This is a question for a MLM startup or existing company as opposed to a MLM distributor. For distributors who drive customers to their replicated websites, the company has in place, credit card processing capability.
But for a MLM company, few “to do’s” top the list of “must have in place” than payment solutions. It is imperative to have multiple solutions in place as a company grows. In fact, fast growth of a MLM company often triggers major concern to 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 MLM. 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 an MLM company that must pay commissions and pay its own vendors. Pleas by the MLM company often go unanswered and many companies have either faced collapse or actually collapsed as a result. The short answer is for any start up 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 for back up merchant account vendors. The time to search is not during the crisis, but before the crisis occurs.
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.
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.
