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Originally Posted by cvn69
Thank you for your input Mary. What I do know about the comp plan is this. I can get 40% of the retail price when I sell the products to a retail customer. If I sign someone up for a 50.00 annual fee they get 20% off of retail and I would make 20% of retail also. Now if someone wanted to pursue Advocare as a business I would get a 7% override of their sales to start with up to 26% with a significant downline. My problem is that I don't think that I want to talk anyone into doing a business just to be succesful. Is that the way MLM's work?
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In most MLM companies, there are two ways for you to make money - by getting cutomers yourself or by finding people who will get customers. You will make money from both types. Unless someone tells me flat out in the beginning that they want to be involved as a business, then I talk to them about being just a customer at first. If they enjoy the product and see the opportunity itself as being something that they could do, then perhaps they will be interested in joining you and you would then begin to benefit from the customers that they acquire.
In most MLM companies, you will certainly do better if you have both customers and business partners in your organization, since the idea of MLM is based on many people doing a little bit of work versus one person doing a whole lot of people - it's a matter of spreading out the effort of finding and acquiring customers. In order for that to happen, your prospects need to see that the business is one that they CAN do and that you will be able to show them how to do it successfully. Unfortunately, this is where a lot of people don't succeed in MLM - they don't know how to build their own business and thus cannot show another person how to it either.
The basis of being successful in a business, whether it is MLM or a more traditional business, is building relationships with the people with whom you seek to do business. People are more likely to do business with those they know, like and trust, so the key is to build those relationships carefully. There is a free ebook available by clicking on the link in my signature line that can help give you a better idea of how MLM companies work in general that goes into a lot more depth than I can here, so you may want to take a look at that - it's a generic book and has lots of really good info.
-Mary
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