This blog post is the companion post to the video: Jeffrey Babener: Company and Distributor Training on the MLM Industry, in which MLM Attorney, Jeffrey Babener, discusses distributor training and why distributors join and stay with MLM companies.
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.
Or, visit this link for more information:
Training and Managing Your People: Introduction
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
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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 16th and 17th, 2013 we are hosting the MLM Conference for the 25th year! This is now our 64th 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.)