MLM and Network Marketing - 4 Strategies for Immediate Success
By Vance Hallman
99% of all MLM and Network Marketing companies DO NOT manufacture their own products.
Think about all the MLM and Network Marketing opportunities you have seen or have somehow been involved. The origin of the product is usually hidden or its true origin is hidden from the distributors or affiliates promoting the products. The MLM company owners are the middle men. They either import, stock, or then distribute the product to their distributors who then pass it down the line or they buy from a master licensed distributor who themselves have set up the importing and distribution chain. Either way all of those transitional costs add up and have to be padded onto the final customers per unit price for the product. That's why most products from MLM or Network Marketing companies carry premium prices. They not only have to price in the commissions paid to the customer upline, the pricing also reflects the cost to manufacture, license, ship across the sea, truck to distribution center, then deliver to mlm company warehouse. This HIDDEN part of the MLM pricing model is usually 40% of the final consumer price. Now you know why it always seems that MLM and Network Marketing products are higher priced than off the shelf at your warehouse or grocery club store.
The best MLM commission payouts and ideal payout structures are the network marketing companies who own their own manufacturing plants. Think about it. NO MIDDLEMEN. If you can cut out the middleman (cost to manufacture, license, ship across the sea, truck to distribution center, then deliver to MLM company warehouse) then you can take that 40% cost and add it onto your MLM or Network Marketer's commission structure.
More Information
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment