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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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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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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This blog post is the companion post to the video: Why Do Distributors Stay with MLM Companies? Find out how to retain the most important asset to your MLM company, distributors.

We are often asked the questions “why do people stay with MLM companies” and “why do they leave?” Retention is essential for a successful MLM company. We are in an industry that has a lot of attrition due to the nature of the work environment. Many distributors work part time and are competing for peoples’ time. Distributors (or representatives, consultants, etc.) come and go all the time. Losing a distributor is worse than being unable able to recruit new consultants, making retention essential.

There are interesting answers given by distributors as to why they stay with the company. You may think they stay for the earnings, but income often comes in fifth or sixth place in industry polls. As a general matter, consultants usually stay with a MLM company because they are connected and bonded with the products the company sells, as well as with the company’s mission and with top management/leadership. Distributors also like to be recognized for the work that they do. Recognition is very important in the direct selling industry. These are factors that really propel distributors to stay with a MLM company.

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Distributors have various reasons for joining a network marketing opportunity. According to one website, 90% of direct sellers join because they like and believe in the product. 73% join because they like being their own boss. 64% join because they like working at home. 54% join because the harder they work, the more they make. And, 49% join because they enjoy selling.

And yet, according to another website, 51% join to earn supplemental income. 35% join to earn full-time income. 8% join so that they can purchase products at a discounted price. 4% join because they love to be recognized for their accomplishments. And, 25% join because they like to meet other people.

So, what are your reasons for joining an MLM, network marketing, direct selling, party plan company?

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Why Millions of People Are Getting Involved

Although network marketing isn’t for everybody, millions of people from all walks of life consider it to be the right opportunity at the right time. The fact is, becoming an independent distributor can fill important needs and fit within the time and money limitations many people face.

Practically No Investment Necessary

Most companies require only the purchase of a modestly-priced startup kit ($25 to $100) to join.

The Chance to Own a Business

Because network marketing can easily be done part-time, and worked around a full-time job, it gives people who work for someone else the chance to own their own businesses and jump into the world of entrepreneurship without the major economic and time investments that traditional business models require. In this world, they are rewarded for risk-taking, and have control over their working environments.

Earn Additional Income and Potential Tax Benefits

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