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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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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Learn how to get two free tickets to the February 26 & 27, 2015 conference!

Learn how to get two free tickets to the February 26 & 27, 2015 conference!

The Starting and Running the Successful MLM Company Conference is just around the corner! For over 27 years we have hosted over 69 national conferences to educate startup and existing MLM company executives. All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener.

To learn how to get TWO FREE TICKETS to attend this valuable event, click HERE!

WHO ARE THE SPEAKERS?

Direct Selling Attorney, Jeff Babener, Founder of Babener & Associates and Sponsor of the MLM Startup Conference, has over 25 years of experience in the industry, representing companies such as Avon, Nikken, Melaleuca, Discovery Toys, Usana, and NuSkin.

MLM Industry Consultant, Mike Sheffield, with The Sheffield Group and Co-Sponsor of the MLM Startup Conference, has helped launch over 800 companies over the last 27 years.

Over the course of two days, you will hear from many leaders in the direct selling industry, who include:

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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

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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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Although the terms sponsoring and recruiting are often used interchangeably, they actually have two different meanings.

Although the terms sponsoring and recruiting are often used interchangeably, they actually have two different meanings.

Although the terms sponsoring and recruiting are often used interchangeably, they actually have two different meanings. Recruiting is the act of searching and soliciting new distributors for the downline sales organization of an existing distributor. Of course, the activity carries important consultant responsibilities, such as compliance with company and statutory guidelines on earnings representations, product representations, and accurate representations of the company’s business opportunity.

Once a recruit has agreed to join the company, a recruiting distributor becomes a Sponsor. Almost all company policies set forth very specific duties and responsibilities of a Sponsor, including supervision, training and communicating with their downline sales organization. In addition, all companies have specific rules on cross-sponsoring and keeping respectful relationships with other sponsors and distributors.

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MLMLegal.com Launches the Innovation Campaign for the October 23rd & 24th, 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 27 years MLMLegal.com and Babener & Associates

Fill out our Innovation Campaign form to receive your two free tickets today!

Fill out our Innovation Campaign form to receive your two free tickets today!

has hosted the most prestigious MLM conference for executives of startup and existing direct selling companies. In celebration of our 69th 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 October 23 & 24, 2014 Innovation Campaign. To receive your two free tickets, fill out our Innovation Campaign form on our Innovation Campaign page.

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 69th 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!

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It depends on which hat you are wearing that day as to whether they are to be considered MLM professionals or MLM junkies.

It depends on which hat you are wearing that day as to whether they are to be considered MLM professionals or MLM junkies.

The answer here is somewhat “tongue and cheek” and should be taken with a “grain of salt.” This question is often asked of people who are starting network marketing companies. The majority, if not all of them, respond that they want to recruit MLM professionals to their companies. An industry observer once commented wryly that, too often, “junkies” and “professionals” are merely flip sides of a coin. The commentator said, “A MLM junkie is someone who will raid your distributors and take them to another company while a MLM professional is someone who leaves their company, raids the distributors and brings them to your company!” It depends on which hat you are wearing that day as to whether they are to be considered MLM professionals or MLM junkies.

In all seriousness, the above comment too often contains more than a kernel of truth.

Lastly, companies that pay people to bring recruits with them to the new company are not conducting good business strategy. They will often claim to recruit thousands of individuals and only bring a few, yet still get their money. Unfortunately, this happens time and again and it is not an ethical way to do business.

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