Distributors should attend MLM company sales and recognition events.It’s always a good idea to keep yourself encouraged and engaged in your career by participating in company training events that enhance your sales skills. A good network marketing company will offer you tools and seminars to help you improve and grow your business. Some companies offer training tools in an online- back office environment, while others will host elaborate events in select cities.

You can always find ways to improve your sales and business skills online, either through your company’s training or by simply searching the web for articles and books on business growth and sense. However, MLM company seminars are particularly encouraging for MLM entrepreneurs. At company events you’ll be able to meet other like-minded, business-oriented individuals who will inspire you. Networking at company training events enables distributors to meet other distributors within the company. Distributors can learn from others about how

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Absolutely! Incentives increase sales. However, sales incentives go by many names and 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,

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Will the stock market rise tomorrow? Who will win the Kentucky Derby? If one knew the answers these questions, he or she would be rich beyond imagination. How much one might earn in a compensation plan is subject to too many moving parts to make any sort of accurate prediction: the compensation plan itself, percentages paid on product, profit margins of product, personal sales, down line sales, the factors are endless. Two important resources are available that will give you a good place to start on this arithmetic: (1) leading companies post average earnings disclosure charts which indicate the average earnings for consultants at various levels and stages of their direct selling program; (2) many companies provide online earnings calculators which allow consultants to plug in their own assumptions on their personal and group sales and activity, which are then used to calculate the payout based on their expected sales performance. These aren’t fool-proof tools but they will give you realistic expectations on potential earned income.

It’s important to be honest with yourself as well. Very few consultants make it ‘big time’ in direct selling, and that is because sales is hard work, difficult work and many give up shortly after running through their warm market (friends and family). But if you’re the type that loves to sell to every person that you come across in your daily life then you may be a great candidate for a consultant who earns really high auxiliary income.

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For this issue, it is best to look at two phases of MLM companies, start up and maturity.

Although many things can go wrong in a startup direct selling company, two factors are repeated with frequency for the failure to launch. The first factor is inability to recruit. This business is based on recruiting a successful sales force to market products. (Obviously, there are many important factors ranging from logistics to personnel to technology to quality control to distribution… and all these can go wrong as well.) It should be noted that the need for capital is in inverse proportion to the ability to recruit. A MLM company that can recruit is often positioned for fast growth and may even become a cash cow. If the company does not have that native ability, it needs sufficient capital to hire the talent to make it happen. And in the absence of the recruitment asset, a company should plan on a much longer trajectory to profitability.

And the recruitment challenge dovetails with the second major reason that companies fail at the onset: lack of adequate capital or funding. Many companies start the business without adequate capital to allow for a one or two year run to become profitable. In fact, many companies assume that they will be profitable within months or that they will not need capital for growth. The lack of buffer capital to survive the early unprofitable days of a company is a prescription for early failure.

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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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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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Make sure your postcard (or sales materials) stand out in the crowd.

Make sure your postcard (or sales materials) stand out in the crowd.

Designing an attention-grabbing postcard to mail out to your contact list can be an effective and an inexpensive way to reach out to potential customers. Postcards are effective in one sense because they do not have to be opened by the recipient. A well-designed mailer can grab the reader’s attention and urge them to respond to a call to action. Here are seven tips to creating an effective postcard:

–          Design your postcard with a simple, yet effective, message. Make sure the headlines are big and bold, as well as attention-grabbing. Keep your text short and to the point. Place a word limit on yourself and stick to it. Don’t go overboard and write a novella.

–          Incorporate eye-catching, high quality photos and images that are royalty free. Search the web for websites that offer free access to royalty free images. There are many websites that will allow you to use their royalty free photos by simply signing up for a free account. Make sure that the images you choose are vivid and relevant to your content.

–          Integrate a timely message onto your postcard or sales material. Make sure you create a “call to action” by crafting a deadline or limited time offer. Simple statements such as “contact us within 30 days,” “respond by” or “act now” will urge the reader to act.

–          Include your name and/or the name of your business on the sales material. Make sure that you keep your branding consistent throughout each batch that is shipped so that your customers/potential customers will think of your company when they think of your product/service.

–          Enclose your contact information, such as your email address, phone number and website in your sales materials. Customers must know how you can be contacted. Also, it may seem obvious but, make sure you double check for any spelling or grammatical mistakes. It’s very common for errors to be printed and shipped on sales materials – one wrong number or letter can mean a wasted batch of postcards, not to mention wasted money.

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Fill out the short survey below to receive two free tickets (worth $345.00!) to the next MLM Startup Conference in Las Vegas February 27th & 28th, 2014!

Fill out the short survey below to receive two free tickets (worth $345.00!) to the next MLM Startup Conference in Las Vegas February 27th & 28th, 2014!

As a distributor, can I use display booths to sell my company’s products? Is there a limit on the time I can spend selling at a booth?

First, check the company policies, as they will be the guiding rule. Most companies allow distributors to operate a booth at trade shows that are for the general public, such as boat shows, home shows, health shows, etc. However, most companies ask that distributors seek approval of the booth opportunity and they also insist on compliance with proper use of the company trademark and advertising. In addition,

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A Vice President of Marketing should have a demonstrated record of building, managing, and sustaining network marketing sales organizations.

The two leading causes of MLM company failure are lack of capital and the inability to recruit. In fact, your need for capital is in inverse proportion to your ability to recruit. Many of the leading direct selling companies have been founded by individuals with long track records of building downline sales organizations. If you possess that talent, along with good product or service, you are well on your way. However, if you don’t possess such capabilities, it may be necessary to hire such talent, often in the form of a Vice President of Marketing.

A Vice President of Marketing should have a demonstrated record of building, managing, and sustaining network marketing sales organizations. You don’t just want a hand holder. You want an individual who has the capability of locating founding distributors and working with them to build a broad-based sales

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It is very illegal to pay headhunting fees, i.e., paying commissions merely for distributors to recruit other distributors.

We are often asked by executives starting a network marketing company if they can have consultants earn income by referring others and if it’s legal.

Effectively, multilevel marketing is the sale of products through person-to-person, “referral” marketing. It is very illegal to pay headhunting fees, i.e., paying commissions merely for distributors to recruit other distributors. However, if a distributor builds a sales organization and receives override commissions on the sales activity of those in his or her downline, this is the essence of multilevel marketing, and is quite acceptable, assuming all other elements of legitimate direct selling (vs. pyramiding) are in place.

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