In my opinion an honest legitimate Multilevel Marketing company has to have products or services that are marketed to people outside of the business. If the only volume created by the company is to distributors than you have a dog. If you see a company that says by product snake oil for $29.95 a month an sponsor your friends to by snake oil then run away. There reason it is being sold this way is because the company knows that no one would by the crap unless there was some get rich quick ponzi scam involved.
Why do I say that? Because the simple reality is that people will take the path of least resistance. This means more people will be willing to buy a product from you at full retail than become a multilevel marketing distributor. With that simple reality in mind why would you want to limit your volume as a company by making it mandatory to get into the multilevel marketing business to buy the product? The answer is that either you are completely clueless about multilevel marketing or they are marketing overpriced crap that no one would buy in a store.
As a Multilevel Marketing business person why would you want to limit your earning potential by limiting your personal or group volume. If there is no retail sales then all your money is from people you sponsor into the business. If there volume is limited to each member purchasing $30.00 a month of product X then how much money will you make. Lets say that you get 10% of your front line distributors. You would need to sponsor 10 people just to cover your $30.00 a month purchase ($30 X 10% = $3.00 X 10 = $30.00) now lets say those 10 people each sponsored 10 people and level 2 also paid out 10%. LOL good luck. Now you have 110 people paying out $3.00 ea. You would make a whopping $330.00 a month and killed your self to get there.
Now lets look at a $30.00 product that wholesales at $25.00 you can sell the product to people outside the network and make $5.00 ea. Lets say you sponsored no one at first but sold 10 bottles of product X. You would make $50.00 almost as much as sponsoring 10 front line people. Now lets say you now sponsor 10 front line people and teach them to do what you just did. Now lets look at your income. You would still make $50.00 a month retail profit as would each of the ten but you would also make a much bigger bonus. (10 Distributors selling 10 products each is 100 products. 100 products at $25.00 wholesale price is $2,500.00 volume. $2,500.00 X 10% = $250.00 bonus + $50 retail profit is $300.00. Now compare that $30.00 you would have made by everyone just using the product.
Without retail products the only way to make money is to recruit and not everyone is successful at doing that at least on a large scale. This means the little guy makes nothing and will soon stop buying product X and the company goes out of business. If the company has legitimate products and services that real people outside the network will buy then even the little guy can make money and there is a higher likelihood they will stay in and continue to create volume.
Why do I say that? Because the simple reality is that people will take the path of least resistance. This means more people will be willing to buy a product from you at full retail than become a multilevel marketing distributor. With that simple reality in mind why would you want to limit your volume as a company by making it mandatory to get into the multilevel marketing business to buy the product? The answer is that either you are completely clueless about multilevel marketing or they are marketing overpriced crap that no one would buy in a store.
As a Multilevel Marketing business person why would you want to limit your earning potential by limiting your personal or group volume. If there is no retail sales then all your money is from people you sponsor into the business. If there volume is limited to each member purchasing $30.00 a month of product X then how much money will you make. Lets say that you get 10% of your front line distributors. You would need to sponsor 10 people just to cover your $30.00 a month purchase ($30 X 10% = $3.00 X 10 = $30.00) now lets say those 10 people each sponsored 10 people and level 2 also paid out 10%. LOL good luck. Now you have 110 people paying out $3.00 ea. You would make a whopping $330.00 a month and killed your self to get there.
Now lets look at a $30.00 product that wholesales at $25.00 you can sell the product to people outside the network and make $5.00 ea. Lets say you sponsored no one at first but sold 10 bottles of product X. You would make $50.00 almost as much as sponsoring 10 front line people. Now lets say you now sponsor 10 front line people and teach them to do what you just did. Now lets look at your income. You would still make $50.00 a month retail profit as would each of the ten but you would also make a much bigger bonus. (10 Distributors selling 10 products each is 100 products. 100 products at $25.00 wholesale price is $2,500.00 volume. $2,500.00 X 10% = $250.00 bonus + $50 retail profit is $300.00. Now compare that $30.00 you would have made by everyone just using the product.
Without retail products the only way to make money is to recruit and not everyone is successful at doing that at least on a large scale. This means the little guy makes nothing and will soon stop buying product X and the company goes out of business. If the company has legitimate products and services that real people outside the network will buy then even the little guy can make money and there is a higher likelihood they will stay in and continue to create volume.
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