This Video Explains Which Statement is True: Celebrity Endorsements Improve Marketing or Celebrity Endorsements are a Double-Edged Sword.

In the conventional advertising world, celebrity endorsement is very effective. Among the factors for effectiveness includes the fame of the celebrity, the connection with the product or service, whether or not the celebrity is a user and whether or not the statements of the celebrity appear as truly authentic or merely a “pay for endorsement.”

The use of celebrity endorsement is far less successful in the direct selling industry. In fact, the advertising model for MLM is quite different than conventional advertising. In conventional distribution, such as retail stores, internet or broadcast media, companies pay advertising dollars and endorsement fees to promote the brand. However, in direct selling, the commissions and rewards paid to distributors are effectively the advertising

Continue reading »

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.

Continue reading »

For this issue, it is best to look at two phases of MLM companies, start up and maturity.

Although many things can go wrong in a startup direct selling company, two factors are repeated with frequency for the failure to launch. The first factor is inability to recruit. This business is based on recruiting a successful sales force to market products. (Obviously, there are many important factors ranging from logistics to personnel to technology to quality control to distribution… and all these can go wrong as well.) It should be noted that the need for capital is in inverse proportion to the ability to recruit. A MLM company that can recruit is often positioned for fast growth and may even become a cash cow. If the company does not have that native ability, it needs sufficient capital to hire the talent to make it happen. And in the absence of the recruitment asset, a company should plan on a much longer trajectory to profitability.

And the recruitment challenge dovetails with the second major reason that companies fail at the onset: lack of adequate capital or funding. Many companies start the business without adequate capital to allow for a one or two year run to become profitable. In fact, many companies assume that they will be profitable within months or that they will not need capital for growth. The lack of buffer capital to survive the early unprofitable days of a company is a prescription for early failure.

Continue reading »

Your success in network marketing is dependent on many factors. Deciding on which direct selling company you want to join is just the beginning of the process. Of equal importance, you must be open to new ideas and company developments in order to achieve success in the multi-level marketing (MLM) industry.

Here is a brief list of what it takes in order to achieve success in the network marketing industry:

1) Sell a Product that You Enjoy

Continue reading »

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, you need to budget for a Sales Manager position for an individual who does have that capability.

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.

Continue reading »

Invite your friends on Twitter, Facebook, LinkedIn, and Instagram to try your product or to join your company.

Invite your friends on Twitter, Facebook, LinkedIn, and Instagram to try your product or to join your company.

Obviously, there is no substitute for your warm market. Network marketing is a relationship business. And, to a certain extent, recruits sign on with you and customers buy from you based on your relationship credibility which means that you are putting your credibility on the line. For this reason all network marketing companies ask consultants to make a prospect list which is first led by the “low lying fruit:” family, friends, neighbors, co-workers, business associates, church members, PTA members, club members, Facebook friends, etc.

Beyond the “low lying fruit,” head to your social networking contacts on the web. Invite your friends on Twitter, Facebook, LinkedIn, and Instagram to try your product or to join your company. Try to get the most use out of these social networking websites by marketing in the ways that those who join these sites like to be marketed to… For instance, when you receive a fresh batch of cosmetics or a new pair of shoes from your

Continue reading »

A Vice President of Marketing should have a demonstrated record of building, managing, and sustaining network marketing sales organizations.

The two leading causes of MLM company failure are lack of capital and the inability to recruit. In fact, your need for capital is in inverse proportion to your ability to recruit. Many of the leading direct selling companies have been founded by individuals with long track records of building downline sales organizations. If you possess that talent, along with good product or service, you are well on your way. However, if you don’t possess such capabilities, it may be necessary to hire such talent, often in the form of a Vice President of Marketing.

A Vice President of Marketing should have a demonstrated record of building, managing, and sustaining network marketing sales organizations. You don’t just want a hand holder. You want an individual who has the capability of locating founding distributors and working with them to build a broad-based sales

Continue reading »

Federal Trade Commission Logo

The combined total the companies are ordered to pay is approximately $34 million, which the FTC will use to refund consumers.

Early January 2014, Sensa and three other national marketers of fad weight-loss products settled charges raised by the FTC in an effort to stop “misleading claims for products promoting easy weight loss and slimmer bodies.” The weight-loss company, Sensa, will pay $26.5 million to settle charges that accused the company of exhorting consumers in their “sprinkle, eat, and lose weight” campaign. Charges were also announced against the companies L’Occitane and HCG Diet Direct for making unfounded promises to consumers. The combined total the companies are ordered to pay is approximately $34 million, which the FTC will use to refund consumers.

To read the FTC’s full press release, click HERE.

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 »

How do you meet other CEOs who have stood exactly where you are standing now?

Starting a network marketing company is difficult unless you are able to rub shoulders with MLM industry experts. How do you meet other CEOs who have stood exactly where you are standing now? Who do you turn to in order to learn about marketing, advertising, recruiting consultants, purchasing software, hiring executives, navigating legal hurtles, raising capital, building a compensation plan, and to get other important industry referrals and support?

The first place we recommend you begin networking is at The Original Starting and Running the Successful MLM Company Conference. It is held three times per year in February, May and October in Las Vegas. Not only are there plenty of direct selling executives there that are either starting or running a MLM company, but there are also seasoned network marketing industry experts in every MLM sector. At the MLM Startup Conference you’ll meet MLM experts in the areas of:

– Software

– Legal

– Recruiting

Continue reading »

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.

Continue reading »