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06/24/2007
Network Marketing Biz Model
Steam line business model makes a difference to distributors in Network Marketing. Your success depends on the structure of your company. Here is why. If your company is top heavy that leaves little room for them to pass on monies to the distributors.
When a company has 100's of employees, they must pay their salary, pay for their health insurance, pay for cleaning, pay for someone to cut the grass and wash the windows... maybe the company has a jet or a fancy car. Do you use the company building, what about the company car or jet?
Can you see why the company MUST charge so much for their products?
Let me give you an example: All things equal, would you agree with me, the cost of the ingredients to make Vitamins is within pennies of each other?
Company A has a 30 day supply of Vitamins for $119
Company B has a 30 day supply of Vitamins for $108
Company C has a 30 day supply of Vitamins for $39.95
Who do you think can sell more Vitamins? Company A, B or C?
Who do you think Company A and B sell their products to? Their distributors.
Who in their right mind would pay $119 for a 30 day supply of Vitamins!... only the people who have to buy them to get a check.
What behavior does this create? Recruit, recruit, recruit.
Where does the money go?
*Could it be that companies that have high price products need the money to keep the ship a float?
*Could it be that companies need the money to pay salary for a large staff, huge building and gold plated door knobs?
*Could it be if companies were streamlined they could keep their prices down and give the money to their distributors?
Some companies have indeed created a monster that needs to be fed. Unfortunately, it affects the distributors’ pocket book.
You don't know what you don't know when you first join an MLM company. But now you understand and have correct information to make better choices.
Yours to count on,
Monica
503.351.6859
16:44 Posted in Network Marketing Companies | Permalink | Comments (0) | Email this | Tags: MLM, network marketing training, netowrk marketing business mode