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,

Continue reading »

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.

Continue reading »

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 »

Incentives absolutely increase sales. However, sales incentives go by many names, shapes and sizes.

Incentives absolutely increase sales. However, sales incentives go by many names, shapes and sizes.

Incentives absolutely increase sales. However, sales incentives go by many names, 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, quick start, etc. Beyond cash incentives, most leading companies understand the power and inspiration behind noncash incentives that

Continue reading »

In everyday life, roughly nine out of ten successful people had a mentor.

In everyday life, roughly nine out of ten successful people had a mentor.

Multilevel marketing companies are built on the mentorship model where top-tier salespeople recruit salespeople below them to sell products and services. The top-tiered salesperson makes a commission on the products and services that they sell, as well as on the sales of those in their downline. This model encourages recruiting of new salespeople, while also allowing new recruits to have a mentor who will answer questions and provide examples of success.

In everyday life, roughly nine out of ten successful people had a mentor. Whereas, those who don’t have strong mentors in network marketing are those whom are more likely to fail or quit. Therefore, when it comes to choosing a sponsor/mentor, the best thing to do is to look for one that is seasoned, successful and willing to provide the critical network marketing mentorship that you need to be successful. And when it comes time for you to sponsor and mentor, be sure to train your recruits in the successful ways that you’ve been taught. Their success equates to your success.

Continue reading »

It is very illegal to pay headhunting fees, i.e., paying commissions merely for distributors to recruit other distributors.

We are often asked by executives starting a network marketing company if they can have consultants earn income by referring others and if it’s legal.

Effectively, multilevel marketing is the sale of products through person-to-person, “referral” marketing. It is very illegal to pay headhunting fees, i.e., paying commissions merely for distributors to recruit other distributors. However, if a distributor builds a sales organization and receives override commissions on the sales activity of those in his or her downline, this is the essence of multilevel marketing, and is quite acceptable, assuming all other elements of legitimate direct selling (vs. pyramiding) are in place.

MLMLegal.com has launched the Innovation Campaign for its February 2014 MLM Startup Conference. Read how to get your two free tickets by clicking HERE!

Continue reading »

You should invest your time and effort in recruiting where it will pay off.

MLM attrition is high. This is a fact of life. All of those distributors, who you have signed up, have competing demands on their time. So, if they go passive, it is not your fault. If that happens, you should give it a good shot to urge them to reengage. However, after a few attempts, you should realize that you may be wasting your time. Hopefully, the value and quality and service proposition of your company’s products will allow you to convince the passive distributor to remain as a “preferred customer.”

Continue reading »

Most direct selling, network marketing, MLM companies will be lucky if they can retain 15 to 20 percent of their recruited consultants on a long-term basis. Therefore, MLM company owners and their consultants should consider this information of great importance.

How do you retain your distributors? Special treatment can make all the difference in whether a consultant or customer stays or leaves the company. It’s important to encourage upline distributors to give their downline consultants and customers attentive treatment and service in order to ensure that they will stick around. The handling of people through quality service is priceless where advertising and marketing costs may not produce the same effect.

Continue reading »

Contributor of Forbes, Jody (Coughlin) Greene reestablishes that success in MLM is significantly based on sponsorship and mentoring in her article titled “Success and Mentorship.”

In multilevel marketing, individual consultants (or representatives, or distributors – which all generally mean the same thing) act as sponsors by recruiting other consultants beneath them, and then the process is repeated. The process of multilevel marketing produces a system in which top-tiered consultants benefit from the sale of products by downline distributors. In fact, multiple distributors can benefit from the sale of one product. Ms. Greene believes that the consultants who experience the most success are those who received mentoring by their recruiting sponsor.

Continue reading »

There aren’t special network marketing laws regarding divorces. The same laws that regulate dissolutions of marriage in each state regulate the fate of a distributorship in a divorce situation. In court proceedings, valuations are placed on the distributorship just as other assets are valued. Network marketing companies, however, commonly ask distributors to inform the company who will be the successor distributor after a divorce.

Continue reading »