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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In the “people” business of network marketing, the question is often asked, “What is the driving force of success for MLM companies?” Creating bonds between people is important because this is a “people” business. You need to find people that have a passion for what you are doing. If you are in health (nutritional supplements, dietary products, etc.) then that tends to be easier. If you sell energy services, then you are really about helping your neighbors save on their electricity bills. It’s always best when you have distributors and consumers who are bonded to your product, bonded to your vision, and bonded to your passion. If you look at the successes of companies like Avon – which does marches for breast cancer research – or if you look at Mary Kay – which is all about the empowerment of women – or you look at Shaklee or Nikken – that are really almost health movements – you will see long-term success because they have passion. The driving force of success for a MLM company involves there being passion within the company, passion by the distributors, and passion by long-term customers who bond with the company’s products and vision.

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The importance of philanthropy to a MLM company should not be underestimated. Distributors need to gain empowerment through the company’s mission and vision. Distributors need to believe in something greater than themselves, which is why it is so common for direct selling companies to sell herbal or nutritional products, as well as to support philanthropic causes. Companies that support philanthropic causes give customers and distributors meaning, a sense of feeling good and drive to achieve success. A sense of purpose helps distributors, and the company-at-large, to achieve success in the competitive world of network marketing.

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