Positive attitudes start at the top. If you are the owner or a top executive with your direct selling company, I’m looking at you, kid. Every owner faces this issue at one time or another… They hear rumblings of negativity throughout their company or their sales force. Unchecked negative attitudes can spread like wildfire. The…
Compensation Plan Prototyping
Whenever a compensation plan will be changed, before the changed plan goes live, we need to understand what the effects will be upon the earnings of the representatives. “Prototyping” is the term that I use to describe the process to calculate the results of a new compensation plan using historical data. The historical data will…
Should Party Plan Companies Worry About FTC Actions?
Most of the sales of products by party plan companies are made to people who are not consultants. In 2015 and 2016, the Federal Trade Commission (FTC) filed orders against Vemma and Herbalife, each of which is a network marketing company. One of their concerns was the lack of customers who were not representatives themselves. Another…
The Cooling-Off Rule: How It Applies To Your Company
As a direct selling company, you need to know about the Federal Trade Commission’s Cooling-Off Rule. There are very specific steps you must follow to be in compliance with this federal law. To learn more about how the Cooling-Off Rule applies to your company, watch our video below. How To Comply Most direct…
In Which States Must I Register My Company?
In the USA, most states don’t require that multilevel distribution companies register with them. However, five states require them to file and/or register. If yours is a party plan company, you are still required to file or register if you have a multilevel compensation plan. To be legally compliant in these states, you or your…
Do You Have A Company Figurehead?
“God save the Queen.” This is the national anthem of the United Kingdom. While your company is not ruled by a monarch, every direct selling company needs to have at least one figurehead. That figurehead is either you or someone else. If you don’t have one, you need to get one right away! Why Is…
The Best Measurements For Predicting Your Growth: Video
Direct selling companies measure their businesses in many ways. While monthly sales are a good measure of company month-to-month or year-to-year performance, it isn’t the best measurement for predicting the future. The best measurement for predicting the future of a direct selling company is the number of leaders in your sales force. This is because…
Before You Replace Your MLM Software – 5 Things You Must Do
If you are thinking about replacing your MLM software, there are five things you must do first. Each of them is a necessary step on the road to getting your software replaced. There are no shortcuts, so don’t look for them. Instead, be aware of these five things so you can do them all. You…
Why Don’t We Pay Hostesses?
Hostess rewards programs are an important element of party plan companies. These programs reward people who invite friends and acquaintances to their homes who purchase products or services from a consultant. Most often, rewards are free and discounted products. Have you ever wondered why we don’t just pay hostesses money? Here are 4 reasons we don’t recommend…
What You Should Know About Your Competitors
As an entrepreneur, knowledge of the strengths and weaknesses of your competitors can help you to build a stronger business. When you take the time to do research, you’ll learn things you didn’t know, some of which you can use to your advantage. Direct selling companies have three types of competitors: Traditional retail or internet-based…
Is It Ever A Good Idea To Pay People Only Through Bonus Pools?
All multilevel compensation plans pay people many ways and most of these plans include one or more bonus pools. Is it ever a good idea to only pay people through bonus pools? Before I answer that question, let’s define what a bonus pool is and then examine the purpose of a bonus pool while discussing…
Best Products for Direct Sales
All network marketing and party plan direct selling companies are in search of new products. Some products are better suited for direct selling than others. Do you ever wonder about what the ideal product would look like? We have. In all, we’ve identified 20 attributes of the ideal direct selling product.