Jody (Coughlin) Greene argues in her Forbes article titled “Is MLM a Bad Word?” that MLM has had a bad reputation because its structure is similar to pyramid schemes and its negative image isn’t deserved.

Not only is network marketing a proven business, being one of the longest-running business models in the United States, but its marketing strategy has also proven successful. Distributors create income through their personal sales and the sales of those who they’ve recruited in their downline. Because of its pyramid-like structure, MLM has in some cases gotten a bad name.

Ms. Greene explains just some of the criticisms faced by network marketing companies:

Criticism has focused on their similarity to illegal pyramid schemes (hence the “scheme” reference), price-fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company’s products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members’ enthusiasm and devotion.

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According to Nancy Collamer, in her Forbes article “Can You Really Make Money in Direct Sales?” direct sellers earn on average $2,400 annually, which isn’t surprising considering that 89 percent of people who work as consultants do so part-time.

The article emphasizes that the statistics are also decreased by consultants who join companies only to get their favorite product at a discount without intending to sell or recruit. Collamer argues that in order to make full-time money in the MLM business one must a least work full-time, although no formula exists that equates working hours into salary in the direct selling industry.

In addition, the article quotes a MLM industry expert who believes that the best consultants are women in their 50s since they are educated, been active volunteers and are experienced in running their households.

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When you ask prospective distributors to join your direct selling company, you are asking for them to commit their time, energy and personality to the business. What is it that makes the prospective consultant say “yes!” and join the MLM company?

Creating an emotional bond is essential to recruiting. The emotional connection to the company and the product is much more important than facts, figures and statistics. Certainly it is important for your company product to be more superior to its competitor’s products and that the company have an excellent management team and compensation plan; however, the emotional component of your business will be the basis of the final decision.

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Direct Selling News reported in a May 2013 article that technology is changing

the way direct sellers communicate and relate with their downline distributors and customers. The article summarizes two companies that are embracing technologies that will help assist distributors in their success:

Custom clothier J.Hilburn offers its style consultants a Style Kit iPad App featuring a “full catalog, individual client profiles, the ability to create style boards, and access to up-to-date stock information.” ViSalus enables iPhone, Android or Blackberry users to “promote the Body by Vi™ Challenge, access and manage your business on-the-go, shop, and enroll others” through its Vi-Net Mobile App. These are just a couple of many direct selling companies integrating mobile strategies.

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If you missed the May 2013 MLM Starting and Running the Successful MLM Company Conference, or simply wanted to attend but couldn’t, we have another chance for you. MLM Attorney, Jeff Babener, Co-Host of the MLM Conference and Editor of MLMLegal.com will be hosting our next Conference October 24th & 25th, 2013 in Las Vegas! Get more information by reviewing the details below:

WHAT?

The next Starting and Running the Successful MLM Company Conference is quickly approaching! On October 24th and 25th, 2013 we are hosting the MLM Conference for the 25th year! This is now our 65th 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?

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According to an article at MSN’s website titled “Queen Elizabeth’s eating habits revealed,” former royal chef Darren McGrady states that Queen Elizabeth enjoys a bowl of cereal every morning topped with fruits or nuts from her garden, which are stored in one of the most popular direct selling products, Tupperware. Perhaps even the Queen of England owning and using Tupperware products shouldn’t be a surprise considering Tupperware was ranked the seventh largest direct selling company in 2010, with $2.3 billion in net sales.

As one of the largest MLM companies in the world, Tupperware operates in over 100 countries and has over two million salespeople. Tupperware’s top five consumers are Germany, America, Mexico, France, and Australia. The company itself was founded in 1945 by Earl Tupper and grew to be quite competitive with its “burping seal” technology.

The top ten largest global direct selling companies include 1) Avon Products, Inc., 2) Amway,

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The Next MLM Startup Conference Takes Place May 16 and 17, 2013 in Las Vegas

How to Start a MLM Company

May 16-17, 2013 - $195 (Second Attendee just $150) - Las Vegas

PORTLAND, OR–(Marketwired – May 07, 2013) – For more than 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. View the conference flyer page at http://www.mlmlegal.com/srs2.html to learn more.

This is the original MLM Startup Conference — responsible for launching many industry-leading companies — perfected over the course of a quarter of a century to ensure the highest quality of information, the most knowledgeable experts and the most practical advice from practiced experts.

Over the course of two days, attendees will hear from more than a dozen industry experts who have served as “behind the scenes” advisors to many of the direct selling industry’s leading companies. A full list of speakers and their biographies/credentials can be found at http://www.mlmlegal.com/bio.html.

In addition, the conference will discuss the recent analysis article on the role of “personal use” in pyramid and direct selling analysis: “Herbalife: What Short Sellers Missed on the Way to the Press Conference… The Personal Use Issue in Pyramid Analysis; Who is an Ultimate User?”

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Contact Us: REGISTER TODAY! 503-226-6600 or 800-231-2162

MLMLegal.com Announces Its 64th National MLM/Direct Selling Startup Conference! An ACTION CONFERENCE for executives of startup and emerging MLM companies!

For more than 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.

The next MLM Startup Conference takes place May 16 and 17, 2013 in Las Vegas. View the conference flyer page at http://www.mlmlegal.com/srs2.html to learn more.

This is the original MLM Startup Conference – responsible for launching many industry-leading companies – perfected over the course of a quarter of a century to ensure the highest quality of information, the most knowledgeable experts, and the most practical advice from qualified experts.

Over the course of two days, attendees will hear from more than a dozen industry experts that have served as “behind the scenes” advisors to many of the direct selling industry’s leading companies. A full list of speakers and their biographies/credentials can be found at http://www.mlmlegal.com/bio.html.

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