If you’re running your own business out of your home which includes MLM companies, Network Marketing companies, Direct Sales companies or any type of employment where you are deemed “self” employed, then it is your duty to be current on IRS rules and codes that apply to the self employed.The following is a brief summary of what you should know regarding the IRS and how it views the Network Marketing industry.- Network Marketing has been recognized as an important industry by the IRS. - In 1982, the IRS specifically recognized the independent contractor status of direct sellers. - The IRS issues a number of materials addressing the issues of self-employment workers and home-based businesses. - The IRS specifically addresses the issues of network marketers in IRS Publications 911. See Tax Guide for MLM/Direct SellingDistributors- One in ten thousand households in America has a direct seller. - There are approximately ten million network marketers in the United States - Sales of the Network Marketing industry in the United States are in the $20 billion range. - About 65 percent of direct sellers area female and 35 percent are male. - For most, Network Marketing is a part-time activity. Approximately 80 percent of networkers work part-time, less than 30 hours a week earning less than $500 per month. - Network Marketing opens doors for everyone. About 5 percent of Network Marketers are senior citizens, and about 8 percent have physical disabilities; 13 percent are African-American; 5 percent are Hispanic, and 1 percent are Asian.The top five reasons that people join network marketing companies:

In summary, be certain to hire a tax preparer or accountant that is well versed in the updated rules and codes of the IRS that are related to Direct Selling which includes most MLM and Network Marketing Companies.If you are serious about growing your home based business, check out some more great free information at www.FreeMLMsuccessReport.comJane

The success of any online marketing venture depends on its leads. Without leads, there will be no sale or profits. Thus, network marketers too need to learn as how to generate network marketing leads. There are number of ways to generate network-marketing leads and some of them are gas follows: Write articles One of the most effective ways to generate potential MLM leads is through article writing. Therefore, write articles that inform people about the products or services and post them on major article publishing web sites or article directories. You may also write articles on other topics. Next, include your web link below the articles. Whenever, visitors read the articles, they may click the link and eventually buy the products. Thus, if to obtain quality leads, write more and more articles, post them on different web sites and experience huge traffic flow. Start blogging Blogs are good sources to develop potential network marketing leads. Moreover, it helps to build good reputation among the customers. Thus, create a blog web site, write minimum of 4 or 5 blogs, and include web link below each of the blog. Link the blog site with other blogs and encourage comments about your blogs, as this will certainly help to draw the potential leads for your MLM business. In addition, if the blog site becomes famous, more and more people will participate in the blogs and buy the products, because online customers tend to purchase products from marketers with whom they feel acquainted. Advertisements Advertisements are also types of sources that attract potential leads and convert them into customers. Network marketers may opt to place ads in major web sites that witness huge web traffic flow. If network marketing entrepreneurs afford to splurge more on advertisements, then banner ads and classified ads are way to go. So, advertise wisely, as this is the major source from where many network marketers generate potential leads. Buying Leads - Be Careful If network marketers wish to buy the leads, they need to make sure that the leads providing company is credible and is offering fresh and quality MLM leads. Many companies sell the same leads to more than one network marketer. Therefore, the best way is to generate potential network marketing leads through own efforts. It is a well known fact that, network marketing venture requires a bit of effort, so pay attention to the quality of leads too. Thus, implement these ways, generate potential leads, and make huge profits.

Recently, network marketing or MLM companies cover just about every imaginable product and service such as communication services, Internet access, nutritional products, weight loss programs, water filtration systems, financial programs and electrical power. Compensation plans in MLM companies vary from one company to another. Some companies pay more than 100 percent. Unfortunately, these companies do not last long and eventually put individuals in despair. Generally, if customers see a pay out of more than 60 percent, it shows grossly overpriced product, unless it is unique or an exclusive patented product. Working of Network Marketing Companies Network marketing companies along with their associates firmly determine the potential provided by the Internet. Several managerial experts of MLM companies have even predicted that these companies will act as a definitive recruitment tool in future. Usually, network marketers prefer to browse in forums, as they offer them with huge amount of network marketing related information. Since, it is a usual phenomenon for several network marketers to switch network-marketing companies several times during their MLM spell. Hence, they hang out in forums often. Factors to Be Considered For Network Marketing Companies It becomes difficult to choose a reliable and profitable MLM company. You may make a choice by considering few factors of a company. The factors are integrity, distributor driven concept, products & services, duplicative business system, management and the compensation plan. First, you have to test the integrity of that company. Check for any outrageous claims or exaggerations regarding the products or services. Importantly, check if the company is a distributor driven firm or not. In addition, you need to check if the company is making decisions in concern with the representatives or associates. Publicly traded companies are the worse, because they have to answer their shareholders first before their representatives. Give preference to the network marketing company producing quality products, as many people love their products. It is much easier to sell a product, when the seller uses and enjoys the product. Look for a network marketing company that has a business system in place and you may use this system from day one in your network marketing business. Good management is necessary in MLM business. There are many network marketing companies, who assure for start up opportunities, but have little to no experience in MLM. Thus, you need to keep in mind product appeal of the MLM Company you are choosing. This is also termed target marketing.

The days of large network marketing companies dictating everything to their distributors are rapidly drawing to a close. Soon network marketing will truly be independent business owners with multiple streams of income flowing into their coffers. The days of making lists of friends and everyone you know are disappearing and have already gone for the serious players.
So what’s happening to cause this?
What’s happening is that marketing is finally being introduced into the network marketing psyche at the ground floor levels. People are realising that by providing quality content on subjects related to their business they are able to attract qualified prospects into their contact list.
The internet is enabling people to combine tools that work to generate traffic and qualified leads to almost any good business opportunity. By building a list of qualified prospects with a pre-built automated marketing process network marketers are able to continue to provide quality information coupled with offers to relevant products and services.
The thirst for information coupled with the ability of the internet to deliver immediately with high profit margins makes information the ideal product to add into the new network marketing offering. The reason many network marketing companies exist is that their products don’t fit into traditional distribution channels.
This is exactly why this industry started back in the 1930’s with the company that became Nutrilite. Like many nutraceutical products today, back then Nutrilite’s product, a food supplement containing all the essential vitamins and minerals, required a great deal of customer education.
This need creates the opportunity for savvy network marketers to create their own information products or use relevant affiliate products and add them into their product mix. Because it takes time to go through the primary product details and explain the benefits of these new products to potential customers an information product that does this automatically and consistently facilitates the process and enables the network marketer to be much more productive.
The benefits to the industry will be enormous. No longer will it be dominated by overzealous or desperate people trying to constantly close the sale. Rather the multi-income-stream generating network marketer will be focused on providing quality information in their chosen field and working with those prospects that show the most promise to build their business.
The control of their list of prospects and members is the key to the new network marketer’s independence. By having their prospect join their own list prior to joining their primary business the new network marketer will be able to promote whatever they like to their prospect. Should the company have problems then this strategy also protects the network marketer from losing everything. They will be able to simply find a better company and swap his whole downline into it.
What we are seeing is a shift in power through the network marketer’s control of the list being enabled by the use of the internet and a widespread understanding of what’s possible for the little guy or gal.

If you are a newbie, expect there to be a sharp learning curve when you first launch your network marketing business. Unfortunately, their is TONS of bad information about the steps one should take to succeed. This article will reduce your learning curve by helping you avoid 3 wallet draining mlm strategies.

Bogus strategy#1- Buying network marketing leads

Hands down, buying leads from a lead company will melt down your credit card the quickest! Most lead companies come perilously close to fraud with the leads they provide. Typically, the leads have been sold to several people, regardless of how they are advertised. It is not unusual to reach a lead on the phone, only to find out that they have been called by several other people the very same day!!

Leads can be expensive, too. Expect to pay from 3.00-11.00 a lead! The more expensive the lead, the more “qualified” the prospect. Or so you are led to believe. Many individuals who are called “leads”, simply provided contact information in exchange for some kind of free offer. They frequently have no interest in a network marketing business.

Bogus strategy#2- Joining an “Aussie 2 up” network marketing company

“Aussie 2-up” companies require individuals to pass up their 1st two sales to their sponsors. Many of these companies provide relatively costly products or services. The commissions can be quite attractive, which is the “siren’s song”presented to potential distributors. Common sense tells you that as the price tag of an opportunity increases, the number of qualified buyers decreases. Additionally, more advanced selling skills are required to close prospects being presented a higher priced opportunity. Many unsuspecting folks get involved with these companies, and simply lack the skill sets required for success. Another draw back to many of these companies, is that after a sponsor recieves the 2 required sales from a new recruit, their is little incentive to continue training the person. In fact, they become the competition!

Bogus Strategy#3- Placing classified ads in newspapersOnce upon a time, classified ads for network marketing opportunities were quite common. With the popularity of the Internet, and the social networks, you see network marketing opportunities advertised in the newspaper classifeds far less frequently. Classifed ads are more expensive than ever, and one can spend a signifficant amount of cash before finding even one qualified prospect! Most newspapers lack a “network marketing” category for classifed ads. Typically, the most appropriate available category is “business opportunities, or “home based business.” Unfortunately, many individuals reading ads in these categories are NOT interested in network marketing.

Hopefully, the information provided regarding these questionable strategies will help keep some money in your wallet. Believe me when I tell you that their are MANY companies/individuals in the market place that are more than happy to remove your hard earned cash.

If you’re running your own business out of your home which includes MLM companies, Network Marketing companies, Direct Sales companies or any type of employment where you are deemed self- employed, then it is your duty to be current on Internal Revenue Service, IRS, rules and codes that apply to the self employed.

The following is a brief summary of what you should know and what you really need to know regarding the IRS and how it views the MLM - Network Marketing – Direct Sales industry. Network Marketing has long been recognized as an extremely important industry by the IRS. In the year 1982, the IRS specifically recognized the independent contractor status of direct sellers. Subsequently, the IRS issued a number of materials addressing the issues of self-employment workers and home-based businesses. The IRS specifically addresses the issues of network marketers in IRS Publications 911. Please refer to the Tax Guide for MLM and Direct SellingMLM Reps, Network Marketing Associates and Direct Sales Distributors: Here are some very interesting facts that will give you a much more broad perspective on this industry.

Here are the top five reasons that people join MLM - network marketing companies:

In summary, be certain to hire a tax preparer or accountant that is well versed in the updated rules and codes of the IRS that are related to Direct Selling which includes most MLM and Network Marketing Companies.If you are serious about growing your home based business, and are serious about securing a future for both you and your family, check out some more great free information at http://www.FreeMLMsuccessReport.comThank You, Jane QuadeHome Business Specialist