MLM companies — appearances can be deceiving

posted in: MLM, network marketing | 2

Sometimes impressive stuff gives the wrong impression.

Some network marketing companies go out of their way to show prospects plush offices with expensive furniture and corporate jets for well-paid company executives. I suppose the company wants to come off as upscale, a place for the ultra-wealthy.

But instead distributors should realize that money spent for such extravagance is money that could be going into the compensation plan.

In the early days of network marketing, it wasn’t unusual for companies to keep as much as 60 to 70 percent of the profits with the rest going to distributors. Later, companies working hard to attract new distributors made the division nearly equal.

Now some companies have found ways to make their operations even more efficient, passing on as much as 70 percent to the reps.

The end result is that distributors get a bigger slice of the profit pie and have to recruit fewer into their downlines to find success.

In addition, part-time distributors make money faster, increasing retention.

Private jets and lush offices are nice, but it’s better if they belong to distributors, not company executives.

Steve DeVane

2 Responses

  1. Susan/Unique Business Opportunity

    You make a very good point Steve. I have no problem with the founders and executives at the making huge money and having huge toys as long as there are distributors reaping similar benefits. I am not a fan having the executives flaunt their wealth however.

  2. SteveDeVane

    Susan,

    I agree. There are some company executives who are well worth their salaries, but the bulk of the money should go to the distributors.

    Thanks for the comment.

    Steve

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