLMLegal.com is bustling with educational content for direct sellers and startup/existing MLM companies! Be sure to visit us often!

If you are interested in attending the Starting and Running the Successful MLM Company conference visit our conference page, view our speaker list, or get more details. All executives/owners of direct selling companies are welcome to attend. Call 800-231-2162 to register.

Our next Starting and Running the Successful MLM Company Conference takes place October 27 and 28, 2016 in Las Vegas. View our conference flyer and speaker list online. Participate in our Innovation Campaign for your chance to receive TWO FREE TICKETS to attend our next conference.

If you’re reading this blog post and the conference dates above have passed, check our website for the current conference dates.

Sign up for the MLM News Global newsletter for top headlines, news stories, scam alerts, videos, articles, and more information on the network marketing industry.

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

May 2016 Conference

We appreciate all the guests in attendance, as well as the lineup of incredible speakers.

If you weren’t able to make the May 2016 conference, no problem! We are hosting the next Starting and Running the Successful MLM Company Conference on October 27 and 28, 2016 in Las Vegas.

We invite anyone who is starting or running an existing MLM company to join us! MLM business owners, executives, corporate staff, you’re invited! The classroom-like setting of the conference promotes education, not selling. We work hard to provide you with a fully credible lineup of expert speakers who advise in the areas of recruiting, legal, compensation plans, software, technology, raising capital, and so much more. At the end of each day we offer one-on-one time with the speakers. As you hear the speakers discuss various topics, you can decide who you’d like to sit down with to discuss your unique situation with at the end of each day. Sign up with them all or just a couple! It’s up to you!

Visit our website for details.

October 27 & 28, 2016

Las Vegas, Nevada

9AM-4PM

4PM-7:00PM – one-on-one time with the speakers

Call 800-231-2162 for more information or to register.

Visit our conference page and speaker list for additional information.

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

Portland, Oregon (PRWEB)April 15, 2016

MLM News Global newsletter offers recent news, videos, company profiles, and timely articles. The e-newsletter contains the top news stories from the network marketing industry, the most recent MLM scam alerts, timely articles on the direct selling industry, and so much more. Keep up-to-date on top MLM news headlines or to hear about the latest MLM scam alerts and pyramid scheme accusations. The timely headline reporting will keep subscribers up-to-date on stories that affect everyone in the network marketing industry. In addition, important press releases, directly from MLM/network marketing/direct selling, party plan companies, keep subscribers current on trends and direct selling company developments.

Subscribe and look forward to exclusive videos that laser-focus on industry-educational topics, such as distributor education, industry Q&A, direct selling executive interviews, MLM startup, and pyramid schemes.

The MLM News Global newsletter features industry-related articles in every issue, featuring MLMLegal.com’s perspective on FTC rulings, Burnlounge, Herbalife, Vemma cases, and more.

MLM News Global also highlights featured articles, from industry experts, on MLM industry-related topics, such as pyramid schemes, compensation plans, recruiting, lead generation, consulting, legal analysis, software, and more.

The MLM News Global Newsletter is presented by industry educator, MLM legal expert, and network marketing business consultant and lawyer, Attorney Jeff Babener.

Sign up today to receive valuable MLM, network marketing, direct selling content, an imperative to anyone in the direct selling industry.

Unsubscribe at any time. We guarantee a NO SPAM POLICY!

Check out our Archives for past issues.

The Starting and Running the Successful MLM Company conference will be held May 20, 2016.

How do you find out more information?

Visit the new website:

http://www.mlmlegal.com

Visit the blogs:

http://mlmlegal.com/MLMBlog/

http://mlmattorney.com/blog/

Contact MLMLegal.com: 503-226-6600 or 800-231-2162

Conference Information: The day will begin at 9:00AM and end at 5:30PM, then from 5:30PM-8:30PM there will be one-on-one time with the speakers. For more information visit our website or call 800-231-2162/503-226-6600. Registrations are taken exclusively by phone and questions are always welcome.

Presented by one of the most trusted individuals in direct selling and MLM, Jeffrey Babener, Editor of http://www.mlmlegal.com.
About Attorney Jeffrey Babener: Conference Host and Chairman, Editor of http://www.mlmlegal.com, as well as the leading direct selling attorney in the United States – With over 30 years of experience as a direct selling attorney, Jeffrey Babener has advised leading companies in the MLM/Direct Selling industry, ranging from Avon to Nikken, to Herbalife, to Melaleuca, to USANA, and to Excel Communications, Nerium International, plus many more. He has been published in national magazines such as Money, Inc., Atlantic Monthly, Entrepreneur magazine, Direct Selling News, Direct Sales Journal, Success magazine, Money Maker’s Monthly, among countless others. He’s authored several books, including his most popular Network Marketing: What you should know. Mr. Babener has chaired more than 70 national conferences on direct selling.

Learn how to receive two COMPLIMENTARY tickets to attend the next Starting and Running the Successful MLM Company Conference by visiting the MLMAttorney.com.

View the press release at PRWeb.

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

Portland, Oregon (PRWEB)April 14, 2016

Come visit the new and improved MLMLegal.com! This is the first major renovation of MLMLegal.com. MLMLegal.com’s new face is easy to navigate and full of valuable and educational content, pertinent to direct sellers. And Babener & Associates is working on updating more pages throughout 2016.

A new and easy-to-use navigation bar helps visitors easily find what they are looking for, whether it is the blog, articles, videos, MLM resources, conference pages, or one of the many other resources available on the website for network marketers.

The main homepage image was provided by expert MLM Attorney himself, Jeff Babener, while on a trip to Europe. These beautiful mountains provide the metaphor “Let Us Be Your Guide.” Let the Law Office of Babener and Associates, MLMLegal.com, guide clients through the sometimes difficult MLM industry and its legal climate. As experienced network marketing attorneys, who have been in the industry for over three decades, and who represent companies such as Melaleuca, Avon, Herbalife, NuSkin, USANA, Nerium, Excel, and Team National, our firm has the experience and credibility to help direct selling companies navigate the direct selling industry.

“Let us be your guide” through education provided throughout the website in the form of articles, videos, books, and MLM resources. Or,” let us be your guide” in helping to startup or run your direct selling company; Babener & Associates advises in all of the legal aspects of starting up or running MLM, network marketing, direct selling companies.

The new homepage offers quick and easy-to-find links so that visitors can easily contact Babener & Associates, request a Complimentary MLM Startup Manual, gather information regarding the next MLM Startup Conference, or subscribe to the newsletter, MLM News Global.

The new MLMLegal.com homepage still features new content, such as headline news and relevant articles, this time under their own, clearly-outlined sections.

Scroll down the homepage to find more educational video content and request a complimentary copy of the MLM Startup Manual.

What else is important?

A scrolling carousal provides visitors with images taken of past conferences and directs the eye and mouse directly to the page where one can find out when the next conference takes place and who will be included as expert speakers.

And now, visitors can find all of Jeff Babener’s educational MLM videos (over 140 videos) in one location, the homepage. …Right along with Mr. Babener’s most popular industry articles.

And don’t forget about the rest of the MLM, network marketing, direct selling content on MLMLegal.com. Use the Law Library to find all of Mr. Babener’s articles, federal and state cases, MLM law in 50 states, MLM business articles, IRS 911 Publication, and so many more article index pages that can be easily navigated.

Hint: Each new webpage now has related video and page content at the end of each webpage.

As does the new homepage. The end of each page has links to related material/videos, or other related pages that we suggest visitors look also to enjoy while at MLMLegal.com.

And finally, at the bottom of each webpage are links to social networking sites. Follow MLMLegal on Twitter. Friend MLMLegal.com on Facebook. Like the Babener & Associates Facebook page. Visit Babener & Associates on LinkedIn or Google+. There are lots of easy ways to stay in touch and now it’s made it easy to find and follow Babener & Associates/MLMLegal.com online.

MLMLegal.com and Babener & Associates thought a lot about visitors when redesigning the new website. MLMlegal.com is now more manageable yet still famous for being full of lots of useful content.

Potential attendees to the Starting and Running the Successful MLM Company conference are welcome to visit the conference page, view the speaker list, or get more details online. All executives/owners of direct selling companies are welcome to attend. Call 800-231-2162 to register.

The next Starting and Running the Successful MLM Company Conference takes place May 20, 2016 in Las Vegas. View the conference flyer and speaker list online. Participate in the Innovation Campaign for a chance to receive TWO COMPLIMENTARY TICKETS to attend the next conference.

Sign up for the MLM News Global newsletter for top headline news stories, videos, articles, and more valuable MLM, network marketing, direct selling content, an imperative to anyone in the direct selling industry.

The Starting and Running the Successful MLM Company conference will be held May 20, 2016.

How do you find out more information?

Visit the new website:

http://www.mlmlegal.com

Visit the blogs:

http://mlmlegal.com/MLMBlog/

http://mlmattorney.com/blog/

Contact MLMLegal.com: 503-226-6600 or 800-231-2162

Conference Information: The day will begin at 9:00AM and end at 5:30PM, then from 5:30PM-8:30PM there will be one-on-one time with the speakers. For more information visit our website or call 800-231-2162/503-226-6600. Registrations are taken exclusively by phone and questions are always welcome.

Presented by one of the most trusted individuals in direct selling and MLM, Jeffrey Babener, Editor of MLMLegal.com.
About Attorney Jeffrey Babener: Conference Host and Chairman, Editor of MLMLlegal.com, as well as the leading direct selling attorney in the United States – With over 30 years of experience as a direct selling attorney, Jeffrey Babener has advised leading companies in the MLM/Direct Selling industry, ranging from Avon to Nikken, to Herbalife, to Melaleuca, to USANA, and to Excel Communications, Nerium International, plus many more. He has been published in national magazines such as Money, Inc., Atlantic Monthly, Entrepreneur magazine, Direct Selling News, Direct Sales Journal, Success magazine, Money Maker’s Monthly, among countless others. He’s authored several books, including his most popular Network Marketing: What you should know. Mr. Babener has chaired more than 70 national conferences on direct selling.

Learn how to receive two COMPLIMENTARY tickets to attend the next Starting and Running the Successful MLM Company Conference by visiting the MLMAttorney.com.

See the Press Release.

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