Consumable Products

Autoship Is Mandatory For Long Term Residual Income in MLM

by Wayne Wu on February 28, 2010

in MLM Business Models & Legal

Autoship is a must!

Autoship is a must!

Whether you like it or not, you can’t have long term residual income, which is the big promise of MLM, without an autoship program. Long term residual income starts with autoship.The reason why autoship programs are so important is very simple. See, the vast majority of businesses make money from the small purchases of many customers.

Retail stores such as Walmart make their money from the small, regular purchases of their shoppers. Banks make a ton of money by charging you regular, hardly noticeable monthly fees. Utility companies, insurance companies, telecommunications companies all charge you by the month for their services. In fact, a business that relies on the custom of just one client is in a very risky situation.

Network marketing works exactly the same way, it is just a different form of distribution. In MLM, your money is not made from one hot shot who’s able to sell massive volumes of product. Your money is made by the regular, small efforts of your group of people. [click to continue…]

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Fat vs Skinny MLM Companies – How do they affect Distributors?

by Wayne Wu on November 23, 2009

in MLM Business Models & Legal

How much overhead does your MLM company have?How much money does your MLM company need to just to stay in business every month? Does it employ a large number of people all over the world? Does it operate its own farms and factories? Does it own large, beautiful buidlings? Does it sponsor sports stars, movies stars, football teams or baseball teams?

And why should this matter to you as a distributor? Because you, as a distributor, are paying for all of it. It comes out of the compensation plan. The more you have to pay for all of that “stuff”, the less you get back in commissions and bonuses. [click to continue…]

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What is “Breakage”? Every Network Marketer Needs to Know (Part I)

by Wayne Wu on November 20, 2009

in MLM Business Models & Legal

Breakage. Every Network Marketer needs to know about it.“Breakage” is money that’s kept by the MLM company that otherwise could have been given out to distributors in the field. A greedy company would try to create as much breakage in the compensation plan as possible.

Why should companies look after distributors and give out as much money as possible? Because MLM companies are nothing without their distributors. Bare that in mind as you read this…

In the world of network marketing, there’s front end breakage and there’s back end breakage or what’s commonly referred to as compensation plan breakage.

For this article, let’s take a look at front end breakage. Front end breakage is actually built into the business model and here’s how it works… [click to continue…]

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