Most Requested Video of the Month – Difference Between Sponsoring and Recruiting’s most requested FAQ this month answered in a video by MLM expert Attorney, Jeff Babener: What is the difference between sponsoring and recruiting?

Although the terms sponsoring and recruiting are often used interchangeably, they are actually have two very different meanings. Recruiting is the act of searching and soliciting for new distributors for the downline sales organization of an existing distributor. Of course, the activity carries important responsibilities, such as compliance with company and statutory guidelines on earnings representations, product representations, and representations as to the business opportunity of the company.

Once a recruit has agreed to join the company, a recruiting distributor becomes a sponsor. Almost all company policies set forth very specific duties and responsibilities of a sponsor, including supervision, training, and communication with their downline sales organization. In addition, all companies have specific rules on cross-sponsoring and respectful relationships with other sponsors and distributors.

Watch the video for a detailed explanation by Jeff Babener, Editor of View all of our new videos and more on our new and improved website:! 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 May 20, 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.

This entry was posted in Compensation Plan, Compliance Guidelines, Conference, Consultants, Consulting, Direct Selling, Distributor Education, Distributors, For MLM Executives, Home-Based Business, Just for Fun, Legal, Marketing, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM Startup, Network Marketing, Party Plan, Policies and Procedures, Recruiting, Sales/Selling, Startup, Success, Training, Videos and tagged , , , , , , , , , , , , , , , , . Bookmark the permalink.