How to Build a Successful Direct Selling Company Continued - Page Six
By Jeffrey Babener, © 2013
Clear Agreements Between Owners
It is one thing for an MLM business to fail because of regulatory challenges, legal challenges or even financial
challenges. Periodically, the industry is aghast when MLM companies fail as a result of disputes among owners.
Unfortunately, such events have occurred. The causes for such failure can be many. Often, the failure occurs
because the owners of the business did not, at the time of inception, take sufficient care to outline their respective
rights and responsibilities. It may be a legal matter, but then again, it is often a case of differing expectations about
the future of the business. These expectations should be out in the open at the commencement of the business
and mechanisms for dynamic change should be anticipated, including exit strategies for owners. The worse case
scenario, which has occurred, is paralysis of the business while owners argue over management objectives.
Obviously, this problem cannot occur when there is one principal owner to the business. It tends not to occur when
there are two owners. Three owners tend to produce a revolving alliance of two against one. More than three
owners may well be a prescription for future disputes. In any event, managing expectations starts "at home" and at
the beginning of the business.
Attitude—The Three P’s-Passion, Patience and Persistence
Success coaches and motivational speakers will often note: "If you think you can, you’re right! If you think you can’
t, you’re right!" This is not a mere placebo. There is something to such advice. Attitude makes all the difference in
survival and success of the startup MLM. Every successful MLM company was driven by a leader who had passion
for the product, the opportunity or both. The charisma of the leader could not be shared successfully without
passion. You must be in a sense what the philosopher Eric Hoffer referred to as a "true believer." A "true believer"
is a founder of cultural, religious or business movement….and that’s who you must be. There is little room for the
skeptic or cynic. As Eminen would say, you can’t just sing the song, to succeed, you must "lose yourself in the
Only with passion will persistence and patience occur. And, only with those two additional attributes will an
individual be successful in the start of an MLM company. It is a rare day that an MLM company is an overnight
success. Some companies become overnight success stories because of the migration of thousands of seasoned
distributors as the result of the collapse or implosion of other large MLM networks or companies. This occurrence
is the exception to the rule. In the end, it is often the case that a company will not experience its more rapid
trajectory until it has been in existence for two or three years. It is usually at that point in time that the combination
of its stability, and some other fortuitous event in the marketplace, causes its discovery by legions of potential
distributors and customers. So, in the end, attitude, the culmination of passion, patience and persistence, is a
defining factor in the success of the startup MLM company.
This Advice from Experience
You won’t find these ten rules in a textbook. You will not find them in a college course. You will not find them at
Staples or Office Depot. You most definitely will not find them by consulting with corporate business lawyers or
general business advisors. These very important factors are forged in the furnace of experience. These are
practical rules that arise from two decades of practical hands on involvement. These rules come from the school of
"been there, done that." If you pay attention, is success guaranteed? Well, go to rule eleven, which is "success is
never a sure thing, but opportunity is always guaranteed."
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