Although the terms sponsoring and recruiting are often used interchangeably, they actually have two different meanings.

Although the terms sponsoring and recruiting are often used interchangeably, they actually have two different meanings.

Although the terms sponsoring and recruiting are often used interchangeably, they actually have two different meanings. Recruiting is the act of searching and soliciting new distributors for the downline sales organization of an existing distributor. Of course, the activity carries important consultant responsibilities, such as compliance with company and statutory guidelines on earnings representations, product representations, and accurate representations of the company’s business opportunity.

Once a recruit has agreed to join the company, a recruiting distributor becomes a Sponsor. Almost all company policies set forth very specific duties and responsibilities of a Sponsor, including supervision, training and communicating with their downline sales organization. In addition, all companies have specific rules on cross-sponsoring and keeping respectful relationships with other sponsors and distributors.

Continue reading »

As a general rule, distributors, consultants, representatives, independent business owners, etc. all describe a salesperson who sells products for a direct selling company.

Is there a correct term for 1099 independent direct selling distributor? Not really. As a general rule, distributors, consultants, representatives, independent business owners, etc. all describe a salesperson who sells products for a direct selling company. However, it is common for party plan companies to use more artistic names such as stylist, artist, beauty consultant, etc.

In typical network marketing companies, independent business owners are generally titled with more generic descriptions, such as distributors, associates, and independent sales representatives.

Continue reading »

What’s the difference between MLM, network marketing, party plan, and direct sales?

Actually, they all fall under the general umbrella of “direct sales.” Historically, direct selling only involved direct person-to-person sales, often door-to-door. In the 1950’s companies such as Amway, Shaklee and Mary Kay introduced to the direct seller the ability to sponsor other sellers, to build a sales organization, and to receive an override commission on the sales in their sales organization at multiple levels. This is the origin of MLM, multilevel marketing and network marketing, which are all the same thing; i.e., direct sales with a multiple-level

Continue reading »