The Future of Social Media and Direct Selling

Charity — Tue, 19 Jul 2016 16:46:48 +0000

Every company that is serious about direct selling has tried to figure out the best way for consultants to use social media, such as Facebook and Twitter. Companies are trying to develop rules protocol for their consultants on the web. Many network marketing companies decided long ago that it was not in their interest – not compatible with direct selling – to have their distributors offering products at shopping sites such as Ebay and Amazon.

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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Most Requested Video of the Month – Difference Between Sponsoring and Recruiting

Charity — Tue, 10 May 2016 17:57:04 +0000

MLMLegal.com’s most requested FAQ this month answered in a video by MLM expert Attorney, Jeff Babener: What is the difference between sponsoring and recruiting?

Although the terms sponsoring and recruiting are often used interchangeably, they are actually have two very different meanings. Recruiting is the act of searching and soliciting for new distributors for the downline sales organization of an existing distributor. Of course, the activity carries important responsibilities, such as compliance with company and statutory guidelines on earnings representations, product representations, and representations as to the business opportunity of the company.

Once a recruit has agreed to join the company, a recruiting distributor becomes a sponsor. Almost all company policies set forth very specific duties and responsibilities of a sponsor, including supervision, training, and communication with their downline sales organization. In addition, all companies have specific rules on cross-sponsoring and respectful relationships with other sponsors and distributors.

Watch the video for a detailed explanation by Jeff Babener, Editor of MLMLegal.com. View all of our new videos and more on our new and improved website: MLMLegal.com!