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 encourage 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.

At some point, however, you need to move on and focus on finding new recruits. One company executive succinctly captured the strategic decision in a metaphor when he said, “You can throw alarm clocks at the cemetery, but you won’t wake up the dead; it is easier to make babies.” Although a bit crass, this point is well taken. You should invest your time and effort where it will pay off.

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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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Fill out a short survey to receive two free tickets (worth $345.00!) to the next MLM Startup Conference in Las Vegas!**

Understanding how to write a complete compensation plan is important for your network marketing company. Step-by-step guides found online are often incomplete and don’t provide you with the detailed information that you need. Understanding the various compensation plans can be confusing and information online can be misleading or completely incorrect from a legal standpoint. Developing a compensation plan, or rewards plan or pay plan, which is right for your situation isn’t as easy as doing a Google search. The structure of your compensation plan is unique to your company and your business plan. Creating a compensation plan that fits your MLM company is complex and generally requires reviewing by a compensation plan consultant and a credible network marketing attorney.

This article will provide you some details of how you can get free and trusted information on how to develop your legal compensation plan. It will provide you with the information you need to easily research active compensation plans being used in the industry right now to compare with your rough draft. It will also provide you with links to online information written by experienced MLM industry experts.

1)      The first step to writing your compensation plan is to understand the various plans that are common in the network marketing industry. The webpage, How to Analyze Compensation Plans (MLM Compensation Plans – What you should know), provides visitors with an easy to understand explanation of typical compensation plans. Learn about

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February 27th & 28th, 2014 - The MLM Startup Conference in Las Vegas

The next Starting and Running the Successful MLM Company Conference is already scheduled for next year! On February 27th & 28th, 2014 we are hosting the MLM Conference for the 26th year! This is now our 66th 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:

Jeffrey A. Babener, of Portland, Oregon, Conference Chair and Sponsor, www.mlmlegal.com, is the principal attorney in the law firm of Babener & Associates. He represents leading U.S. and foreign companies in the direct selling industry. He has been advisor to such companies as Avon, Discovery Toys, Nikken, Shaklee NuSkin, Excel, Usana, Fuller Brush, Cell Tech, Kaire, Sunrider, Melaleuca, etc. He is a frequent lecturer and has been interviewed on the industry, and published, in such publications as Money, Inc., Atlantic Monthly, Success, Entrepreneur, Kiplinger’s Personal Finance, Home Office Computing, Business Start-Ups, Wealth Builders and Money Maker’s Monthly. He is editor of the industry publication, Direct Sales Legaline. Mr. Babener is also the author of the books, Tax Guide for MLM/Direct Selling Distributors, Network Marketer’s Guide to Success, The MLM Corporate Handbook, Network Marketing: Window of Opportunity and Network Marketing: What You Should Know. He is editor of one of most frequented network marketing educational web sites, www.mlmlegal.com.

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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

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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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Jody (Coughlin) Greene argues in her Forbes article titled “Is MLM a Bad Word?” that MLM has had a bad reputation because its structure is similar to pyramid schemes and its negative image isn’t deserved.

Not only is network marketing a proven business, being one of the longest-running business models in the United States, but its marketing strategy has also proven successful. Distributors create income through their personal sales and the sales of those who they’ve recruited in their downline. Because of its pyramid-like structure, MLM has in some cases gotten a bad name.

Ms. Greene explains just some of the criticisms faced by network marketing companies:

Criticism has focused on their similarity to illegal pyramid schemes (hence the “scheme” reference), price-fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company’s products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members’ enthusiasm and devotion.

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This blog post was created to bring you all the web pages, videos, and informational material about pyramid schemes vs. legitimate (legal) MLM companies from MLMLegal.com and MLMAttorney.com together in one place, for your convenience. This post is accurate to its publication date. Keep checking www.mlmlegal.com and www.mlmattorney.com for updates on the direct selling industry and pyramid schemes!

Here is a list of all the links within MLMLegal.com and MLMAttorney.com that focus primarily on pyramid schemes.

Videos

Short Course on Network Marketing: Q&A with Jeffrey Babener on Pyramid Schemes

From a Legal Perspective: The Difference Between a Pyramid Scheme and Legitimate MLM

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MLMLegal.com has worked since 2009 to research, write and collect information on MLM, network marketing, direct selling, and party plan companies in order to compose the “MLM Company Profiles” webpage. To date, there are over 700 active MLM company profiles at MLMLegal.com. The editors of MLMLegal (the website hosted by long-time MLM Attorney Jeffrey Babener of the Law Office Babener & Associates) are constantly updating the profiles, removing companies that have gone out of business and adding newly-launched network marketing companies. Hundreds of MLM companies have come and gone throughout the years, but many have proven they have the longevity to succeed. Visit http://www.mlmlegal.com/profiles/index.html frequently to see for yourself.

We’ve taken the time to organize the hundreds of MLM companies alphabetically and by products sold. Each company profile contains a logo, a brief description of the company’s history, its impact on the industry, an overview of its products, a discussion of the opportunity, and a discussion of the sales and distributor base (if that information is available). These profiles offer a quick way to compare compensation plans between companies or to find a company that offers a unique product that is perfect for your taste. Our research has also shown that no product is immune to direct sales (unless the company has no tangible product at all, in which then you should consider reading about illegal pyramid schemes). MLM companies are selling everything from medical marijuana to maternity products.

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