The Federal Trade Commission issued a decision, In re Amway Corp., in 1979 in which it indicated that multi-level marketing was not illegal per se in the United States. However, Amway was found guilty of price fixing (by effectively requiring "independent" distributors to sell at the same fixed price) and making exaggerated income claims.[47][48] The FTC advises that multi-level marketing organizations with greater incentives for recruitment than product sales are to be viewed skeptically. The FTC also warns that the practice of getting commissions from recruiting new members is outlawed in most states as "pyramiding".[49]
Sales and order management includes everything from invoicing and billing through tracking and inventory management. You can find these tools in many accounting, shipping, or logistics solutions, but an MLM platform will bring many of these capabilities together, because they are integral to product distribution for a direct sales company. Specialized multilevel marketing software should give you full branding capabilities for your sales documents, like custom icons and letterhead. You’ll save time with templates that can be used over and over, instead of building invoices from scratch each time.
If your MLM specializes in consumable products, such as vitamins, buy sample sizes to hand out to prospective retail customers and distributors. If you sell large non-consumable items, like air purifiers, have one on hand to lend to those interested in your company. Before prospects invest time and money to purchase your products or join your business, sell them on the superiority of your merchandise. Attach business cards to your samples and ask your prospects for contact information. Call them after a couple of days to ask how they liked the product and to take an order or schedule an appointment to tell them more about the business.
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