Is the industry that we’re in, the direct selling, MLM, network marketing industry, for real? And secondly, the question always asked of the distributor, is your company for real? And after all these years I don’t think many distributors hear these questions as often.

Allow me (Attorney Jeff Babener) to answer the first question from my perspective, as an industry professional, from someone who works behind the scenes.

First of all, Keep in mind we have nearly 16 million people in the United States selling consumer products and services in the range of $30 billion and more than 90 million people around the world doing this with sales exceeding $150 billion. This activity penetrates the fabric of our society. Earlier statistics, presented by the Direct Selling Association, have indicated that, perhaps, one in ten households have somebody who is doing this part-time. We used to get bad press but now we seem to be seeing an improvement.

In the US today, we recruit about 55,000 people per week and recruit about 150,000 people worldwide per week. Over the next ten years, statistics from the Direct Selling Association predict that we’ll recruit about 200 million people around the world. Times have changed. And, the MLM environment has changed. Distributors who may have faced objections to network marketing in the past, even if they were doing well, are probably not facing them anymore. MLM representatives should be very well received around the world. All of the statistics say that the success of distributors is based on relationships and in the company’s beliefs. There is a study done by the Direct Selling Association that asks why people join MLM companies. The first reason is that distributors like and believe in the product. The second reason is that they like being their own boss. The third reason is that they like working at home. The fourth reason is that they like the idea of the harder they work, the more they make. The fifth reason is that they enjoy selling.

And, selling is a tough one. However, there were a couple other studies that were done asking why people stay and why they leave direct selling companies. It was very interesting. Most people stay with direct selling companies because they enjoy the product.

And so, many of the people that distributors signed on have continued to be retail customers of MLM companies for over 20 years. They probably haven’t worked the opportunity forever, which is consistent with the DSA’s study that described the number one reason why people stay with MLM companies is because they have a favorable response to the product.

The second reason people stay with the company is because they have a favorable response to the leadership of the company. Thirdly, distributors have a favorable response to the leadership of the sales force (upline distributors). The fourth reason is that distributors have a favorable response to the vision of the company. In many cases the distributors will respond favorably to the wonderful philanthropic company vision, which is usually much larger than just the business.

These values, and many others, make successful MLM, direct selling, network marketing, party plan companies.

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

Or, visit this link for more information:

Earnings Claims and Consumer Protection Laws Video

Is it Proper to pay Commissions on Sales Tools and Training? Video

MLM/Direct Selling/Network Marketing: Billions of Participants Make for a Veritable Industry

The Hallmarks of Legitimate Direct Selling/Network Marketing Companies

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

Can I and should I join multiple companies and establish multiple downlines?

Think you have a unique, never-before-seen product? Think again.

Make sure the company training program supports long distance growth

Training and Managing Your People: Introduction

Ten Common Distributor Mistakes (and how to overcome them)

Restrictions on Distributors: MLM Cross-Sponsoring Rules and Selling Sales Tools

Distributor Behavior: Networking and Time Management

Long Distance Sponsoring: Focus on areas where other successful distributors are located

Network Marketing and the Law: Refunds for MLM Distributors

MLM Company Profiles

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

An Introduction to Direct Selling and The Basics of MLM

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

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

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

How to Tell if a Direct Selling Company is a Pyramid or a Legitimate MLM

MLM Pyramid Schemes – Everything You Need to Know All in One Place

Debunking the MLM, Direct Selling, Network Marketing Industry Myths

Distributor Training – Two Common Questions

If I’m an independent contractor, why are there rules regarding my conduct?

Who Owns the MLM Distributorship in the Case of a Divorce?

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

The Hallmarks of Legitimate Direct Selling/Network Marketing Companies

Is There a Level Playing Field for all Compensation Plans?

Is MLM For Real?

What are Your Reasons for Joining a Direct Selling Opportunity?

U.S. Direct Seller Statistics in the Last Five Years

The Direct Selling Association Presents 2011 MLM Industry Facts

The Attraction of Network Marketing

The Educated Networker: Trademarks and Network Marketing

If My MLM Business isn’t Working What Should I do?

Am I Taking a Risk by Joining an MLM Company?

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

Should I Trust The “MLM Gossip Websites?”

Nutritional Supplements, Health Claims and MLM

Is Your Product Real? The Shoe Test…

Personal Use by Distributors… Your Questions Answered

In What States does MLM do the Best?

All About MLM Earnings and Compensation

General Tips in Networking and Time Management

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!

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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.

Why “Value?”

Why “value?” Because the success of any network marketing company is totally dependent upon how well it achieves “bonding” with its customers and distributors. This means repeat customers and distributors who stick with the business. And, in today’s world, network marketing companies are not just competing with other sellers with similar products, they are also competing with other methods of sales distribution; i.e., catalog sales, internet sales, discount stores, infomercials, and telemarketers.

And, they can “win” in the marketplace only if they deliver “value” and only if customers perceive a higher product “value” than offered by more conventional sellers. So, when you’re looking for that special opportunity, look for a network marketing company that has an edge on “value.”  Look for one with some or all of the following features:

(1)       A unique product that stands out when you show it to your friends (cans of Campbell’s soup or boxes of cake mix are not unique).

(2)       A product that is proprietary to the company. (Have you ever noticed that you can’t buy Avon cosmetics in department stores, or Shaklee vitamins at pharmacies, or Enagic water treatment products in retail chains? These products are only available from distributors.)

(3)       A product that is economically-competitive with similar products (i.e. a fairly-priced product).

(4)       A customer satisfaction guarantee, if possible, is important.

(5)       A product that you can demonstrate at home parties is a necessity and commonplace for network marketing companies.

(6)       A customer service center and/or sales service is important.

(7)       A convenient delivery system and personalized assistance. You are part of what creates perceived value network marketing.

So good luck. Remember, however, “value” is the watchword. Value in the opportunity you choose and value what you offer to your consumers.

Read the more in-depth article in finding value in MLM, titled “Look for ‘Value’ in the MLM.”

Or, watch the video Why Do Distributors join MLM Companies? and Why Do Distributors stay with MLM Companies?

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