happiness v failure in network marketing mlmWhat is the meaning of failure? If a distributor only makes a few hundred dollars a month, does that mean they have “failed?” What would that make the distributor who doesn’t make any money from network marketing at all? Or the one who loses money?

It’s difficult, in a sense, to lose money as a network marketing distributor in today’s world. This is due to the policy changes in direct selling companies. Most network marketing companies offer a full refund (or at least a 90% refund) to distributors who have changed their minds and want to return their starter kits.

In addition to policy changes within the company, the majority of leading MLM companies offer earnings disclosures on their websites which disclose the level of earnings and average earnings of all active distributors. Some consultants join a direct selling company to simply become discount buyers of the company’s products. These sorts of independent business owners don’t actually make money with their distributorship since they aren’t pursuing the opportunity to begin with.

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Some companies state that you can’t recruit people that you didn’t personally sponsor. If you personally sponsor a friend or family member then why can’t you recruit them to join you at your new company?
The short answer is that company policies have evolved over the years resulting from a combination of increased raiding by distributors who switch companies, on the one hand, and secondly, direct selling companies have become more rigid in trying to retain their sales force, sometimes with good reason, and sometimes appearing to be an “overreach.”
Leading direct selling companies, for instance, around 20 years ago, maintained a policy that required consultants to only offer the opportunity to people that they personally sponsored. That policy was common 20 years ago.
Over time that policy changed. With the increased ease of communication due to technology, many companies asked that consultants not participate in raiding anyone in their organization while they were active with a company. The policy morphed again to require consultants not to sponsor anyone in a new opportunity except for those that they personally sponsored upon leaving for a new company. Then the policy changed again to where companies required that consultants who left a company not sponsor anyone into the new company. In a few instances, some companies have provided non-compete agreements, which aren’t considered fair and not

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Many network marketing companies are rightfully concerned about consultants making unauthorized medical and earnings claims on their own websites, as well as creating keyword confusion in the search engines. Therefore, many leading MLM companies provide authorized replicated websites for their consultants and actually prohibit individually-created websites. Therefore, if you’re a consultant, chances are high that you will not be allowed to purchase, design or build your own website. Instead, you’ll be given access to your own replicated website, provided by the company, which is a website that looks much like the company’s main website, but has a unique URL that you can send your customers to so that they can order products through you.

The primary reasons why companies don’t allow consultants to host their own websites are:

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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.

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Sign up for the MLM News Global newsletter for top headlines, news stories, scam alerts, videos, articles, and more information on the network marketing industry, by www.mlmattorney.com.

Sign up for the MLM News Global newsletter for top headlines, news stories, scam alerts, videos, articles, and more information on the network marketing industry.

There are a lot of outspoken bloggers and critics online, as well as negative opinions floating around the social networks, but the positives drown out the negatives. It’s not hard to find a loud voice criticizing the direct selling industry through a quick Google search. And it is true… there are many pyramid/Ponzi schemes, primarily internationally based, that parade themselves as MLM/direct delling… and they are not. They are merely pyramid headhunting recruitment schemes that often use bogus products and services as an excuse to move money. The entire emphasis of such organizations is to cause investors to pay money and cause others to do the same, with a thin veneer of an actual product or service. In fact, the revenue to pay commissions instead comes from distributor payments and not sales to the ultimate user.

Despite this, the facts remains MLM and direct selling are a major part of the fabric of commerce. Statistics on 2014 sales, compiled by the World Federation of Direct Selling Associations, indicate global sales of $183 billion and 100 million distributors. In the U.S., there are 18 million distributors posting $35 billion in sales. Numerous direct selling companies are traded on the NYSE.

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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. by www.mlmattorney.com.

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? by www.mlmattorney.com

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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MLMLegal.com Releases Comprehensive Analysis on Landmark Case on Pyramid Guidance and the Role of “Personal Use” in Pyramid Analysis

PORTLAND, OR–(Marketwired – June 26, 2014) –

Click for the full article analysis and actual BurnLounge case at BurnLounge Appeal Decision: Guidance on Pyramid v. Legitimate MLM and the Role of Personal Use in Pyramid Analysis

Excerpt of the BurnLounge Analysis Article:

On June 2, 2014, in the case of FTC v. BurnLounge, the U.S. Court of Appeals for the Ninth Circuit issued a seminal decision, affirming a lower court finding that the BurnLounge MLM (multilevel marketing) program was an illegal pyramid scheme, in violation of section 5(a) of the Federal Trade Commission (FTC) Act, a decision that will dramatically impact the landscape of direct selling to provide guidance on two fundamental legal issues:

(1) What activity constitutes a “pyramid scheme?”

(2) What is the role of “personal use” (by distributors) in pyramid case analysis?

Stakeholders: “We Won!!” Proxy Wars…

Victory has 100 fathers and defeat is an orphan. – John Kennedy (1961)

As with any inconclusive war, the stakeholders offered immediate statements of victory or vindication.

That is, other than BurnLounge. BurnLounge lost, and a permanent injunction was affirmed.

However, BurnLounge was a proxy war on the tests for “pyramid” and the role of “personal use” in pyramid analysis, among the interested parties, short sellers of publicly traded direct selling companies, publicly traded direct selling companies, industry spokespersons such as the DSA, the FTC, MLM critics, etc.

Each, in turn, issued press releases or statements claiming victory and validation of their respective positions.

The BurnLounge decision offered guidance for all stakeholders and a clear message for “going forward.”

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In celebration of our 66th annual conference, we are offering two complimentary tickets* – worth $345.00! – to attend the esteemed event in Las Vegas, Nevada.

MLMLegal.com Launches the Innovation Campaign for the February 27th & 28th, 2014 MLM Startup Conference!

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

For over 26 years MLMLegal.com and Babener & Associates has hosted the most prestigious MLM conference for executives of startup and existing direct selling companies. In celebration of our 66th conference, we are offering two complimentary tickets* – worth $345.00! – to attend the esteemed event in Las Vegas, Nevada.

In our ongoing effort to offer the absolute best network marketing conference available, we invite you to participate in our February 2014 Innovation Campaign. To receive your two free tickets, fill out our Innovation Campaign form below.

We invite the input, ideas and innovation from the very MLM company owners who are in the startup and launch phases of their companies. We strive to offer the best conference in the United States. MLMLegal.com always covers current issues and events at all of our conferences, but this time it is different! We want your input in the Innovation Campaign!

Are you an owner or executive of a startup of existing direct selling company? Do you want to attend the 66th Starting and Running the Successful MLM Company Conference for FREE?! Fill out our short survey below! Share with us your experience as a network marketing entrepreneur!

Fill out our Innovation Campaign form to receive your two free tickets today! Also visit this page for additional information on the February 27 & 28, 2014 MLM Startup Conference.

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As a consultant, where did you first begin selling your products/services?

It is often said that direct selling/MLM/network marketing is about first sharing your product and services within your spheres of influence, that is to say, first harvest the low lying fruit. This means calling upon your friends, family, social acquaintances, co-workers, members of your church, religious group, fraternal organizations, etc. In other words, sell where you are the most comfortable. Generally, this includes territory close to home. Generally speaking if you sell products/services at a distance then it is because you have connections. As you mature, you may venture into other territories, but it likely will be through social networking or by having an online presence.

As a consultant, where did you first begin selling your products/services? How would you rate your success during your first year as a consultant?

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Silpada Designs Logo - Trademark of Silpada Designs, Inc.

Silpada Designs Logo - Trademark of Silpada Designs, Inc.

On July 2nd, several media outlets, including Kansas City Business Journal, announced that the original founders of Silpada Designs – Bonnie Kelly and Teresa Walsh – are reacquiring Silpada Designs from Avon Products, Inc.

In July, 2010 Avon agreed to purchase Silpada Designs for $650 million. At the time of the agreement of purchase, Silpad Designs was making $230 million in annual revenue and operated in the United States, Canada and the United Kingdom.

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