company leadership – MLM, Network Marketing, Direct Selling News, Videos, Articles, Legal Updates, and More.

Interview with Expert Attorney – Factors that Make a MLM Company Successful

Charity — Fri, 01 Mar 2013 18:13:12 +0000

This blog post is the companion post to the video: Factors that Make a MLM Company Successful. Expert MLM Attorney, Jeff Babener, explains what factors are necessary in a MLM company’s success.

Interviewer: Talk to me about what makes a MLM company successful. I know you’ve worked with some of the biggest names in the industry. You’ve been in this business for a very long time. So you’ve got a real unique perspective on the industry because as you worked with so many successful MLM companies. I bet from your own point of view, you see some of the things that companies are doing well and some of which they can improve on. With all of that collected experience, tell us what makes a company successful?

Jeff Babener: You know, we often hear about the newest sizzling compensation plan. I’m going to say that a good compensation plan is one that pays fairly and proper remuneration is a given. Your company can’t go anywhere unless you’ve created your compensation plan correctly.

Interviewer: So, you got to have a good compensation plan…

Jeff Babener: It should be good and it should be fair. But I have to tell you, a company that touts its compensation plan is often using that as an excuse to cover up for other elements that are missing.

Interviewer: Got it.

Jeff Babener: What drives the success of direct selling companies, that we have seen, has been high quality products and services. Products and services that stand on their own in the marketplace, something that distributors and consumers bond well with.

Representatives and consumers bond with products and services. They bond objectively. They bond emotionally. So, bonding to that quality product is really important.

Secondly, the people who run the company, for better or for worse, are extremely important. When the distributors of Mary Kay sat in the audience and listened to Mary Kay speak, each of them believed that she was speaking directly to them. There is no substitute for having a connection with the leadership and founders of the company.

Thirdly, the company’s vision is important. What are they doing? Do distributors want to do something good in the world? That is why companies that sell health products, or that sell transformational products (like financial services) resonate so deeply with people. We live in difficult time. Companies that participate in philanthropic or charitable programs connect passionately with the distributors.

When Mary Kay started her company, people may have thought that she was in the cosmetics business. But, what she was actually in the business of empowering women. That is why Avon hosts marches for cancer research.

There must be a vision, a mission or a calling. There must be something greater than a single person for everyone to rally around. People always relate to projects larger than themselves.

Prior to my coming here today, just before we were going to do the interview, I saw a picture of Babe Ruth on the wall in your office.

Interviewer: Yep.

Jeff Babener: …Looking up the bleachers, hitting a home run… Now, there is a man who transcended all sport. Every person in America relates to Babe Ruth. There are times and there are people who transcend what they’re doing. And they give meaning. They make you feel good. They give you a purpose. They give you a goal. And they drive you to be a better person. Babe Ruth hit home runs, but he did much more than hit home runs. I’m assuming that’s one reason that you put his picture in your office.

Interviewer: Yeah, he’s a guy that only knew how to hit home runs and grand slams.

Jeff Babener: And, these things happen only a few times in our lifetime. Along comes a John Kennedy who will inspire people. You can’t explain why, but they will do it. And then a MLM company will come around that can do the same thing, which is important, spread inspiration. And that’s the last issue I wanted to bring up.

The amount of time and expense that you spend on training your sales force and your team leaders will be well paid because distributors who join companies not only need to relate and bond with the people who run the company, they need to bond with the people who brought them to the dance, the upline distributors. And those are the leaders of the company, the sales leaders, and they basically are the glue that holds everything together. Every ounce of strength and training, every penny that you spend on really developing those people into leaders, is a good investment.

It comes down to having a good, fair compensation plan that can motivate the right kinds of behaviors. The right kind of product that distributors and customers can bond with and that is a need in their lives.

And, you have got to have the right kind of owners, the right kind of people with a vision to do something greater than themselves. And, training. You must spend the time making an investment in people. You must train them and help them understand the company and how to achieve their own success. You must create the opportunity for everyone to dance together.

Interviewer: Thank you.

For more information on how to create a successful MLM company, visit the following links:

MLM Consulting: How to Build a Successful Direct Selling Company

MLM Consulting: Starting Your MLM Company

FREE MLM Start-up Manual: Starting and Running the Successful MLM Company

The MLM Startup Conference: Starting and Running the Successful MLM Company Conference

Factors that Make a MLM Company Successful Video

Understanding the Basics in Order to Succeed In Direct Selling – Companion Video to this Blog Post

MLM Legal on iTunes

MLM Startup – The Basics

Or, read some of our other blog posts on success in network marketing, MLM, direct selling, and party plan:

Are you Starting a MLM Company?

An Interview with Industry Expert and Advocate, Jeffrey Babener

It’s Passion that makes a MLM Company Successful

The Top Two Reasons Why MLM Companies Fail

Learn What is Needed to Recruit Top-Selling Distributors for Your MLM Company

Passion, Patience, Persistence – Attitude in Direct Selling

Four Factors that Make a MLM Company Successful

Explaining Your MLM Company to the Public: Answering the Hard Questions

MLM/Direct Selling/Network Marketing: A Validated Channel of Distribution

How Much Does it Cost to Start a MLM Company?

The Next MLM Startup Conference in Las Vegas – May 16th & 17th, 2013

Choosing the Right Product for Your Direct Selling Company

Where to Find MLM Startup Tips and Answers from an Industry Expert

The Nine Basics You Need to Understand in Order to Succeed in MLM – Interview with Jeff Babener

Gaining Experience in MLM – Possess it or Buy it?

Make sure to visit our blogs for the latest information on the direct selling industry: MLMLegal Blog Home and MLM Attorney Blog Home

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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.)

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

MLM Company and Distributor Training on the Direct Selling Industry

Charity — Thu, 28 Feb 2013 19:58:58 +0000

This blog post is the companion post to the video: Jeffrey Babener: Company and Distributor Training on the MLM Industry, in which MLM Attorney, Jeffrey Babener, discusses distributor training and why distributors join and stay with MLM companies.

Is the industry that we’re in, the direct selling, MLM, network marketing industry, for real? And secondly, the question always asked of the distributor, is your company for real? And after all these years I don’t think many distributors hear these questions as often.

Allow me (Attorney Jeff Babener) to answer the first question from my perspective, as an industry professional, from someone who works behind the scenes.

First of all, Keep in mind we have nearly 16 million people in the United States selling consumer products and services in the range of $30 billion and more than 90 million people around the world doing this with sales exceeding $150 billion. This activity penetrates the fabric of our society. Earlier statistics, presented by the Direct Selling Association, have indicated that, perhaps, one in ten households have somebody who is doing this part-time. We used to get bad press but now we seem to be seeing an improvement.

In the US today, we recruit about 55,000 people per week and recruit about 150,000 people worldwide per week. Over the next ten years, statistics from the Direct Selling Association predict that we’ll recruit about 200 million people around the world. Times have changed. And, the MLM environment has changed. Distributors who may have faced objections to network marketing in the past, even if they were doing well, are probably not facing them anymore. MLM representatives should be very well received around the world. All of the statistics say that the success of distributors is based on relationships and in the company’s beliefs. There is a study done by the Direct Selling Association that asks why people join MLM companies. The first reason is that distributors like and believe in the product. The second reason is that they like being their own boss. The third reason is that they like working at home. The fourth reason is that they like the idea of the harder they work, the more they make. The fifth reason is that they enjoy selling.

And, selling is a tough one. However, there were a couple other studies that were done asking why people stay and why they leave direct selling companies. It was very interesting. Most people stay with direct selling companies because they enjoy the product.

And so, many of the people that distributors signed on have continued to be retail customers of MLM companies for over 20 years. They probably haven’t worked the opportunity forever, which is consistent with the DSA’s study that described the number one reason why people stay with MLM companies is because they have a favorable response to the product.

The second reason people stay with the company is because they have a favorable response to the leadership of the company. Thirdly, distributors have a favorable response to the leadership of the sales force (upline distributors). The fourth reason is that distributors have a favorable response to the vision of the company. In many cases the distributors will respond favorably to the wonderful philanthropic company vision, which is usually much larger than just the business.

These values, and many others, make successful MLM, direct selling, network marketing, party plan companies.

For more information visit our websites: www.mlmlegal.com and www.mlmattorney.com.

Or, visit this link for more information:

Earnings Claims and Consumer Protection Laws Video

Is it Proper to pay C ommissions on Sales Tools and Training? Video

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

The Hallmarks of Legitimate Direct Selling/Network Marketing Companies

Where can I find a legitimate direct selling company to join?

Can I and should I join multiple companies and establish multiple downlines?

Think you have a unique, never-before-seen product? Think again.

Make sure the company training program supports long distance growth

Training and Managing Your People: Introduction

Ten Common Distributor Mistakes (and how to overcome them)

Restrictions on Distributors: MLM Cross-Sponsoring Rules and Selling Sales Tools

Distributor Behavior: Networking and Time Management

Long Distance Sponsoring: Focus on areas where other successful distributors are located

Network Marketing and the Law: Refunds for MLM Distributors

MLM Company Profiles

Starting and Running the Successful MLM Company Conference – May 16th & 17th, 2013

An Introduction to Direct Selling and The Basics of MLM

Recruiting Advice from an Industry Expert – The MLM Fairytale “Network Marketing and Frogs”

Why do companies restrict the type of advertising carried on by their distributors?

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

How to Tell if a Direct Selling Company is a Pyramid or a Legitimate MLM

MLM Pyramid Schemes – Everything You Need to Know All in One Place

Debunking the MLM, Direct Selling, Network Marketing Industry Myths

Distributor Training – Two Common Questions

If I’m an independent contractor, why are there rules regarding my conduct?

Who Owns the MLM Distributorship in the Case of a Divorce?

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

The Hallmarks of Legitimate Direct Selling/Network Marketing Companies

Is There a Level Playing Field for all Compensation Plans?

Is MLM For Real?

What are Your Reasons for Joining a Direct Selling Opportunity?

U.S. Direct Seller Statistics in the Last Five Years

The Direct Selling Association Presents 2011 MLM Industry Facts

The Attraction of Network Marketing

The Educated Networker: Trademarks and Network Marketing

If My MLM Business isn’t Working What Should I do?

Am I Taking a Risk by Joining an MLM Company?

Are the Claims that Corporate America has Discovered MLM “Real” or “Off the Wall?”

Should I Trust The “MLM Gossip Websites?”

Nutritional Supplements, Health Claims and MLM

Is Your Product Real? The Shoe Test…

Personal Use by Distributors… Your Questions Answered

In What States does MLM do the Best?

All About MLM Earnings and Compensation

General Tips in Networking and Time Management