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Are there MLM company programs that help personal and professional growth within the company?

Charity — Thu, 05 Feb 2015 22:00:31 +0000

Companies such as Nikken and Enagic offer both sales and personal development training that have made a significant difference in their distributors’ lives.

Absolutely. First, it should be noted that this industry boasts some of the best motivational and teaching trainers in the sales business. Just Google “MLM Training” and you will be led to great trainers and systems, such as Zig Ziglar and Robert Butwin. Also touch base with some of the leaders at the MLMLegal.com Starting and Running the Successful MLM Company Conference.

As to companies, the very best companies offer significant leadership and training programs. Affiliate organizations of Amway such as Britt and Yager have offered superlative training for decades. Companies such as Nikken and Enagic offer both sales and personal development training that have made a significant difference in their distributors’ lives. Training is a passion for some company CEOs such as Jeff Olson of Nerium International or Richard Brooke, Founder of Oxyfresh.

Those companies that have succeeded have been synonymous with rich training and development. From a legal standpoint, a solid training program, that involves distributors working with their downlines, also deflates accusations of “lottery” by state and federal regulatory agencies because it supports the proposition that upline leaders participate in override commissions based on supervisory activity and not merely based on chance.

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How Often Should Companies Renew Their Policies and Procedures to Make Them Relevant in Today’s Marketplace?

Charity — Tue, 27 May 2014 20:32:42 +0000

Companies that claim to be partners with their consultants should walk the talk.

There are two issues that have surfaced in recent years: 1) social networking and 2) frequent migration of distributors between companies. With social networking concerns, companies have had to decide on positive protocol for consultants who socialize through technology and the internet. In terms of the migration of consultants, companies have often found themselves constantly revisiting policy that both protect the livelihood of all its distributors while also protecting the interest of the company. These issues are constantly under review. Most companies continue to revisit these issues multiple times.

Certainly, it’s not a good idea to make frequent changes to a compensation plan because it undermines faith in the company. Companies should also try and limit the number of changes in basic agreements and also be able to justify any of the changes being made. Companies that claim to be partners with their consultants should walk the talk. They should be saying that their interests lie in protecting distributors and consumers, not just the company. They have a responsibility to protect the livelihoods of thousands, or millions, of consultants who depend on income from the company. This is important because when companies disassemble, consultants who have spent all of their time building sales organizations only to find them stolen or taken elsewhere, are deeply hurt.

In the direct selling industry, the word change can send a certain group of people into orbit. Companies that are making adjustments or enhancements to their policies and procedures or compensation plan must carefully communicate those changes to sellers, especially to the leadership of the company. Leaders need to be prepared to deliver messages and to have the messages palatable to the rest of the sales force.

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Concerns about Merchant Account Processing: Should I Have Only One Merchant Account?

Charity — Fri, 27 Dec 2013 17:00:48 +0000

For a MLM company, it is imperative to have multiple solutions in place as a company grows.

This is a question for a MLM startup or existing company as opposed to a MLM consultant. For distributors who drive customers to their replicated websites, the company has in place credit card processing capability.

For a MLM company, it is imperative to have multiple solutions in place as a company grows. In fact, fast growth of a network marketing company often triggers major concern for the credit card processor because of the exponential potential liability in the event of charge backs or failure to deliver on the part of the network marketing business. Thus, fast growth may cause a merchant account processor to demand, in exchange for what it perceives as higher risk, larger reserves, higher rates and even hold backs on distribution of funds to the MLM company. Of course, failure to access funds will prove devastating for a MLM company that must pay commissions and pay its own vendors. Pleas by the MLM company often go unanswered by merchant processors and many companies have either faced collapse or actually collapsed as a result.

The short answer is for any startup or existing MLM company is to make sure that it secures multiple processing accounts from different processors and banks. In addition, it should be in touch with a reputable consulting firm that represents companies in the search of back-up merchant account vendors. The time to search is not during the crisis, but before the crisis occurs.

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MLM Executive Q&A: How can I determine cost of goods? How do I price my products for retail, distributor and direct-to-consumer sales?

Charity — Thu, 19 Dec 2013 21:03:38 +0000

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.

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Common Questions from MLM Executives: What do I do with distributors who go passive?

Charity — Fri, 18 Oct 2013 18:17:30 +0000

What is most important is that a MLM company use its time with its distributors to demonstrate great products and great service.

It has long been recognized that there is high attrition rate among MLM distributors, perhaps as high as 80-90%. The vast majority of MLM consultants are part time and they join and leave for many reasons. The fault is not necessarily with the network marketing company. In fact, a MLM company is competing for the consultant’s time. Companies often compete with the PTA, little league, another part time job, family demands, shifting duties as work, etc.

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

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