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
06/09/2006
New Network Marketing Companies: You Can Predict the Future
Investigating a new Network Marketing company before joining can save you years of failure and frustration.
A major, controversial issue of joining a new multi-level company is the future of this company. Many network marketers like to join a company when it is a new, or start-up, company because they believe that they will enjoy bigger paychecks if they join early. However, these companies have three possible futures, and network marketers, with a little investigation, should be able to easily predict which future awaits any given company.
1. Out of business companies.
Statistically speaking, about 90% of network marketing companies end up filing bankruptcy, and the dreams and hard work of early network marketers disappear with them. Companies bound for bankruptcy are easy to spot: usually, company leaders have no experience in the network marketing industry and its requirements for success. It is very simple to investigate nowadays anyone using the internet search engines; network marketers can simply go to www.google.com, and search the names of the founders and leaders of these companies. If they are unable to find any information about them then it is easy to conclude that those leaders are experimenting with their time and money. Seeking independent third party opinions is a must.
2. Transform to direct sales companies.
Many of these companies start with a multilevel marketing plan because they lack the budget for national marketing. Those companies have the intention from the beginning to transform their structure from network marketing to direct sales after building their customer bases. Distributors are left, again, with their dreams in the air. These companies are also easily identified: their leadership has no network marketing experience and therefore no loyalty for the network marketing industry. While they actually state their intentions very obviously in their policies and procedures, naive network marketers usually join without thoroughly investigating the proclaimed opportunity they are joining. Those intentions are easily spotted simply by reading and analyzing cautiously the company policies and procedures. Most of the time, it is easy to spot obvious statements such as, “the company has the right to eliminate the compensation plan anytime.”
3. Prosperous, long-lasting companies.
New companies can become worldwide companies. You can predict such a future for a company again by checking on the leadership and the founders of the company. Founders of such companies usually have extensive experience in the industry; they have been distributors themselves for most of their lives and are known to have a high level of integrity. Many of them are well known trainers in the industry. Obviously, the policies and procedures are very simple and straight forward without any hidden or suspicious statements.
Joining a new network marketing company may not be the ideal, but with some basic investigation of the leaders and by reading and analyzing the company policies and procedures before joining, network marketers can avoid years of failure and frustration.
Nabil Khoury, MD is a medical doctor and an entrepreneur.
He likes helping people with their health and wealth.
Visit his website for generic practical network marketing tips
http://www.residualincomebusinessopportunity.net/
04:54 Posted in Network Marketing Companies | Permalink | Comments (0) | Trackbacks (0) | Email this | Tags: network marketing companies, network marketing, mlm
04/24/2006
Arbonne International
Arbonne International: Why I stopped building my Arbonne business and never looked back and what you can learn from my experience.
Facts:
Arbonne is an MLM Network Marketing Company
Arbonne is a legal company and not a MLM scam
Arbonne was the first MLM company I got involved with and I took it seriously.
I was so passionate about their products because I experienced the change in my skin and saw how it helped others. The products are fabulous! I loved their product and I believed in the Arbonne dream.
I make some money initially and build a down line.
So, what was wrong with this company and why did I left it and never look back?
Hung out to dry
1) No marketing system. They did not teach you any marketing tactics or on line marketing. The only way of doing the business was through home parties and your warm market. I did acquire skills afterwards but I refuse to market Arbonne and this is why:
Snake bite...Ouch
2) I read their policies and procedures and found poisons business relationship, it says “You may terminate your relationship with Arbonne at any time by providing a signed written notice to Arbonne. Arbonne may also terminate the relationship with you (including any partnerships, corporations or other entity) at any time by providing written notice. You or Arbonne are not required to have any reason, nor do you or Arbonne have to claim or prove any cause to terminate this relationship. If and when the relationship is terminated, you shall have no claim against Arbonne nor any right to claim or collect lost profits, lost opportunities or any other damages. Termination will result in the loss of all benefits as an Arbonne Independent Consultant.”
Did you get that? They can terminate you any time without a reason!
Ouch!
The prove is in the pudding
3) I was told from my Arbonne up line that we have a great compensation plan. My experience with the compensation plan which was sooo great was that my team broke away from me! It is called a stair step break away plan. Most mlm companies used breakaways in their compensation plans to trick you so they look like they have a good comp plan.
So, obviously I did not want to get anyone in this company anymore because I want to get my team in a good company that offers them a future.
Zero to hero in less than 90 seconds...
4) Hype: Their training, literature and conference calls were great when it came to selling folks a dream. The dream of making huge amount of money and driving a white mercedes benz. The dream of financial freedom and quitting your job to say home with your family. The dream of taking family vacations every year sponsored by Arbonne. Great dreams! According toArbonne, folks were achieving this in a relatively short time. But no one would tell you how they did it. They did not do it by go putting flyers from door to door I will tell you that!
Selling a dream...Now I call it hype... hot air....because without tangible tools that average part time people and do and can earn a fair percentage, it is hype in my book.
Deer in the headlight and eyes wide open
5) I attended Arbonne National Conference one year. The speaker asked all RVP's to stand.
As with any MLM company there are titles that are given to folks who have achieved a certain level in their business. An RVP is close to the top. Below the RVP's are the area manager than the district manager and lastly a consultant.
So when the speaker asked all RVP's to stand, a small group of folks stood in a room of about 6,000 folks. Great! Than the speaker asked all area manager to stand, a larger group of folks stood up. Next the speaker asked all District Manager to stand and lo and behold most of the room stood up.
That is when my eyes opened up. ...only a few are making it big. My friend whispered “we are the little fish feeding the big fish on stage.” That statement stayed with me. Why are all these people having such a hard time building their business? I searched for answers and found them.
Want help?
If you want to learn how to pick an MLM Network Marketing Company that doesn’t rip you off or if you want answers like I did, you can call me anytime and I can share with you what I have learned.
Get educated before you join Arbonne International or any other Network Marketing Company. You do not want to get stuck with lots of products you can not use or sell in a short time.
Make wise choices. I recommend you read Success in 10 steps before joining Arbonne International.
All the best,
Monica
06:04 Posted in Network Marketing Companies | Permalink | Comments (5) | Email this | Tags: Business Opportunity