Monthly Autoship For Network Marketing Business
by Samson Itoje
The number one monthly expense you will make in your business is the mandatory monthly purchase requirement for distributors popularly called autoship.
Ideally, you will buy the products at distributor price from the company and sell at retail price. The difference between the retail price and distributor price is your profit.
Nevertheless, not every distributor is able to sell their activation packs or monthly purchase from the company. Hence, many distributors end up with stock they cannot sell because most mlm products are not fast moving consumer goods that people pick up on the go.
In view of this, you must consider this cost when joining an mlm company.
Before you join any mlm company be sure to ask the question, “what is the monthly purchase requirement or mandatory autoship for distributors?”
Why is this important?
Simple. It may have a negative impact on your overall monthly expenses and could eventually cripple your business.
If mlm business success is important to you, you MUST be concerned about the monthly autoship cost before joining.
Autoship Scenarios – The Negative Impact of High Autoship On MLM Business
Consider these two companies and how the cost of autoship can impact the business of their distributors.
Company ABC has a mandatory monthly autoship requirement of one case of product. And the distributor price for one case of product is =N=15,000 (about $85 USD). Buying this monthly autoship in company ABC qualifies the distributor to earn re-order bonuses on the purchases of everyone below him in his sales organization. That is, bonus is paid to infinity.
Company XYZ has a monthly autoship of =N=45,000 (about $255 USD). Purchasing this monthly autoship in company XYZ qualifies the distributor to earn bonuses on re-orders up to 10 levels deep.
Imagine that Mr. John is a distributor for company ABC. In his first 12 months in the business, he will spend a total of =N=180,000 (about $1,022 USD) on autoship.
On the other hand, suppose Mr. Peter is a distributor for company XYZ. In his first 12 months with company XYZ he will spend =N=540,000 (about $3,068 USD) on autoship.
In simple words . . . Mr. Peter will spend three times more money on autoship per year!
STOP and THINK.
Who is likely to have cash constraints in their first year with the mlm company they represent?
Sure! Mr. Peter who is spending three times more on autoship!
Of course, Mr. Peter will have a better chance at network marketing business success if two-thirds of that money being spent on autoship is actually spent promoting his network marketing business.
If you really want network marketing success . . . if you want to turn profit on time and limit the risk of mlm business failure . . . choose a company that has a reasonable monthly autoship cost NOT an mlm company that forces you to buy huge amounts of products every month and deliberately increases your monthly expenses and risk of failure.
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