Distributors working for MLM companies earn income slightly differently than a typical employee. Here are two basic ways that distributors earn income in MLM:

1. Retailing – They buy products from their companies at wholesale prices, sell them at retail prices, and keep the difference. Or, they simply take orders and receive commissions. This is basically the same compensation offered by conventional marketing companies, except that independent distributors for network marketing companies are not merely employees. Instead, they are their own bosses – the owners of their own business.

2. Sponsoring – For sharing the marketing opportunity with others, distributors build their own sales organizations and receive bonuses or override commissions on the sales of the distributors in their organizations. Network marketers can multiply their earning potential by creating their own sales forces and helping the distributors within their networks do the same.

What’s the Difference Between Sponsoring and Recruiting? Watch this video to learn more.

Learn more about how compensation plans operate at mlmlegal.com.

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

A good MLM company, seeking longevity in the marketplace, will put a lot of effort into training their distributors on how to manage and build their business. Businesses will provide online training, event training, and incentives.

Not every MLM company has the same opportunity, or compensation plan. There are many types of compensation plans and many variations on the original compensation plans (stairstep, unilevel, breakaway, matrix, binary). Each compensation plan and MLM company is unique in how it approaches consultant training.

Regardless of what compensation plan you’re using, there are common distributor training techniques among all companies and compensation plans. From a legal perspective, MLM companies must be realistic about their distributors’ statistics for success. It is not easy to become a MLM multimillionaire. Only a small percentage of distributors achieve such high success. Therefore, when legitimate direct selling companies present their training, management and support programs to encourage and train distributors they use some (or all) of the techniques in the list below.

If distributor training in your company sounds a little like this list, then it is likely looking good from a legal perspective. A MLM company opportunity should prioritize some or most of the following:

1. Enhance distributors’ self-image.
2. Enhance the image of the network marketing industry as a whole.
3. Educate distributors about the direct selling, MLM industry.
4. Create a realistic picture of what it takes to succeed in operating a network marketing business.
5. Help distributors understand the responsibility of being in business for themselves.
6. Make product education paramount in training programs.
7. Develop business management skills.
8. Help consultants understand the dynamics of people-interaction or person-to-person relationships.
9. Teach (or encourage the learning of) new business technology application to the business, such as computer software programs and website platforms.
10. Help distributors understand the basic concepts behind the network marketing method of distribution.
11. Create an appreciation of ethical standards.
12. Teach distributors how to run a small business, such as managing taxes, distributor networks and accounting.
13. Work on goal-setting and planning; develop one, two, and three plans, rather than promote unrealistic instant success schemes.
14. Develop the art of prospecting (finding and recruiting new distributors for your downline).
15. Help distributors understand the concept of commitment.
16. Learn to value the contribution of others in their home business.
17. Prepare to give effective presentations.
18. Learn how to deal with objections, rejections, and discouragement; helping distributors understand that an objection is nothing more than a question in disguise.
19. Develop an understanding of the legal issues impacting the network marketing industry and the individual distributor business owner.
20. Help distributors understand the art of duplication and the power of setting an example (in recruiting).
21. Help consultants understand that people are involved in network marketing for different reasons; allow those who are interested in the business opportunity to develop at their own pace and resist the urge to pressure satisfied consumers to engage in the business opportunity if they simply want to remain customers.

When MLM companies work to encourage their distributors to work hard, learn about the business, and have realistic expectations, then they are working to support a network of distributors that will last a long time.

If a direct selling company tells you that you’ll become a millionaire in a month then the chances are likely that they are not operating a legitimate business. Remember, if it’s too good to be true, then get out quick!

Would you like to learn more about distributor training, legal MLM compensation plans, or the MLM industry in general? Watch some of MLMLegal.com’s videos, presented by MLM Attorney, Jeff Babener. Visit MLMLegal.com for the most trusted MLM legal information on the web.

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

The largest direct sales markets globally include the United States (19% of global sales), followed by China (17% of global sales), Japan (9% of global sales), Korea (9% of global sales), and Brazil (7% of global sales), totaling just over 60% of global sales.

To summarize some of the statistics, the number of direct sellers rose globally to 100 million, up 3.4% from 2013.

Independent business owners worldwide join the direct selling salesforce for many reasons; to earn extra part-time income at home, to learn new skills and build self-esteem, to fight for a social cause, and to make new friends. The press release reports that most independent distributors started out as customers, and in many cases, joined the opportunity to receive a discount on products, not necessarily to sell to others.

Industry retail sales hit record highs, the press release reports, saying, “Retail sales rose 6.4% to US$182.8 billion in 2014. So the steady growth curve in Direct Selling continues, now with a 3-year compound annual growth rate of 6.5% for the period from 2011-2014.”

The largest direct sales markets globally include the United States (19% of global sales), followed by China (17% of global sales), Japan (9% of global sales), Korea (9% of global sales), and Brazil (7% of global sales), totaling just over 60% of global sales.

Read the full press release.

Learn more about the network marketing business at 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.

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

Advances in technology have been rough on scrapbooking company, Creative Memories.

As it turns out, advances in technology have been rough on scrapbooking company, Creative Memories. In June, the company alerted state officials that cuts were imminent. It’s possible that roughly 163 jobs, out of its 230 person headquarters, will be affected in some way.

The Creative Memories is the parent company of Golden Valley-based Archiver’s, which is a chain of over 40 scrapbooking stores. This company has also filed Chapter 11 bankruptcy since it owes between $10 and $50 million in assets.

Creative Memories offers a variety of products that include scrapbooking, personalized albums, photo-safe albums, and accessories.

In 2011, the company’s net sales were $102 million. In 2010, the company ranked as the 79th largest global direct sales company, with $113 million in net sales, with 29,000 salespeople and 364 employees in seven markets.

This information was summarized from the Minneapolis St. Paul Business Journal’s article, “More scrapbooking woes: Archiver’s files Ch. 11, too.”

For more information and updates on the direct selling 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 October 24th & 25th, 2013 in Las Vegas. Call Charity before September 1st to receive a discount! 503-226-6600 or 800-231-2162.

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In 1994, The Dietary Supplement Act enabled MLM companies and their distributors to amplify their statements on the benefits of dietary supplements. Under the 1994 Dietary Supplement Act, third-party literature and/or scientific studies, which are generic in nature, are allowed to be passed out to the public.

MLM companies that have specific data to backup their statements may make claims about ingredients in their products when the claims relate specifically to their impact on the structure and function of the human body, as opposed to medical therapeutic claims. For instance, under The Dietary Supplement Act, a direct sales company may comment that vitamin C is beneficial to connective tissue. Keep in mind, however, that this is not the same thing as claiming that a particular nutrient in a product will treat or cure a connective tissue disease.

For more information about earnings claims and unauthorized product claims, please visit the following links:

The FDA and Health Claims Article

Earnings Claims and Consumer Protection Laws Video

The Difference Between MLM Earnings Calculators and Earnings Claims Video

FDA Notification for Permissible Structure/Function Claims for Dietary Supplements

New Video: Earnings Claims and Consumer Protection Laws

MLM Company and Distributor Training on the Direct Selling Industry

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

FDA Health Claims: The Final Rules Article

FDA: New Health Claim Rules:

• Introduction
• A Historic Act
• The President Speaks
• And Congress Speaks Out
• The Impact on the Network Marketing Industry
• Why and How They Work
• Abuses Lead to Legislation
• Rules You Don’t Want to Break
• The Disclosure Issue

Choosing the Right Product for Your Direct Selling Company

Distributor Training – Two Common Questions

MLM and the FDA

MLM’s History with the Government

New Video – Unauthorized Medical Claims and FDA Issues

FDA to Issue Revised NDI Guidance – Nutraceuticals World Reports

Nutritional Supplements, Health Claims and MLM

MLM Attorney – How a MLM Lawyer Can Help Your Direct Selling Business

FDA to Issue Revised NDI Guidance – Nutraceuticals World Reports

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:

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LinkedIn

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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 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.

PART 101 — FOOD LABELING

Subpart F–Specific Requirements for Descriptive Claims That Are Neither Nutrient Content Claims nor Health Claims

For additional information on FDA Rules and Regulations, visit the following links:

What is the Relationship between MLM and the FDA? Video

The FDA and Health Claims Article

FDA Health Claims: The Final Rules Article

FDA: New Health Claim Rules:

• Introduction
• A Historic Act
• The President Speaks
• And Congress Speaks Out
• The Impact on the Network Marketing Industry
• Why and How They Work
• Abuses Lead to Legislation
• Rules You Don’t Want to Break
• The Disclosure Issue

Choosing the Right Product for Your Direct Selling Company

Distributor Training – Two Common Questions

MLM and the FDA

MLM’s History with the Government

New Video – Unauthorized Medical Claims and FDA Issues

FDA to Issue Revised NDI Guidance – Nutraceuticals World Reports

Nutritional Supplements, Health Claims and MLM

MLM Attorney – How a MLM Lawyer Can Help Your Direct Selling Business

FDA to Issue Revised NDI Guidance – Nutraceuticals World Reports

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 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.

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.

People often ask me “Are you a typical lawyer?” Most lawyers are viewed as people who sit in an office, draft contracts and argue cases in the courtroom all day. The answer is NO, we are not typical lawyers. We probably know more about multilevel marketing than most of our major clients that have been in the industry for years. We bring that knowledge to bear as we work with our clients and as they develop their business models. More than half of the discussions we have with our clients are about the MLM business itself as opposed to just purely legal issues. This gives us the opportunity to be challenged, which we welcome and we enjoy.

It is true that the hat we wear is “legal advisor” to many of the leading direct selling companies and startup mom and pop companies. Formally, we are their legal advisor; however, we are also a vital part of their business team. We greatly enjoy the many hats we wear in the direct selling industry.

For more information about MLM Attorney Jeff Babener, visit www.mlmlegal.com or www.mlmattorney.com.

The following links may also prove helpful:

Babener and Associates

Scope of Services

Experience Counts

Business Background

Biographical Profile

MLM Blog by Jeff Babener

Free MLM Startup Manual

MLM Startup Conference

Free DVD Full of MLM Advice

Comprehensive Index of Articles

The MLM Business

MLMAttorney.com Blog

Make sure to visit our blogs for the latest information on the direct selling industry: MLMLegal Blog Home and MLM Attorney Blog Home

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

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.

Interviewer: Talk to me about what makes a MLM company successful. I know you’ve worked with some of the biggest names in the industry. You’ve been in this business for a very long time. So you’ve got a real unique perspective on the industry because as you worked with so many successful MLM companies. I bet from your own point of view, you see some of the things that companies are doing well and some of which they can improve on. With all of that collected experience, tell us what makes a company successful?

Jeff Babener: You know, we often hear about the newest sizzling compensation plan. I’m going to say that a good compensation plan is one that pays fairly and proper remuneration is a given. Your company can’t go anywhere unless you’ve created your compensation plan correctly.

Interviewer: So, you got to have a good compensation plan…

Jeff Babener: It should be good and it should be fair. But I have to tell you, a company that touts its compensation plan is often using that as an excuse to cover up for other elements that are missing.

Interviewer:  Got it.

Jeff Babener: What drives the success of direct selling companies, that we have seen, has been high quality products and services. Products and services that stand on their own in the marketplace, something that distributors and consumers bond well with.

Representatives and consumers bond with products and services. They bond objectively. They bond emotionally. So, bonding to that quality product is really important.

Secondly, the people who run the company, for better or for worse, are extremely important. When the distributors of Mary Kay sat in the audience and listened to Mary Kay speak, each of them believed that she was speaking directly to them. There is no substitute for having a connection with the leadership and founders of the company.

Thirdly, the company’s vision is important. What are they doing? Do distributors want to do something good in the world? That is why companies that sell health products, or that sell transformational products (like financial services) resonate so deeply with people. We live in difficult time. Companies that participate in philanthropic or charitable programs connect passionately with the distributors.

When Mary Kay started her company, people may have thought that she was in the cosmetics business. But, what she was actually in the business of empowering women. That is why Avon hosts marches for cancer research.

There must be a vision, a mission or a calling. There must be something greater than a single person for everyone to rally around. People always relate to projects larger than themselves.

Prior to my coming here today, just before we were going to do the interview, I saw a picture of Babe Ruth on the wall in your office.

Interviewer:  Yep.

Jeff Babener: …Looking up the bleachers, hitting a home run… Now, there is a man who transcended all sport. Every person in America relates to Babe Ruth. There are times and there are people who transcend what they’re doing. And they give meaning. They make you feel good. They give you a purpose. They give you a goal. And they drive you to be a better person. Babe Ruth hit home runs, but he did much more than hit home runs. I’m assuming that’s one reason that you put his picture in your office.

Interviewer:  Yeah, he’s a guy that only knew how to hit home runs and grand slams.

Jeff Babener: And, these things happen only a few times in our lifetime. Along comes a John Kennedy who will inspire people. You can’t explain why, but they will do it. And then a MLM company will come around that can do the same thing, which is important, spread inspiration. And that’s the last issue I wanted to bring up.

The amount of time and expense that you spend on training your sales force and your team leaders will be well paid because distributors who join companies not only need to relate and bond with the people who run the company, they need to bond with the people who brought them to the dance, the upline distributors. And those are the leaders of the company, the sales leaders, and they basically are the glue that holds everything together. Every ounce of strength and training, every penny that you spend on really developing those people into leaders, is a good investment.

It comes down to having a good, fair compensation plan that can motivate the right kinds of behaviors. The right kind of product that distributors and customers can bond with and that is a need in their lives.

And, you have got to have the right kind of owners, the right kind of people with a vision to do something greater than themselves. And, training. You must spend the time making an investment in people. You must train them and help them understand the company and how to achieve their own success. You must create the opportunity for everyone to dance together.

Interviewer:  Thank you.

For more information on how to create a successful MLM company, visit the following links:

MLM Consulting: How to Build a Successful Direct Selling Company

MLM Consulting: Starting Your MLM Company

FREE MLM Start-up Manual: Starting and Running the Successful MLM Company

The MLM Startup Conference: Starting and Running the Successful MLM Company Conference

Factors that Make a MLM Company Successful Video

Understanding the Basics in Order to Succeed In Direct Selling – Companion Video to this Blog Post

MLM Legal on iTunes

MLM Startup – The Basics

Or, read some of our other blog posts on success in network marketing, MLM, direct selling, and party plan:

Are you Starting a MLM Company?

An Interview with Industry Expert and Advocate, Jeffrey Babener

It’s Passion that makes a MLM Company Successful

The Top Two Reasons Why MLM Companies Fail

Learn What is Needed to Recruit Top-Selling Distributors for Your MLM Company

Passion, Patience, Persistence – Attitude in Direct Selling

Four Factors that Make a MLM Company Successful

Explaining Your MLM Company to the Public: Answering the Hard Questions

MLM/Direct Selling/Network Marketing: A Validated Channel of Distribution

How Much Does it Cost to Start a MLM Company?

The Next MLM Startup Conference in Las Vegas – May 16th & 17th, 2013

Choosing the Right Product for Your Direct Selling Company

Where to Find MLM Startup Tips and Answers from an Industry Expert

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

Gaining Experience in MLM – Possess it or Buy it?

Make sure to visit our blogs for the latest information on the direct selling industry: MLMLegal Blog Home and MLM Attorney Blog Home

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

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.

You need to be honest with yourself. Do you, or those who are key owners in the business, have a MLM recruitment background? Without this talent the best products will continue to languish on the shelf. Companies like Amway, Tupperware, Mary Kay, and Home Interiors were not only founded on a very limited budget, but by individuals with strong backgrounds in direct selling.

Company leaders should develop a recruitment strategy. It may seem odd, but your top distributors may not arrive for many years. Those would-be leaders who come to you seeking special benefits or corporate positions do not pay high salaries to those who claim to be able to recruit but cannot demonstrate a strong track record of success. As a general matter, if individuals are strong recruiters then they would be distributors because the remuneration is much higher.

Track your warmest market then move on to lead generation systems and advertising. You shouldn’t expect initial advertising to bring you all of your distributors. Instead, consider initial advertising a foundational industry announcement that you (and your company) have arrived on the scene.

History demonstrates that direct selling will always be a person to person relationship business. The internet, direct mail, or mechanized recruiting campaigns do carry a lot of hype. However, there is no substitute for “pressing the flesh.”

– Jeff Babener

Watch the companion video to this blog post.

For more information on recruiting, visit the following links:

MLM Recruiting and Leads Resources

MLM Recruiting and Communication

Recruiting Advice from an Industry Expert Video

Are you Starting a MLM Company?

An Interview with Industry Expert and Advocate, Jeffrey Babener

The Top Two Reasons Why MLM Companies Fail

What Differentiates a Legitimate Direct Selling/Network Marketing Company from an Illegal Pyramid Scheme?

February 2013 MLM Startup Conference in Las Vegas

Is MLM For Real?

What Factors Make MLM Executives and MLM Companies Successful – Video

Passion, Patience, Persistence – Attitude in Direct Selling

Should I Launch my MLM Business Locally or Nationally?

Paying Commissions on Sales Tools, Sales Kits, and Training Materials……No!

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 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. Ask Charity how to get a discount! (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.