happiness v failure in network marketing mlmWhat is the meaning of failure? If a distributor only makes a few hundred dollars a month, does that mean they have “failed?” What would that make the distributor who doesn’t make any money from network marketing at all? Or the one who loses money?

It’s difficult, in a sense, to lose money as a network marketing distributor in today’s world. This is due to the policy changes in direct selling companies. Most network marketing companies offer a full refund (or at least a 90% refund) to distributors who have changed their minds and want to return their starter kits.

In addition to policy changes within the company, the majority of leading MLM companies offer earnings disclosures on their websites which disclose the level of earnings and average earnings of all active distributors. Some consultants join a direct selling company to simply become discount buyers of the company’s products. These sorts of independent business owners don’t actually make money with their distributorship since they aren’t pursuing the opportunity to begin with.

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You hear it all the time from distributors. “Opportunity.” What opportunity? What are consultants referring to specifically?

Watch the video to see what expert MLM Attorney Jeff Babener has to say.

The word “opportunity” is a generic term for the chance to advance, better one’s economic state, health, social position.

However, in the context of direct selling, “opportunity”, in addition to the chance to make money, is a

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Due some due diligence before joining a MLM company.It is not required that you consult with any particular person prior to joining a network marketing company. However, it is a good idea to perform some due diligence. Check to see if the company has a good reputation online. Do a search to see if there is generally a good buzz surrounding the company and its operations. You can also check the DSA’s website to see if the company is a member. If the company is a member of the DSA then it abides by a code of ethics that are ethical industry wide.

Other to do items: Talk to others in the business. Talk to customers. Do a Google and Google News search. Do an online blog search. Watch YouTube videos. Look to websites such as www.mlmlegal.com that profile companies. Attend a business

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Distributors should attend MLM company sales and recognition events.It’s always a good idea to keep yourself encouraged and engaged in your career by participating in company training events that enhance your sales skills. A good network marketing company will offer you tools and seminars to help you improve and grow your business. Some companies offer training tools in an online- back office environment, while others will host elaborate events in select cities.

You can always find ways to improve your sales and business skills online, either through your company’s training or by simply searching the web for articles and books on business growth and sense. However, MLM company seminars are particularly encouraging for MLM entrepreneurs. At company events you’ll be able to meet other like-minded, business-oriented individuals who will inspire you. Networking at company training events enables distributors to meet other distributors within the company. Distributors can learn from others about how

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business womanWe have all heard the following claims in the zeal of promotion and recruitment.

  1. Multi-level marketing (MLM) classes are taught at Harvard Business School.
  2. Network marketing has produced more millionaires than any other type of business.
  3. MLM will dominate the economy in the 21st century.

Unfortunately, these statements are “urban” MLM myths that are over the top and damage the credibility of distributors and companies, as they promote the truly positive opportunities of direct selling.

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MLMLegal.com’s most requested FAQ this month answered in a video by MLM expert Attorney, Jeff Babener: How Many Level Deep (in the compensation plan) is it Legal to Go?

The issue of depth of levels seemed to be a major focus prior to the internet and other non-postal (mail) means of communication. In the late 1980’s, the U.S. Postal service examined the numbers of compensation plan levels to make a determination, whether or not, in its opinion, the depth of levels created a “lottery” element under U.S. Postal lottery laws, that forbid payment based on chance.

Various cases and consents sorted out a safe harbor (at least from the U.S. Postal Office standpoint) for at least four levels (not necessarily agreed to by the direct selling industry). Separately, the Postal Service looked for evidence of “supervisory requirements.” Most companies adopted specific supervisory requirements of sponsors to demonstrate some managerial activity by distributors.

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If a Sales Kit or Startup Fee Is Several Hundred Dollars, Then Is This Considered “Frontloading?”

Frontloading generally refers to a process in which a MLM company, or a sponsoring distributor, encourages a new distributor to purchase far more than is commercially reasonable under the circumstances. For a more detailed explanation, watch this video by expert MLM Attorney, Jeff Babener.

Front loading generally refers to a process in which a MLM company, or a sponsoring distributor, encourages a new distributor to purchase far more product than is commercially

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MLMAttorney’s most requested video of the month: What Is the U.S. and International Trend in Recognizing the Validity of Personal Use by Distributors in
Pyramid Cases?

In short, is it legal to motivate distributors to buy products in order for them to qualify for the compensation plan rewards as opposed to purchasing product/services for their own personal use or for resale? This question greatly impacts direct selling companies and their owners/executives. Read the recent Burnlounge decision on our website.

In the last 10 years, distributor personal use, as a legitimate end-destination for product/service has been increasingly recognized by courts, legislatures and regulators. In 2013 and 2014, two European Union tribunals; now counting more than a dozen U.S. states have amended MLM statutes. In 2004, an FTC advisory opinion applauded efficiencies of

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Renovation of MLMLegal.com- Come Visit the New and Improved Website

MLMLegal.com is Upgraded: Easy-to-Use Navigation Bars, Stylized Images, Organized Landing Pages for Articles, Videos, & MLM Legal

Come visit the new and improved MLMLegal.com! This is the first major renovation of MLMLegal.com. MLMLegal.com’s new face is easy to navigate and full of valuable and educational content, pertinent to direct sellers. And Babener & Associates is working on updating more pages throughout 2016.

A new and easy-to-use navigation bar helps visitors easily find what they are looking for, whether it is the blog, articles, videos, MLM resources, conference pages, or one of the many other resources available on the website for network marketers.

The main homepage image was provided by expert MLM Attorney himself, Jeff Babener, while on a trip to Europe. These beautiful mountains provide the metaphor “Let Us Be Your Guide.” Let the Law Office of Babener and Associates, MLMLegal.com, guide clients through the sometimes difficult MLM industry and its legal climate. As experienced network marketing attorneys, who have been in the industry for over three decades, and who represent companies such as Melaleuca, Avon, Herbalife, NuSkin, USANA, Nerium, Excel, and Team National, our firm has the experience and credibility to help direct selling companies navigate the direct selling industry.

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Absolutely! Incentives increase sales. However, sales incentives go by many names and shapes and sizes. Obviously, the understood and expected incentives are bonuses and commissions. Since companies are trying to incentivize different types of behavior, the compensation plans of companies are often complex and multi-task to provide incentives for retail selling, preferred recurring customers, building wide, building deep, working with immediate downline and deep into a downline, time sensitive personal and group sales production, personal and group sales, longevity,

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