The Business Models DO Drive the Behavior in the Field
Sunday, February 21, 2010 at 03:42PM In network marketing, your business depends on marketing. Business Models really DO drive the behavior in the field. That's a given. Did you know that the Business Models drive the behavior of the representatives AND the customers and prospects?
Don't Join if the Company Atmosphere is Recruiting
Anywhere in the world a business sells products or services for a profit. If the company plan you're reviewing can't do that because people only earn money on recruiting people, IT'S just not right. Big trouble could happen with that type of Business Model.
Company Products
Let's talk about the company products. First of all, I think all network marketing companies have good products. Some companies have a retail and a wholesale price. The retail price is usually pretty high, and they try to get you to join so you can get the lower price. In fact, the retail is usually so high that people just won't buy it at that high of a price. This company is focusing on recruiting, recruiting, recruiting. Some people JUST want the products! They don't want to build a business. Look at the product cost...are they reasonable? If they're not reasonable, you could be setting yourself up for big-time failure in the business. You're at a competitive disadvantage. Run! Keep all of this in mind when you're looking at a company's Business Model.
Watch Out for a Company with High Overhead
All profit to pay your commissions come from the sale of a product. The difference between the cost of product, plus the overhead = the amount of commission that the business can pay to the field. Companies with huge overhead always have long policies and procedures. This is something to watch for. Read my articles on The Five Pillars. Find out about the building the company is in and how many employees they have answering the phone. You want to be looking at a more streamlined company. That way they will pay more money to the field. Less people=less overhead=more commissions to the distributors. Remember this: High overhead DEMANDS more product price.
The Business Model Truly Does Drive the Behavior in the Field ...
To Your Success,
Cindy Manoske
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