Startup – MLM, Network Marketing, Direct Selling News, Videos, Articles, Legal Updates, and More. http://mlmlegal.com/MLMBlog From Multilevel Marketing Attorney and Business Consultant, Jeff Babener. Run, Learn & Get Lost at MLMLegal.com Sat, 07 Mar 2020 15:31:49 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.25 Take a Look at the Stats from the 84th MLM Conference http://mlmlegal.com/MLMBlog/take-a-look-at-the-stats-from-the-84th-mlm-conference/ Mon, 11 Nov 2019 18:11:34 +0000 http://mlmlegal.com/MLMBlog/?p=1427 The registration for our Oct. 2019 conference was 65 companies and 130 individuals. It was our 84th national conference over 35 years. Here are some examples of companies that Babener & Associates has started at one on one meetings at these conferences or … Continue reading

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The registration for our Oct. 2019 conference was 65 companies and 130 individuals. It was our 84th national conference over 35 years. Here are some examples of companies that Babener & Associates has started at one on one meetings at these conferences or in similar one on one meetings: NuSkin, Melaleuca, Usana, Nikken, Excel Telcom, Team National, Nerium, etc. Other leading companies, who have been provided Babener & Associates advisory, over similar time period: Avon, Amway, Herbalife, Shaklee, ACN, etc.

Here is a glimpse of very attentive entrepreneurs at the 84th MLM Conference:

 

 

 

 

 

 

 

 

 

 

 

Join us for the next MLM Startup Conference in February. Visit MLMLegal.com.

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Free MLM Webinar – Sign Up Now! http://mlmlegal.com/MLMBlog/free-mlm-webinar-sign-up-now/ Thu, 15 Aug 2019 15:49:30 +0000 http://mlmlegal.com/MLMBlog/?p=1403 A Focused Webinar for Startup MLM Companies Launching the MLM Startup: Essentials       An Extraordinary 150 Minute Course with Our Compliments Complete the Information Field Below and a Link to the Hosting Page will be Sent** (**Available only … Continue reading

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A Focused Webinar for Startup MLM Companies Launching the MLM Startup: Essentials

 

 

 

An Extraordinary 150 Minute Course with Our Compliments

Complete the Information Field Below and a Link to the Hosting Page will be Sent**

(**Available only to Executives of MLM Startup and Existing Companies.)

A 150 minute MLM Startup Webinar with five leading Experts in the Direct Selling Industry

Sponsor and Chair:

MLMLegal.com and Babener & Associates

Conference Chairperson: Jeff Babener, Babener & Associates

Babener & Associates Law Firm

Conference Co-Chair: Michael Sheffield, The Sheffield Group

Learn from the professionals who have been behind hundreds of companies..

….and those who have advised (and started many), including Avon, Herbalife, Amway, NuSkin, USANA, Melaleuca, Nerium, Excel Telcom, ACN, Team National, Shaklee, etc.

  • About the industry and succeeding in our current business environment.
  • Being successful, but staying in business in our regulatory environment.
  • Compensation Plans in today’s direct selling environment.
  • Stages of MLM Startup Development.
  • What to look for in a technology provider
  • What is the driving foundation of success.
  • Directions in Technology.
  • Competing with the Amazon experience and the Gig economy opportunities.
  • Recruiting leaders and distributors.
  • What successful distributors are looking for in a company.
  • Panel of Experts discuss the most frequently asked questions about MLM Startup
  • About the Webinar Chair:

Jeffrey A. Babener, of Portland, Oregon, www.mlmlegal.com, is the principal attorney in the law firm of Babener & Associates. He represents leading U.S. and foreign companies in the direct selling industry. He has been a key advisor to such companies as Avon, Herbalife, Discovery Toys, Nikken, Shaklee NuSkin, Excel, Usana, Fuller Brush, Cell Tech, Enagic, Sunrider, Melaleuca, Nerium International, etc. He is a frequent lecturer and has been interviewed on the industry, and published, in such publications as Money, Inc., Atlantic Monthly, Success, Entrepreneur, Kiplinger’s Personal Finance, Home Office Computing, Business Start-Ups, Direct Selling News Magazine, and Money Maker’s Monthly. He is editor of the industry publication, Direct Sales Legaline. Mr. Babener is also the author of the books; Tax Guide for MLM/Direct Selling Distributors, Network Marketer’s Guide to Success, The MLM Corporate Handbook, Network Marketing: Window of Opportunity, and Network Marketing: What You Should Know (used as the college curriculum textbook at Utah Valley State course on network marketing). He is editor of one of most frequented network marketing educational web sites, www.mlmlegal.com . He has served as Chair of more than 70 national conferences on starting and running the direct selling company. He serves on the Lawyers Council and Government Relations Committees of the Direct Selling Association (DSA), and he has served as General Counsel and on the board of the MLMIA (Multilevel Marketing International Association). He has lectured at major industry trade meetings and at such educational institutions as the Univ. of Illinois, University of Texas, University of Houston, etc. He is a graduate of the University of Southern California Law School where he served as an editor of the USC Law Review, followed by the appointment as a law clerk to Hon. David Williams, U.S. District Court for the Central District of California.

A number of Babener & Associates client companies have been success stories over the last several decades, including several billion dollar and NYSE companies such as Avon, Herbalife, NuSkin, Usana. Other successful companies, to which the law firm has provided varying level of advisory, have included Melaleuca, Nikken, Enagic, Discovery Toys, Amazon Herbs, TriVita, Nerium International, Shaklee, PrePaid Legal, Tupperware, Primerica, Arbonne, Longaberger, Excel Communications, ACN, etc. 

Mr. Babener has served as lead trial counsel for multiple cases on direct selling throughout the U.S. Further background material on direct selling will be found at the website, www.mlmlegal.com, where he is editor.

Babener & Associates law office represents the owners of direct selling, network marketing, multilevel marketing companies.

About the Webinar Co-Chair:

Michael L. Sheffield is Chairman and CEO of The Sheffield Group Inc., a full service direct sales consulting firm and Chairman Emeritus of the Multi Level Marketing International Association. The Sheffield Group (www.sheffieldnet.com) specializes in start up operations, compensation plan development, distributor recruiting systems and sales tools. The firm also consults on new product concept development including positioning, pricing strategies, marketing and product sales strategies. The Sheffield Group has assisted in over 800 direct selling company start-ups, including 23 of the top 100 MLM/Party Plan companies in the world. In addition, Mike has assisted in numerous special projects for many of the industry’s most prestigious direct selling, MLM and party plan companies. He has been a frequent lecturer on launch strategies for MLM companies at various industry conferences as well as the Schools of Business at Arizona State University, UC Berkley, University of Cincinnati, California Lutheran University, Anderson University and others. He was selected to make a special presentation on behalf of MLM at the Harvard Business School Association symposium. Mike is nationally respected as a leading compensation plan design expert and on the special staff teaching the subject at the University of Illinois at the Chicago Network Marketing Seminar. He has co-authored numerous academic papers on MLM presented at various academic conferences. He has served as sponsor and chief coordinator of various academic/corporate MLM conferences at the University of Texas, El Paso (UTEP). His contributions to these academic conferences earned him the honor of being the subject of a feature article in Success Magazine. Mike has been the MLM Expert for Entrepreneur Magazine and a contributor to the Entrepreneur Magazine training manual teaching how to start a successful MLM company. He can be contacted at www.sheffieldnet.com.

About our Webinar Panelists:

Jerry Reynolds, is founder and President of Trinity Software of Dallas, Texas. Trinity is a leading technology solutions provider to network marketing companies. Trinity has decades of experience providing needed guidance, resources and online platforms for MLM startup companies.

Robert Proctor is President of MultiSoft Corporation, a veteran provider of MLM Software to the Network Marketing Industry for over 25 years. With offices in the USA, Europe and Asia MultiSoft Corporation provides turn-key and custom MLM software packages from start-ups to mature companies with a focus on “Internationalized” MLM software. Robert has worked with hundreds of companies around the globe and has been involved in nearly every aspect the network marketing industry for 16 years as a developer, designer, distributor, owner, operator and provider to the industry. Robert has built down-line organizations exceeding 50,000 customers and 6,000 distributors. Robert has a diverse background that includes public speaking, radio & television, advertising and marketing, business law, accounting & finance, banking, sales, customer service, compensation plan evaluation, network operations, programming, design and management.

Robert Butwin, of Santa Rosa, California, is the consummate MLM professional. He has built and led large distributor organizations. He is highly respected in the MLM corporate community and juggles his distributor schedule with duties as a mentor on recruiting to corporate management of many leading companies. He is the author of the highly acclaimed Street Smart Networking, available in bookstores everywhere.

Complete the Information Field Below and a Link to the Hosting Page will be Sent**

(**Available only to Executives of MLM Startup and Existing Companies.)

SIGN UP NOW.

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Why Would an Attorney Host a MLM Startup Conference? Watch the Video! http://mlmlegal.com/MLMBlog/why-would-an-attorney-host-a-mlm-startup-conference-watch-the-video/ Mon, 25 Mar 2019 17:13:48 +0000 http://mlmlegal.com/MLMBlog/?p=1386 We have hosted more than 70 national conferences on starting and running a direct selling, network marketing, MLM or party plan company. We have started and advised many of the leading companies in the industry and we have a “big … Continue reading

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We have hosted more than 70 national conferences on starting and running a direct selling, network marketing, MLM or party plan company. We have started and advised many of the leading companies in the industry and we have a “big picture” that may be difficult to find elsewhereWe are big believers in education and our website, www.mlmlegal.com, is hopefully evidence of this, with hundreds of articles, cases, statutes, and scores of videos. We take a particular satisfaction in helping entrepreneurs pursue their dreams and the consequence is often the creation of thousands of jobs and opportunities. And at our conferences, we have started many companies that are today, household names. It has been a pleasure and honor to assemble professionals in these conferences to assist individuals to create “something from nothing.”

At the conference, we facilitate relationship-building, networking, and the educating of MLM entrepreneurs. We bring direct selling experts from around the country to one location to coach attendees on software, technology, compensation plans, sales kits, recruiting, funding, capitalization, legal, and many other topics that are imperative to any MLM executive. Attendees are educated in a classroom-type setting by industry experts and then are offered one-on-one time to speak with any (or all) expert they choose. Our goal is to harness long-term relationships, while educating the next generation of network marketing entrepreneurs about the strength and credibility of the MLM industry. An industry that supports millions of people around the world.

As the creator and host of the original MLM Startup Conference, we support the MLM entrepreneur and play a key role in establishing new companies in the industry through our event. If you’re starting, or thinking of starting a network marketing company, we highly recommend that you attend. This is the best, and most longstanding, conference offered anywhere.

Are you interested in attending the Starting and Running the Successful MLM Companyconference? 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.

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New Video: If a Sales Kit or Startup Fee Is Several Hundred Dollars, Then Is This Considered “Frontloading”? http://mlmlegal.com/MLMBlog/new-video-if-a-sales-kit-or-startup-fee-is-several-hundred-dollars-then-is-this-considered-frontloading/ Mon, 18 Mar 2019 17:08:07 +0000 http://mlmlegal.com/MLMBlog/?p=1381 Front loading generally refers to a process in which a MLM company, or a sponsoring distributor, encourages a new distributor to purchase far more product than is commercially reasonable under the circumstances. Often the “push” is explained to the recruit … Continue reading

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Front loading generally refers to a process in which a MLM company, or a sponsoring distributor, encourages a new distributor to purchase far more product than is commercially reasonable under the circumstances. Often the “push” is explained to the recruit as necessary to qualify in the plan. This is an unacceptable practice is often one indicia of a pyramid scheme.

On the other hand, virtually all regulatory agencies recognize that a purchase of an “at cost” sales kit is an acceptable practice in the mainstream of leading direct selling companies. Such mandated kits are typically in the $50-$100 range. They generally entail “hard copy” or online supply of sales and marketing materials as well as ongoing sales and marketing materials updates for a year. Typically the mandated sales kit does not include product and generally a company offers an optional deluxe kit that may include product. Such an optional kit, which is often referred to as a “fast start” kit, may contain several hundred dollars of product. This is not unusual. Although the same regulatory standards on upfront mandated purchases are applicable to party plan companies as they are to other companies, it is not unusual to see party plan companies mandate a beginning starter kit that contains a wide array of products, with a price tag several hundred dollars. Regulatory agencies are very liberal in their view of such mandated purchases in party plan companies because party plan companies are so overwhelmingly retail oriented and the movement of product to retail customers is the norm, and not the exception, for party plan companies.

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Learn more about the network marketing business at www.mlmlegal.com.

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FTC Offers Guidance: Business Guidance Concerning Multi-Level Marketing http://mlmlegal.com/MLMBlog/ftc-offers-guidance-business-guidance-concerning-multi-level-marketing/ Fri, 06 Jul 2018 01:58:20 +0000 http://mlmlegal.com/MLMBlog/?p=1298 Do you have questions about multi-level marketing? The FTC staff has guidance to help members of the MLM industry apply core consumer protection principles to their business practices. Multi-level marketing is a diverse and varied industry, employing many different structures … Continue reading

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18 Questions Answered by the FTCDo you have questions about multi-level marketing? The FTC staff has guidance to help members of the MLM industry apply core consumer protection principles to their business practices.

Multi-level marketing is a diverse and varied industry, employing many different structures and methods of selling.

Although there may be significant differences in how multi-level marketers sell their products or services, core consumer protection principles are applicable to every member of the industry. The Commission staff offers this non-binding guidance to assist multi-level marketers in applying those core principles to their business practices.

The FTC offers 18 common questions about MLM and running a direct selling business.

1. What is direct selling? What is multi-level marketing?

Direct selling is a blanket term that encompasses a variety of business forms premised on person-to-person selling in locations other than a retail establishment, such as social media platforms or the home of the salesperson or prospective customer.

Multi-level marketing is one form of direct selling. Generally, a multi-level marketer (MLM) distributes products or services through a network of salespeople who are not employees of the company and do not receive a salary or wage. Instead, members of the company’s salesforce usually are treated as independent contractors, who may earn income depending on their own revenues and expenses. Typically, the company does not directly recruit its salesforce, but relies upon its existing salespeople to recruit additional salespeople, which creates multiple levels of “distributors” or “participants” organized in “downlines.” A participant’s “downline” is the network of his or her recruits, and recruits of those recruits, and so on.

2. Under Section 5 of the FTC Act, what is an MLM with an unlawful compensation structure, which is sometimes called a pyramid scheme?

The most widely-cited description of an unlawful MLM structure appears in the FTC’s Koscot decision, which observed that such enterprises are “characterized by the payment by participants of money to the company in return for which they receive (1) the right to sell a product and (2) the right to receive in return for recruiting other participants into the program rewards which are unrelated to the sale of the product to ultimate users.” In re Koscot Interplanetary, Inc., 86 F.T.C. 1106, 1181 (1975).1

1 This document is focused specifically on MLM practices that may violate the FTC Act. It does not address other types of unlawful structures that do not involve the right to sell a product or service, such as chain referral schemes (sometimes called “chain letters”) and Ponzi schemes.

3. How do MLMs with unfair or deceptive compensation structures harm consumers?

READ MORE.

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Start Your Direct Selling Company Right the First Time http://mlmlegal.com/MLMBlog/start-your-direct-selling-company-right-the-first-time/ Wed, 30 May 2018 20:39:12 +0000 http://mlmlegal.com/MLMBlog/?p=1287 With the costs of the compensation plan, attorney’s fees, software, hiring staff, recruiting consultants, creating/designing products, the list goes on… starting a direct selling company can be expensive and difficult! We understand how complex it is to tackle a MLM … Continue reading

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With the costs of the compensation plan, attorney’s fees, software, hiring staff, recruiting consultants, creating/designing products, the list goes on… starting a direct selling company can be expensive and difficult! We understand how complex it is to tackle a MLM startup. That’s why we offer the Starting and Running the Successful MLM Company Conference.

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

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

Our next conference takes place October 25 & 26, 2018 in Las Vegas (who doesn’t want a good reason to go to Las Vegas?). We even offer the Innovation Campaign for those who are on an even tighter budget.

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

Call us at 800-231-2162 to register.

If you’re reading this blog post and the conference dates above have passed, check our website for the current conference dates.

Sign up for the MLM News Global newsletter for top headlines, news stories, scam alerts, videos, articles, and more information on the network marketing industry.

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Video – What should today’s MLM business owner look for in a legal advisor? http://mlmlegal.com/MLMBlog/video-what-should-todays-mlm-business-owner-look-for-in-a-legal-advisor/ Sat, 12 May 2018 16:15:03 +0000 http://mlmlegal.com/MLMBlog/?p=1284 With over 35 years in the industry, Jeff Babener has worked with companies like Amway, Avon, NuSkin, Usana, Melaleuca, and Nikken. Your legal advisor should be there for you 24/7. He’s worked with all kinds of startups, from budgets from … Continue reading

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With over 35 years in the industry, Jeff Babener has worked with companies like Amway, Avon, NuSkin, Usana, Melaleuca, and Nikken. Your legal advisor should be there for you 24/7. He’s worked with all kinds of startups, from budgets from $0 to millions of dollars. Experience is key when you’re looking to hire a MLM attorney.

 

For more information, visit www.mlmlegal.com.

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Four Essentials for MLM Startup Companies http://mlmlegal.com/MLMBlog/four-essentials-for-mlm-startup-companies/ Sat, 07 Apr 2018 18:00:39 +0000 http://mlmlegal.com/updates/?p=38 Prospective MLM startup owners often ask for the essential support elements for starting a new network marketing company. Four resources are clearly needed to do it correctly. Sometimes a company has one or more resources, but these are the important … Continue reading

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Prospective MLM startup owners often ask for the essential support elements for starting a new network marketing company. Four resources are clearly needed to do it correctly. Sometimes a company has one or more resources, but these are the important ones.

First, for better or worse, legalities impacting an MLM company are significant. A new company needs competent and experienced MLM Legal counsel to advise on all documentation, trademark, FDA, tax, regulatory compliance, distributor relations, vendor relationships, etc. Actually, in our experience, your MLM legal counsel may become your closest business advisor.

Second, a technology solutions provider should be sought out to address downline payout, back office access, sales tax management, replicated websites, communication tools, etc.

Third, if the company does not have compensation plan expertise, an expert in compensation plan design should be brought on board.

Finally, the creative element involving collateral materials, web graphics and video is essential.

For information on leading-industry vendors, check out the MLM Startup Conference for Executives of Startup and Existing MLM Companies and the Speaker List.

View the video invitation here.

Be sure to check out MLMLegal.com for the best information on MLM on the web.

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6 Direct Selling Companies with Humble Beginnings http://mlmlegal.com/MLMBlog/6-direct-selling-companies-humble-beginnings/ Sun, 23 Apr 2017 20:27:20 +0000 http://mlmlegal.com/MLMBlog/?p=1218 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 … Continue reading

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Rich DeVos and Jay Van Andel mixed their first product, LOC Cleanser, in their bathtubs when they began their business.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.

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Is it True that Distributors in MLM have a 95% Failure Rate? http://mlmlegal.com/MLMBlog/true-distributors-mlm-95-failure-rate/ Fri, 12 Aug 2016 23:20:02 +0000 http://mlmlegal.com/MLMBlog/?p=1164 Semantics play a role here. For instance, what is the meaning of failure? Does it refer to distributors who do not make substantial enough money, or who don’t make any money, or who lose money? Because most leading companies offer … Continue reading

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Is it True that Distributors in MLM have a 95% Failure RateSemantics play a role here. For instance, what is the meaning of failure? Does it refer to distributors who do not make substantial enough money, or who don’t make any money, or who lose money?

Because most leading companies offer terminating distributors a 100% or 90% buy back policy for inventory and mandatory sales materials (a full refund of your startup kit, e.g.), the risk of actually losing money is drastically diminished.

Many leading companies offer earnings disclosures that indicate the level of earnings of distributors. It is true that many distributors merely join to become discount buyers. And actually do not make money in the MLM program because they are not really pursuing the opportunity.

It is also true the vast majority of active distributors (those who actually make money) typically make no more than a few hundred dollars per month. There is a saying in the MLM industry that “95 percent of distributors fail or lose money.” This would not be viewed as a fair statement, unless one views, as worthless, the product/service purchased by distributors for personal or family use. Except for scam companies, this is not the case. Leading MLM companies are known for offering high quality products and desirable services.

What this related video: Why Do Distributors Join MLM Companies?

 

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.

Sign up for the MLM News Global newsletter for top headlines, news stories, scam alerts, videos, articles, and more information on the network marketing industry.

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