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What You Should Look for in a Technology Company When Choosing Back-Office Software — Watch this New Video!

Charity — Tue, 17 Nov 2015 18:38:54 +0000

Virtually all new startup MLM companies use an outsourced technology solution for managing genealogies and commission payouts. In addition, such technology serves consultants by providing back-office access for reviewing sales performance, commissions, etc.; replicated websites, communication tools, etc. The software is hosted on the server of the technology provider where it is maintained 24/7. As companies grow to substantial size, they typically may purchase a source code license and run the software on company computers.

There are many good software providers in the direct selling industry. For a list of some of various direct selling vendors, see the MLM Resources section at www.mlmlegal.com.

Choosing the right software provider presents an important task because the technology solution is integral to a successful business. Not only should the platform serve all the internal IT needs, but it should also demonstrate that it can integrate with other outside software applications such as eCommerce and sales and use tax compliance.

The search process should be deliberate. It is best to seek the advice externally or internally of an advisor with significant IT experience, preferably in direct selling. Companies should interview multiple software firms to examine the offerings, the service record and the right personal connection. It is recommended that MLM companies seek references and contact those references to learn about past performance record of the software provider before they decide to hire a software provider.

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 February 25 & 26, 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.

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New Video: Do I Need To Worry about Merchant Account Processing? Should I Have Just One Merchant Account?

Charity — Thu, 02 Jul 2015 16:46:54 +0000

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.

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.

Are there MLM company programs that help personal and professional growth within the company?

Charity — Thu, 05 Feb 2015 22:00:31 +0000

Companies such as Nikken and Enagic offer both sales and personal development training that have made a significant difference in their distributors’ lives.

Absolutely. First, it should be noted that this industry boasts some of the best motivational and teaching trainers in the sales business. Just Google “MLM Training” and you will be led to great trainers and systems, such as Zig Ziglar and Robert Butwin. Also touch base with some of the leaders at the MLMLegal.com Starting and Running the Successful MLM Company Conference.

As to companies, the very best companies offer significant leadership and training programs. Affiliate organizations of Amway such as Britt and Yager have offered superlative training for decades. Companies such as Nikken and Enagic offer both sales and personal development training that have made a significant difference in their distributors’ lives. Training is a passion for some company CEOs such as Jeff Olson of Nerium International or Richard Brooke, Founder of Oxyfresh.

Those companies that have succeeded have been synonymous with rich training and development. From a legal standpoint, a solid training program, that involves distributors working with their downlines, also deflates accusations of “lottery” by state and federal regulatory agencies because it supports the proposition that upline leaders participate in override commissions based on supervisory activity and not merely based on chance.

For more information on any topic on network marketing that comes to mind, please visit www.mlmlegal.com and www.mlmattorney.com.

MLMLegal.com is bustling with educational content for direct sellers and startup/existing MLM companies! Be sure to visit us often!

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.

What Is Coding and How Does It Work?

Charity — Fri, 02 Jan 2015 17:00:49 +0000

In this case, an enroller is a sponsor that places a downline distributor into the downline, but not frontline.

Most modern direct selling plans offer enroller coding bonuses. Historically, a sponsor enrolled a new distributor frontline and was deemed the sponsor. Commissions flowed from this relationship.

However, as sponsors became busier and busier, companies concluded that it was beneficial to all parties to allow a sponsor to place a newly-sponsored distributor into the downline, but not necessarily frontline to the sponsor.

This approach allowed top distributors to recruit, but assign the new distributors to downlines that would be better able to work with the new recruit. In addition, this approach allowed a top distributor to reward individuals in their sales organization with some of the benefits of top distributor’s recruitment efforts.

And thus the concept of an enroller developed. In this case, an enroller is a sponsor that places a downline distributor into the downline, but not frontline. The sponsored individual is placed underneath a “sponsor” and is tied and coded to an enroller or “code sponsor,” with the enroller or “code sponsor” receiving a specific “coding bonus” which is associated with sales volume of an enrollee or “coded sponsoree.” This “bifurcation” of commissions allows for a reward to the efforts of both the “enroller” and the support efforts of the downline distributor who becomes a sponsor.

For more information on any topic on network marketing that comes to mind, please visit www.mlmlegal.com and www.mlmattorney.com.

MLMLegal.com is bustling with educational content for direct sellers and startup/existing MLM companies! Be sure to visit us often!

If you’re reading this blog post and the conference dates above have passed, check our website for the current conference dates.

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Can I Pass the Costs of Website Development, Marketing Materials, Sales Kits, etc. Down to Consultants?

Charity — Thu, 30 Jan 2014 22:45:48 +0000

A company should only pay commissions on products and services offered to the general public.

Generally, network marketing companies mandate an upfront sales kit cost, typically in the $49-$99 range. This is an at-cost fee for sales and marketing materials support. The reimbursement cost is passed on to distributors. It is not a profit center for the company and no commissions are paid on such required fees. Almost all regulatory agencies and MLM statutes recognize and validate this practice. Beyond the at-cost sales kit, companies typically offer optional sales tools to distributors. Because support products are optional, they do not need to be at-cost, but any sales support tools should not be commissionable. A company should only pay commissions on products and services offered to the general public.

Visit www.mlmlegal.com and www.mlmattorney.com for more information on the network marketing industry.

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Our next Starting and Running the Successful MLM Company Conference takes place February 27th & 28th, 2014 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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

Concerns about Merchant Account Processing: Should I Have Only One Merchant Account?

Charity — Fri, 27 Dec 2013 17:00:48 +0000

For a MLM company, it is imperative to have multiple solutions in place as a company grows.

This is a question for a MLM startup or existing company as opposed to a MLM consultant. For distributors who drive customers to their replicated websites, the company has in place credit card processing capability.

For a MLM company, it is imperative to have multiple solutions in place as a company grows. In fact, fast growth of a network marketing company often triggers major concern for 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 network marketing business. 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 a MLM company that must pay commissions and pay its own vendors. Pleas by the MLM company often go unanswered by merchant processors and many companies have either faced collapse or actually collapsed as a result.

The short answer is for any startup 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 of back-up merchant account vendors. The time to search is not during the crisis, but before the crisis occurs.

MLMLegal.com has launched the Innovation Campaign for its February 2014 MLM Startup Conference. Read how to get your two free tickets by clicking HERE!

Visit www.mlmlegal.com and www.mlmattorney.com for more information on the network marketing industry.

Find us on our social networks:

Our next Starting and Running the Successful MLM Company Conference takes place February 27th & 28th, 2014 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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

What does the phrase “pay to play” mean?

Charity — Tue, 06 Aug 2013 17:42:13 +0000

What does the phrase “pay to play” mean?

The term “pay to play” is actually a negative phrase in the direct selling and MLM industry. It is used to reference a program which encourages independent distributors to make purchases to qualify for commissions and rank advancement. Obviously, personal use is not unusual in the direct selling industry. However, programs in which distributors are driven to purchase product or service, more by the desire to qualify than by a genuine desire to use the product for personal use, are sometimes referred to as “pay to play,” and this may suggest that the product or service does not stand on its own in the marketplace, potentially causing legal issues for the company.

And don’t forget to visit the rest of mlmlegal.com and mlmattorney.com for limitless information about the direct selling, network marketing, MLM, and party plan industries.

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Our next Starting and Running the Successful MLM Company Conference takes place October 24th & 25th, 2013 in Las Vegas. Call Charity before September 1st to receive a discount! 503-226-6600 or 800-231-2162.

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Paying Commissions on Sales Tools, Sales Kits, and Training Materials……No!

Charity — Thu, 03 Jan 2013 17:59:48 +0000

We often hear the question, “Can we pay commission on sales tools, sales kits, and training materials?” The definitive answer is NO! This isn’t appropriate. Think about it, if a company paid commissions on sales tools and training then, conceivably, no one in the company would ever have to sell the company’s products or services. Everyone would make money only by selling sales tools and training materials. This has all the elements of a pyramid, head-hunting recruitment scheme.

Therefore, the proper advice given to companies is that you should only pay commissions on the sale of products or services that are sold to the public. You should not be paying commissions relating to the sale of sales aids or training materials.

The following articles may also prove helpful to MLM business owners:

MLM Law in 50 States

Is it Appropriate to Pay Commissions on Sales Tools and Training? [Video]

Selling Sales Tools

For more information, be sure to visit www.mlmlegal.com – the best MLM resource on the web – and www.mlmattorney.com.

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