For this issue, it is best to look at two phases of MLM companies, start up and maturity.

Although many things can go wrong in a startup direct selling company, two factors are repeated with frequency for the failure to launch. The first factor is inability to recruit. This business is based on recruiting a successful sales force to market products. (Obviously, there are many important factors ranging from logistics to personnel to technology to quality control to distribution… and all these can go wrong as well.) It should be noted that the need for capital is in inverse proportion to the ability to recruit. A MLM company that can recruit is often positioned for fast growth and may even become a cash cow. If the company does not have that native ability, it needs sufficient capital to hire the talent to make it happen. And in the absence of the recruitment asset, a company should plan on a much longer trajectory to profitability.

And the recruitment challenge dovetails with the second major reason that companies fail at the onset: lack of adequate capital or funding. Many companies start the business without adequate capital to allow for a one or two year run to become profitable. In fact, many companies assume that they will be profitable within months or that they will not need capital for growth. The lack of buffer capital to survive the early unprofitable days of a company is a prescription for early failure.

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We have hosted more than 70 national conferences on starting and running a direct selling, network marketing, MLM or party plan company. We have started and advised many of the leading companies in the industry and we have a “big picture” that may be difficult to find elsewhere. We are big believers in education and our website, www.mlmlegal.com, is hopefully evidence of this, with hundreds of articles, cases, statutes, and scores of videos. We take a particular satisfaction in helping entrepreneurs pursue their dreams and the consequence is often the creation of thousands of jobs and opportunities. And at our conferences, we have started many companies that are today, household names. It has been a pleasure and honor to assemble professionals in these conferences to assist individuals to create “something from nothing.”

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And yet another successful network marketing Conference! In our February 2014 MLM Startup Conference we have covered such topics as recruiting, software, legal, technology, capitalization, compensation plans, lead generation, and industry news. Speakers from all across the United States have lectured to entrepreneurs from all over the world. Our attendees have enjoyed learning about the vast and extensive world of starting a network marketing company. For the curious – or perhaps for those who have considered attending in the past – we’ve compiled a few pictures of our 66th national event. Take a look at the venue and check out the room full of MLM entrepreneurs just like you! Enticing? Visit our websites to learn more about the MLM Startup Conference in Las Vegas and to learn how you can attend our next event!

Eager network marketing entrepreneurs listen to industry experts throughout the day.

Las Vegas is a great place for the MLM Startup Conference. Once the attendees are finished for the day, a quick cab ride to the Strip allows for a delicious meal with like-minded entrepreneurs and a few rounds on the slot machines.

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Can you start a network marketing company on a low budget?

No one starts at the top and it is the rare company that starts with millions of dollars. It is not unusual to see network marketing startup companies spend hundreds of thousands of dollars; this just may not be possible for many with a dream. The fact is that many of today’s successful companies started at kitchen tables, in basements and garages, or even mixing their products in bathtubs. A look at Pampered Chef, Silpada, Longaberger, and even Amway will reveal very humble beginnings. It may take longer and perhaps the chances of success without proper capitalization are much lower, but it can be done. Small startups may emulate from company profiles found at www.mlmlegal.com; they may do their initial books and commissions with Quicken and they may do their printing at local fast print shops. Just hang in there. Financing is “good,” but passion and hard work can also compensate. As Neil Diamond said, “Money talks, but it can’t dance and it can’t walk.”

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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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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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Surprisingly, many of the giant direct selling companies in the industry today had humble beginnings, often with one individual’s dream. That individual usually had little or no money and became a MLM mogul after years of dedication; stirring laundry detergent in their bathtub or selling bibles door-to-door. Some were lucky enough to grow their companies without the financial backing of investors, but others were not. (Like the rest of us!)

Many MLM entrepreneurs are lucky enough to have a dream to start a MLM company but lack the capital needed to fund the project. Most people turn to family and friends, to co-workers, then to angel investors, and finally to private placement venture capitalists to find the money they need to grow their business. Investors may listen to the presentations, but the money is never a guarantee.

Searching for MLM Startup Capital – Funding the Direct Selling Company

What is the first step in the process to secure capital to fund the MLM startup dream? It is the business plan, of course! Before any sophisticated investor or angel financier will consider funding your marketing program, they will look for an organized presentation of your ideas, projections and abilities. A good business plan will be the backbone for any private investment of capital and will also help to bridge financial gaps as your company grows.

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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 25th 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, Nikken, Melaleuca, Discovery Toys, Usana, and NuSkin.

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:

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This blog post is the companion post to the video Raise Capital in Order to Recruit Key Distributors. MLM Attorney Jeff Babener discusses the need to raise capital in order to recruit key distributors below.

Hi, I’m Jeff Babener of MLMlegal.com and I’d like to talk to you about capitalization, can you recruit? Do you have a great recruitment background, the ability to recruit? Or a lineup of strong distributors? If so, your need for capital will be substantially diminished.

In the end your ability to recruit a talented and motivated sales network will be the number one key to your success. In fact, your need for capital is in direct inverse proportion to your ability to recruit. If you can recruit then you may have a cash cow on your hands. If recruitment is slow then your business plan needs to allow for buffer capital to hold you through one, two, or three years of break even or loss scenarios. That capital should be lined up ahead of time either through personal and close relationship resources or through angel investors.

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Start the New Year off right! If you are starting or running and existing MLM, direct selling, network marketing, party plan company and need the help of industry experts, you should attend the Starting and Running the Successful MLM Company Conference. Hosted by industry expert Jeff Babener in Las Vegas February 21 & 22, 2013!

The MLM Startup Conference introduces executives of MLM companies to MLM industry experts in the areas of:

– Legal

– Software

– Capitalization

– Recruiting

– Technology

– Ecommerce

– Sales

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