December 29, 2008

What is the flow in the Network makreting ?

NELSON asked:

Any idea about Quest International selling Gold coin through network marketing ?

Filed under Other - Advertising & Marketing by Peter

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Comments on What is the flow in the Network makreting ? »

December 31, 2008

BrownBagParty.com @ 12:20 am

Network Marketing (multi-level marketing or MLM) is based on one of 2 premises

1) that enough profit lies in each product in order to support the comp plan
2) the requirements to get paid out are too high for the average person that the company reaps the benefits

I run a network marketing company and it’s extremely difficult to develop a healthy comp plan to encourage people to stay and grow a business AND have enough profit in the products to support the healthy comp plan.

However, it can be done in one of two ways, with HUGE profits from products like the nutritional “health & wellness” industry(do you really think Coral Calcium costs $40/bottle?)
OR
Devise a comp plan that creates proper behaviors and delivers enough profit for the operations of the Corporate office to cover it’s overhead and pay out it’s distributors. This is generally done by very small margins on the products but with extremely high volume sales.

When you look at Gold, it’s too expensive with extremely small margins to put into a Network Marketing structure. Unless the gold is in the form of collectible coins (limited editions), gold alone could not support such a plan.

If the coins are considered collectible, move with caution as many companies flood the marketplace with “gold collectible coins”. Who collects them? Is the company creating it’s own collectors in the form of distributors? What % of your monthly income is from product sales vs. downline commissions and recruitment?

If the company is more focused on recruiting all the time and offers very little support for sales, it’s probably a true “pyramid” or Ponzi Scheme. If more money is given for recruiting than sales, you may want to walk away.

January 2, 2009

www.scimprints.com Greg @ 11:26 am

This website explains the matrix of MLM Network Marketing

Most matrix marketing solutions, network marketing or mlm programs build a down line exponentially that will pay a residual income .

The Quest International grossly overcharges for coins and require you to purchase a coin or you to sell one. Down payment $400 then payments over a course of a year. Then you receive a commission.

The actual cost of the coin ranges from $10 to $45.

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