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.

It has long been recognized that there is high attrition among network marketing consultants, perhaps as high as 80-90%! The vast majority of MLM distributors are part time and they join and leave for many reasons. The fault is not necessarily with the company. In fact, a direct selling company is competing for their time. MLM companies are competing for time with consultants who may be involved in the PTA, little league, another part time job, family demands, shifting duties as work, etc.

What is most important is that a MLM company use its time with its consultants to demonstrate great products and great service. Surely, it is important to try to keep distributors active; but if they do go passive, hopefully they will continue to buy products and services in the same fashion as preferred customers. Whether or not that happens is dependent on whether the distributor has truly bonded with the quality of product and service. At that point, MLM companies should take a lead from online sellers such as Amazon to determine what drives customers to continue coming back again and again. And at some point in the future, when the time is right, the passive individual who has a continuing positive experience, may well be back again as an active distributor.

For more tips on being a successful network marketing company owner, visit expert MLM Attorney Jeff Babener’s websites: www.mlmlegal.com and www.mlmattorney.com.

In addition, 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.

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

Jeff Babener speaking at the MLM Startup Conference in Las Vegas.

MLMLegal.com Launches the Innovation Campaign for the October 23rd & 24th, 2014 MLM Startup Conference in Las Vegas!

Fill out the short survey here to receive two free tickets (worth $345.00!) to the next MLM Startup Conference in Las Vegas!**

For over 27 years MLMLegal.com and Babener & Associates has hosted the most prestigious MLM conference for executives of startup and existing direct selling companies. In celebration of our 69^th conference, we are offering two complimentary tickets* – worth $345.00! – to attend the esteemed event in Las Vegas, Nevada.

In our ongoing effort to offer the absolute best network marketing conference available, we invite you to participate in our October 2014 Innovation Campaign. To receive your two free tickets, fill out our Innovation Campaign form below.

We invite the input, ideas and innovation from the very MLM company owners who are in the startup and launch phases of their companies. We strive to offer the best conference in the United States. MLMLegal.com always covers current issues and events at all of our conferences, but this time it is different! We want your input in the Innovation Campaign!

Are you an owner or executive of a startup of existing direct selling company? Do you want to attend the 69^th Starting and Running the Successful MLM Company Conference for FREE?! Fill out our short survey below! Share with us your experience as a network marketing entrepreneur!

Fill out our Innovation Campaign form to receive your two free tickets today! Also visit this page for additional information on the October 23rd & 24th, 2014 MLM Startup Conference.

Visit www.mlmlegal.com and www.mlmattorney.com for more information on the network marketing industry.

Find us on our social networks:

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Our next Starting and Running the Successful MLM Company Conference takes place October 23rd & 24th, 2014 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

*Innovation Campaign Survey Participants will receive two free tickets to attend the October 2014 Starting and Running the Successful MLM Company Conference in Las Vegas, Nevada. This offer does not include hotel, flight or other travel expenses.

***This offer is only available to potential attendees who are eligible to attend the Conference, i.e., executives of a startup or existing MLM/Direct Selling/Network Marketing/Party Plan companies.

Click Here to fill out the Innovation Campaign Form.

______________________________________________________________________________

Information About the Original MLM Startup Conference – Starting and Running the Successful MLM Company Conference in Las Vegas is Available HERE.

WHAT ELSE DO I NEED TO KNOW?

If you don’t start it right, you can’t expect to get it right.

Each attendee will receive a FREE copy of the Starting and Running the Successful MLM Company Manual. Some of the chapters include:

Legal Issues
MLM Law in 50 States
FDA Health Claims: The Final Rules
The Snail that got Mugged: FTC v. Direct Selling
Start-up  Issues
Incorporating the Network Marketer
Five Dynamics that Drive An MLM Company
Product
Creating Your Next Million Dollar Product
Treasure Hunting for New Products
Compensation Plans
Comp. Plan Conversion: Direct Sales to MLM
Your Compensation Plan’s Competitive Edge
Communications and Media
Focus on the Mission…Not the Commission!
When the Media Calls… Who Answers the Phone?

Attendees receive over 30 consulting hours with an array of industry experts – all in one location.

HOW CAN I FIND OUT MORE INFORMATION?

Visit our main website:
www.mlmlegal.com

Read our blogs:
http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/

Watch the videos:
MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com

The MLM Startup Conference in Las Vegas

MLM Startup Conference – A Must for Executives of Startup and Existing MLM Companies

BEST BET?

Call us to register: 503-226-6600 or 800-231-2162

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

If you don’t start it right, you can’t expect to get it right.

For over 27 years MLMLegal.com and Babener & Associates has hosted the most prestigious MLM conference for executives of startup and existing direct selling companies. We’ve provided some statistics and overview of our last MLM Startup Conference:

Our February Conference, the 66th national Conference on starting and running a direct selling/network marketing/part plan/MLM company, involved approximately 70 companies, representing roughly 28 states and six countries, ranging from the U.S., Canada, South America, Mexico, U.K., Europe, Africa, and Asia.

Speakers at the Conference have served as professional advisors to such companies as Avon, Amway, NuSkin, Usana, Melaleuca, Nikken, Herbalife, and many of the leading direct selling companies.

The Conference topics discussed included industry knowledge, legal environment, compensation plan development, technology, staffing, payment systems, recruitment, ecommerce, social networking, and internet marketing.

You too can attend the Starting and Running the Successful MLM Company Conference, which takes place in February, May and October. To see if you qualify to attend, visit our Conference Information page. Also, to see how you can attend for free, visit our Innovation Campaign page. To register for the next conference, call 800-231-2162.

For more information on the network marketing industry visit www.mlmlegal.com and www.mlmattorney.com.

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Our next Starting and Running the Successful MLM Company Conference takes place May 15th & 16th, 2014 in Las Vegas. Check out the Innovation Campaign for information on how you can get two free tickets to the MLM Startup Conference in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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

Click this image for an up-close view of the manual cover.

The “How To” Manual: Starting and Running the Successful MLM Company – FREE (For qualifying executives of direct selling, network marketing, MLM companies only.  Click HERE to see if you qualify.)

Some Chapters Topics Include:

Legal Issues
MLM Law in 50 States
FDA Health Claims: The Final Rules
The Snail that got Mugged: FTC v. Direct Selling
Start-up  Issues
Incorporating the Network Marketer
Five Dynamics that Drive An MLM Company
Product
Creating Your Next Million Dollar Product
Treasure Hunting for New Products
Compensation Plans
Comp. Plan Conversion: Direct Sales to MLM
Your Compensation Plan’s Competitive Edge
Communications and Media
Focus on the Mission…Not the Commission!
When the Media Calls… Who Answers the Phone?

Some of the Key Corporate Issues included in the manual involve:

• Legal
• Start-Up
• Compensation Plans
• Communication Tools
• Software
• Media
• Affiliate Programs

If you don’t start it right, you can’t expect to get it right.

This FREE MLM Startup Manual is courtesy of MLMLegal.com and the law firm of Babener & Associates.

Qualifying executives of network marketing and direct selling companies can request a free “How To” Manual that includes vital information for starting and running the successful MLM company. Please call our office at 503-226-6600 or 800-231-2162 to see if you qualify.

This manual is crammed with articles and notes about what it takes to make your multilevel company successful. If you don’t start it right, you can’t expect to get it right.

Check out some of these article titles:

• How to Analyze Compensation Plans
• The Compensation Plan: the heart of a successful MLM company
• Creating Your Next Million Dollar Product
• Some Thoughts On Selecting A Good Software Provider

Written by experts in the field; tap into the greatest resource of knowledge and experience in the direct selling industry.

This is the manual that we provide to all attendees of our very popular MLM Startup Conference: Starting and Running the Successful MLM Company; our next conference is May 15^th & 16^th, 2014.

In order to receive your free manual, complete the following form.  This information is vital to executives of Network Marketing (MLM) companies, whether you are involved at a start-up level or are an emerging company, ready to launch and grow your company. We will confirm with you to verify that you will benefit from the information presented in the manual and then send you the complete handbook for FREE. Call us at 503-226-6600 or 800-231-2162 to see if you qualify.

Click here to read about just some of the industry-leading experts who’ve contributed years of their industry knowledge to the FREE MLM STARTUP MANUAL pages:

Jeff Babener represents leading US and foreign companies in the direct selling industry.  He has been advisor to such companies as Avon, Discovery Toys, Nikken, New Vision, NuSkin, Excel, Fuller Brush, Cell Tech, Kaire, Sunrider, Melaleuca, and more.

Michael Sheffield is co-founder and Chairman on the Multi-Level Marketing International Association (MLMIA).  His company has assisted in over 300 MLM company startups including such companies as Fuller Brush, Service Master and Home Shopping Network.  He has designed over 100 MLM compensation plans and is regularly published in Wealth Building magazine and Money Makers Monthly.

Alfred White is senior management consultant for Hamilton LaRonde & Associates and has extensive international experience in MLM consulting.  He is highly regarded for his expertise in operations management and compensation plans.

Clifton Jolley is President of Advent Communications and has provided communications products and consulting to leaders in network marketing for more than 15 years.  His skill in crisis intervention and media relations has been credited with “rescuing” dozens of Advent clients from media scrutiny.  Advent Communications is also known for their state-of-the-art graphics production, including distributor kits, manuals, web sites and videos.

David Klaybor is President of Powerline Systems, a widely recognized distributor training organization.  The Powerline Planner is in wide use as a management system by companies and distributors.

Check out Legaline Publications for books, brochures, DVDs, and more that are perfect for MLM company owners and distributors alike.

For more information, visit our websites at www.mlmlegal.com and www.mlmattorney.com. Or, visit our blogs at http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

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 15^th & 16^th, 2014 we are hosting the MLM Conference for the 26^th year! This is now our 67^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. Also visit our Innovation Campaign page for more information on how you can receive FREE tickets to the event. 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.) All conference attendees receive a FREE COPY of the MLM Startup Manual.

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

As industry experts, MLM attorneys commonly know more about multilevel marketing and direct selling than most of their clients.

An experienced and seasoned direct sales attorney can be the single most valuable resource that a MLM company can ever utilize. Look for a professional who has represented leading direct selling companies as well as startup companies.

As industry experts, they commonly know more about multilevel marketing and direct selling than most of their clients. In fact, more than half of the conversations with clients involve discussions about the MLM industry, rather than mere legal aspects of running a direct sales company. And over time, such an experienced “consigliore” may become the most trusted business advisor to a company and a vital member of the business team.

Apart from tremendous insight into the “business,” an experienced network marketing attorney can answer in five minutes what would take a business attorney five hours to research. And, the business attorney would likely still not completely understand the issue, let alone the solution.

The direct sales industry has – for better or for worse – provoked vast amounts of legislation and regulatory control that multilevel marketing attorneys must navigate.

A brief list of regulations, legislation, and legalities that experienced MLM attorneys, such as Jeff Babener, of Babener & Associates, must commonly appraise include:

– Pyramid statutes

– MLM statutes

– Business Opportunity Rule

– Securities

– FTC regulations

– Postal regulations

– FDA rules and regulations

– Distributor relationships

– Vendor relationships

– Distributor discipline

– Trademark

– IRS and tax regulations

– International expansion

– Sales tax

– Marketing

– State law and registration

– And, legal review of sales kit contents, which include:

1) Consultant agreements

2) Policies and Procedures

3) Product brochures

4) Compensation plan

5) Marketing plan presentations

6) Forms, from receipts to multiple owner applications, etc

At the very least, a direct sales company should not enter the marketplace without legal review of its marketing program. Hiccups caused by having to respond to regulatory agencies, consultant complaints, vendor conflicts, etc. can be bad for any MLM business and its reputation.

For more information, watch the video The Legal Issues of Starting and Running a MLM Company.

Visit www.mlmlegal.com and www.mlmattorney.com for more information on recruiting MLM consultants.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

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.

The Starting and Running the Successful MLM Company Conference has taken place consistently for over 25 years. Leading industry experts have educated the executives of starting and existing MLM, direct selling, network marketing, and party plan companies on how to structure their compensation plans, legalize their companies, recruit key employees and top-ranking distributors, develop business models, generate leads, fund their business, establish their website and technology platforms, better understand the direct selling industry, and so much more.

Topics that were discussed by leading direct selling professionals included:

– Creating and Implementing the Effective Compensation Plan

– An Overview of the Direct Selling Industry and Legal Issues Facing Startup and Emerging MLM Companies

– Technology Solutions for the MLM Company

– Organizing and Funding the New MLM Enterprise

– The Corporate Business Plan for Searching for Key Distributors

– Street Smart MLM Recruiting

– Merchant Account Processing Solutions for Direct Selling Companies: Processor and Bank Perspective

– How to Find Leaders – A Leading Distributor’s Perspective

– The Power of MultiMedia Marketing on the Web

– Branding, PR and E-Communication for Recruitment, Sales and Retention

– MLM Distributor and Recruitment Mentoring and MLM Consumer Advocacy

– The Initial Key Employees; Which Ones; Finding Them

– MLM Start Up Marketing Materials on a Limited Budget

The next MLM Startup Conference takes place October 24^th and 25^th, 2013 in Las Vegas. View the conference flyer page at http://www.mlmlegal.com/srs2.html to learn more.

For more information, visit our websites at www.mlmlegal.com and www.mlmattorney.com. Or, visit our blogs at http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

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

Free MLM Startup Manual!

Running the Successful MLM Company Conference begins February 21st, 2013 at 9:00AM and ends on February 22nd, 2013 at 8:00PM. This Conference is the for executives/owners of direct selling, network marketing, MLM, and party plan companies. Call 503-226-6600 or 800-231-2162 to register (registrations are taken only by phone) or for more details!

(Can’t make this Conference? Keep an eye on our website for the May and October Conferences!)

Visit the following links for additional information!

MLM Startup Conference in Las Vegas

February 2013 MLM Startup Conference in Las Vegas

Check out our September Press Release, Posted on our Sister Blog at MLMLegal.com

NEW PRESS RELEASE – 63rd Annual MLM Startup Conference!

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

MLM Startup Conference – A Must for Executives of Startup and Existing MLM Companies

Presented by one of the most trusted individuals in direct selling and MLM, Jeffrey Babener, Editor of www.mlmlegal.com.

About Attorney Jeffrey Babener: Conference Host and Chairman, Editor of www.mlmlegal.com, as well as the leading direct selling attorney in the United States – With over 25 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, from Melaleuca to Usana and Excel Communications, plus many more. He’s 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 60 national conferences on direct selling.

Contact: Babener & Associates/MLMLegal.com
Telephone: 503-226-6600/800-231-2162
http://www.mlmlegal.com

Find us on our social networks:

Google Plus: http://plus.google.com/u/0/115279960045099999909#115279960045099999909/posts

LinkedIn: http://www.linkedin.com/in/mlmlegal

Twitter: http://www.twitter.com/BabenerLawFirm

Myspace: http://www.myspace.com/mlmlegal

Facebook: http://www.facebook.com/profile.php?id=696968133

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

1)      Compensation plans must be fair. Companies often raise suspicion if they tout a “sizzling” compensation plan.

2)      Quality products and service. Both customers and distributors must be able to bond with the product.

3)      Company management. The leadership of the company must have a vision that brings greater meaning to distributors and customers.

4)      Training. Distributors need to bond with each other and bond with sales leadership. Any investment in developing leaders is a good investment.

For more details, watch the video: Factors that Make a MLM Company Successful. Or, visit www.mlmlegal.com and www.mlmattorney.com for more information on the direct selling industry.

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

www.mlmlegal.com

In explaining itself to the public, press and regulators, every direct selling/network marketing company (and its distributors) should aim to describe the Company and its marketing program in the tradition of legitimacy.

If asked, the public explanation of the Company would preferably (and truthfully) be as follows:

1. The Company finds itself as a member of a well-established industry or channel of distribution, direct selling/network marketing… an industry with millions of individuals involved, selling billions and billions of consumer products.
2. The Company has scrupulously avoided all of the abusive elements of pyramid schemes, such as: phony, over-priced product, front-loading of inventory, big cash investments, earnings misrepresentations, headhunting fees, leaving distributors stranded with large amounts of inventory, etc.
3. Instead the Company finds itself in the mainstream of the long-established direct selling/network marketing industry by offering a legitimate business opportunity with many recognized salutary features:
1. Highest quality life-changing products which stand on their own in the marketplace.
2. Pricing that is clearly competitive in the skincare industry.
3. The only distributor entry requirement is the purchase of an “at cost” sales kit.
4. Distributors purchase product as it is needed. There is no mandate of purchases and there certainly is no front-end loading of inventory.
5. Company product does not sit in closets or garages. It is effective and it gets used by consumers and they buy more because it is highly valued.
6. The Company has adopted an industry-recognized standard policy to repurchase inventory from distributors who wish to leave the business.
7. All of the emphasis of the Company marketing program is to establish a substantial base of retail customers, including a specific distributor award program for acquisition of retail customers who commit to recurring monthly purchase of products.
8. The Company has produced, what is arguably the finest product, packaging and marketing materials in the direct selling/network marketing industry.
9. The Company only pays commissions on product sales… nothing else.
10. The Company prohibits “pie in the sky” earnings claims and hypothetical potential earnings representations.
11. The Company’s training materials, online and offline, as well as its live training, are at the forefront of the direct selling/network marketing industry.

For more information on starting and running the successful MLM company, visit the following links:

How to Build a Successful Direct Selling Company

Starting and Running the Successful MLM Company Conference in Las Vegas

Starting Your MLM Company

FREE MLM Startup Manual: Starting and Running the Successful MLM Company

Watch one of the many videos on how starting your MLM company:

Profile of a Leading MLM Law Firm – Babener & Associates
In Order to Achieve Success in MLM, One Must Have Passion, Patience, Persistence
Raise Capital in Order to Recruit Key Distributors
Creating Clear Agreements Between Company Owners
Role of Compensation Plan in a Successful Direct Selling Company
MLM Startup Conference – A Must for Executives of Startup and Existing MLM Companies
Choosing the Right Product for Your MLM Company
You Must Possess or Buy MLM Experience
Choosing the Right MLM Software and Technology for your Direct Selling Business
The Legal Issues of Starting and Running an MLM Company
MLM Startup Tips, Educational Resources, Answers to Network Marketing Questions
Learn What is Needed to Recruit Top-Selling Distributors
How Important is Your Company Name? Learn about Trademarking Your Company Name

And, for more information, visit www.mlmlegal.com.

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