• 2 million people were involved in direct selling in the U.S. during 2015.
• Those people sold an estimated $36.12 billion dollars in retail sales, an increase of 4.8% from 2014.
• 2015 revenues were higher than any other year in history.

In 2014, 18.2 million people were involved in direct selling. In 2015, that number increased by 11% to 20.2 billion people. Of those people, 28.2% were between the ages of 35 and 44. 24.9% were between the ages of 44 and 54. 20.5% of those involved were between the ages of 25 and 34. Women represent 77.4% of participates, while men represent 22.6% in 2015.

The direct selling industry continues to grow. In 2014, U.S. retail sales were $34.47 billion, and in 2015, that number increased by 4.8% to $36.12 billion. The highest sales in product group belongs to wellness products, at 12 billion dollars in 2015, around 10 billion in 2014, and roughly 9 billion in 2013. Services were the second major group of products sold with roughly 8 billion in 2015.

Geographically, the South held the highest sales at 35.7%. The West held 26.2%. The Midwest held 20.3% and the Northeast 17.5%.

Read the detailed charts for yourself at the DSA’s website.

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.

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.

If you’re considering becoming a part of a startup network marketing company, learn how to recognize some red flags

There are ways to make sure that a direct selling company operates as a legal and ethical business. Firstly, contact the industry association websites, such as the Direct Selling Association (DSA), to see if the company is a member and if they abide by the DSA’s Code of Ethics.

Secondly, if you’re considering becoming a part of a startup network marketing company, learn how to recognize some red flags. Is the company offering a tangible product or service? Make sure that the company offers a product or service, and not something intangible, such as prayers or wishes. Does the company ask for an unreasonably-high investment to join? Startup kits average anywhere from $50-$150. If a company is asking for $500 for their startup kit, perhaps you should begin asking more questions. This alone is not a sign of a company operating illegally, but can be a sign to look for additional clues for questionable practices. Does the company focus its mission on primarily recruiting new members and not focus on the sale of product (or service) to the end consumer? A legally-operated MLM company will have a primary focus of selling products (or services) to the consumer, not just in recruiting new consultants.

Be sure to investigate any opportunity that you are considering joining and do your own due diligence. And, if you are starting your own network marketing company, it would be wise of you to hire a credible MLM attorney who specializes in direct selling law who can help you determine if your company is legal.

Sign up FREE for our newsletter, MLM News Global, and keep updated on industry news, scams, video highlights, and relevant articles.

Learn more about the network marketing business at 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.

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

The MLM Startup Conference is perfect for executives who have a lot of questions that need answered by a broad range of experts. It is also perfect for those who need general knowledge about the network marketing industry.

We’ve concluded the February 2015 Conference and scheduled the dates for our next event! The February Conference had in attendance over 100 people, from 65 MLM companies, representing 20 states and five countries (U.S., Canada, South Africa, Mexico, and Brazil).

The next Conference takes place May 14 and 15, 2015 in Las Vegas! Executives/owners of MLM, network marketing, direct selling, and party plan companies are invited to attend. Learn how to structure your compensation plan, create a legal business structure, recruit top-ranking consultants, develop a business model, generate leads, find funding, build your website and back office, find the right technology provider, and so much more.

Attendees also have the opportunity to speak one-on-one with the expert speakers. Our conference is an educational event. You decide who you’d like to speak with one-on-one. Do you have questions about the legality of your business plan? Sign up to meet with Attorney Jeff Babener, who has spent over 28 years representing companies in the direct selling industry. Do you have questions about your compensation plan? Sign up to meet with compensation plan consultant Mike Sheffield, who has also spent over 25 years in the industry. A full list of speakers and their expertise can be found here.

The conference covers a broad range of topics and also answers specific questions, such as: What is the importance of DSA membership for network marketing companies?

A: In an industry with potentially thousands of direct selling companies, only a select few hundred have become members of the U.S. DSA (Direct Selling Association). The DSA is a national trade association for the direct selling Industry. It has existed for more than 100 years in various forms and it sets standards for consumer protection and ethics by its member companies. It is widely recognized by federal and state legislatures and regulators, and has played a meaningful role in shaping legislation that impacts the direct selling industry. Many countries have affiliate “DSAs” and are joined under the umbrella of the World Federation of Direct Selling Associations. (WFDSA).

Since member companies are required to commit to a significant consumer protection Code of Ethics and to go through an extensive “vetting” process, membership brings a respect that is very valuable to distributors as they promote the programs of member companies. In addition, the DSA affords significant educational conferences and ongoing updates on industry issues to both members and to the public.

Do you have a specific question? The MLM Startup Conference is perfect for executives who have a lot of questions that need answered by a broad range of experts. It is also perfect for those who need general knowledge about the network marketing industry.

Learn more about the Starting and Running the Successful MLM Company Conference by clicking here. Also, learn how you can get two free tickets to attend through our Innovation Campaign by clicking here.

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

Find us on our social networks:

Google+

LinkedIn

Twitter

Facebook

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

– U.S. direct sales totaled $31.6 billion in 2012, a 5.9 percent year-over-year increase from $29.87 billion in 2011.

– In 2012, there were 15.9 million people involved in direct selling in the U.S., an increase from 15.6 million the prior year.

– The U.S. direct selling market grew faster than the overall U.S. economy, which grew 4.0 percent as measured by gross domestic product (GDP).

– The share of sales for two categories: Wellness (including weight management products, nutritional supplements, health foods and beverages, etc.) and Services (including utilities, and financial products) has steadily increased for the last several years.

– Seventy-six percent of smaller direct selling companies (those with annual retail sales under $3 million) saw growth, with an average retail sales increase of about 22 percent.

– The U.S. was ranked as the top direct selling market in the world with 19 percent of worldwide sales in 2012.

– Japan came in second with $22.7 billion (14 percent), followed by China at $20.0 billion (12 percent), Brazil at $14.6 billion (9 percent) and South Korea at $13.3 billion (8 percent).

– Global direct sales increased 5.4 percent from $158.3 billion in 2011 to $166.9 billion in 2012, according to Carlucci.

– The number of people involved in direct selling in the United States increased 1.9% to 15.9 million in 2012 from 15.6 million in 2011.

The Direct Selling Association offers some additional statistics for those paying close attention to the MLM industry (located at the DSA’s website):

2012 Estimated Direct Retail Sales

Number of People Involved in Direct Selling in the U.S.

Revenue by Product Group

2012 Estimated Direct Retail Sales by Method

These updated statistics show how resilient the MLM industry is despite economic troubles, and just how many people rely on this industry to create auxiliary income. The MLM industry is growing. More people are becoming consultants and distributors. Large and small direct selling companies are maintaining growth. The direct sales business model is on the rise globally, especially in the United States. And the pace of growth of the direct selling industry has outpaced that of the overall U.S. economy.

For more information and updates on the direct selling industry visit www.mlmlegal.com and www.mlmattorney.com.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

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.

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

1)      Are You Outgoing? Network marketing is a great industry for outgoing people. Those who are uncomfortable asking friends and family to purchase products, or are generally shy, may want to consider other ways to earn auxiliary income other than direct selling.

2)      Do You Love the MLM Company and its Products? Find a company with high-quality products that you can get excited about selling. Also, be sure to do a little research to ensure that the company you want to join has a good reputation. The Direct Selling Association provides a list of members who agree to abide by its Code of Ethics, which is a good place to start researching direct selling companies.

3)      How Much Does it Cost to be a Consultant? Make sure that you completely understand how much you will be paying for the startup kit and any ongoing costs/fees. Average startup kits range around $99 (according to the Direct Selling Association); however, the price range for startup kits can greatly vary. Be sure that you are aware of the company’s fine print.

4)      Do You Know all There is to Know? Ask as many questions as you can think to ask the company. Ms. Collamer suggests some examples:

1. a.      What are your annual sales?
2. b.      How much money did you make last year — your income and bonuses, less expenses?
3. c.       What percentage of your sales were made to distributors?
4. d.      How much did you spend on training and buying products last year?
5. e.      How much time did you spend on the business last year?
6. f.        How many people have you recruited?

If you are unable to get satisfactory responses to your questions then it may be that the company isn’t right for you. There are many other considerations potential consultants should keep in mind when searching for the right MLM company. The short list above isn’t exclusive.

For more information and updates on the direct selling industry visit www.mlmlegal.com and www.mlmattorney.com.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

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.

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

Why Do People Join?

You might think that the main reason to join is for the money, but believe it or not, that is number four, five and number six on the list.

1. Number one on the list in the studies is that people join because they like and believe in the product;
2. Second on the list is, “I like being my own boss”;
3. Third, “I like working from home”;
4. Fourth, “The harder I work, the more I make.”

Again, earning extra income is obviously important, but it would be a mistake to ignore the “intangible” factors that pull people into the business.

Why Do People Stay?

Company owners and distributor leaders are always asking, “Why do our representatives stay with us and what can we do to support their retention?”  On a list of the top five factors, take a look at where earnings comes in… number five, and then think about what you are doing.

The top five reasons that distributors stay:

1. A favorable response to the products;
2. They relate to the leadership, management and owners of the company;
3. They relate to the leadership of the sales force, i.e., the top distributors and their sponsors;
4. They relate to the vision of the company.  If it’s about women’s empowerment or about health, they relate to it; if it is about helping households save money to create a better life, they relate to this vision;
5. And maybe you will be surprised… or not… but the fifth ranked reason that distributors stay with companies is “earnings.” Go figure.

Why do Distributors Leave?

Finally, one of the industry’s leading direct selling companies pondered the issue of the departure of its distributors. So much so, that the company conducted a series of “exit” interviews with distributors.

Again, although money is important, the answers demonstrated the glue of the company-distributor connection as relationship-driven. Almost across the board, the answer was “communication,” or lack thereof. Consultants need to feel that somebody is responding to them, that they are communicating with them. If consultants feel ignored and this is true in every realm of business, they vote with their feet and they leave.

The following factors were disclosed as leading to departure:

1. Poor Communication;
2. Inferior Support;
3. Inadequate Leadership;
4. Lack of Training.

What Can We Learn as Companies and Distributors?

Of course, the necessity of a competitive compensation opportunity goes without saying. After all, network marketing is a business opportunity. With that in mind, however, the driving force that bonds us all is quality product and attention to relationships. Actually, this should come as no surprise.

Watch the videos in which MLM Attorney Jeff Babener discusses why distributors join and stay with direct selling companies:

Why Do Distributors join MLM Companies?
Why Do Distributors stay with MLM Companies?

For more information and updates on the direct selling industry visit www.mlmlegal.com and www.mlmattorney.com.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

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.

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

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 Commissions 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

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!

Find us on our social networks:

Google Plus: http://plus.google.com/u/0/115279960045099999909#115279960045099999909/posts

LinkedIn: http://www.linkedin.com/in/mlmlegal

Twitter: http://www.twitter.com/BabenerLawFirm

Myspace: http://www.myspace.com/mlmlegal

Facebook: http://www.facebook.com/profile.php?id=696968133

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.

• AnyArt (Art/Décor)
• Ava Anderson (Personal care)
• Compelling Creations (Jewelry)
• Jusuru (Nutritional supplements)
• Lindt Chocolate RSVP (Food/Gourmet items)

The companies “completed the minimum one-year pending period required for full membership in the association. During this time, the marketing and business plans of applicant companies are reviewed to ensure compliance with all provisions of DSA’s Code of Ethics.”

Click here to read the full press release.

For updates on the direct selling industry, visit MLMLegal.com and MLMAttorney.com.

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

“Growing from just over $2 million in revenue its first year to more than $200 million its third year, this year’s Rising Star award recipient, Viridian, has outpaced the growth of its competitors in the retail energy space. Viridian offers three products to retail energy customers: 20 percent renewable electricity, 100 percent renewable electricity and natural gas. The company attributes its success to its unique product offering, cause-based sustainability branding and commitment to network marketing.

Launched in April 2009 and headquartered in Norwalk, Conn., Viridian boasts 180,000 customers and 18,000 associates.

Led by Founder and CEO Michael Fallquist, who has extensive expertise in the retail energy space, Viridian’s executive team brings broad knowledge to each of their functional areas, along with network marketing industry leadership.”

The 2012 finalist for this year’s Rising Star award is Simply Said. The DSA states the following regarding the company:

“During the last three and a half years, Simply Said has increased both its consultant base and revenue by at least 175 percent each year.

In addition to the company’s core values, Simply Said provides a variety of tools and programs for consultants, including a 90 Day QuickStart Program, Power Building Program and free training and educational tools.”

The second finalist for the 2012 Rising Star award is YOR Health. The DSA states the following about the company:

“In 2008, the company set out to ‘change the world, one person at a time,’ in an effort to ensure every individual has the opportunity to experience great health, financial stability and self-awareness, Dennis said. ‘Everyone is attracted to this mission. It’s what’s helped us expand into the international market and that, for us, has brought a lot of affirmation about our product and our goals.’

In addition to the company’s commitment to its three pillars, YOR Health has maintained a commitment to the highest standards, realizing the critical role direct selling plays in its continued success.”

For more information about these companies and many others, visit www.mlmlegal.com and www.mlmattorney.com.

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

Highlights of the report concluded:

• Direct sales increased 4.6 percent to $29.87 billion
• Salesforce sized at 15.6 million sellers in the US
• Direct selling market outpaces growth in gross domestic product (GDP) by 0.7 percent

The Annual Growth & Outlook Survey went on to report:

Nearly half of U.S. direct selling companies experienced sales growth and another 14 percent remained flat.

Smaller direct selling companies (those with annual retail sales under $3 million) fared best with 66.7 percent showing growth, and an average retail sales increase of about 30 percent…

The U.S. was ranked as the top direct selling market in the world with 20 percent of worldwide sales in 2011. Japan came in second with $23.9 billion (16 percent) followed by China with $16.3 billion (11 percent), South Korea at $12.8 billion (eight percent) and Brazil at $12 billion (eight percent)…

Global direct sales increased 10 percent from $139.7 billion in 2010 to $153.7 billion in 2011…

To view the DSA’s press release click here. For additional information on the direct selling industry, be sure to visit www.mlmlegal.com – the best MLM resource on the web – and www.mlmattorney.com – where you can follow Attorney Jeffrey Babener on his social networks, watch videos, read his lighthearted blog, preview and order books and DVDs, and much more.

For more information on the MLM industry, visit MLMLegal.com.

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