Because network marketing is a person-to-person business, most companies feel as though the personal relationships developed by distributors are undermined if mass merchandising or retail sales replace direct selling. However, social networking websites are communication tools. The industry has faced the question as to whether social networking is a true communication tool or a recruiting tool.

The fact that social networking is anonymous and impersonal makes it questionable as to whether it’s a valuable business building tool.

Social networking certainly won’t enable consultants to gain instant success by simply creating a Facebook page and inviting “friends.” A social media account doesn’t instantly promise a large sales organization, although occasionally it can help grow a consultant’s business. Social media is a clever tool for staying in contact with customers and potential customers; therefore, MLM companies are still adjusting to the flood that is social networking.

Be sure that you read your company’s policies and procedures to understand your rights regarding the of use your social networking accounts for business.

MLMLegal.com 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 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.

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Companies that claim to be partners with their consultants should walk the talk.

There are two issues that have surfaced in recent years: 1) social networking and 2) frequent migration of distributors between companies. With social networking concerns, companies have had to decide on positive protocol for consultants who socialize through technology and the internet. In terms of the migration of consultants, companies have often found themselves constantly revisiting policy that both protect the livelihood of all its distributors while also protecting the interest of the company. These issues are constantly under review. Most companies continue to revisit these issues multiple times.

Certainly, it’s not a good idea to make frequent changes to a compensation plan because it undermines faith in the company. Companies should also try and limit the number of changes in basic agreements and also be able to justify any of the changes being made. Companies that claim to be partners with their consultants should walk the talk. They should be saying that their interests lie in protecting distributors and consumers, not just the company. They have a responsibility to protect the livelihoods of thousands, or millions, of consultants who depend on income from the company. This is important because when companies disassemble, consultants who have spent all of their time building sales organizations only to find them stolen or taken elsewhere, are deeply hurt.

In the direct selling industry, the word change can send a certain group of people into orbit. Companies that are making adjustments or enhancements to their policies and procedures or compensation plan must carefully communicate those changes to sellers, especially to the leadership of the company. Leaders need to be prepared to deliver messages and to have the messages palatable to the rest of the sales force.

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It is recommended that companies seek references and contact those references to learn about past performance record of the software provider.

Virtually all new startup direct selling companies utilized an outsourced technology solution for managing genealogies and commission payouts. In addition, such technology serves distributors 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 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 also, it should 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 companies seek references and contact those references to learn about past performance record of the software provider.

Watch our videos on software and technology.

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Our next Starting and Running the Successful MLM Company Conference takes place October 27 and 28, 2016 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register. If you’d like to see how you can get free tickets to the next MLM Startup Conference, visit our Innovation Campaign page.

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In reality, the real and perceived value of emerging online sales and marketing support will far exceed the limited sales kits of “yesterday.”

There has been a clear trend in recent years to offer sales and marketing support online and in the cloud. In reality, the developmental costs are equal or more in providing such support. The quality of support is quite significant, including: all company forms, distributor agreements and terms, policies and procedures, administrative housekeeping rules, product descriptions and updates, compensation plan descriptions and updates, training, communication tools, back office management of down line sales performance and financial reporting, replicated websites, etc.

In reality, the real and perceived value of emerging online sales and marketing support will far exceed the limited sales kits of “yesterday.”

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Our next Starting and Running the Successful MLM Company Conference takes place May 15th & 16th, 2014 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register. If you’d like to see how you can get free tickets to the next MLM Startup Conference, visit our Innovation Campaign page.

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View the video on our website: mlmattorney.com or mlmlegal.com; or view it on Youtube.

In this hour-long video, Jeff Babener addresses network marketing industry topics such as:

–          Distributor raiding

–          Pyramid scheme

–          Personal Use

–          Legal

–          Social media

–          Recruiting and communication

–          Noncompete agreements

–          Distributorships with multiple companies

–          Company and consultant responsibility

–          Startup

–          Trademark

–          Regulatory

–          Compliance

–          Funding startups

–          Training and education

–          Federal Trade Commission

–          Keys to startup success

–          Passion for company vision and products

–          Determination

–          Success strategies

–          Regulatory environment

–          Legal services

To download the entire audio file visit http://dswa-org.s3.amazonaws.com/audio/2014-03-19_InterviewWithNickiAndJeffreyBabener.mp3, or visit our blogs to read more: www.mlmlegal.com and www.mlmattorney.com.

For more information on the network marketing industry visit www.mlmlegal.com and www.mlmattorney.com.

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Our next Starting and Running the Successful MLM Company Conference takes place May 15th & 16th, 2014 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register. If you’d like to see how you can get free tickets to the next MLM Startup Conference, visit our Innovation Campaign page.

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

The MLM industry has been immeasurably changed by advances in communication, technology, transportation, and shipping. When the original companies, such as Shaklee and Amway, started marketing through multilevel marketing they consisted of large networks of distributors who inventoried and supplied products to individuals in their localized areas. This, of course, was because the country did not yet have UPS or FEDEX that allowed for next day delivery to the customer or distributor.

Most of the companies in the early days had large, key distributors pay their own downline commissions rather than have the company pay the downline commissions directly because the companies lacked the technology to track distributors. They also relied on communication by the key distributors in their field because the internet did not yet exist. Neither did cell phones. The tremendous ease in communication that we have today simply didn’t exist for the early direct selling companies.

Of course, that all changed in the 1980s with the computer revolution. There were three instances of advancements in communication, including technology, transportation and shipping, which had a profound impact on the success of the MLM industry. In addition, as we saw in the 1990s and beyond, an explosion in direct selling has not only taken place in the United States, but also around the globe.

Prior to advances in technology, it could take decades for a multilevel opportunity or a direct selling opportunity to find its way into other countries, especially developing nations. Today, with satellite television and the internet, individuals in countries throughout the world can become aware of an opportunity and a company’s products instantaneously.

Today, direct selling companies like Avon do business in more than 140 countries and we expect to see that increase dramatically. In fact, studies done by the Direct Selling Association have indicated that over the next ten years we will expect to see approximately 200,000,000 people recruited into a direct selling opportunity around the world. Roughly today, approximately 155,000 people per week are recruited into a direct selling opportunity worldwide. And, the fastest growth is occurring outside the United States, interestingly enough.

Although, direct selling companies, especially the most successful ones have their roots in the United States, the MLM model and foundation was built in America. MLM leaders have always been native to the USA.

For more information, visit our websites at www.mlmlegla.com and www.mlmattorney.com. Or, our blogs at http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/.

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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 16^th and 17^th, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 64^th 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.)

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