Will the stock market rise tomorrow? Who will win the Kentucky Derby? If one knew the answers these questions, he or she would be rich beyond imagination. How much one might earn in a compensation plan is subject to too many moving parts to make any sort of accurate prediction: the compensation plan itself, percentages paid on product, profit margins of product, personal sales, down line sales, the factors are endless. Two important resources are available that will give you a good place to start on this arithmetic: (1) leading companies post average earnings disclosure charts which indicate the average earnings for consultants at various levels and stages of their direct selling program; (2) many companies provide online earnings calculators which allow consultants to plug in their own assumptions on their personal and group sales and activity, which are then used to calculate the payout based on their expected sales performance. These aren’t fool-proof tools but they will give you realistic expectations on potential earned income.

It’s important to be honest with yourself as well. Very few consultants make it ‘big time’ in direct selling, and that is because sales is hard work, difficult work and many give up shortly after running through their warm market (friends and family). But if you’re the type that loves to sell to every person that you come across in your daily life then you may be a great candidate for a consultant who earns really high auxiliary income.

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.

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

What does failing mean to you?

What is the meaning of failure? If a distributor only makes a few hundred dollars a month, does that mean they have “failed?” What would that make the distributor who doesn’t make any money from network marketing at all? Or the one who loses money?

It’s difficult, in a sense, to lose money as a network marketing distributor in today’s world. This is due to the policy changes in direct selling companies. Most network marketing companies offer a full refund (or at least a 90% refund) to distributors who have changed their minds and want to return their starter kits.

In addition to policy changes within the company, the majority of leading MLM companies offer earnings disclosures on their websites which disclose the level of earnings and average earnings of all active distributors. Some consultants join a direct selling company to simply become discount buyers of the company’s products. These sorts of independent business owners don’t actually make money with their distributorship since they aren’t pursuing the opportunity to begin with.

The vast majority of active distributors (who make money with the company) earn only a few hundred dollars per month. There is a common saying in the industry, “95% of distributors fail.” This isn’t a fair statement unless you view the company’s products/services purchased by consultants as worthless. Unless you’re working for a pyramid scheme, this simply isn’t the case. Most MLM companies who build a direct selling business model do so because of the unique opportunity to offer their high-quality products and exclusive services through person-to-person selling.

So, how many distributors fail in network marketing? The answer depends on how you define failure. And if you view the products and services offered by your MLM company as special, then you’ve succeeded in making yourself happy and happiness alone is a measurement of success.

Would you like some tips on how to become a successful network marketing distributor? Watch the video by expert MLM Attorney, Jeff Babener:

MLMLegal.com is bursting 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.

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.

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

There are so many MLM, network marketing companies in operation. How do you know which one is a good fit for you? Have you thought about what type of product you’d like to sell? Or the compensation plan that would work best for you? Do you have a sponsor that will support you in growing your home-based business?

As you are researching your options, keep the following six questions in mind before you choose to sign up with a direct selling company.  

1. Does the direct selling company have a valid product or service that you believe in—that you are passionate about selling?
2. Does the company management have proven experience in network marketing?
3. Does the compensation plan provide retail profit to the distributor and pay bonuses for developing a downline organization?
4. Does the MLM company offer top quality promotional and support materials?
5. Does the network marketing company offer ongoing field training and support available throughout the country?
6. Do you have a sponsor that is willing to work with you and help you in your efforts?

These questions are all imperative to the success of your distributorship business. Weigh your options carefully. Network with other distributors about the companies in which they’ve had success. Do your research, compare each company apples to apples, or apples to pears. Make sure that you choose a company that you are not only passionate about, but that is also supportive of its distributors.

Watch some of our most popular videos to learn more about network marketing and MLM.

Do You Have Some Tips to Become a Successful Network Marketing Distributor?

If I’m a New Distributor Then Should I Focus My Selling In Areas Where Other Distributors Are Successful Or Should I Focus On Untouched Territory?

If a Sales Kit or Startup Fee Is Several Hundred Dollars, Then Is This Considered “Frontloading”?

Why Do MLM Companies Require Distributors to Use Replicated Websites Rather Than Distributor-Created Websites?

What Do I Do with Distributors Who Go Passive (for MLM Distributors)?

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

It’s always a good idea as a MLM distributor to keep yourself encouraged and engaged in your career by participating in company-offered training events. Company training events are meant to enhance your sales skills and increase your motivation. Enthusiastic network marketing companies will offer their distributors tools and seminars to help you improve and grow your business. Many MLM companies offer training tools in an online, back-office environment, while others will host elaborate in-person events in select cities.

You can always find ways to improve your sales and business skills online, either through your company’s training materials or by performing your own online research. Articles, business and sales books, and blogs written by successful distributors are great places to start.

MLM company seminars are particularly encouraging for MLM distributors. At company events, you’ll be able to meet other like-minded, goal-oriented distributors who will inspire you. Networking at company training events will empower you to meet other distributors within the company.

When you attend a distributor recognition or training event, shake plenty of hands and ask a lot of questions. We suggest a few starter tips for networking at company-sponsored events:

• What is your motivation story? Successful distributors will share motivational stories and tips for successful selling and recruiting. Have you ever wondered how top distributors earn incomes in the $10,000, $50,000 or even $100,000 range? At your company’s training event, successful distributors will share their stories of how they became successful as MLM consultants.
• How do you use social media? There are top distributors who have mastered networking and sales through social media. Be sure to meet people who have creative ideas on how to use social networking sites, like Facebook and Twitter, to sell bucket-loads of products/services.
• Who do you sell to? Do you feel like you’ve exhausted your friends, family, neighbors, and acquaintances? Company events are a great place to hear the secrets of how top-earning distributors have reached outside of their social circle and sold to the rest of the world.
• Why are your customers eager to make purchases from you? It’s not magic, but tricks do exist in selling and creating memorable introductions to potential customers. Make sure to ask how top distributors are engaging with their customers. What makes them good at selling? Perhaps you too can learn a few tricks to help you in your business?

Try to attend as many company events as possible. Take advantage of these events, meet people, and soak in the knowledge offered by the company and its top distributors. A MLM company training event is the absolute best place to learn how to grow your own business. If at all possible, use these events to find yourself a mentor or sponsor who will support you in your sales goals and teach you how to sell, where to sell, and how to meet your sales goals.

Being around people who are pursuing similar goals can help you stay focused and work harder to attain professional success. MLM company events will help you get excited about what you’re doing, and give you the extra boost you need to set your goals a little higher than before.

And always, with hard work and dedication, you may find yourself mentoring new distributors or starting your own direct selling business some day!

MLMLegal.com is bursting 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.

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.

Want to learn more? Watch these videos by MLM expert attorney, Jeff Babener.

What Are the Most Important Things to Remember When You Host a Distributor Recognition Event?

If I’m a New Distributor Then Should I Focus My Selling In Areas Where Other Distributors Are Successful Or Should I Focus On Untouched Territory?

What Do I Do with Distributors Who Go Passive (for MLM Distributors)?

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

Because we are globally-connected, you are bound to become involved in long distance sponsoring.

Embrace the opportunity to recruit beyond your city walls. You never know if – in a city a thousand miles away – long-distance sponsorship will be your most productive downline.

Like everything else in this business (in life); however, there are right and wrong ways to go about long distance sponsoring.

In a Business Start-Ups magazine interview, a national developer and producer of marketing and training materials for MLM companies and distributors, notes that “a conscious game plan may make all the difference in effective long distance sponsoring.” The interviewee points out that the helter-skelter approach to sponsoring (“go wide and see where it goes”) won’t necessarily yield the best results for your time and effort. Using this approach, he says, people are told to sign up anyone “as long as they breathe.”

Like any other important financial decision, the interviewee goes on, give it thought. “Just because you know a guy in Ohio, doesn’t mean you should sign him up, particularly if he is going to do nothing in your organization but draw on your time.”

This approach may support a few heavy hitters at the top of a network marketing organization, but not the average distributor. The interviewee points out that the top people in a network organization always try to put active, motivated people on their organization.

Here are 10 tips to help you when it’s time to cash-in on long distance sponsorship:

1) Know your craft: Before you start sponsoring long distance, make sure that you’ve mastered sales and recruiting in your own locality. The interviewee advises, “Know what you are doing and what you are going to teach.” Be a deal closer!

2) Choose wisely: If you want to increase your chances of success in long distance sponsoring, look for people who are “wired to win;” independent people with a track record of success. In fact, the further the distance, the more independent and reliable that person must be. The interviewee parallels the long distance sponsoring relationship to that of a long distance romance, saying, “If I am in LA, can I have a successful romance with someone in NY? Perhaps if I choose wisely.”

3) Create a system: You should start off with a comprehensive plan of attack and communicate it to your downline distributors so that you are all singing from the same song sheet. This is best accomplished at the beginning of the relationship by emailing them your proposed plan of attack.

4) Agree on responsive commitments: When you first establish relationships with long distance recruits, take some time to qualify the candidates. You need to talk to them, says the interviewee, and determine what they want, how much they are willing to commit in time, money and resources, and in what timeframe. Although you are all operating independent businesses, you are somewhat dependent on one another. Once you find the right person, develop an agreement that details your respective commitments – at the very least – in an email dedicated to the subject of business goals and plans.

5) Establish a long distance sponsoring budget: You have to spend money to make money. Long distance sponsoring is going to create expenses you don’t normally have when you sponsor distributors locally. To determine whether it will pay off for you, you’d better understand the costs involved. The first obvious expense is of calling charges and data rates on phone plans that don’t have unlimited data. Are you going to be mailing support materials to downline distributors? Plan on postage and mailing expenses for communication and shipping expenses for support materials. Are you planning on flying out to meet your downline or join an event? Plan a travel budget to support your downline group. This is obvious, but must be mentioned anyway: Make use of free technology (email, Skype, messaging services, etc.) to cut down on your long distance communication expenses.

6) Get some support from your company: If it looks like long distance sponsoring will be a real winner for you, you should take a close look at the multilevel marketing company you are working for to see if it has systems that will work to support your efforts. These may include voice messaging systems, national conference call service, digital communications and documents, email services, distributor website, as well as engaging materials to support retailing and team building.

7) Make sure the company training program supports long distance growth: Although this has been a problem in the past for some network marketing companies, many MLM companies today are developing new systems to support essential training for long distance recruits. Just take a look at their marketing materials.

8) Build your downline in geographical areas supported by your company: When you build your organization long distance, try to build in areas where the company is supporting growth through tours, rallies, events, and training. It’s much easier (and less expensive) to arrange meetings if most everyone in your downline is located around the same regional area.

9) Focus on areas where other successful distributors are located: Geographical areas where there is an infrastructure of successful distributors should be your first focus. It is particularly helpful if you can develop a reciprocal relationship where you support distributors of long distance recruits in your city in exchange for your distributors being supported by successful leader outside your city.

10) Provide the personal touch: The interviewee suggests that “training is everything and three-way calling is the name of the game in long distance sponsoring.” Be sure that you are on the phone with the first 10 contacts your new, long-distance distributor calls. This bonds potential customers to your organization from the very beginning. And also – when your distributors contact their potential customers – your new recruit will have the opportunity to listen to your presentation, gather information, learn how to overcome resistance, learn how to close the sale, and begin to build their own successful business.

In network marketing, long distance sponsoring opens a world of opportunity. If you’re willing to do it right, it can be an extremely profitable world. Remember, it takes time. It take a lot of effort and patience. And, above all, it takes determination.

Learn more about recruiting from Attorney Jeff Babener!

What is the benefit of recruiting experienced distributors? Video!

What’s the difference between sponsoring and recruiting? Video!

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

1. You must be able to meet people! This is a people business. The only way you’ll find recruits and customers is by getting out there and marketing! If you’re not a people person, this business likely isn’t for you!

2. Do you believe in the products you’re selling? You must be excited about the product you are selling. If you don’t believe in the product it will impact your sales results. You must be the type of person who gets enthusiastic about sharing your product with others. Excitement plays an important role in a purchase decision in the network marketing business!

3. Have patience. It takes time to grow your business, as it does with any other business. Give yourself at least two years to succeed. Try. Try. And try again. Create goals lists. Take small goals and turn them into huge goals. It make be slow, but you can grow!

4. Attend company training programs. Network marketing / MLM companies often offer training programs to help you succeed in recruiting and training new consultants. Take advantage of the training programs your company offers. Don’t let those valuable networking opportunities go to waste either!

5. Work with your sponsor, and work with those you sponsor. You should soak up as much experience as you can from your sponsor and pass that knowledge down to those that you sponsor. A successful sales organization has successful distributors. If you’re not willing to help others and be helped, this business is not for you.

6. Think positively. Remember, the MLM business will subject you to a lot of motivational speakers, sales and promotional materials. Some of it will be useless, while some of it won’t. When things don’t go smoothly keep yourself in a positive frame of mind. On average, you’ll have to make ten presentations to make just one sale! You need to be able to positively deal with rejection. Maintaining a positive attitude will go a long way in keeping you motivated and encouraged to succeed!

7. Get organized. Set aside a place in your home that is used just for business. Make good use of the incredible amount of free computer software and apps. Keep a daily planner. Keep track of customers, prospective customers, etc. Send out those emails and reminders. Stay organized!

8. Be loyal. Don’t become a “multilevel junkie!” Some distributors fail because they bounce from one network marketing opportunity to another – again and again. This is a prescription for failure! While many successful distributors may be involved in promoting two or three direct selling product lines at once, the most successful distributors are those who focus on promoting the products or services of a single network marketing / MLM / direct sales company over a long period of time. Find the right company for you, and then stick with it! Loyalty pays.

9. Work hard! Network marketing is not a quick, easy path to a lifetime of prosperity. Nor is it a free ride to wealth that requires absolutely no effort on your part. It doesn’t work that way. In fact, it doesn’t work at all unless you do! You have to devote time and effort to it especially in the very beginning. It can pay out huge rewards. But regardless of what everyone tells you, you must work for those payoffs! Work as hard as your competition is working – then harder!

Want to learn more?

MLMLegal.com has tons of resources to help and motivate successful distributors. Here are just a couple of videos out of the Video Library that you may find helpful!

What is the Benefit of Recruiting Experienced Distributors?

Tips to be a Successful Network Marketing Distributor

What do I do with Distributors who go “Passive?”

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

Workplace Prospects:

– People who need to earn extra income

– People who are intrigued by new opportunities

– People who are in a similar line of work, like sales

– People who are high-energy and gregarious

Neighborhood Prospects:

– College students looking for extra money

– Stay-at-home moms/dads who are looking for extra money

– Landlords/tenants

– Members of Neighborhood Watch

– Retired people looking to supplement their income

– Members of community organizations

– People you commonly run into at the grocery store, post office, library…

Service-Provider Prospects:

– Diaper service delivery

– Dry cleaners

– Meter readers/electricians

– Exterminators

– Firemen/policemen

– Gardeners

– Housekeepers

– Postal employees

– Salespeople

Religious Organization Prospects:

– Minister/rabbi/priest

– Ministers of music

– Religious educational directors

– Youth workers

– Members of the religious organization

– Religious community outreach opportunities

Professional Prospects:

– Accountants

– Attorneys

– Dentists

– Doctors

– Nurses

– Hairdressers and salons

Athletic Prospects:

– Clubs

– Fitness centers

– Teammates

– Athletic partners

– Competing teams and their families

School Prospects:

– Alumni associations

– Co-students

– Parents of other children

– Teachers/PTA

Social Contacts:

– New and old acquaintances

– Friends

– Social media networks

– Website networking

– Online forums and groups

Organizations:

– YMCA

– Lodges

– Boy/girl scouts

– Volunteer groups

Other prospects who may be interested in joining your organization:

– Babysitter/child care center

– Bakery

– Banker

– Builder/contractor

– Carpet cleaner

– Department stores

– Druggists

– Florist

– Gift shops

– Health spas

– And plenty more

Solicit the Solicitors:

– All door-to-door or party plan salespeople

– Other direct selling representatives

Relative Prospects:

– Distant relative

– In-laws

– Extended family members

Newspaper Prospects:

– People who are actively looking for part time work

Potential customers and distributors are everywhere. We hope that this extensive list will help to give you some ideas of where you can start to begin growing your network marketing business.

Just remember, you’re lucky to make one sale out of 10. Don’t get discouraged. Embrace rejection. Hard work and confidence will go a long way in your success!

Want to know expert MLM Attorney Jeff Babener’s advice on finding new leads? Watch this video:

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

1) In your first year, what is your objective as a distributor? It is important to establish long-term goals and remind yourself of them frequently. If your objective is to sponsor 25 distributors in the first year, then you must recruit an average of two people each month. Once you develop long-term goals it is easier to see, and therefore reach, the short term goals.

2) How many people are you going to need in your organization? If your answer to the first question is monetary, then you will need to determine how many people you will need to recruit in order to meet your sales goals. Be sure to study the company’s compensation plan to understand what you need to do in order to succeed.

3) How much time do you feel it will require each week? Depending on your objectives, you may decide to spend ten hours a week or 30 hours a week recruiting, advertising, and selling. Keep in mind that most companies state that home parties average around 1.5 hours. 

4) What strengths do you have that will assist you in reaching this objective? Whether you are part of a community group or church or are great at approaching people, realizing your strengths will contribute to your success.

5) What weaknesses do you have that might inhibit you from success? Knowing your weaknesses are just as important as knowing your strengths. If you are honest to yourself about your weaknesses then you will be able to improve on them. Late-risers wake up earlier, the unorganized get organized, and the shy become speakers, for instance.

6) Do you have realistic objectives? If you plan to make $100,000 the first year and don’t know any people that may be willing to attend a party, then is a $100k sales goal realistic? Be realistic and start with goals you know you are capable of achieving.

7) Ask yourself how you would feel if you failed to reach your goal? It’s okay to fail; the key is to restructure your objective list and retry until you’re successful.

8 ) Vividly imagine yourself reaching your objective? How does it feel? Remind yourself regularly of that feeling.

9) Are you going to need the assistance of significant others in your life? What steps can you take to ensure their assistance? Remember to consider each individual’s strengths when you answer this question.

10) What will you need to invest in sales aids and inventory to do business? Be sure to budget sales aids, inventory, office space, gas, travel, and other expenses into your overall budget.*

* This is an excerpt from the book The Network Marketer’s Guide to Success available to order here.

Watch the related video by expert MLM Attorney Jeff Babener: Do You Have Some Tips to Become a Successful Network Marketing Distributor?

Visit www.mlmlegal.com for the most reliable, credible legal information about the MLM industry.

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

Have you seen or heard a direct selling company say something like, “Make $10,000 a month!” or “Guaranteed income of $2,000 weekly!”? Well, these are a couple of examples of unauthorized earnings claims. So, what is legal to tell your distributors about how much income they’ll make? Read (or watch!) what expert MLM Attorney Jeff Babener has to say in this video:

MLM companies and direct sellers are among the biggest sellers of health and cosmetics products in the world. Some of the largest companies are traded on the NYSE. Because of concerns about safety of its customers, as well as FDA and FTC regulatory scrutiny of labeling and product claims, MLM companies expend tremendous financial and professional resources to remain compliant with rules promulgated by the FDA for marketing of health, cosmetic and personal care products. The FDA publishes extensive guidelines for product claims. In the dietary supplement area, Congress has instructed the FDA on such guidelines with DSHEA, the Dietary Supplement Health Education Act of 1994. And, even, with DSHEA exemptions for substantiated “structure function claims”, any claims in the nature of therapeutic treatment of actual medical conditions, are prohibited. And if such claims are made, the products may be removed from the over the counter market as unapproved “drugs”. In addition, the FTC and most states, under deceptive claims laws, prohibit unsubstantiated or misleading claims about products.   MLM companies, in turn, publish extensive compliance guidelines for distributors as to what may be represented or prohibited, by way of “unauthorized product claims” in the marketing of products. Companies take this issue quite seriously, as inappropriate product claims that trigger regulatory action create a risk for the opportunities of all distributors as well as 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.

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

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.

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