happiness v failure in network marketing mlmWhat is the meaning of failure? If a distributor only makes a few hundred dollars a month, does that mean they have “failed?” What would that make the distributor who doesn’t make any money from network marketing at all? Or the one who loses money?

It’s difficult, in a sense, to lose money as a network marketing distributor in today’s world. This is due to the policy changes in direct selling companies. Most network marketing companies offer a full refund (or at least a 90% refund) to distributors who have changed their minds and want to return their starter kits.

In addition to policy changes within the company, the majority of leading MLM companies offer earnings disclosures on their websites which disclose the level of earnings and average earnings of all active distributors. Some consultants join a direct selling company to simply become discount buyers of the company’s products. These sorts of independent business owners don’t actually make money with their distributorship since they aren’t pursuing the opportunity to begin with.

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Jeffrey Babener’s – Editor of MLMLegal.com and MLMAttorney.comYoutube channel has surpassed 80,000 views! As the leading MLM industry expert, Jeff Babener has launched over 80 educational and informational videos for MLM, network marketing, direct selling, party plan executives and distributors (consultants, representatives, members, etc.). The videos cover topics from pyramid schemes to recruiting, to MLM success to finding the right product, to legal opinion to compensation plans, etc.

The various network marketing topics discussed on Mr. Babener’s Youtube channel are vast and highly educational. For years he has been compiling educational videos on the direct selling industry as a service to MLM company owners and distributors. Do you have a question about the network marketing industry? Attorney Babener answers your MLM legal questions! Click on the links below to watch his videos!

Do You Ever Wonder What a Real MLM Trial Is Like? Watch one for yourself!

http://mlmlegal.com/trialvideo.html

Executive Interview Forum Questions and Answers (Q&A) NEW!

Executive Interview by the DSWA – “Legal Hotspots for Direct Selling Companies” with Jeff Babener NEW!

Attorney Jeff Babener, Discusses Various Topics in a MLM Compliance Training Session NEW!

Earnings Claims and Consumer Protection Laws

Interviews with Expert MLM Attorney, Jeffrey Babener

Short Course on Network Marketing: Q&A with Jeffrey Babener on Pyramid Schemes NEW!
The Difference between MLM Earnings Calculators and Earnings Claims
From a Legal Perspective: The Difference between a Pyramid Scheme and Legitimate MLM
Compliance Guidelines for Direct Selling Companies and Network Marketers

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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

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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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This blog post is the companion post to the video: Why Do Distributors join MLM Companies? The following is the transcript of MLM Attorney Jeff Babener’s own words:

A common question we get is “why do people join direct selling and network marketing companies?”  Many studies have shown that recruitment is essential to success, particularly studies done by the Direct Selling Association. Many would be surprised at the results. One may think that most people join MLM companies for the money. However, believe it or not, money as motivation ranks as four, five and six on polls.

The polls have showed that the number one reason why people join MLM companies is because they relate to the product. The second reason they join is because they relate to company management; the person who founded the company. The third reason distributors join is because they relate to the company vision. If the company proclaims women’s empowerment or wellness, then distributors will relate to that as well. It is also important that distributors relate to the field leadership and the people that brought them into the company.

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It is true that, from time to time, because of the structure of network marketing plans, there has been confusion in the marketplace as to legitimate businesses versus illegal pyramid, headhunting, recruitment schemes.

The basic thrust of existing regulations is that direct selling/network marketing companies must be bona fide sales organizations which market bona fide products to consumers.

Pyramid Schemes:  Bad News…

Some pyramid activities which are prohibited or restricted include:

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