Distributor, Consultant, Representative, Member… What’s the Difference?

Charity — Tue, 05 Nov 2013 19:29:53 +0000

Some network marketing companies get creative with their consultant titles by calling them coaches, chocolatiers, guides, and ambassadors.

Generally, distributors, consultants, representatives, independent business owners (IBOs), member, etc. all describe a salesperson who sells products for a direct selling company. Although, it is common for party plan companies to use more artistic names such as stylist, artist, beauty consultant, etc.

In typical network marketing companies, IBOs are generally titled more generically, with titles such as distributors, associates, and independent sales representatives.

Party plan companies usually use a group (or party) selling approach, whereas network marketing companies use a person-to-person model.

Some MLM companies get creative with their consultant titles by calling them coaches, chocolatiers, guides, and ambassadors.

The title of a distributor doesn’t really matter; although it is important, from a legal standpoint, to use the term “independent” in front of the title, to assure proper independent contractor status.

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Four Questions to Ask Yourself When Looking to Join a Direct Selling Company

Charity — Tue, 11 Jun 2013 16:36:02 +0000

Nancy Collamer, in her Forbes article “Can You Really Make Money in Direct Sales?” offers four suggestions to potential consultants who are considering joining a MLM company to earn extra income.

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:

a.      What are your annual sales?

b.      How much money did you make last year — your income and bonuses, less expenses?

c.       What percentage of your sales were made to distributors?

d.      How much did you spend on training and buying products last year?

e.      How much time did you spend on the business last year?

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.