Network Marketing is a business. It's a different business model than traditional business, paying commissions to distributors rather than wages to employees, or having a separate advertising budget. But it's still a business. The owners of any traditional business have to pay their employees in order to get them to do the necessary work that makes the business successful. If the employees don't get paid, they won't work. But the more the owners pay their employees, the less they make in corporate profits. So it's a balancing act. In a way, Network Marketing is no different.
Network Marketing company owners also have to pay their distributors to get them to promote the products and services they offer. But the more the owners pay out in commissions, the less they make in profit. The very fact that the owners profits are reduced by every commission paid, puts them at odds with their own distributors. Most Network Marketing companies have been started by business owners for profit. That's why the odds are purposely stacked against the average person succeeding.
A rock-solid Network Marketing opportunity in this harsh 2012 economy, the founders are paid through the compensation plan just like the distributors. This eliminates the need to "satisfy" corporate profits. Any changes that are made affect their income as well as the income of all distributors. When the founders make an update to the compensation plan to give themselves a "raise", everyone gets a raise! It levels the playing field considerably.
Think about that for a minute. The founders would also be your upline. They only succeed if you succeed. And if they want a raise, they have to to give you a raise! More importantly, if they do anything to reduce your pay, their own pay will go down as well. Imagine if the CEO of a Fortune 500 company got paid the same way as the assembly line workers. Do you think that might make a difference? That's the modern Network Marketing company paradigm.
Another trait of the modern Network Marketing company is very, very low monthly qualifications to earn commissions.
To qualify for monthly commissions in an ideal Network Marketing company, a distributor should only be required to purchase just ONE inexpensive consumable product monthly to qualify for the absolute maximum commissions possible through their compensation plan. The days of the $150 per month auto-ship are over and do not work long-term in this new down economy. Because the monthly qualifications would be so reasonable, the retention rate of distributors and customers would be extremely high. This would keep commissions flowing month after month with upward growth. To max out the compensation plan, no distributor should ever have to purchase more than ONE product. Period.
Network Marketing company owners also have to pay their distributors to get them to promote the products and services they offer. But the more the owners pay out in commissions, the less they make in profit. The very fact that the owners profits are reduced by every commission paid, puts them at odds with their own distributors. Most Network Marketing companies have been started by business owners for profit. That's why the odds are purposely stacked against the average person succeeding.
A rock-solid Network Marketing opportunity in this harsh 2012 economy, the founders are paid through the compensation plan just like the distributors. This eliminates the need to "satisfy" corporate profits. Any changes that are made affect their income as well as the income of all distributors. When the founders make an update to the compensation plan to give themselves a "raise", everyone gets a raise! It levels the playing field considerably.
Think about that for a minute. The founders would also be your upline. They only succeed if you succeed. And if they want a raise, they have to to give you a raise! More importantly, if they do anything to reduce your pay, their own pay will go down as well. Imagine if the CEO of a Fortune 500 company got paid the same way as the assembly line workers. Do you think that might make a difference? That's the modern Network Marketing company paradigm.
Another trait of the modern Network Marketing company is very, very low monthly qualifications to earn commissions.
To qualify for monthly commissions in an ideal Network Marketing company, a distributor should only be required to purchase just ONE inexpensive consumable product monthly to qualify for the absolute maximum commissions possible through their compensation plan. The days of the $150 per month auto-ship are over and do not work long-term in this new down economy. Because the monthly qualifications would be so reasonable, the retention rate of distributors and customers would be extremely high. This would keep commissions flowing month after month with upward growth. To max out the compensation plan, no distributor should ever have to purchase more than ONE product. Period.
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