Friday, June 7, 2013











FOR MLM COMPANY…YOU ARE THE MEAL TICKET!

Q. My daughter-in-law has just signed up to sell H_ _ _ _ _ _ _ _ _ _ (multi-level marketing) line of vitamins. What do you think of these brands that are sold this way? Are they as good as the brands I see in the stores?
Kerry L


A. Most of the brands that are marketed and sold through multi-level marketing (MLM) companies are usually excellent quality. It’s too bad that this quality is irrelevant due to the business structure. I’ll mention several areas where MLM companies may cause frustration.

The first thing to keep in mind is the way it is sold. In a neighborhood store and even web site, your customers are in need of something specific, THEY come to you. In a multi-level marketing business YOU have to go out and find the customers. The pyramid or multi-level marketing business model teaches most of its members how to market and (in theory) grow their business by constantly trying to sell to their family, friends and work mates. In other words, everybody you know becomes a potential customer. I don't know about you, but these folks drive me nuts. I want you to see me as a friend or family member...not as a meal ticket.

The second problem I have with MLM businesses is the fact that your true motivation as a member is...not necessarily to understand and sell the product...but to sign up new members under your down-line. The product will sell only as members place personal orders. On the surface this seems ok, however time and energy spent learning product knowledge is sacrificed for “growing the down-line”.

Thirdly, the MLM’s wholesale (dealers cost) price to you…is not really wholesale or at cost. The MLM business structure has to support a higher distribution price. Therefore the product price they claim as “wholesale” is actually at full retail. Specials and close-out prices can happen but usually not with the frequency of actual retail stores.

Bottom line; MLM’s quality is usually very good. Their promises of “down-line” checks arriving in the mail are actually few and far between if ever a reality. The work and determination required to advance in an MLM company is usually far harder than most members realize.

AMV 


*Health Disclaimer: This information is not presented by a medical practitioner and is for educational and informational purposes only. The content is not intended to be a substitute for professional medical advice, diagnosis, or treatment.

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