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

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.

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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.

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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.

Four Ways to Improve Your Success Using Social Media

Charity — Tue, 18 Jun 2013 18:28:57 +0000

It isn’t always easy to increase brand awareness using social media. Here are some tips on how you can improve brand awareness using social media, such as Facebook and Twitter:

1) Relate to your readers. Many business professionals using social media, like Twitter and Facebook, are uncomfortable with sharing “trivial” information on their social media networks, such as their hobbies. However, engaging readers by displaying your personality is crucial in building relationships online. You may be selling cosmetics through Mary Kay to earn extra income, but you may also enjoy gardening, and therefore, could share a picture of your latest backyard project. It is always nice to have a face behind the brand and the product that is relatable and real.

2) Engage your followers. Ask them questions, tell them our business story, allow them to have fun, and involve them in problem solving. Your followers will remain much more loyal to you if you are engaging and fun.

3) Let go of control. Create a marketing campaign in which your followers can participate, vote for or create something themselves. Motivate followers to participate in discussions, product ideas, etc. An article at YP.com titled “4 Steps to Connecting with Social Media Fans” states, “By actively seeking and incorporating feedback from your fans, you are shifting control to them and make them brand ambassadors.”

4) Pay attention to your followers. Be sure to pay attention to your social networks and respond to messages and notifications. You don’t want to appear distant or alienate your social media contacts by ignoring them. In addition, address any negative feedback as soon as possible and be sure to be positive.

There are many more ways to improve your brand using social media. What works for you? How do you attract and maintain an active audience of friends and followers online?

This post paraphrases a YP.com article located here.

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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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And Yet Another Successful MLM Startup Conference!

Charity — Thu, 23 May 2013 20:53:35 +0000

MLMLegal.com’s 64th National MLM/Direct Selling Startup Conference was a hit! Over 100 executives of startup and existing MLM, network marketing, direct selling, and party plan companies registered for the two-day event. The MLM Startup Conference executive attendees represented more than 55 new and existing MLM companies from 25 states and seven countries, including the United States, the United Kingdom, Italy, Mexico, Canada, Singapore, and Jamaica!

The Starting and Running the Successful MLM Company Conference has taken place consistently for over 25 years. Leading industry experts have educated the executives of starting and existing MLM, direct selling, network marketing, and party plan companies on how to structure their compensation plans, legalize their companies, recruit key employees and top-ranking distributors, develop business models, generate leads, fund their business, establish their website and technology platforms, better understand the direct selling industry, and so much more.

Topics that were discussed by leading direct selling professionals included:

– Creating and Implementing the Effective Compensation Plan

– An Overview of the Direct Selling Industry and Legal Issues Facing Startup and Emerging MLM Companies

– Technology Solutions for the MLM Company

– Organizing and Funding the New MLM Enterprise

– The Corporate Business Plan for Searching for Key Distributors

– Street Smart MLM Recruiting

– Merchant Account Processing Solutions for Direct Selling Companies: Processor and Bank Perspective

– How to Find Leaders – A Leading Distributor’s Perspective

– The Power of MultiMedia Marketing on the Web

– Branding, PR and E-Communication for Recruitment, Sales and Retention

– MLM Distributor and Recruitment Mentoring and MLM Consumer Advocacy

– The Initial Key Employees; Which Ones; Finding Them

– MLM Start Up Marketing Materials on a Limited Budget

The next MLM Startup Conference takes place October 24^th and 25^th, 2013 in Las Vegas. View the conference flyer page at http://www.mlmlegal.com/srs2.html to learn more.

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

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