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The World of MLM News and Information Delivered to You,from a Trusted Source, MLMLegal.com.

April 26 , 2017 Issue: 30

Direct Selling Trending MLM NewsTrending MLM News

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Q: Q: What Is the BenefitWhat Is the Benefitof Recruitingof RecruitingExperiencedExperiencedDistributors?Distributors?

A: A: When you are startingyour MLM, direct selling,network marketing, or partyplan business, you’ll find thatrecruiting experienceddistributors is often essentialto your company’s success.And if you don’t have thebackground, yourself, as asuccessful recruiter, youneed to budget for a “salesmanager” position for anindividual who does havethat capability. Your ability to recruit directlyequates to your success. Ifyou have a background inrecruiting and a backgroundin direct selling, then yourneed for capital will besubstantially lower.Recruiting top distributorswill enable your company tohave the capital to stay afloat

Headlines forHeadlines forApril, 2017April, 2017

Why Ivy League Grads AreWhy Ivy League Grads AreGoing into Multi-LevelGoing into Multi-LevelMarketingMarketing

2016's Top 20 Global2016's Top 20 GlobalBeauty Care CompaniesBeauty Care Companies

Nerium Set to Expand intoNerium Set to Expand intoNew ZealandNew Zealand

5 Ways to Turn Social5 Ways to Turn SocialUsers Into Social ShoppersUsers Into Social Shoppers

Rodan + Fields QuietlyRodan + Fields QuietlyBecame the Top-SellingBecame the Top-SellingSkincare Brand in AmericaSkincare Brand in America

11 Things I'm Definitely11 Things I'm DefinitelyThinking When You InviteThinking When You InviteMe To Your Direct SalesMe To Your Direct SalesPartyParty

and even grow. If recruitingis slow then you will need toraise one to three years ofbuffer capital in order tosupport your company in theevent of stagnation or loss.And remember, theremuneration that is offeredto top distributors will beeffective in their decision tostay and help grow thebusiness. By using results-orientedmarketing, a beginningcompany should first tracktheir warm market, followedby the utilization of leadgeneration systems andadvertising. Advertising ismainly used as anannouncement that thecompany has launched. Inmarketing your MLMcompany, history hasdemonstrated that person-to-person networking is themost effective means ofattracting prospectiveconsultants and customers.In this business, there is nosubstitute for person-to-person relationship buildingand communication. Auto-responders and automatedvoice systems are simply notappreciated in direct selling.

Pyramid Schemes vs.Pyramid Schemes vs.Legitimate Direct Selling -Legitimate Direct Selling -There is a DifferenceThere is a Difference

P&G Manager Lucy GildeaP&G Manager Lucy GildeaJoins Mary Kay C-SuiteJoins Mary Kay C-Suite

LegalShield’s MembershipLegalShield’s MembershipReaches a New RecordReaches a New RecordHighHigh

Reaching the MillennialReaching the MillennialMindMind

Amway IntroducesAmway IntroducesRevamped Multi-LingualRevamped Multi-LingualOnline Learning PlatformOnline Learning PlatformFor EntrepreneursFor Entrepreneurs

US DSA Discusses EffectiveUS DSA Discusses EffectiveCoalition Management inCoalition Management inGovernment RelationsGovernment Relations

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Q: Q: What about GiftingWhat about GiftingClubs?Clubs?

A: A: In short: Gifting Clubs…Run the Other Way. A giftingclub usually beginsunintentionally betweenfriends, family andneighbors. Unlike thetraditional pyramid scheme,gifting clubs are notpromoted as an investmentby fraudulent financialadvisers. Gifting clubs areusually home-grown. Thoseinvolved believe that they aregenuinely helping oneanother. However, there is noexchange of merchandiseand someone always ends upon the losing end. Those who join usually do soby investing anywhere from$2,000 to $5,000 and thenrecruiting others to join. Asmore people join beneaththem, their “investment”grows. Cash flow is passedfrom new recruits to thosehigher in the pyramid. Thoseat the top of the gifting clubpyramid usually leave withroughly eight times theamount they originally

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invested, while those on thebottom lose their money asnew recruits decline and cashceases to drive the pyramid.All gifting clubs eventuallydie because they run out ofpeople (and therefore cash)to continue to “feed” thepyramid. Unfortunately, and to thesurprise of the founders andparticipants, they areengaged in an unintentionalcash pyramid headhuntingrecruitment scheme. Suchpractices violate consumerprotection laws and criminallaws in most states. Andalso, unfortunately, the endgame sometimes is acriminal prosecution for theparticipants, all of whommight be your next doorneighbors and “great” peopleunder most circumstances.Basic greed has blinded theirjudgment, however, and theprice to pay is often very“expensive”.

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To learn more watch thevideo with expert networkmarketing Attorney, JeffBabener. Visitwww.mlmlegal.com for more information about the MLMindustry.

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Jeffrey Babener, Editor,Jeffrey Babener, Editor,MLM News GlobalMLM News Global

Jeffrey A. Babener, of Portland, Oregon, www.mlmlegal.com, is the principal

attorney in the law firm of Babener & Associates. He represents leading U.S.

and foreign companies in the direct selling industry. He has been a key advisor

to such companies as Avon, Herbalife, Discovery Toys, Nikken, Shaklee

NuSkin, Excel, Usana, Fuller Brush, Cell Tech, Enagic, Sunrider, Melaleuca,

Nerium International, etc. He is a frequent lecturer and has been interviewed on

the industry, and published, in such publications as Money, Inc., Atlantic

Monthly, Success, Entrepreneur, Kiplinger's Personal Finance, Home Office

Computing, Business Start-Ups, Direct Selling News Magazine, and Money

Maker's Monthly. He is editor of the industry publication, Direct Sales Legaline.

Mr. Babener is also the author of the books; Tax Guide for MLM/Direct Selling

Distributors, Network Marketer's Guide to Success, The MLM Corporate

Handbook, Network Marketing: Window of Opportunity, and Network Marketing:

What You Should Know (used as the college curriculum textbook at Utah Valley

State course on network marketing). He is editor of one of most frequented

network marketing educational websites, www.mlmlegal.com . He has served

as Chair of more than 70 national conferences on starting and running the

direct selling company. He serves on the Lawyers Council and Government

Relations Committees of the Direct Selling Association (DSA), and he has

served as General Counsel and on the board of the MLMIA (Multilevel

Marketing International Association). He has lectured at major industry trade

meetings and at such educational institutions as the Univ. of Illinois, University

of Texas, University of Houston, etc. He is a graduate of the University of

Southern California Law School where he served as an editor of the USC Law

Review, followed by the appointment as a law clerk to Hon. David Williams,

U.S. District Court for the Central District of California.

A number of Babener & Associates client companies have been success

stories over the last several decades, including several billion dollar and NYSE

companies such as Avon, Herbalife, NuSkin, Usana.

Mr. Babener has served as lead trial counsel for multiple cases on direct selling

throughout the U.S. Further background material on direct selling will be found

at the website, www.mlmlegal.com.

Key MLM ResourcesKey MLM Resources

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www.sheffieldnet.com - The best from compensation plans to total MLMstartup.

Multisoft / MarketPowerPro - www.multisoft.com - Affordable MLMSoftware, eCommerce, replicated sites & more.

www.trinitysoft.net - Trinity Software offers Firestorm®, its flagshipDirect Selling Software Platform.

www.mlmattorney.com - The sister site to MLMLegal.com.

www.mlmnewsglobal.com - Home of the MLM News Global E-Newsletter.

WEBSITE ARCHIVE ABOUT BLOG CONTACT

© Jeff Babener of Babener & Associates 121 SW Morrison St., Portland, OR 97204 800-231-2162 / 503-226-6600

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