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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The MLM Startup Conference for Executives of Startup and Existing Direct Selling Companies takes place February 26 & 27, 2015 in Las Vegas. This is the 70th annual, two-day conference, featuring industry experts and invaluable tools for the MLM startup entrepreneur. Call our office to register or for additional information: 503-226-6600 or 800-231-2162.

The Next MLM Startup Conference Takes Place March 5 & 6, 2015!

The Next MLM Startup Conference Takes Place March 5 & 6, 2015!

HOW CAN I FIND OUT MORE?

Visit the website:

www.mlmlegal.com

Or, read visit our blogs:

http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/

Extensive information about the conference can be found here.

Watch the MLM Startup Conference videos:

MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com

The MLM Startup Conference in Las Vegas

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The issue of levels has not been the focus of the Federal Trade Commission (FTC) or state attorneys general in the enforcement of pyramid laws.

The issue of levels has not been the focus of the Federal Trade Commission (FTC) or state attorneys general in the enforcement of pyramid laws.

The issue of depth of levels seemed to be a major focus prior to the internet and other non-postal (mail) means of communication. In the late 1980’s the United States Postal Service (USPS) examined numbers of levels to make a determination of whether or not, in its opinion, the depth of levels created a “lottery” element under U.S. Postal lottery laws that forbid payment based on chance. Various cases and consents sorted out a safe harbor (at least from the U.S. Postal Office standpoint) for at least four levels (not necessarily agreed to by the direct selling industry). Separately, the Postal Service looked for evidence of “supervisory requirements.” Most companies adopted specific supervisory requirements of sponsors to demonstrate some managerial activity by distributors. For the past 25 years, little recruitment activity is conducted by U.S. mail and it has been a long time since the U.S. Postal Service has expressed a serious interest in this subject. The issue of levels has not been the focus of the Federal Trade Commission (FTC) or state attorneys general in the enforcement of pyramid laws. Instead, the focus for the last two decades has been on the whether or not product/service

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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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