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.

Top News Stories in this Newsletter:

• Medifast, Inc. Announces Second Quarter 2015 Financial Results
• Vemma vs. FTC: 10 Quick Bullet Points
• Herbalife: The 10/70 Rule Could Be The Sticking Point
• Amway receiving the Direct Selling News 2012 Bravo Leadership Award
• Traders’ body wants law to regulate direct selling business
• Avon Products Receives $9.48 Average Target Price from Analysts (NYSE:AVP)
• Cosmetics firm sues eBay seller for selling products obtained before debut
• Trade associations call for federal office of supplements
• CVSL To Ring Closing Bell At New York Stock Exchange Today
• Five indicted in alleged pyramid scheme targeting Chinese Americans
• @USANAInc Makes Fast 50 List Once Again
• LifeVantage Appoints Mark Jaggi New Chief Financial Officer
• Take Shape For Life President Appointed as Direct Selling Association Leader
• USANA Board of Directors Appoints Dave Wentz and Kevin Guest as Co-Chief Executive Officers
• Vemma vs. FTC: Guidance for the Direct Selling Industry-Welcome to the Future
• Vemma Has Requested 1 week Additional Time For the Hearing And 10 Legal Bullet Points
• Large Inflow of Money Witnessed in Tupperware Brands Corporation
• Company Shares of USANA Health Sciences, Inc. (NYSE:USNA) Drops by -4.98%
• FTC: Vemma shut down for running pyramid scheme
• Leading Relationship Marketing Company, Nerium International, Achieves $1 Billion in Cumulative Revenue in Just Four Years

View the newsletter archive to read these news stories. Better yet, sign up for the MLM News Global Newsletter for free and get your bi-monthly copy delivered to your inbox.

• In the Scam Alerts this Week:
• Babener weighs in on FTC Vemma lawsuit
• Global Success 365 Review: 8-11 month Ponzi investment
• Protesters cancel USFIA GemCoin gala in Ontario, California
• Average Joe Profit System Review: $5 Ponzi gifting hybrid
• Unascos to scam US investors (again)?
• iGrow Network Review: $50 a month recruitment scheme

Video: In an Absolute Nutshell, What Are the Two Main Causes of a MLM Company Failing?

Company Profile of the Week: Nikken, Inc.

Articles this Week “MLM Consulting: How to Build a Successful Direct Selling Company” and “MLM and Identity Theft.” http://www.mlmnewsglobal.com/

Sign up for free! Keep up-to-date on network marketing news, scams, articles, videos, and more, a necessity for anyone in the MLM industry. Sign up for FREE. Visit: http://www.mlmnewsglobal.com/.

Brought to you by industry leader, MLM Attorney, Jeff Babener.

Your best educational resource on the web: check out the hundreds of articles, videos, company profiles, and more at MLMLegal.com.

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 22 and 23, 2015 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.

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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.

Hi, I’m Jeff Babener of MLMLegal.com, and I’d like to talk to you today about your trademark. Imagine living your life without a name. To some extent, you define yourself and your existence by your name. Your trademark, in a sense, is your branding for life.

When others think of you they think of your name and vice versa. Your choice of name for your MLM company is equally important. Not only will you brand your business and product but what may be worthless today will be your most valuable asset in years to come. Just ask Coca-Cola, Marlboro, Microsoft, Avon, or Mary Kay.

And so, your company name deserves special emphasis in the beginning. A trademark search by your MLM lawyer is a must. You don’t want to be told three years down the road that you must give up your name because you did not bother to conduct a trademark search. It would be a devastating blow to your business. Also, it is essential that the name that you choose will suit expanding product or service offerings down the road.

So, what’s in a name? Everything.

Wishing you the best in your direct-selling business, I’m Jeff Babener.

For more information visit our websites: www.mlmlegal.com and www.mlmattorney.com.

Or, visit these links for more information:

MLM Consulting: How to Build a Successful Direct Selling Company

MLM Corporate Startup Essentials: MLM Trademark

It’s Our Name – Live With It

The Educated Networker: Trademarks and Network Marketing

Comparative Advertising

Why do companies restrict the type of advertising carried on by their distributors?

Make sure to visit our blogs for the latest information on the direct selling industry: MLMLegal Blog Home and MLM Attorney Blog Home. HINT: Chose a category to narrow your search for discussion topics!

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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 is quickly approaching! On February 21^st and 22^nd, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 63nd 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 May and October conferences as well.)

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

Hi. I’m Jeff Babener, Chair of the Law Firm of Babener & Associates. Since I lecture and publish extensively, you have likely already visited our website: www.mlmlegal.com, which is one of the most frequently-visited websites on network marketing and one which we hope you find extremely helpful in starting your MLM or direct selling company. For the past 25 years, our law office has served as a key legal and business advisor to major companies like Avon, Shaklee, New Skin, ACM, Prepaid Legal, Longaberger, and Tupperware.

In fact, we’ve been right there at the beginning and actively involved in the creation of companies like Nikken, Excel, USANA, Melaleuca, and Legacy.

In addition, we have been actively involved in providing resources and support to companies like Quixtar, Creative Memories, and Mannatech. We represent many members of the DSA, and in fact, we even incorporated the MLMIA and served as their general counsel.

Although we are a full-service firm for MLM companies, we are direct selling specialists. We limit our clients strictly to MLM, direct sales, network marketing, and party planning companies. Much of our work is referred to us by small and large corporate law firms throughout the U.S. and other countries. We are an ultra-niche law firm and we have chosen to focus like a laser strictly on advising direct selling companies.

Although we have involvement with some well-established companies, which I’ve explained, our specialty is MLM startup.

Actually, all of the companies we helped to establish started with me on one side of a conference table and one of the individual founders – with high hopes – on the other. It may have been at our office. It may have been at one of the approximately 60 national conferences we have sponsored over the last two decades, entitled The Starting and Running the Successful MLM Company Conference. Or, it might have been after hearing me lecture at the University of Texas, the University of Illinois, or the University of Houston.

In the beginning, it was me sitting across the table from Frank VanderSloot of Melaleuca, or Tom Watanabe of Nikken, or Steve Smith and Kenny Troutt of Excel.

And, we are long term players. We brought Nikken to the U.S. from Fukuoka, Japan in 1990 and we have served as general counsel and their most trusted business advisor for 20 years, growing to represent the company in more than 40 countries.

Twenty years after Excel was sold to Wall Street for $1 billion, Steve Smith came back to us and said, “Jeff, let’s do this all over again. Let’s start another.” And we did.

Entrepreneurs come to us because we are far more than a law firm to them. We know this business. In fact, we probably know the business better than most of our clients. Over time, even though we are their lawyers, we tend to become their most trusted business advisors and member of their business team (via martin). And, usually more than 50% of our discussions are about successful operations and growth of their network marketing businesses, as opposed to mere legal issues.

As a courtesy, we often serve as their Keynote Speaker in support of our clients at major conventions. And, we have done so from Los Angeles to Nashville to Honolulu, and around the world, from Russia to China to Thailand. Our clients have used our credibility and reputation as a key asset in their growth.

We play an integral role on the legal and business front. For the startup company, we create all the documentation, agreements, policies, form language, etc. More importantly, we are intimately involved in the structure of the marketing program and the development of the compensation plan.

Our services involve trademarks, vendor agreements, labeling, FDA, sales tax; key relationships with founding distributors, medical or celebrity endorsements; administration of the distributor sales force in areas such as advertising, discipline, and communication; MLM registrations, regulatory compliance with the FTC, FDA, MLM statutes, postal, attorney general, and state consumer protection legislation.

In fact, both at the startup level and on an ongoing basis, not one piece of marketing material goes out that we don’t review and offer input. That includes all web and HTML copy, scripting, audio and video scripting, PowerPoint presentations, all hard copy and printed materials, web communication, and every other type of media.

Anything that will make its way to distributors, prospects, customers, and the public we’re involved in, and when we have created a great model, we help take our clients into international markets and around the world.

Everything we do in startup and long-term representation is driven by our number one goal, helping our clients be successful and stay in business. Our clients have our office number, home numbers, cell phone numbers, and private email addresses.

Unless we’re on a raft in a river canyon, we try to make ourselves always available. Expect to talk to us whether it is nighttime, or a weekend, or whether we are in Tokyo or Moscow or Beijing. As mentioned, we are long term members of a business team. We don’t know the meaning of “short term” relationships. We are looking for companies that intend to be successful and we intend to help make them successful.

If an MLM startup company is looking for this type of support then Babener & Associates is the right team partner for them. Please visit us at www.mlmlegal.com or call us at 503-226-6600.

For more information about the Law Office of Babener & Associates, visit our websites: www.mlmlegal.com and www.mlmattorney.com.

Or, visit these links for more information:

MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com Video

The MLM Startup Conference in Las Vegas Video

The Legal Issues of Starting and Running a MLM Company Video

What is the role of an Experienced MLM Legal Counsel? Video

Is a MLM Lawyer a Typical Lawyer? Video

How Does a Business Lawyer become a MLM Lawyer? Video

Jeffrey Babener’s Youtube Channel Reaches 60,000 Views Blog Post

CNBC.com Cites Legal Expert, Jeffrey Babener on FTC Business Opportunity Rule Blog Post

NEW PRESS RELEASE – 63rd Annual MLM Startup Conference! Blog Post

The Role of MLM Legal Counsel – Why Hire a MLM Attorney Blog Post

The Nine Basics You Need to Understand in Order to Succeed in MLM – Interview with Jeff Babener Blog Post

Interview with Expert MLM Attorney – How to Handle Compliance Discussions with your Distributors Blog Post

An Interview with Industry Expert and Advocate, Jeffrey Babener Blog Post

The First Essential Hire for MLM Startup Companies Blog Post

FTC v. BurnLounge: Lessons Learned for MLM/Direct Selling Blog Post

MLMLegal on Google+ Blog Post

MLM Legal Cases Page – New Page Blog Post

Do I Need to Register my Company in all 50 States? Blog Post

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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 is quickly approaching! On February 21^st and 22^nd, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 63nd 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 May and October conferences as well.)

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

There are many ways to determine the difference between a legitimate direct selling company, such as Avon, Mary Kay, Tupperware, or Amway and an illegal pyramid scheme.

Learn how to tell the difference yourself by watching expert MLM Attorney Jeff Babener’s new video From a Legal Perspective: The Difference Between a Pyramid Scheme and Legitimate MLM.

And, to learn more about how to spot the red flags that often occur in the MLM industry, read the articles “Is This a Pyramid or a Legitimate MLM?” and “Network Marketing Legal Issues.”

You can also Run, Learn and Get Lost at MLMLegal.com.

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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.

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.