To answer this question, it is best to look at the two phases of MLM companies: start up and maturity.

Although many things can go wrong in a startup direct selling company, two factors are repeated with frequency for the failure to launch. The first factor is inability to recruit. MLM is a business based on recruiting a successful sales force to market products. (Obviously, there are many important factors ranging from logistics to personnel to technology to quality control to distribution… and all these can go wrong as well.) It should be noted that the need for capital is in inverse proportion to the ability to recruit. A MLM company that can recruit is often positioned for fast growth and may even become a cash cow. If the company does not have that native ability, it needs sufficient capital to hire the talent to make recruiting happen. And in the absence of the recruitment asset, a company should plan on a much longer trajectory to profitability.

And the recruitment challenge dovetails with the second major reason that companies fail at the onset: lack of adequate capital or funding. Many companies start the business without adequate capital to allow for a one or two year run to become profitable. In fact, many companies assume that they will be profitable within months or that they will not need capital for growth. The lack of buffer capital to survive the early unprofitable days of a company is a prescription for early failure.

As to mature companies – who’ve been around for years and years but find themselves on a downward spiral, the key answer is to continuously innovate and create ways to bond with both distributors and customers. Companies that can’t grow with the market, or maintain loyalty of distributors and customers, will find that sales will plateau and ultimately decline. This is a branding business and a relationship business. Unless a mature company is ready to continually reinvent itself and stay fresh, it may find itself on a slow, or sometimes rapid, road to contraction and failure.

MLM, network marketing, otherwise known as direct selling, is a relationships business. Those that succeed do so because they have a deep relationship with their customers and distributors. To maintain long-term success as a MLM business owner, you too have to make sure that you’re not just running a company, but a business of relationships.

As mentioned, networking is a big part of MLM. Come network with us. 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. It’s run by the most trusted and knowledgeable man in the business, offering legal services for over 25 years to companies like Avon and Mary Kay, Jeff Babener.

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.

Learn more: Watch the Video. What are the two main reasons for a MLM company’s failure?

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

Our last conference boasted 71 companies from 23 states and 8 countries, including Canada, United States, Ghana, Israel, Spain, Russia, China, and Germany!

(PRWEB)March 24, 2016

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

For more than 30 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.

Did you miss the last MLM Startup Conference? In attendance were over 100 people, representing 71 companies from 23 states and 8 countries (Canada, United States, Ghana, Israel, Russia, Spain, China, and Germany). The companies in attendance represented the entire spectrum of company development, from startups to established companies. All attendees registered for our conference in order to learn more about the network marketing industry, grow their companies, meet experts in the industry, and educate themselves on the MLM industry.

The next MLM Startup Conference takes place May 20, 2016 in Las Vegas. View the conference flyer page at http://www.mlmlegal.com/srs2.html to learn more.

This is the original MLM Startup Conference — responsible for launching many industry-leading companies — perfected over the course of a quarter of a century to ensure the highest quality of information, most knowledgeable experts, and most practical advice from qualified experts.

Join us May 20, 2016 at our next conference! Over the course of the day, attendees will hear from a multitude of the best industry experts, and if they choose, can sign up to meet with the speakers for individual one-on-one time. A full list of speakers and their biographies/credentials can be found at http://www.mlmlegal.com/bio.html.

The educational information gained by attending this event is invaluable. Here are just a few of the testimonials from past attendees:

“We have a traditional business at the moment and we are looking to take it into the realm where it’s more personalized, it’s more about building people and an experience. It has been absolutely worth our trip. We are looking to take our business to the next level and build relationships.”

“The reason I came to the show was to learn more about how to launch my direct sales company. I’m very comfortable and accustomed to selling through more traditional networks; however, I believe that the product that I’m launching is more suitable for direct sales; to get direct-to-consumer faster and in greater sales.”

“[I’ve] been in network marking for 30 years [but] we are learning a lot of things about how to launch, how to reach the people we need to have, and again, the things that are required to make a successful company, not only for us but especially for our customers and for our affiliates.”

Each attendee will receive a free copy of the Starting and Running the Successful MLM Company Manual.

How do you find out more information?

Visit our website:
http://www.mlmlegal.com

Visit our blogs:
http://mlmlegal.com/MLMBlog/
http://www.mlmattorney.com/blog/

Watch the Conference Videos or many of the other educational MLM 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
• Since You Are a MLM Attorney, Why Would You Host the MLM Startup Conference for the Executives of Startup and Existing Companies?

Contact Us: Register Today, 503-226-6600 or 800-231-2162

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: http://www.mlmlegal.com/srs2.html 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 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’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 70 national conferences on direct selling.

Lastly, learn how you can receive two free tickets to attend the October 2015 Starting and Running the Successful MLM Company Conference by visiting our Innovation Campaign page.

View the press release at PR Web.

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

MLMLegal.com and Babener & Associates have had long term professional relationships with many direct selling companies, from startup to stable. We were involved in early stages of a number of leading MLM companies, including some traded on the NYSE.

We aren’t just lawyers. We often know more about the direct selling business than most of our clients. In many ways we have become partners with our clients since we’ve been in the industry for such a long time. We often take on a significant role as both a legal and business advisor for our clients.

Generally speaking, however, most of our clients try to cover all of their bases legally right at the beginning of launching. They often have their agreements in place, as well as their policies and procedures. Companies will secure a trademark early in development, which is very important. As is tax issues, regulatory compliance and relationships with their consultants. Company owners are building a living organism that is constantly changing and growing, which is why so many of the companies that we represent have been with us for five, ten, even twenty years or more. For instance, in 1990 we assisted one of the largest direct selling companies, from Japan, to establish headquarters in the U.S. Today we represent them in nearly 40 countries. We have been their key legal advisor for almost 25 years.

Successful companies have a great product, they are able to recruit and they have adequate funding. There are many factors that contribute to the early success of a company. We are simply one arrow in the quiver of that success.

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 May 20, 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.

We offer MLM entrepreneurs a way to network with experts from all sectors of the direct selling industry: legal, recruiting, technology/software, compensation plans, funding, generate leads, website and back office, business model, and more – all in one place, for one affordable price ($195 for the first attendee, each additional is $150).

So, if you’re starting a MLM, network marketing, direct selling company, or just thinking about starting a MLM company, come join us at the MLM Startup Event/Seminar in Las Vegas! The Hosts are Business Consultant and MLM Legal Expert, Jeff Babener, and MLM Compensation Plan Consultant, Mike Sheffield.

Our next conference takes place February 25 and 26, 2016 in Las Vegas (who doesn’t want a good reason to go to Las Vegas?). We even offer the Innovation Campaign for those who are on an even tighter budget.

Visit our website, www.mlmlegal.com, or our conference page to learn more and to see the full line-up of speakers. Read testimonials and watch our invitation videos. Anyone who is starting or running a MLM, network marketing, direct selling, party plan company is welcome to attend.

Call us at 800-231-2162 to register.

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.

Raising capital to fund your network marketing startup company can be tricky. In fact, there is no clear-cut answer to finding funding. However, there are options available to MLM company owners. There are several giant direct sales companies operating today that began with a very limited budget, just like you: in their basements, bathtubs, garages, and space bedrooms. Many of these companies grew organically to the huge size that they are now. You, however, may be in a different situation, where an influx of capital is absolutely necessary to keep your business afloat.

This article will help to provide you with details about how you can get free and trusted information about how to fund your MLM business. Experts generally suggest that it costs around $100-$200 thousand to start up a direct selling company. This article will provide you with some ideas as to where to find startup funding and links to information online, written by experienced MLM industry experts who’ve been asked thousands of times, “Where can I find funding to start and grow my MLM business?”

Here are three of the most common options MLM business owners consider when they are looking to fund their network marketing startup:

1)      Do you have a substantial recruiting background? If you are a seasoned recruiter and are able to attract a strong line of consultants then your need for capital will decrease considerably. Expert MLM Attorney Jeff Babener always says, “Your need for capital is in direct inverse proportion to your ability to recruit.” If you are able to attract a strong sales force then your need to raise capital outside of the company may greatly diminish. Consultants will be the key to your success. If you are not a seasoned recruiter, then you may want to consider hiring someone who does have recruiting experience.

2)      Do you have personal capital? MLM startups often find the capital that they need in their own bank accounts, or the bank accounts of family and friends (often referred to as your ‘warm market’). In some cases, an angel investor will be willing to invest in the company (a wealthy uncle, perhaps?). These sorts of investments are based primarily on the personal relationship, as well as trust and loyalty.

3)      What about public financing? Unfortunately, not many venture capital firms are interested in investing in startup network marketing companies. The startup MLM company has the tendency to be run by inexperienced business owners needing only a few hundred thousand dollars, which isn’t very attractive to large investors. In nearly all cases, investment into the company will come from a close source. Once your business is worth millions, then the investment firms will take notice. You can read about some of the most famous MLM success stories on these pages: Silpada, Herbalife, Pampered Chef, and Visalus.

Another great place to get information on raising capital for your business is at the Starting and Running the Successful MLM Company Conference where industry experts will provide you with individual, one-on-one time and attention. Each speaker will sit with you and discuss your personal situation and specific needs. The easiest was for you to attend the conference on a budget is to visit the page of our Innovation Campaign. The October 2015 Innovation Campaign offers network marketing company owners the ability to receive two free tickets to the next Starting and Running the Successful MLM Company Conference in Las Vegas (a $345.00 value!). All you have to do is fill out a brief survey at our sister website: www.mlmattorney.com, and we will contact you right away to confirm your free tickets to the event! Attending this event will give you direct access to several MLM industry experts, including capitalization experts and MLM legal expert, Jeff Babener. Visit our Innovation Campaign page for complete information about the conference, including the topics that will be covered, the speaker/expert list, videos, and much more. For additional questions call 800-231-2162.

It won’t be easy raising capital to fund your MLM startup, but we hope that we’ve given you some ideas on where to start. We also hope that you better understand that it is possible to start small and make it big in this industry. For more information on raising capital visit www.mlmlegal.com and www.mlmattorney.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.

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.

The costs of startup vary widely, depending on the type of product or service and need for infrastructure. It is obvious that a company which is engaged in its own manufacturing, ownership of warehousing and distribution facilities, etc. will expend much more in cost than a company which is furnished by suppliers of private label products or is involved in a service-type product. With respect to the initial infrastructure costs of a startup MLM, it may be reasonably expected that a company will expend, during the first year, $100,000-$200,000 for four key infrastructure elements: legal, software, compensation plan design, and creative design for online and offline promotional materials. Beyond these costs, the variables are far too extensive to predict without development of detailed pro forma projections.

Watch the video with expert MLM Attorney, Jeff Babener by CLICKING HERE.

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

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

Your need for capital is in direct inverse proportion to your ability to recruit.

Raising capital to fund your network marketing startup can be tricky. In fact, there is no clear cut answer to finding funding. However, there are options available to MLM company owners. There are many giant direct sales companies operating today that began with a very limited budget, in their basements and garages. Many of these companies grew to the size that they are now organically. You, however, may be in a different situation where the influx of capital is necessary to keep your business afloat.

This article will provide you with some details of how you can get free and trusted information on how to raise capital for your direct selling business. Experts generally propose that it costs around $100-$200 thousand to start up a network marketing company. This article will provide you with some ideas as to where to find funding and links to online information written by experienced MLM industry experts.

1)      Do you have a substantial recruiting background? If you are a seasoned recruiter and are able to attract a strong lineup of consultants then your need for capital will decrease considerably. Expert MLM Attorney Jeff Babener always says, “Your need for capital is in direct inverse proportion to your ability to recruit.” If you are able to attract a strong sales force then your need to raise capital outside of the company may greatly diminish. Consultants will be the key to your success. If you are unable to recruit, or don’t have a recruiting background, then you may want to consider hiring someone who has recruiting experience.

2)      Do you have personal capital? MLM startups often find the capital that they need in their own bank accounts, or the bank accounts of family and friends. In some cases, an angel investor is willing to invest in the company. These sorts of investments are based primarily on a personal relationship, as well as trust and loyalty.

3)      What about public financing? Unfortunately, not many venture capital firms are interested in investing in startup network marketing companies. The startup MLM company has the tendency to be run by inexperienced business owners needing only a few hundred thousand dollars, which isn’t very attractive to large investors. In nearly all cases, investment into the company will come from a close source. Once your business is worth millions, then the investment firms will take notice. You can read about some of the more famous MLM success stories on these pages: Silpada, Herbalife, Pampered Chef, and Visalus.

Another great place to get information on raising capital for your business is at the Starting and Running the Successful MLM Company Conference where industry experts will provide you with individual one-on-one time. The current and easiest way to do this is to visit the page of our Innovation Campaign. The May 15^th & 16^th, 2014 Innovation Campaign enables network marketing company owners the ability to receive two free tickets to our next Starting and Running the Successful MLM Company Conference in Las Vegas (a $345.00 value!). All you have to do is fill out a brief survey at our sister website: www.mlmattorney.com, and we will contact you right away to confirm your free tickets to the event. Attending this event will give you direct access to several MLM industry experts, including capitalization experts and MLM legal expert, Jeff Babener. Visit our Innovation Campaign page for complete information about the conference, including the topics that will be covered, the speaker list, videos, testimonials, and much more. For additional questions please call 800-231-2162.

It won’t be easy raising capital to fund your startup, but we believe this article will help give you some ideas and help you to understand that it is possible to start small and make it big. For more information on raising capital visit www.mlmlegal.com and www.mlmattorney.com.

Here are some additional articles on raising capital that you may find helpful:

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

How Do I Find Top Distributors?

New Video – Executive Interview by the DSWA – “Legal Hotspots for Direct Selling Companies” with Jeff Babener

MLMlegal Releases New Film on the MLM Startup Conference – Produced by Networkingstar.com Video
The MLM Startup Conference in Las Vegas Video

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

View the video on our website: mlmattorney.com or mlmlegal.com; or view it on Youtube.

In this hour-long video, Jeff Babener addresses network marketing industry topics such as:

–          Distributor raiding

–          Pyramid scheme

–          Personal Use

–          Legal

–          Social media

–          Recruiting and communication

–          Noncompete agreements

–          Distributorships with multiple companies

–          Company and consultant responsibility

–          Startup

–          Trademark

–          Regulatory

–          Compliance

–          Funding startups

–          Training and education

–          Federal Trade Commission

–          Keys to startup success

–          Passion for company vision and products

–          Determination

–          Success strategies

–          Regulatory environment

–          Legal services

To download the entire audio file visit http://dswa-org.s3.amazonaws.com/audio/2014-03-19_InterviewWithNickiAndJeffreyBabener.mp3, or visit our blogs to read more: www.mlmlegal.com and www.mlmattorney.com.

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

Find us on our social networks:

Google+

LinkedIn

Twitter

Facebook

Our next Starting and Running the Successful MLM Company Conference takes place May 15th & 16th, 2014 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register. If you’d like to see how you can get free tickets to the next MLM Startup Conference, visit our Innovation Campaign page.

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

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

It is not easy take for an entrepreneur to decide to start a network marketing company. There are hundreds of bullet points to consider when preparing to launch a MLM company; funding, products, consultants, legalities, software, compensation plan, key employees, state laws, business plans, recruiting, the list is endless. The initial research and preparation itself can be overwhelming.

A simple Google search results in articles that attempt to convince entrepreneurs to not start the network marketing company of their dreams for one vague reason or another. Or, an online search results in a plethora of articles that are generic and are not written by experts in the direct selling field.

Creating a direct selling company requires vast amounts of research, resources, and relationships. This article will aid MLM entrepreneurs in locating valuable articles on the internet that are actually written by credible experts in the direct selling field (check the names yourself if you’d like!). It will provide network marketing entrepreneurs with links to resources and consultants that have the capability to help MLM business owners startup their direct selling companies. In addition, this article will guide startup companies to free and valuable resources that will prove priceless for their startup company.

1)      The first step to starting any company is investing some time into research and education. There are many articles available online that will allow you to better understand the complexities of starting and running a network marketing company. For instance, the article “Starting Your MLM Company”, discusses how successful operations depend on product demand, a compelling compensation plan, and the corporate leadership of the company, as well as how intangible considerations, such as psychology and trust, are important aspects of company success.  The article series titled “Corporate Startup Essentials” goes to great length to outline the importance of capitalization, recruiting, legal, trademarks, expert advice, software/technology, industry experience, product/service offered, international markets, compensation plans, outsourcing, agreements between owners, and corporate attitude. The blog post titled How do I Raise Capital to Start My MLM Business? delves into detail on funding and raising capital to start your network marketing company. The blogs at both www.mlmlegal.com and www.mlmattorney.com contain great posts for startup direct selling companies and MLM executives. The article “Starting a Network Marketing Company?” outlines ten important points to consider when creating your network marketing company. And, the article “The Hallmarks of Legitimate Direct Selling/Network Marketing Companies” details ten aspects of successful network marketing companies. In addition, there are over 70 videos offered at MLMLegal.com that address various aspects of starting and running a direct selling company.

2)      Secondly, it is always important to gather materials that you can turn to when you come across an unanswered question. One good resource for this is the Starting and Running Successful MLM Company manual. There are also several books and brochures available at Legaline Publications that are compiled by experts in the network marketing industry.

3)      The third step, and frankly the most important step to help you understand if your company is legal, is to contact a MLM lawyer to read your materials and advise you in your marketing, FDA and FTC work, trademarks, regulatory issues, international expansion, sales tax, and distributor and vendor relationships, to name a few. The current and easiest way to do this is to visit the page of our Innovation Campaign. The February 2014 Innovation Campaign enables network marketing company owners the ability to receive two free tickets to our next Starting and Running the Successful MLM Company Conference in Las Vegas (a $345.00 value!). All you have to do is fill out a brief survey at our sister website: www.mlmattorney.com, and we will contact you right away to confirm your free tickets to the event. Attending this event will give you direct access to several MLM industry experts, including compensation plan consultants and MLM legal expert, Jeff Babener. Visit our Innovation Campaign page for complete information about the conference, including the topics that will be covered, the speaker list, videos, and much more. For additional questions call 800-231-2162.

Starting a network marketing company can be a complicated process without industry experts guiding you, but we believe this article will help you in the initial steps. For more information on how to build a legal direct sales company, visit www.mlmlegal.com and www.mlmattorney.com.

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Our next Starting and Running the Successful MLM Company Conference takes place February 27th & 28th, 2014 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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

Arguably one of the most important functions of a business plan is to attract investors and raise capital.

Developing a business plan is important for any startup network marketing company. A business plan can help to communicate how you plan to build sales, raise capital, determine future funding needs, and define key elements of your operation intentions. Clear business plans aid in finding funding and investors.

The U.S. Small Business Association suggests that your business plan should include some or all of the following:

• Executive Summary
• Company Description
• Market Analysis
• Organization & Management
• Service or Product Line
• Marketing & Sales
• Funding Request
• Financial Projections
• Appendix
• How to Make Your Business Plan Stand Out

Arguably one of the most important functions of a business plan is to attract investors and raise capital. Not all entrepreneurs have access to quick startup capital. According to MLMLegal.com, most startups have to first turn to friends and family to assist with initial investment funds. For those in need of additional funding, angel investors and private placement venture capitalists become a necessity.

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

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

Our next Starting and Running the Successful MLM Company Conference takes place February 27th & 28th, 2014 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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