Founder of AdvancingWithUs.com
|MLM or Network
Part of the series Melaleuca Vs Multilevel Marketing
There is a tone of literature written about multilevel marketing, also known as MLM. In despite of all, the MLM business can be boiled down to very simple terms and facts.
The MLM scheme is based on distributors that need to buy inventories from the MLM Company in order to sell them, make a profit or at least to buy products to points. Now, the tricky part is that usually those products are difficult to sell because at the end of the day they do not offer a real differentiator like price or a patented product thus, you as a distributor end up selling more of the same with no real advantage and that translates into a very low re-order rate. If the reorder rate is low or basically non-consistent in time then, the only way to make money is by recruiting new distributors who in turn will have to buy inventory and the cycle feeds itself with a figure very close to a pyramid or a Ponzi scheme. Sadly, the low end distributors end up overstocked and losing money. Only those that started early rip all the benefits on the late entries account. The similarity with a pyramid scheme is so close that MLM is being almost banned from countries like China, Vietnam, Korea, India, Bahrain, etc. Other countries have a very queen eye on the business in order to protect members and consumers.
We already mentioned that the MLM products really do not offer any competitive advantage to the distributor. First of all, the typical MLM product is more expensive than a regular product you will find in your nearby store and in most cases they lack quality. The product relay on sensational lines usually backed up by celebrities or gurus. But clients are not blind. They know immediately what they got into and chances of a re-order become slim to none. The distributor finds him/herself in a very awkward position with no way out but to continue recruiting new distributors in order to make ends meet.
A bad situation does not last forever and at the end most of the MLM company close for lack of clients, leaving the last distributors who entered the system with loses they cannot afford. In fact the life span of those companies is typically 5 to 10 years.
Bottom line: MLM companies rarely care about distributors and consumers; the only thing they care about is money.
If the purpose is to reach consumers with a superior product with an unbeatable price then, fortunately, there is always a different and better way to do things.
There is a company that runs under a registered business model called “consumer direct marketing”. The client buys directly from the producer. The producer delivers and collects the money. No one else stands between the producer and the customer. There is no third party; only Melaleuca. That is the name of the company running under this simple model: A model that is built on simple principles: satisfaction of the client, client’s wellness and environmental conscience.
As a member of the company you do not have to buy inventory; you only buy what you need. Your main focus as a member of the team is to reach as many consumers as possible and show them the advantages of buying the products. As previously mentioned, just by eliminating intermediaries the consumer obtains a better price but more importantly, Melaleuca products are of superior quality because they are developed by world-class scientists who know their mission is the same as the company’s. This translates in more than 360 consumer products, most of them holding a patent and a more than 23 years of proven track record. Sales have topped 1.2 billion dollars in 2015 and the retention rate stands at a whopping 94%. That means that 94% of the clients are repeating the orders month after month. That is impressive to say the least. Learn more about Melaleuca and how you can change your future and the wellbeing of all around you. Visit us at melaleuca.com
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