Network Marketing Company - Is Your Goal A Discount Or Profit?


by Brenda Bunney - Date: 2007-04-23 - Word Count: 530 Share This!

Why would a "distributor" begin their career with a network marketing company and expect the grand goal of their discount being the profit they will make? If you work for a traditional corporation, do you view the discount they offer on their products to their employees as part of their income? "Most distributors view what they can earn as a vitamin discount, not as a path to profits." -Fred Cooper Executive VP, USANA. Do you agree with the above quote off of one of Kim Klaver's blogs?

Walmart, JCPenny, Target and almost every large company in the world gives employee discounts. They are a benefit, but certainly cannot be viewed as compensation. While Joe has three kids and uses his company discount frequently, maybe Mary is high school student and rarely uses hers. It can't be included in the compensation fairly.

Do you consider an up-front MLM Company discount as part of your salary? When a company gives a very reachable upfront discount on their products, they are taking the first step of setting the business builder up for long-term failure in my opinion.

Do network-marketing distributors expect a product discount? Of course we expect the discount because that is how most MLM Companies operate. What is the problem?

The business model drives the behavior in the field. The plan many companies have in place for retail customers turned distributor in name only to receive 20%, 30% or 40% hurts the people who really want to make $10,000 per month and build a business for their children. The retail customer benefits, and the company definitely benefits with this option. The retail customer sells to others at their cost, but how do the business builder, especially the part-timer benefit? It is great for the customer, but it creates a saturated market of people buying wholesale for themselves and their friends and family causing the person who tries to make a profit appear greedy.

The network-marketing company needs to have a plan for people only wanting to be a retail customer and then a plan for building a business. The network-marketing company has 60% profit built in even if they are giving a 40% discount to a distributor.

In Advocare International's case, once you reach your sponsors same 40% discount level; the network-marketing company then pays the personal sponsor about 3%. That is a 37% cut in pay from the retail price and the network-marketing company is still making 57%. The network-marketing sponsor has to go recruit more customers to replace that income. If the new 40% off distributor is not a business builder and only purchases $200 per month for personal use and some family and friends use. The sponsor only makes about $6 per month on that person now. The winner….. Advocare International and many other network-marketing companies!

It is next to impossible for most network-marketing distributors to sell their product at a 40% profit to their family and friends. Most people will sell the product at their cost. Can you sell your Mother something for $10 when you paid $6? The network marketing industry must change and there are leaders working hard to recreate this industry and present it as the wonderful opportunity that it is.


Related Tags: network marketing company, mlm companies, usana, network marketing distributors, advocare international

Brenda Bunney is married with two children. She is a successful network marketer who believes anyone can be successful with the proper tools and mentoring. She enjoys helping others empower themselves with the network marketing skills they need to build a successful business.

http://MLMSuccessBunney.com

http://BrendaBunneyMLM.com

brendabunney@yahoo.com

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