Because independent contractors (distributors) are "in business for themselves, but not by themselves" training becomes a crucial component of companies' success strategy. Often training begins with the distributor kit. Training continues as top distributors hold meetings to introduce and train downline distributors in product and in compensation strategy. Companies continue training at regional and national meetings.
Every MLM and direct selling business requires a set of tools to facilitate the sale of product and to calculate and pay commissions. Tools exist for companies and distributors to keep track of the range of activities needed for success. Company tools include commission calculating software to online meetings, Distributor tools may be as simple as an phone app to help distributors keep track of the miles they drive for tax purposes to downline tree activity back office products.
Distributors join MLM and direct selling companies for a range of reasons. Many people join a company to develop personally. Distributors want to learn how to run a business, to set and complete goals, and to be effective as a public speaker.
Every MLM and direct selling business needs to support distributors in the sale of product. Distributors need to understand how to approach a range of potential customers as well as maintain relationships with existing customers. Selling requires an understanding of ethical persuasion.
MLM companies and independent contractors (distributors) must understand the local, national and international laws that regulate the MLM and direct selling industry. In the United States, the direct selling industry is regulated by Federal Trade Commission rulings that influence commission plans or income claims. The sale of products is also regulated for all industries such as the three day return rate. In international legal cases, national and local laws vary.
Page 1 of 5