Years ago, the president of the first NM company I was in had an audio every new recruit had to listen to. In it, he repeated over and over: This is NOT a buyer’s club. This is NOT a buyer’s club. I wondered then what that meant, and why it seemed to be such a big deal for him. But I think I understand now: he was looking for people who wanted to recruit and sell, not just buy the product wholesale.
Like most all MLM companies today however, this company’s income comes mostly from the regular, personal wholesale orders reps are required to make each month to stay qualified for bonuses and commissions. Whether they earn any or not.
A small percent comes from sales reps make – to new recruits and new customers.
So what does this mean for MLM and its business model? Is it a buyers club or a financial opportunity?
I’ll post the results in one week. Feb 7, 2009.