Most MLM experts agree that you must have adequate margins to pay commissions and to make a profit.

Obviously, your cost of goods is calculated as your acquisition or manufacturing cost. The more frequent question involves 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 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 mark up for resale by distributors is 25% of their purchase price. A good place to visit this issue is at the Starting and Running the Successful MLM Company Conference, offered by www.mlmlegal.com, where experts discuss margins, pricing, profit, proformas, and more for executives of startup and existing network marketing companies.

MLMLegal.com has launched the Innovation Campaign for its February 2014 MLM Startup Conference. Read how to get your two free tickets by clicking HERE!

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.

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.

Hi, I’m Jeff Babener of MLMLegal.com. I’d like to talk to you today about MLM technology and software, the engine of the machine. Having great software won’t recruit one single distributor for you.

Having said that, lousy software and inferior support will no doubt ruin what might have been a tremendous business opportunity. The MLM business is a “numbers” business. It is built on recruiting, payouts on thousands of generations, genealogy reports to thousands of distributors, timely calculations, and payout of commission checks to vast networks of salespeople. The moment you fail in the technology area, you will lose confidence amongst your distributors. Prepare for sales recruitment, retention and momentum to plunge to ocean depths.

Recovery may never occur, and so remember; being cheap is not good in the technology business. Good value is great but being cheap is not. “You get what you pay for” is true in this acquisition. The fact is that cheap software usually means software that is flawed and for which there is no backend support service of worth. Your software must work, it must be scalable such that your data tracking solutions, your web and e-commerce solutions, and your reporting and communication solutions can grow with your business.

These are important questions for those bidding for your software. Statements like “up and running in 24 hours for $100” are as invalid as “join our MLM and earn $10,000 in the first week.”

Of course, expensive technology and software are not necessarily good either. At least one software firm became infamous in the industry for promoting seminars that were little more than high pressure sale presentations in which unwary MLM startups were induced into astronomical price offerings.

Beware the high pressure sales tactics that do not afford you the opportunity to compare in the marketplace and check references/opinions. Your best sounding board is your MLM business consultant or MLM lawyer.

Look for established technology and software providers with track records with established MLM companies. But that is not to say that you should not hold their feet to the competitive fire. Established MLM software companies all bring different, but important, strengths to the table. Most major providers also offer design solutions for the MLM startup that involve web-based software support that can grow to licensed, onsite technology, as the company grows.

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

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

Or, visit these links for more information:

Technology’s Impact on the Direct Selling Industry: The History of Technology video

Starting and Running the Successful MLM Company Conference – May 16th & 17th, 2013

How Much Does it Cost to Start a MLM Company?

MLM Software and Computer Systems

MLM Software

Choosing an MLM Software Supplier

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

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.

Hi, I’m Jeff Babener of MLMLegal.com, and I’d like to talk to you today MLMLegal.com. Don’t leave home without it.

At first glance, one might question the role of the MLM law expert in a marketing-driven industry. However, your MLM lawyer may be the single most valuable resource that you will ever utilize.

There are very few in the gene pool who have intimate, practical knowledge, as well as legal knowledge of the business; often understanding the business better than most of his or her clients. It is a unique blend of marketing, practical knowledge, and experience combined together, with practical legal experience, that may cause the MLM lawyer to answer questions (off the top of his or her head) in five minutes what would take a typical business lawyer five years to research. And, in which case, they would still probably not understand the issues, let alone the solutions. For better or for worse, the practices of the MLM industry have induced scores of legislation and regulatory control, such as pyramid statutes, MLM statutes, Business Opportunity, security, FTC, and postal regulation. Notwithstanding the success of the industry, there is always tension between the regulatory community and the MLM industry. Overzealous regulators and rouge operators guarantee that this state of affairs will always exist.

Later issues with distributor relations, distributor discipline, FDA, trademark, tax, and international expansion arise. It is easy to see why the MLM attorney is probably the first person with whom you should establish a relationship and with who you should grow. That person is a trusted business advisor and a member of your business team.

At a minimum, you would be premature to jump into the marketplace without a legal review by MLM Legal Counsel of the most basic of sales kit contents. The basics include representative agreements, policies and procedures, product brochures, marketing plan presentations, as well as various forms, ranging from retail receipts to auto ship, to multiple owner applications, etcetera.

Responding after the fact to regulatory agencies over deficient materials or answering distributor complaints for slip shot documentation is too little, too late. And it will be too bad for the start up MLM business.

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

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

Or, visit these links for more information:

Why You Should Trademark Your MLM Company Name

Profile of the Leading MLM Law Firm – Babener & Associates and MLMLegal.com

An Introduction to Direct Selling and The Basics of MLM

Recruiting Advice from an Industry Expert – The MLM Fairytale “Network Marketing and Frogs”

Jeffrey Babener’s Youtube Channel Reaches 60,000 Views

Short Course on Network Marketing: Q&A with Jeffrey Babener on Pyramid Schemes Video

Profile of a Leading MLM Law Firm – Babener & Associates Video

How Does a Business Lawyer become a MLM Lawyer? Video

Is a MLM Lawyer a Typical Lawyer? Video

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

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

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

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

An Interview with Industry Expert and Advocate, Jeffrey Babener

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

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

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 is quickly approaching! On February 21^st and 22^nd, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 63nd annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Our next Conference takes place May 16^th & 17, 2013 in Las Vegas! Call our office to register today!)

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

The Introduction of Expert MLM Attorney, Jeff Babener

Jeffrey Babener of Babener and Associates is a legal legend in network marketing for his representation of some of the biggest and best MLM companies in our industry, as well as for his contribution to the positive development of network marketing law.

His several books are viewed as cornerstones for understanding correct business practices in the direct selling industry. And, his quarterly seminars on how to launch and run an MLM company have served as the foundation for dozens of direct selling companies that have become network marketing success stories.

Mr. Jeffrey Babener, please introduce us to network marketing…

Mr. Jeff Babener: Unfortunately, we have many companies out there that are scams masquerading as legitimate multilevel marketing, direct selling companies. This has been a problem for the industry. There is often a fine line between legitimate and pyramid companies since the structure of all companies are in some pyramid format, but the courts and regulatory agencies have long established the difference between legitimate and illegitimate.

The bottom line is that we are looking for a product or a service that has a legitimate place in the consumer marketplace. When we look for a legitimate MLM company, we are looking for a variety of things. We’re looking for a product that is fairly priced and that gets used. We’re looking for a program that pays commissions only on products that are sold to the customer and are used. We are looking for a program that doesn’t involve inflated earnings claims or earnings exaggerations. We are particularly looking for a program that doesn’t involve high-cost investments or inventory loading.

We’re looking for programs that don’t involve overinflated pricing of products. We’re looking for programs that are intended for the long-run. And eventually, what is asked of the company by consumers, courts, regulatory agencies, etc. is if people are buying products or services from the company, what are they paying and why are they paying it?

If they are paying an exorbitant amount of money just to buy into the program and to qualify into what everyone refers to as “the deal,” it’s an illegitimate program. If they’re buying products and services because they want them, they intend to use them, and they have a market for them, then the business model probably will work. Always remember, there is always a fine line.

For more information on the difference between a legal and illegal direct selling, network marketing, MLM company, visit the following links:

Is This a Pyramid or a Legitimate MLM? Article

From a Legal Perspective: The Difference Between a Pyramid Scheme and Legitimate MLM Video

What Makes a Pyramid Scheme? Video

Not all Direct Selling Companies are Pyramid Schemes Video

Where can I find a legitimate direct selling company to join? Article

Identifying Illegal Pyramid Schemes Article

How to Tell if a Company is a Pyramid or a Legitimate MLM Video

Read our blog posts on relevant topics:

Interview with MLM Attorney On The Difference Between a Pyramid Scheme and Legitimate MLM

Are you Starting a MLM Company?

The Hallmarks of Legitimate Direct Selling/Network Marketing Companies

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

February 2013 MLM Startup Conference in Las Vegas

ZeekRewards.com Shut Down by SEC for Ponzi Activity

Are the Claims that Corporate America has Discovered MLM “Real” or “Off the Wall?”

Is Your Product Real? The Shoe Test…

There Must be Good Value in MLM

Personal Use by Distributors… Your Questions Answered

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

Offshore MLM Pirates and Zealot Regulators

The Legitimate MLM Checklist

Steering Clear of Illegal Scams: “Red Flags” to Look Out for

21 Aspects of a Legal Direct Selling Company

How do I Check if an MLM Company is Legal?

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

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

The Origin of State Regulation and the Current Direction of State Regulation

And the Leaves that are Green Turn to Brown – MLM Penny Auctions

The Inevitable Question: Is This a “Real” Business

D-Day: Direct Selling v. FTC

Stock Plunge on Internal Consumption: Whose Fault?

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 is quickly approaching! On February 21^st and 22^nd, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 63nd annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Keep an eye out for our May and October conferences as well.)

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

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

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 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.

For additional information on starting and running your direct selling company, click the following links:

Starting a Network Marketing Company? Article

How to Build a Successful Direct Selling Company Article

Do We Start Local or Go National Immediately? Companion Video to this Blog Post

As always, be sure to visit www.mlmlegal.com and www.mlmattorney.com for information and updates on the MLM industry.

The next MLM conference will be held February 21st and 22nd, 2013 in Las Vegas (keep a look out for the October and May conferences as well). Each day will begin at 9:00AM and end at 4:00PM, when the one-on-time will begin and end around 7:00PM. For more information visit: http://www.mlmlegal.com/srs2.html or call 800-231-2162/503-226-6600. Registrations are taken by phone and questions are always welcome.

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

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.