Raising capital to fund your network marketing startup company can be tricky. In fact, there is no clear-cut answer to finding funding. However, there are options available to MLM company owners. There are several giant direct sales companies operating today that began with a very limited budget, just like you: in their basements, bathtubs, garages, and space bedrooms. Many of these companies grew organically to the huge size that they are now. You, however, may be in a different situation, where an influx of capital is absolutely necessary to keep your business afloat.

This article will help to provide you with details about how you can get free and trusted information about how to fund your MLM business. Experts generally suggest that it costs around $100-$200 thousand to start up a direct selling company. This article will provide you with some ideas as to where to find startup funding and links to information online, written by experienced MLM industry experts who’ve been asked thousands of times, “Where can I find funding to start and grow my MLM business?”

Here are three of the most common options MLM business owners consider when they are looking to fund their network marketing startup:

1)      Do you have a substantial recruiting background? If you are a seasoned recruiter and are able to attract a strong line of consultants then your need for capital will decrease considerably. Expert MLM Attorney Jeff Babener always says, “Your need for capital is in direct inverse proportion to your ability to recruit.” If you are able to attract a strong sales force then your need to raise capital outside of the company may greatly diminish. Consultants will be the key to your success. If you are not a seasoned recruiter, then you may want to consider hiring someone who does have recruiting experience.

2)      Do you have personal capital? MLM startups often find the capital that they need in their own bank accounts, or the bank accounts of family and friends (often referred to as your ‘warm market’). In some cases, an angel investor will be willing to invest in the company (a wealthy uncle, perhaps?). These sorts of investments are based primarily on the personal relationship, as well as trust and loyalty.

3)      What about public financing? Unfortunately, not many venture capital firms are interested in investing in startup network marketing companies. The startup MLM company has the tendency to be run by inexperienced business owners needing only a few hundred thousand dollars, which isn’t very attractive to large investors. In nearly all cases, investment into the company will come from a close source. Once your business is worth millions, then the investment firms will take notice. You can read about some of the most famous MLM success stories on these pages: Silpada, Herbalife, Pampered Chef, and Visalus.

Another great place to get information on raising capital for your business is at the Starting and Running the Successful MLM Company Conference where industry experts will provide you with individual, one-on-one time and attention. Each speaker will sit with you and discuss your personal situation and specific needs. The easiest was for you to attend the conference on a budget is to visit the page of our Innovation Campaign. The October 2015 Innovation Campaign offers network marketing company owners the ability to receive two free tickets to the next Starting and Running the Successful MLM Company Conference in Las Vegas (a $345.00 value!). All you have to do is fill out a brief survey at our sister website: www.mlmattorney.com, and we will contact you right away to confirm your free tickets to the event! Attending this event will give you direct access to several MLM industry experts, including capitalization experts and MLM legal expert, Jeff Babener. Visit our Innovation Campaign page for complete information about the conference, including the topics that will be covered, the speaker/expert list, videos, and much more. For additional questions call 800-231-2162.

It won’t be easy raising capital to fund your MLM startup, but we hope that we’ve given you some ideas on where to start. We also hope that you better understand that it is possible to start small and make it big in this industry. For more information on raising capital visit 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.

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

Multi-level marketing, otherwise known as network marketing, MLM, party plan, and/or direct selling, is a business in which a sales force sells products and services through word-of-mouth marketing. The sales force (also known as consultants, representatives, distributors, etc.) is compensated not only by the sale of products and services to customers, but also for the sales made other sales people whom they recruit. As a consultant recruits other consultants, they generally earn a percentage of their recruits’ sales. These recruits are called the “downline” distributors.

Conversely, if you are recruited into a MLM company then you will have a sponsor. Your sponsor – along with other consultants in levels above you – is considered your “upline.” Your upline will receive a percentage of your sales. This will entice them to recruit more consultants.

Visit MLMLegal.com and MLMAttorney.com for much more information about the direct selling industry.

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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.

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

Hi, I’m Jeff Babener of MLMLegal.com and I would like to talk to you today about MLM business experience. Do you possess it already or should you buy it?

Multilevel marketing is not just any business. It is not retailing, franchising, e-commerce, the internet, or .com selling.

Multilevel marketing, under all its names: direct selling, network marketing, direct sales, party plan, and multilevel marketing, is a unique beast. To launch this business you must have a substantial background in direct selling and be well grounded.

There are written and unwritten principles. If you know your product and you have a passion to bring it to the public, but you lack industry experience, then you must buy that experience. You may hire key employees in such positions as CEO, COO, sales, marketing, customer service, and distributor relations, etc. The payroll will add up fast, and unless your capitalization can sustain the ongoing cost, you should seriously consider outsourcing the solutions for this type of expertise.

The first suggestion that I would make is for you to consult with you MLM attorney, who is familiar with the best resources in the business. Such established industry experts in areas of MLM startup implementation, compensation plan design and software selection are often invaluable assets to your business team. Above all, don’t launch your company without in-house or outsourced MLM business experience.

Wishing you the best in your MLM business, I’m Jeff Babener.

For additional information on gaining experience in the MLM industry visit www.mlmlegal.com and www.mlmattorney.com, or visit the following links:

MLM Corporate Startup Essentials: Part II of III

Experience Counts

How Much Does it Cost to Start a MLM Company?

Choosing the Right Product for Your Direct Selling Company

MLM Executives Must Raise Capital in Order to Recruit Key Distributors

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

Are you Starting a MLM Company?

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

Why You Should Trademark Your MLM Company Name

Creating Clear Agreements Between MLM Company Owners

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

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

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 is quickly approaching! 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 a look out for the October and February conferences as well! Call our office to register today!)

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

WHAT?

The next Starting and Running the Successful MLM Company Conference is quickly approaching! On May 16th & 17th, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 64th 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.

WHO?

Direct Selling Attorney, Jeff Babener, Founder of Babener & Associates and Sponsor of the MLM Startup Conference, has over 25 years of experience in the industry, representing companies such as Avon, Herbalife, Nikken, Melaleuca, Discovery Toys, USANA, and Nu Skin.

MLM Industry Consultant, Mike Sheffield, with The Sheffield Group and Co-Sponsor of the MLM Startup Conference, has helped launch over 800 companies over the last 27 years.

Over the course of two days, you will hear from many leaders in the direct selling industry, who include:

Jeffrey A. Babener, of Portland, Oregon, Conference Chair and Sponsor, www.mlmlegal.com, is the principal attorney in the law firm of Babener & Associates. He represents leading U.S. and foreign companies in the direct selling industry. He has been advisor to such companies as Avon, Discovery Toys, Nikken, Shaklee NuSkin, Excel, Usana, Fuller Brush, Cell Tech, Kaire, Sunrider, Melaleuca, etc. He is a frequent lecturer and has been interviewed on the industry, and published, in such publications as Money, Inc., Atlantic Monthly, Success, Entrepreneur, Kiplinger’s Personal Finance, Home Office Computing, Business Start-Ups, Wealth Builders and Money Maker’s Monthly. He is editor of the industry publication, Direct Sales Legaline. Mr. Babener is also the author of the books, Tax Guide for MLM/Direct Selling Distributors, Network Marketer’s Guide to Success, The MLM Corporate Handbook, Network Marketing: Window of Opportunity and Network Marketing: What You Should Know. He is editor of one of most frequented network marketing educational web sites, www.mlmlegal.com.

Michael L. Sheffield is President of The Sheffield Group, a full service MLM consulting firm in Scottsdale, Arizona, and co-founder and Chairman of the Multi-Level Marketing International Association (MLMIA). His company has assisted in over 300 MLM company start ups including such companies as Fuller Brush, Service Master and Home Shopping Network. He has been a frequent lecturer on launch strategies for MLM companies at various MLM conferences as well as the Schools of Business at Arizona State University, University of Cincinnati and Anderson University. He has designed over 100 MLM compensation plans, and has been the guest instructor on the subject at the University of Illinois at Chicago. Co-author of numerous academic papers and research studies, he served as a coordinator of the major academic/corporate conference at the University of Texas, El Paso. Millions of readers have relied on Mike’s popular “Product Of The Month” column in Money Makers Monthly to help evaluate “What’s Hot” in MLM products and services, and he has also serves as “product editor” for Wealth Building magazine.

Dr. Clifton Jolley, of Dallas, Texas, is President of Advent Communications and has provided communications products and consulting to leaders in network marketing for more than 15years, in addition to teaching communications at the university level both in the United States and abroad. His innovation and skill have been heralded in the Atlantic Monthly, Success Magazine, Wave 3, and numerous other national publications and broadcasts. He has been a frequent contributor to leading magazines and has acted as media spokesman for such major companies as A.L. Williams, Home Shopping Network, Nokia, Sunrider, Quorum, Nikken, Oxyfresh, Network 2000, and dozens of others. His skill in crisis intervention and media relations has been credited with _rescuing_ dozens of Advent clients from media scrutiny. Dr. Jolley’s company is known for state-of-the art graphics production, including distributor kits and manuals and Web site production. Advent Communications also provides its clients award-winning video production, executive communications and distributor programs.

Robert Butwin, of Santa Rosa, California, is the consummate MLM professional. He has built and led large distributor organizations. He is highly respected in the MLM corporate community and juggles his distributor schedule with duties as a mentor on recruiting to corporate management of many leading companies. He is the author of the highly acclaimed Street Smart Networking, available in bookstores everywhere.

Garvin DeShazer, Executive Consultant, The Sheffield Group, has nearly 30 years experience as an entrepreneur. With 26 startups or acquisitions of his own, in industries ranging from alternative fuels to network marketing to fine arts, he has extensive experience in corporate and marketing management and driving sales. Included in his past corporate experience is the founding of a major direct selling company in the home security arena. He has served as a Senior Consultant for more than 60 network marketing companies where he focuses on strategic planning, key distributor development programs, creative writing and project management.

Alfred White is a Senior Management Consultant for Hamilton LaRonde & Associates of San Diego, California and Vancouver, Canada. Mr. White has extensive international experience. For the last twenty-two years, Mr. White has been a management and marketing consultant to the direct selling, multilevel marketing and network marketing industries. Mr. White’s experience includes more than 200 assignments with a wide range of companies both domestic and international. He is highly regarded for his expertise in operations management and compensation plans. Mr. White designed the PDX computerized system for structuring new MLM companies. The PDX system is a very effective system that can bring a company from concept to fully operational at considerable savings in time and money. Above all Mr. White has a love for the MLM/Network marketing industry and devotes time and energy developing systems for the entrepreneur to be the owner of their own network marketing company. He is a featured writer of articles in national journals on the subject of network marketing.

Sandy Elsberg, of Orange County, California, is one of the most successful and admired distributors in the MLM world. She has led huge sales networks over the years. She is sought out frequently by MLM companies and distributor groups to speak and train. She is the author of the best seller, Bread Winner, Bread Baker.

Wayne Hinkle is V.P. of Sales of Trinity Software of Dallas, Texas. Trinity is a leading technology solutions provider to network marketing companies. Prior to becoming V.P. of Sales, Hinkle served 20 years at Nortel Networks where he was responsible for customer service and satisfaction for the entire eight state regions of the SBC operator services division. He is a specialist in customer support and service as well as technical support, training and project management.

Greg White of Vancouver based Hamilton LaRonde has a twenty five year career in meeting management and coordination of MLM sales materials design and production. He has managed every single Starting and Running Conference since the 1980’s, more than 50 conferences, and supervised all of the art work for the conference.

Eugene Argent, of Santa Barbara, California, is President of Alexandria Services. On behalf of startup and established MLM companies, Alexandria specializes in searching out multiple resource options for merchant account processing with established banking and processing financial organizations.

Scott Fitzpatrick, Marketing Director of Pivotal Payments of Montreal, Canada. Pivotal is one of the leading merchant account processors for the Direct Selling/MLM industry, providing solutions for e-commerce online processing as well as traditional credit card, debit card and other processing for sales by direct selling companies and their sales force.

Greg Powers is Managing Partner with Hanna Shea Consulting, Scottsdale, Arizona, which provides Executive Search, Recruitment Process Outsourcing and International Staffing services for Fortune 500 clients. Additionally, Hanna Shea has a specialized search service that is dedicated to MLM and Direct Sales Organizations to identify and recruit top talent as members of the leadership management team.

Rod Cook is most commonly known as the MLM WatchDog of the industry. He studies the good of the MLM industry and at the same time tries to stomp out pyramid schemes. Part time he is a consultant who helps people start up new companies so they are a credit to the industry. At MLMWatchdog.com, editor in chief Rod Cook and his field reporters handle hundreds of questions or complaints a week about MLM companies. Rod jokingly says, “I live in the middle of the MLM Information Highway and get run over by trucks twice a day!” Rod is considered the ultimate MLM “marketing” inside information source! His articles have been published in over 30 different publications.

Robert Proctor is President of MultiSoft Corporation, a veteran provider of MLM Software to the Network Marketing Industry for over 25 years. With offices in the USA, Europe and Asia. MultiSoft Corporation provides turn-key and custom MLM software packages from start-ups to mature companies with a focus on “Internationalized” MLM software. Robert has worked with 100’s of companies around the globe and has been involved in nearly every aspect the network marketing industry for 16 years as a developer, designer, distributor, owner, operator and provider to the industry. Robert has built down-line organizations exceeding 50,000 customers and 6,000 distributors. Robert has a diverse background that includes public speaking, radio & television, advertising and marketing, business law, accounting & finance, banking, sales, customer service, compensation plan evaluation, network operations, programming, design, and management.

Jeffery Boyle, of Nampa Idaho, is the CEO of Boyle Network, a focused industry resource specializing in empowerment of distributors and companies through multimedia production on the web and social networking. In addition, he is editor-in-chief of www.networkingstar.com, an educational and informative website profiling the people and issues of the network marketing industry.
WHY?

The information you will gain and relationships that you will build by attending the conference are invaluable. You’ll receive information on how to:

– Structure your compensation plan

– Legalize your company

– Recruit key employees and top-ranking distributors

– Develop a business model

– Generate leads

– Fund your business organization

– Establish your website and technology platforms

– Better understand the direct selling industry

– And, so much more

Read why people have consistently attended the MLM Startup Conference for over twenty years:

We want to get the fundamentals and the basics down… get a good review of what needs to be done to be successful…

We have a traditional business at the moment and we are looking to take it into the realm where it’s more personalized, it’s more about building people and an experience. It has been absolutely worth our trip. We are looking to take our business to the next level and build relationships.

[I’ve] been in network marking for 30 years [but] we are learning a lot of things about how to launch, how to reach the people we need to have, and again, the things that are required to make a successful company, not only for us but especially for our customers and for our affiliates.

I want to teach other people how to run their own clothing business and have fun doing it. I have a distribution plan. I have a unique product that I need to take nationwide in a couple of months.

I’m here because I want to know more about multi-level and I can replicate that experience in my country (Columbia)… It’s worth it to be here.

The reason I came to the show was to learn more about how to launch my direct sales company. I’m very comfortable and accustomed to selling through more traditional networks; however, I believe that the product that I’m launching is more suitable for direct sales; to get direct-to-consumer faster and in greater sales.

I have a huge to-do list… Once I know what I’m supposed to be working on I won’t spin my wheels.

(The testimonials above can also be seen in the video: MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com.)

WHERE?

The MLM Startup Conference will be held in Las Vegas. Call 1-800-231-2162 for the exact location. Why don’t we advertise the exact location? We like to keep vendors, distributors and other solicitors away from the event in order to maintain the conference’s standards. Therefore, only registered guests are given the address. However, if for some reason you cannot attend after registering, we will refund 100 percent of your attendance cost.

WHEN?

May 16th & 17th, 2013 – Las Vegas, Nevada.

HOW MUCH?

The price to attend is $195 for the first person and each additional attendee is $150. We accept all major credit cards. Reservations must be made via phone, prior to the event. 503-226-6600 or 800-231-2162.

WHAT ELSE?

Each attendee will receive a FREE copy of the Starting and Running the Successful MLM Company Manual. Some of the chapters include:

Legal Issues
MLM Law in 50 States
FDA Health Claims: The Final Rules
The Snail that got Mugged: FTC v. Direct Selling
Start-up  Issues
Incorporating the Network Marketer
Five Dynamics that Drive An MLM Company
Product
Creating Your Next Million Dollar Product
Treasure Hunting for New Products
Compensation Plans
Comp. Plan Conversion: Direct Sales to MLM
Your Compensation Plan’s Competitive Edge
Communications and Media
Focus on the Mission…Not the Commission!
When the Media Calls… Who Answers the Phone?

Attendees receive over 30 hours of consulting hours with an array of industry experts – all in one location.

HOW CAN I FIND OUT MORE?

Visit the website:

www.mlmlegal.com

or, read visit our blogs:

http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/

Only 7 Days Left Until the MLM Startup Conference in Las Vegas!

NEW PRESS RELEASE – 63rd Annual MLM Startup Conference!

An Invitation From MLM Attorney Jeff Babener to Attend the MLM Startup Conference in Las Vegas

Are you Starting a MLM Company?

February 2013 MLM Startup Conference in Las Vegas

Watch the videos:

MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com

The MLM Startup Conference in Las Vegas

MLM Startup Conference – A Must for Executives of Startup and Existing MLM Companies

BEST BET? Talk to us. Call:

503-226-6600 or 800-231-2162

CAN’T MAKE IT?

As mentioned, our conference has taken place consistently over the last twenty years. We hold each conference three times per year. Join us in February, May or October. Check MLMLegal.com for the most current conference dates.

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

You need to be honest with yourself. Do you, or those who are key owners in the business, have a MLM recruitment background? Without this talent the best products will continue to languish on the shelf. Companies like Amway, Tupperware, Mary Kay, and Home Interiors were not only founded on a very limited budget, but by individuals with strong backgrounds in direct selling.

Company leaders should develop a recruitment strategy. It may seem odd, but your top distributors may not arrive for many years. Those would-be leaders who come to you seeking special benefits or corporate positions do not pay high salaries to those who claim to be able to recruit but cannot demonstrate a strong track record of success. As a general matter, if individuals are strong recruiters then they would be distributors because the remuneration is much higher.

Track your warmest market then move on to lead generation systems and advertising. You shouldn’t expect initial advertising to bring you all of your distributors. Instead, consider initial advertising a foundational industry announcement that you (and your company) have arrived on the scene.

History demonstrates that direct selling will always be a person to person relationship business. The internet, direct mail, or mechanized recruiting campaigns do carry a lot of hype. However, there is no substitute for “pressing the flesh.”

– Jeff Babener

Watch the companion video to this blog post.

For more information on recruiting, visit the following links:

MLM Recruiting and Leads Resources

MLM Recruiting and Communication

Recruiting Advice from an Industry Expert Video

Are you Starting a MLM Company?

An Interview with Industry Expert and Advocate, Jeffrey Babener

The Top Two Reasons Why MLM Companies Fail

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

February 2013 MLM Startup Conference in Las Vegas

Is MLM For Real?

What Factors Make MLM Executives and MLM Companies Successful – Video

Passion, Patience, Persistence – Attitude in Direct Selling

Should I Launch my MLM Business Locally or Nationally?

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

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

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 is quickly approaching! On February 21^st and 22^nd, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 63nd 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. Ask Charity how to get a discount! (Can’t make this event? Keep an eye out for our May and October conferences as well.)

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