The most assumed and expected incentives are monetary and come in the form of bonuses and commissions. Since direct selling companies are trying to incentivize different types of consultant behavior, the compensation plans of MLM companies are often complex and multi-task to provide incentives for retail selling, preferred recurring customers, building wide, building deep, working with immediate downlines and deep into a downline, time sensitive personal and group sales production, personal and group sales, longevity, quick start, among others. Incentive programs are usually designed to affect the distributor’s ultimate sales behavior.

Beyond cash incentives, most leading network marketing companies understand the power and inspiration behind noncash incentives that resonate financially and emotionally with distributors and keep them bonded to the company. Among the common incentives are auto lease support programs, house payment support programs, travel/trip incentives, conventions, reward pins and accessories, iPads, and tangible giveaways.

Of course, the most powerful noncash incentive is recognition for distributor accomplishments.

Do you want to learn more about incentives? Check out the video by expert MLM Attorney, Jeff Babener:

Do Incentives Increase Sales? How Worthwhile Are Consultant Incentives?

Join us for the next Starting and Running the Successful MLM Company Conference in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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.

Raising capital to fund your network marketing startup company can be tricky. In fact, there is no clear-cut answer to finding funding. However, there are options available to MLM company owners. There are several giant direct sales companies operating today that began with a very limited budget, just like you: in their basements, bathtubs, garages, and space bedrooms. Many of these companies grew organically to the huge size that they are now. You, however, may be in a different situation, where an influx of capital is absolutely necessary to keep your business afloat.

This article will help to provide you with details about how you can get free and trusted information about how to fund your MLM business. Experts generally suggest that it costs around $100-$200 thousand to start up a direct selling company. This article will provide you with some ideas as to where to find startup funding and links to information online, written by experienced MLM industry experts who’ve been asked thousands of times, “Where can I find funding to start and grow my MLM business?”

Here are three of the most common options MLM business owners consider when they are looking to fund their network marketing startup:

1)      Do you have a substantial recruiting background? If you are a seasoned recruiter and are able to attract a strong line of consultants then your need for capital will decrease considerably. Expert MLM Attorney Jeff Babener always says, “Your need for capital is in direct inverse proportion to your ability to recruit.” If you are able to attract a strong sales force then your need to raise capital outside of the company may greatly diminish. Consultants will be the key to your success. If you are not a seasoned recruiter, then you may want to consider hiring someone who does have recruiting experience.

2)      Do you have personal capital? MLM startups often find the capital that they need in their own bank accounts, or the bank accounts of family and friends (often referred to as your ‘warm market’). In some cases, an angel investor will be willing to invest in the company (a wealthy uncle, perhaps?). These sorts of investments are based primarily on the personal relationship, as well as trust and loyalty.

3)      What about public financing? Unfortunately, not many venture capital firms are interested in investing in startup network marketing companies. The startup MLM company has the tendency to be run by inexperienced business owners needing only a few hundred thousand dollars, which isn’t very attractive to large investors. In nearly all cases, investment into the company will come from a close source. Once your business is worth millions, then the investment firms will take notice. You can read about some of the most famous MLM success stories on these pages: Silpada, Herbalife, Pampered Chef, and Visalus.

Another great place to get information on raising capital for your business is at the Starting and Running the Successful MLM Company Conference where industry experts will provide you with individual, one-on-one time and attention. Each speaker will sit with you and discuss your personal situation and specific needs. The easiest was for you to attend the conference on a budget is to visit the page of our Innovation Campaign. The October 2015 Innovation Campaign offers network marketing company owners the ability to receive two free tickets to the next Starting and Running the Successful MLM Company Conference in Las Vegas (a $345.00 value!). All you have to do is fill out a brief survey at our sister website: www.mlmattorney.com, and we will contact you right away to confirm your free tickets to the event! Attending this event will give you direct access to several MLM industry experts, including capitalization experts and MLM legal expert, Jeff Babener. Visit our Innovation Campaign page for complete information about the conference, including the topics that will be covered, the speaker/expert list, videos, and much more. For additional questions call 800-231-2162.

It won’t be easy raising capital to fund your MLM startup, but we hope that we’ve given you some ideas on where to start. We also hope that you better understand that it is possible to start small and make it big in this industry. For more information on raising capital visit 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.

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

Promoting your network marketing business can be done in many ways. Here are three ways to begin promoting your MLM business:

1. Warm Market

Most network marketers first approach their warm market, that is, their friends, family and acquaintances. Friends and family can easily become your first customers, and in some cases, will also join the company in your downline.

2. Social Media

Secondly, social media is an excellent way to advertise your business. Create a Facebook page and Twitter account used only for business purposes. Invite your existing friends and family to “like” or “follow” you on your business pages. Update your feed frequently with company promotions and special product pricing. Another underutilized method to advertise your business on social media is online groups. Search Facebook for local moms and dads groups if you are selling a parenting-related product. Search for business groups and groups that allow for business promotion and join them. Make sure the group allows sharing of businesses before you begin to post. Or, start your own Facebook or Google+ group! Online groups are great ways to network and share your home business with like-minded individuals in your community.

3. Online Advertising

Thirdly, there are many online advertising websites that offer free classifieds posting. Write an ad and post it online for free. To find online classified websites, Google “free classifieds online” and choose one of the many websites that allow advertising of MLM products and services.

The key to success in any business is being able to sell to anyone and everyone. Successful consultants sell products to teachers at their child’s school, neighbors who they meet at the park, and even other parents at the PTA. Keep the success of your business at the front of your mind, no matter where you are or what you are doing and this will help you achieve success in your business!

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.

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

There is clearly a middle ground between myth number one, which claims that there are no legitimate MLM companies, and myth number two, that claims that any pyramid scheme is free to do whatever it wants. The fact is that today the MLM industry is thriving. There are 16 million* people in the United States alone who are involved in network marketing. One in ten households has someone who is involved in a MLM opportunity.

We are a law firm that represents companies throughout the world. The companies that we represent are freely doing business throughout the United States – in every state – and around the world, while also respecting the particular rules in every place around the globe. For instance, China is currently and gradually allowing the phase-in of the direct selling business model. This will be magnificent to the direct selling industry and it will be a magnificent opportunity for millions of people around the planet.

Globally, today there are roughly 50 million people involved in direct selling part time. Some people work full time in network marketing. There are nearly 16 million people in the United States selling consumer products and services in the range of $30 billion and more than 90 billion people around the world are involved with MLM with sales exceeding $150 billion.

There is no question that the MLM industry is a thriving one. It is what the experts refer to as an “Ultraniche” industry. This is why network marketers and experts in the industry, such as myself, encourage people to be realistic about the MLM industry. We may impact the lives of millions of people. We may sell billions of dollars in products and services. However, many people don’t realize that direct selling represents less than 1% of retail sales in the marketplace. People that aren’t in the direct selling industry should keep that in mind. Network marketers play a vital role in the economy, but those who are involved in the industry should be realistic about the role that we play in broader world.

– Jeff Babener

*Note that the statistics in this post date from 2010-2012

For additional relevant information to this blog post, visit the following links:

Short Course on Network Marketing: Q&A with Jeffrey Babener on Pyramid Schemes Video

From a Legal Perspective: The Difference Between a Pyramid Scheme and Legitimate MLM Video

Factors that Make a MLM Company Successful Video

Why Choose the MLM Model for Your Business? – A CEO Interview Video

How to Tell if a Company is a Pyramid or a Legitimate MLM Video

The Legal Issues of Starting and Running a MLM Company Video

Not all Direct Selling Companies are Pyramid Schemes Video

Debunking Direct Selling Industry Myths Video

Has Corporate America Discovered the MLM? Video

Should a MLM Company go International immediately? Video

Is the MLM Industry “for real” in the Business World? Video

Is This A Pyramid or a Legitimate MLM? Article

Identifying Illegal Pyramid Schemes Article

Your Time Is Now Article

Starting Your MLM Company: why They Work- Why They Fail Article

MLM Consulting: International – MLM International Market Entry: Practical Issues Article

The Right Place, The Right Time: The Emergence of Direct Selling [PDF] Article

Free MLM Startup Manual Article

SEC: We Hate Pyramids Article

MLM Law in 50 States Article

How To Build A Successful Direct Selling Company Article

Pyramid: Yes or No? Article

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

The Hallmarks of Legitimate Direct Selling/Network Marketing Companies Article

And the Leaves that are Green Turn to Brown – MLM Penny Auctions Article

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

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 is quickly approaching! On February 21^st and 22^nd, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 63nd 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 May and October conferences as well.)

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