The most assumed and expected incentives are monetary and come in the form of bonuses and commissions. Since direct selling companies are trying to incentivize different types of consultant behavior, the compensation plans of MLM companies are often complex and multi-task to provide incentives for retail selling, preferred recurring customers, building wide, building deep, working with immediate downlines and deep into a downline, time sensitive personal and group sales production, personal and group sales, longevity, quick start, among others. Incentive programs are usually designed to affect the distributor’s ultimate sales behavior.

Beyond cash incentives, most leading network marketing companies understand the power and inspiration behind noncash incentives that resonate financially and emotionally with distributors and keep them bonded to the company. Among the common incentives are auto lease support programs, house payment support programs, travel/trip incentives, conventions, reward pins and accessories, iPads, and tangible giveaways.

Of course, the most powerful noncash incentive is recognition for distributor accomplishments.

Do you want to learn more about incentives? Check out the video by expert MLM Attorney, Jeff Babener:

Do Incentives Increase Sales? How Worthwhile Are Consultant Incentives?

Join us for the next Starting and Running the Successful MLM Company Conference in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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

A gifting club usually begins unintentionally between friends, family and neighbors. Unlike the traditional pyramid scheme, gifting clubs are not promoted as an investment by fraudulent financial advisers. Gifting clubs are usually home-grown. Those involved believe that they are genuinely helping one another. However, there is no exchange of merchandise and someone always ends up on the losing end.

Those who join usually do so by investing anywhere from $2,000 to $5,000 and then recruiting others to join. As more people join beneath them, their “investment” grows. Cash flow is passed from new recruits to those higher up in the pyramid. Those at the top of the gifting club pyramid usually leave with roughly eight times the amount they originally invested, while those on the bottom lose their money as new recruits decline and cash ceases to drive the pyramid. All gifting clubs eventually die because they run out of people (and therefore cash) to continue to “feed” the pyramid.

Unfortunately, and to the surprise of the founders and participants, they are engaged in an unintentional cash, pyramid, headhunting, recruitment scheme. Such practices violate consumer protection laws and criminal laws in most states. And also, unfortunately, the end-game sometimes is a criminal prosecution for the participants, all of whom might be your next door neighbors and “charismatic” people under most circumstances. Basic greed has blinded their judgment, however, and the price to pay is often very expensive.

Watch the video: What about Gifting Clubs?

For more information on any topic on network marketing that comes to mind, please visit www.mlmlegal.com and www.mlmattorney.com.

In addition, our next Starting and Running the Successful MLM Company Conference takes place May 14 and 15, 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.

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

All gifting clubs eventually die because they run out of people (and therefore cash) to continue to “feed” the pyramid.

A gifting club usually begins unintentionally between friends, family and neighbors. Unlike the traditional pyramid scheme, gifting clubs are not promoted as an investment by fraudulent financial advisers. Gifting clubs are usually home-grown. Those involved believe that they are genuinely helping one another. However, there is no exchange of merchandise and someone always ends up on the losing end.

Those who join usually do so by investing anywhere from $2,000 to $5,000 and then recruiting others to join. As more people join beneath them, their “investment” grows. Cash flow is passed from new recruits to those higher in the pyramid. Those at the top of the gifting club pyramid usually leave with roughly eight times the amount they originally invested, while those on the bottom lose their money as new recruits decline and cash ceases to drive the pyramid. All gifting clubs eventually die because they run out of people (and therefore cash) to continue to “feed” the pyramid.

Unfortunately, and to the surprise of the founders and participants, they are engaged in an unintentional cash pyramid headhunting recruitment scheme. Such practices violate consumer protection laws and criminal laws in most states. And, also unfortunately, the end game sometimes is a criminal prosecution for the participants, all of whom might be your next door neighbors and “great” people under most circumstances. Basic greed has blinded their judgment however, and the price to pay is often very “expensive.”

Additional information on gifting clubs is available at MLMLegal.com.

Visit www.mlmlegal.com and www.mlmattorney.com for more information.

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Our next Starting and Running the Successful MLM Company Conference takes place October 24th & 25th, 2013 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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