Credit to labarbosa Most direct selling companies permit advertising, but provide specific guidelines and protocols for promotion. Some companies require that all advertising be submitted to the company for approval.

The MLM company does, in fact, have the right to set the rules for marketing of its products or services, and those rules are typically found in the advertising guidelines section of the company’s policies.

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According to Nancy Collamer, in her Forbes article “Can You Really Make Money in Direct Sales?” direct sellers earn on average $2,400 annually, which isn’t surprising considering that 89 percent of people who work as consultants do so part-time.

The article emphasizes that the statistics are also decreased by consultants who join companies only to get their favorite product at a discount without intending to sell or recruit. Collamer argues that in order to make full-time money in the MLM business one must a least work full-time, although no formula exists that equates working hours into salary in the direct selling industry.

In addition, the article quotes a MLM industry expert who believes that the best consultants are women in their 50s since they are educated, been active volunteers and are experienced in running their households.

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Direct Selling News reported in a May 2013 article that technology is changing

the way direct sellers communicate and relate with their downline distributors and customers. The article summarizes two companies that are embracing technologies that will help assist distributors in their success:

Custom clothier J.Hilburn offers its style consultants a Style Kit iPad App featuring a “full catalog, individual client profiles, the ability to create style boards, and access to up-to-date stock information.” ViSalus enables iPhone, Android or Blackberry users to “promote the Body by Vi™ Challenge, access and manage your business on-the-go, shop, and enroll others” through its Vi-Net Mobile App. These are just a couple of many direct selling companies integrating mobile strategies.

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This blog post is the companion post to the video: Why Do Distributors join MLM Companies? The following is the transcript of MLM Attorney Jeff Babener’s own words:

A common question we get is “why do people join direct selling and network marketing companies?”  Many studies have shown that recruitment is essential to success, particularly studies done by the Direct Selling Association. Many would be surprised at the results. One may think that most people join MLM companies for the money. However, believe it or not, money as motivation ranks as four, five and six on polls.

The polls have showed that the number one reason why people join MLM companies is because they relate to the product. The second reason they join is because they relate to company management; the person who founded the company. The third reason distributors join is because they relate to the company vision. If the company proclaims women’s empowerment or wellness, then distributors will relate to that as well. It is also important that distributors relate to the field leadership and the people that brought them into the company.

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This blog post is the companion post to the video: Why Do Distributors Stay with MLM Companies? Find out how to retain the most important asset to your MLM company, distributors.

We are often asked the questions “why do people stay with MLM companies” and “why do they leave?” Retention is essential for a successful MLM company. We are in an industry that has a lot of attrition due to the nature of the work environment. Many distributors work part time and are competing for peoples’ time. Distributors (or representatives, consultants, etc.) come and go all the time. Losing a distributor is worse than being unable able to recruit new consultants, making retention essential.

There are interesting answers given by distributors as to why they stay with the company. You may think they stay for the earnings, but income often comes in fifth or sixth place in industry polls. As a general matter, consultants usually stay with a MLM company because they are connected and bonded with the products the company sells, as well as with the company’s mission and with top management/leadership. Distributors also like to be recognized for the work that they do. Recognition is very important in the direct selling industry. These are factors that really propel distributors to stay with a MLM company.

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Why there are Consumer Protection Laws and how they Affect Distributors

Millions of individuals who are going into network marketing are doing so part time. Generally, they are amateurs. They are not professional sales people. They are not manufacturer’s representatives. They are not going to be employed by the company, and therefore, they are viewed as the vulnerable purchasers of an opportunity. And that’s why the opportunity, the business, is regulated by consumer protection statutes; to protect the distributor, the amateur, who is about to be involved in a business.

Making Unauthorized Medical Claims and the FDA – Why Distributors Cannot Make Unauthorized Medical Claims

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