MLM Duplication - Retailing Versus Recruiting
by Samson Itoje
MLM duplication refers to the process whereby distributors for mlm companies recruit other potential distributors for the mlm company they represent and then train them to become active distributors for the company.
An mlm distributor is considered to be consistently active if he purchases the minimum re-order quantity, called autoship, month after month.
The sponsor who enrolled the distributor already does this himself. Now he has recruited other people to do exactly the same thing.
In effect, he has duplicated himself. And the more he duplicates himself, the more money he makes from the mlm company he represents.
Network Marketing Duplication Example
Suppose Mr. John is a distributor for an mlm company that require affiliates or distributors to purchase a minimum of 1-pack of product from the company every month to maintain their ACTIVE distributor status.
Suppose also that Mr. John recruits 10 distributors into his sales organization and the 10 distributors each recruit 5 people who, in turn, recruit 5 people each and they each buy one pack of product per month.
Mr. John's team will look like this:
Level 1: 10 people
Level 2: 50 people
Level 3: 250 peopleTotal team members
= 10 + 50 + 250 = 310
In this case, the company would pay Mr. John bonus based on the 310 packs purchased by his team.
Note that Mr. John is himself a distributor. And he purchases 1-pack of product per month to maintain his active distributor status like every other distributor with the company.
However, by searching for people who are passionate about starting an independent distributor business or people interested in earning extra income, he ends up building a team of loyal distributors who will buy the product direct from the company every month.
This is almost like having a measure of guaranteed sales volume every month by having loyal distributors enrolled into his team.
Bottom line.MLM recruiting enables network marketers or mlm company distributors duplicate their sales effort by finding people who have the same interest and passion just like them.
So, if Mr. John builds a team of 10,000 loyal distributors, he gets paid on sales of 10,000 packs of the company’s products even though he personally purchased (or sold) only 1-pack during the entire month.
In summary . . . mlm distributors earn the most money by recruiting new distributors into their team and coaching them to become better recruiters than the person who enrolled them.
MLM Retailing – Get Customers Too!
Recruiting new team members or downlines is one way affiliates of network marketing companies earn money.
A second way they earn money is by retailing the products of the mlm company they represent.
You see, mlm company distributors buy products from the company at distributor price and sell to customers at retail price. The difference between the distributor price and retail price is called retail profit.
You may wonder, “why bother to retail products when you actually build serious residue income and make more money by focusing on recruiting?”
The reason is this . . . mlm companies that train their distributors to focus only on recruiting can end up being branded as illegal pyramid scheme by the Federal Trade Commission (FTC).The rule is that a network marketing company must have customers who buy the product because the product is valuable to them and not simply because they want to receive financial reward from the company.
A multi-level marketing company must meet the prescribed ratio of distributors to customers to be considered a legitimate network marketing company by the FTC.
Consequently, many network marketing companies develop their compensation plans with incentives that encourage their distributors to go beyond recruiting new distributors alone and actually do some form of retailing.
MLM Duplication Is The Key To
Unlimited MLM Wealth!
There is no doubt about it . . . mlm duplication through recruiting new distributors for the mlm company you represent is the key to unlimited mlm wealth.
So, if you’re an affiliate for a network marketing company, be sure to have great plans for recruiting new distributors into your team.
Build a massive team of distributors and earn residue income month after month from the purchases of those distributors from the company.
One more thing.
Remember that there is a finite number of people on the planet.
So, be careful when selecting a company to join. And make sure you join a company that requires a small number of personally enrolled distributors to qualify for all the bonuses available in the compensation plan
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