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Table of Contents
Down the Rabbit Hole 5
Pros and Cons of Accumulation 7
Buying Position 9
Caution: Front Loading and their Dangers 11
The Dreaded Demotion 13
Push-up: Taking the Short Cut 15
Turning Maintenance into Profit 17
Other Factors to Consider 20
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Choose products that are easy to move. In other words, if I were to come in at a high- entry level, I would select products that are very easy to retail. There are people who treat all their initial purchases when they join as an investment and neglect selecting the right products. There are some who even buy all the high-ticket products only. There is nothing wrong with doing this. Just bear in mind that in order to operate a business, you need cash flow. Retailing products give you easy cash flow and less financial pressure. You can also choose products that come in packages because they are usually cheaper to buy in a set and you can retail those products separately and get more profit.
Starting your Own Company
Emphasis on buying position is acceptable as long as the products that come with it are reasonably priced and it matches the demand in the market. As I had mentioned before, there are many unscrupulous companies who distribute useless products. A good way to give more value for people is to include better selection of products in the form of packages so that they pay the same relative value and have more products to use.
A good way to generate more sales is through converting your preferred customers into distributors by offering them the same incentive of a preferred customer with an accumulation system that allows them to buy cheaper the more they consume: just like a loyalty program.
Caution: Front Loading and their Dangers
I especially wish to highlight the dangers of front loading in a separate chapter in relation to the 2 topics above because through proper understanding of these features in the marketing plan will prevent people from losing money in the network marketing industry.
Front loading or inventory loading is more of a business maneuver where a distributor decides to buy lots of products in an effort to meet his quota or target faster and even buy his way up the ranking system (not usually at the entry level of the business).
Front loading can also occur when new distributors buy positions especially those at a medium to higher level. I have personally seen people invest more than $100,000 in buying products when joining a network marketing company.
More than they would like to admit, they are more interested in climbing the ranking and not as interested in using or selling all those products. Their decision in purchasing those products is purely to be in a more strategic business position (higher rank means better income) and most of the time, those products sit in their store rooms or under their beds.
I would like to stress that there is no crime or unethical actions in doing this.
However, the danger is that many people fail to control their finances properly and that leads to financial struggles and ill feelings towards their company and their upline.
Furthermore, many people new in this industry make the serious error after they buy up their position. They sit around thinking that their „investment‟ will grow. This kind of thinking is extremely wrong because after you have bought your position, you are not making any income (in fact people who build their network the „slower‟ way has a more stable income than you) and you should work even harder to build your network since you have spent more money than before.
In the end of the day, network marketing requires a good business mindset in order to succeed. Being able to plan your finances is one thing.
Just like people in the real world, they work very hard to make a living promising to buy gifts and vacations for their families but only winds up putting more hours into their work; in network marketing many distributors tend to spend their hard earned money buying up more positions, volume, or tracking centers so they can earn more in the future, at the same time neglecting their families. Striking a balance is very important.
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- Year Released/Circulated: 2022
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