Every business should be concerned about market saturation. The direct selling industry is no different.

The direct selling industry thrives on marketplace competition in order to continue to deliver high-quality goods and services, especially as the population grows and consumer demands change.

In one significant legal case, regulators argued that a direct selling company was bound for failure by the prospect of saturation in the marketplace, both for product, as well as for distributor recruitment. In that landmark case, the court took notice of the concept of “saturation,” but it rejected the concept as an obstacle to success of the particular direct selling company involved. The court took note of a large market for particular products and explained that the direct selling company was merely taking its place in the competitive marketplace.

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Front loading generally refers to a process in which a MLM company, or a sponsoring distributor, encourages a new distributor to purchase far more product than is commercially reasonable under the circumstances. Often the “push” is explained to the recruit as necessary to qualify in the plan. This is an unacceptable practice is often one indicia of a pyramid scheme.

On the other hand, virtually all regulatory agencies recognize that a purchase of an “at cost” sales kit is an acceptable practice in the mainstream of leading direct selling companies. Such mandated kits are typically in the $50-$100 range. They generally entail “hard copy” or online supply of sales and marketing materials as well as ongoing sales and marketing materials updates for a year. Typically the mandated sales kit does not include product and generally a company offers an optional deluxe kit that may include product. Such an optional kit, which is often referred to as a “fast start” kit, may contain several hundred dollars of product. This is not unusual. Although the same regulatory standards on

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Are you interested in expanding your network marketing business? Are you curious as to know what the best MLM companies are doing to achieve success? Do you want to make sure that you have the right product and marketing practices?

The fastest growing network marketing companies all share the same characteristics. The following are four key factors that determine growth of network marketing companies

The fastest growing network marketing companies all share the same characteristics. The following are four key factors that determine growth of network marketing companies

The fastest growing network marketing companies all share the same characteristics. The following are four key factors that determine growth of network marketing companies:

1. Find the Right Niche Market

Finding a niche market is the first prerequisite for significant MLM corporate growth. A product that is similar to dozens of others will be very difficult to position properly in the network marketing industry.

The fastest growing network marketing companies are innovators. Successful MLM companies find an empty niche market or they create the need for a new market. This way, MLM companies are capable of guaranteeing their market positioning. Having to compete against well-established and well known direct selling companies is going to make your startup endeavor more difficult.

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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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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.

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Although it would be nice to think that venture capital firms were salivating to fund direct selling companies, this is not the case. First, the amount needed, which often is merely a few hundred thousand dollars is “too small potatoes” for most venture capital funds. Even the best MLM companies are often started by inexperienced business persons. Venture capital firms are not comfortable in this context.

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The term “pay to play” is actually a negative term in the direct selling and MLM field. It is used to reference a program which encourages independent distributors to make purchases to qualify for commissions and rank advancement. Obviously, personal use is not unusual in the direct selling industry. However, programs in which distributors are driven to purchase product or service, more by the desire to qualify than by a genuine desire to use the product for personal use, are sometimes referred to as dominated by “pay to play” and this may suggest that the product or service does not stand on its own in the marketplace.

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So far, 2015 has been a fantastic year!! For instance, three year old granddaughter of Jeff Babener, Ani, reluctantly learned how to paint.

So far, 2015 has been a fantastic year!! For instance, three year old granddaughter of Jeff Babener, Ani, reluctantly learned how to paint.

So far, 2015 has been a fantastic year!! For instance, three year old granddaughter of Jeff Babener, Ani, reluctantly learned how to paint.

And, our newest addition, Luka (son of Charity Dunning — Editor of MLMAttorney.com), has unenthusiastically learned to swim.

And, our newest addition, Luka (son of Charity Dunning -- Editor of MLMAttorney.com), has unenthusiastically learned to swim.  What else is new?

And, our newest addition, Luka (son of Charity Dunning — Editor of MLMAttorney.com), has unenthusiastically learned to swim.
What else is new?

What else is new? Well, hold your breath! MLMLegal.com is launching 63 new videos on MLM education to our already-expansive video library and Youtube Channel! Mr. Babener will address a wide range of commonly-asked questions as expert-host in our upcoming video additions. You can look forward to a great expansion of our video library very soon!

The following are just some of the topics that will discussed in our new videos:

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Our conference is not a vendor event. It’s an educational event. Our conference offers you the chance to speak with all of the industry experts at one time and walk away with a wealth of information.

Our conference is not a vendor event. It’s an educational event. Our conference offers you the chance to speak with all of the industry experts at one time and walk away with a wealth of information.

Did you miss the February MLM Startup Conference? In attendance were over 100 people, representing 65 companies from 20 states and five countries (Canada, South Africa, Mexico, Brazil, and the United States). The companies in attendance represented the entire spectrum of company ages, from startups to established companies. All attended to learn more about the network marketing industry, to grow their companies, to meet experts in the industry, and to educate themselves on the MLM industry.

If you didn’t get a chance to attend February’s conference, don’t fret! Our next conference takes place May 14 and 15, 2015 in Las Vegas. At the conference, you will learn how to structure your compensation plan, build a legal MLM company, recruit key consultants, write a business model, generate leads, find funding, build your website, develop your back-office software, and so much more.

In addition, attendees get the opportunity to chat one-on-one with industry experts representing their specific field (i.e. legal, software, technology, recruiting, etc.). You choose who you’d like to spend valuable one-on-one time with and they will answer the questions you have that are specific to you and your company.

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We wish you success and longevity in the New Year!

We wish you success and longevity in the New Year!

Happy New Year from MLMLegal and the Babener & Associates family!

We hope you had a fantastic 2014! Here at our headquarters in Portland, Oregon, we have a lot to celebrate! From our long-standing clients to our new arrivals, thank you for being a part of our team. We wish you success and longevity in the New Year. We pride ourselves in having loyal relationships with our clients and plan on continuing to help forward your success in 2015!

In other news: We’ve added a member to the Babener family! Baby Luka was born in September and his mom (the person who writes all these blog posts) has finally returned to work!

2015 has arrived, so let’s not waste any time, shall we? Our first blog discussion of the New Year will cover common myths in network marketing. Enjoy and Happy New Year!

What Are Some Network Marketing Myths?

We have all heard the following claims in the zeal of promotion and recruitment.

  1. Multi-level marketing (MLM) classes are taught at Harvard Business School.
  2. Network marketing has produced more millionaires than any other type of business.
  3. MLM will dominate the economy in the 21st century.

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