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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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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One common question that we hear is in regards to event sales; such as fairs, kiosks, vending machines, and other alternative means of sales, am I authorized to sell my company’s products at such places and events?

Most companies would prohibit sales in flea markets, swap meets, vending machines, or garage sales. It is generally viewed that such locations dilute the value of the company’s products and opportunities. Companies typically prohibit sales in retail stores, but the purpose for this rule is to avoid the appearance of the company being in competition with the direct selling channel of its distributors, a model that is really based on person-to-person marketing.

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A post on Facebook is really no different than a mass email, by www.mlmattorney.com.

A post on Facebook is really no different than a mass email.

Clearly, while consultants are with a company they are asked not to get involved in raiding activity. Network marketing companies have mixed opinions on post-termination behavior. Most companies ask that consultants not raid the downline for a certain period of time after they stop consulting for the company. Companies that ask this of their consultants argue that the consultant’s Facebook profile is basically an email list; a post on Facebook is really no different than a mass email. Not many companies specifically outline post-termination rules in their policies and procedures; however, most companys’ position on the issue is effectively the same as if you started sending emails to everyone in your downline once you left the company.

Several approaches have been noted, including the drafting of agreements where companies and distributors have bifurcating social media pages. Basically, consultants would have a personal and professional Facebook page. This causes a bit of a dilemma because many consultants will make close friends with those in their downline. Perhaps not everyone fits into a personal or professional-only account. Companies look at it as more black and white. Companies see it as a consultant holding a lengthy email list, whether it be on Facebook or Twitter, etc., and once they’ve sent our an announcement saying “come join me at my new company…” then it is just as if they are sending a mass email to their downline. Both perspectives are understandable, and so far, there is no industry-wide solution to the problem.

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Unsubstantiated claims typically involve earnings hypotheticals, earnings potentials, earnings testimonials, outright statements of earnings, lifestyle enhancement claims, etc.

Unsubstantiated claims typically involve earnings hypotheticals, earnings potentials, earnings testimonials, outright statements of earnings, lifestyle enhancement claims, etc.

Both the federal government and states, through combinations of legislation, rules and case law prohibit unsubstantiated earnings claims in the offering of a MLM opportunity. Such claims typically involve earnings hypotheticals, earnings potentials, earnings testimonials, outright statements of earnings, lifestyle enhancement claims, etc. If a direct selling company or its distributors offer such earnings claims, they are obliged to provide an average earnings disclosure that outlines average earnings of distributors at various levels of the opportunity program. In following through on regulatory mandates, all leading companies issue guidelines on presentation on earnings claims, and typically prohibit any “unauthorized earnings claims” that go beyond stated policy guidelines.

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Fill out the short survey below to receive two free tickets (worth $345.00!) to the next MLM Startup Conference in Las Vegas February 27th & 28th, 2014!

Fill out the short survey below to receive two free tickets (worth $345.00!) to the next MLM Startup Conference in Las Vegas February 27th & 28th, 2014!

As a distributor, can I use display booths to sell my company’s products? Is there a limit on the time I can spend selling at a booth?

First, check the company policies, as they will be the guiding rule. Most companies allow distributors to operate a booth at trade shows that are for the general public, such as boat shows, home shows, health shows, etc. However, most companies ask that distributors seek approval of the booth opportunity and they also insist on compliance with proper use of the company trademark and advertising. In addition,

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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.

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Recruit Top Distributors

Your ability to recruit directly equates to your success.

When you are starting your MLM, direct selling, network marketing, or party plan business, you’ll find that recruiting experienced distributors is often essential to your company’s success. And if you don’t have the background yourself as a successful recruiter then you need to budget for a “sales manager” position for an individual who does have that capability to recruit.

Your ability to recruit directly equates to your success. If you have a background in recruiting and a background in direct selling, then your need for capital will be substantially lower. Recruiting top distributors will enable your company to have the capital to stay afloat and even grow. If recruiting is slow then you will need to raise one to three years of buffer capital in order to support your company in the event of stagnation or loss. And remember, the remuneration that is offered to top distributors will be effective in their decision to stay and help grow the business.

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MLMLegal.com offers over 700 MLM, direct selling, network marketing, and party plan company profiles, highlighting each company’s founding story, impact on the industry, products, discussion of opportunity (compensation plan), and a discussion of distributor base and sales volume in the U.S. and abroad.*

New MLM company profiles are being added and updated all the time, so check back often. We hope that these MLM company profiles help visitors learn more about a variety of direct selling companies. Visit our MLM Company Profile Page to learn more.

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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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