Aerodynamically, the bumble bee shouldn’t

be able to fly, but the bumble bee doesn’t

know it so it goes on flying anyway.

–Mary Kay Ash

Humble Beginnings

Can you become the “million-dollar earner?” Don’t sell yourself short just because you’re starting fresh in the multilevel marketing business. History tells us that, in America, many billion-dollar businesses – including MLM – have been started on a shoestring budget in garages and basements. Cases in point: Bill Gates of Microsoft, Phil Knight of Nike shoes, and Steve Jobs of Apple Computer. There are countless inspiring network marketing success stories about individuals whose companies or distributorships had very humble beginnings, such as:

1) The Bathtub?

The co‑founders of Amway, also known as Quixtar, network marketing’s largest multi-billion-dollar company. Rich DeVos and Jay Van Andel mixed their first product, LOC Cleanser, in their bathtubs when they began their business. Starting out as distributors for a vitamin company, Nutrilite, their Amway Corporation later bought Nutrilite, which today is their division for nutritional supplements. Amway has gone on to become the largest seller of dietary supplements in the world with consistent sales in the billions.

2) Door Knocking?

The founder of Avon (a cosmetic conglomerate), David McConnell, wasn’t even in the cosmetics business in 1886. He was selling Bibles door-to-door, and giving away free perfume samples as a way to get into the homes of prospective customers. As it turned out, his customers showed much more interest in the perfume samples than in the bibles. So, he began the California Perfume Company, later renamed Avon.

Today, Avon, trades on the New York Stock Exchange, operates in more than 140 countries with sales in excess of $7 billion, and is one of the largest sellers of cosmetics in the world.

3) Nothing, really?

After a successful career as a top distributor for the direct selling company, Stanley Home Products, Mary Kay Ash started her own small business in 1963, named Mary Kay. She created products with ingredients like hide tanner (used to cure animal hides) and became the most famous face of direct selling and network marketing. Mark Kay lecturing around the world and was even included in a case study at Harvard Business School.

Mary Kay Ash was one of three alumni distributors of Stanley Home Products that established multi-billion dollar companies. Her colleague, Brownie Wise, went on to help establish Tupperware, and Mary Crowley founded Home Interiors.

Clearly, their MLM distributor experiences allowed them to accept and succeed in new challenges that would likewise impact millions of lives and inspire other entrepreneurs to develop successful distributorships and found their own companies today.

4) Liniment?

Consider the origins of Watkins Products back in 1868. Today, Watkins sells a full line of products, from spices to cosmetics, to health care items. In 1868, however, the founder of the company, Joseph R. Watkins, was selling only one product: liniment. From that single product was built, perhaps, the longest-running direct selling success story of the industry.

5) Football?

How improbable! Art Williams was a high school football coach making little more than $10,000 per year when he applied principles of multilevel marketing to the sale of term insurance.

A. L. Williams went on to become the largest seller of term insurance in the U.S., eventually evolving into today’s Primerica, a division of one of America’s largest financial institutions, Citibank. Sales of financial products by Primerica run into the billions of dollars every year. And, all from a football field!

6) Big Dreams!

Modern-day network marketing successes – whether they are companies or individual distributors – all have their own startup story, starting on a shoestring budget. This business was meant to grow from the humble beginnings of one person’s dream. Hand-to-hand marketing is the nature of the direct selling business

And the successes of those that have started billion-dollar companies are paralleled over and over among the millions of network marketing distributors. Look around at the top distributors for major companies today and you will find individuals, who in their prior lives, were teachers, plumbers, lighting salesmen — all with modest employment incomes and equally-modest prospects in life.

What it Takes: A Positive Mindset

This is a mindset business. Your attitude is often a self-fulfilling prophecy. There is some real truth to the veterans’ advice which notes, “If you think you can, you’re right; If you think you can’t, you’re right!”

So, the next time you think you can’t do it, think again! Make sure, however, that you have access to one of the following tools:  a bathtub, a garage, a bible, or a dream.

Do you want more inspiration? Watch these video titles from the 30+ year direct selling industry veteran, Jeff Babener:

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

How Much Does It Cost to Start a MLM Company?

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

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.

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Historically, the products sold by direct selling companies are in the categories of personal care, health/nutritional, cosmetics, jewelry, household products, and technology, etc. These types of products are not only marketed to the end consumer, but the end consumer is often the best candidate to pursue a part-time opportunity in marketing those products as well. And, thus network marketing is not only best suited for consumer (as opposed to business) sales, but the potential pool of recruits is to be found in the thousands, millions of end consumers.

This is not to say that network marketing is not involved in a wide array of both consumable and one-time use products and services for end consumers. In fact, certain markets have been created by direct sellers, including water treatment devices, magnetic products, pre-paid legal services, home food storage containers, etc. In addition, the industry has established great success in the marketing of telcom, energy and various insurance/financial products.  Its imprint can even be found in application to the real estate industry. Sales of the U.S. network marketing industry exceed $30 billion and the number of participants is approaching 20 million.

See Hard Facts about a Growing Industry – 2015 for current statistics on the direct selling industry.

MLMLegal.com is bustling with educational content for direct sellers and startup/existing MLM companies! Be sure to visit us often!

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 27 and 28, 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.

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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.

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Has There Been Cases Won or Lost on the Topic of Social Media and Distributor Raiding?

There have been legal rulings both ways on this subject. Some companies have argued that when distributors communicate their intentions to leave a company and begin with a new one on Facebook then they are targeting. Others have argued the opposite point of view. At some point there will be a resolution to this debate at the appellate case level. At this point, most companies would ask that people not promote to people on their Facebook page who’ve been in their downline; however, many distributors would disagree arguing that their Facebook friends are not the friends of the company.

In other cases, consultants want to be “friends” with top leaders and company executives on Facebook in order to stay in the loop and then find themselves in a conflicting position when they want to leave to another company. A deciding factor is yet to be made on this point.

Your best educational resource on the web: check out the hundreds of articles, videos, company profiles, and more at MLMLegal.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.

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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.

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Make sure you’re not the last to hear about top headlines in the industry, or to hear about the latest company scam alerts. Our timely news reporting will keep you up-to-date on stories that affect everyone in the multilevel marketing industry.

We will also make sure you receive a “Video of the Week” on industry educational topics, such as legal issues, technology and software, common questions (FAQ), success stories, and MLM startup issues.

Each newsletter features the profile of a direct selling company, like Tupperware, Herbalife, and Mary Kay, or perhaps a startup multilevel marketing company that you haven’t heard about yet! MLM News Global also highlights two featured articles on industry-related topics, such as pyramid schemes, compensation plans, recruiting, lead generation, legal analysis, software, and more.

The MLM News Global Newsletter is presented by industry educator, MLM legal expert, and network marketing business consultant, Attorney Jeff Babener.

Sign up today to receive valuable MLM, network marketing, direct selling content, an imperative to anyone in the direct selling industry. Join our newsletter today!

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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.

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It is often said that direct selling/MLM/network marketing is about sharing your product and services first within your spheres of influence, i.e., first harvest the low lying fruit. This means calling upon your friends, family, social acquaintances, co-workers, members of your church or other religious group, fraternal organizations, etc. In other words, sell where you are most comfortable. Generally, this means territory close to home or, if at a distance, it is because you have connections. As you mature, you may venture into other territories, but it will likely be first through social networking.

Are you 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.

For more encouraging words to achieve success in network marketing, visit Attorney Jeff Babener’s websites: www.mlmlegal.com and www.mlmattorney.com.

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.

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

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

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

Watch the video: What about Gifting Clubs?

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

In addition, our next Starting and Running the Successful MLM Company Conference takes place May 14 and 15, 2015 in Las Vegas. View our conference flyer and speaker list online. Participate in our Innovation Campaign for your chance to receive TWO FREE TICKETS to attend our next conference.

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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.

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