Network Marketing and Other Stuff

When I talk to someone about a network marketing company being streamlined they don't always understand how much that affects the compensation plan. Let me explain...

As distributors we market products and create sales. That's how a network marketing company works. That's how a company makes money. Overhead is basically the company's bills. The difference between the amount of sales and the company's overhead is the money used to pay the commisions to the distributor.

A company's overhead consists of difference costs to run a company so the less money a company has to spend for overhead the more money is available to pay the distributor. Here's some examples of overhead costs:

• Production
• Research and Development
• Training Events
• A Huge Group of Customer Service Reps
• A Big Shiny Corproate Office
• A Jet for the Owner
• A Board of Directors and Their Offices

Ok, see where I'm going here. The first three points are necessary. 3 or 4 hundred customer service reps costs millions of dollars a month. Salaries, benefits, computers, a building, rent, utilities and so on.

A 3 million dollar building? How many distributors are actually going to go to check it out? 

Do you care if the owner has a million dollar jet?

Board of Directors? Too many chiefs with ridiculous salaries. (These are included in publically traded companies along with shareholders)

This money is coming out of your pocket. My company just gave us a raise-how cool is that?! That's what a streamlined company  can do.

To Your Success

Janet Napora

570-346-0596

Best MLM Resource Success in 10 Steps