4-2: Network Marketing Model of the Future
The New Network Marketing Model
The new Network Marketing Company Model is a Streamlined Company.
What the heck is that? Michael Dell started Dell Computers from his dorm & took on the giant, IBM. That was definitely a Streamlined Model. No expensive overhead, just a dorm room. The Streamlined model is revolutionizing the Network Marketing Industry.
Today’s Typical Network Marketing Company Model
Most existing Network Marketing Companies are modeled after Traditional Corporations. This happened mainly because that was the model we knew. We are living in a different time. Technology has changed. The Old Network Marketing Company Model is definitely not Streamlined.
Let’s look at a typical non-Streamlined Network Marketing Company prevalent today:
§ Large buildings in high Real Estate areas
§ Many salaried Employees.
§ Corporate vehicles & some even have Corporate jets
§ Paid Celebrities to endorse their product
As the non–Streamlined Company grows & revenues increase, they typically add more overhead. This expensive overhead must be paid for out of the incoming revenues before Distributors get paid. It also contributes to higher costs for the products.
In the above graph, the area between the Sales Curve & the Spending Curve is what is available to pay Distributors. As the Companies revenues increase, the Commissions that the Company can pay Distributors remains relatively constant.
Let’s Look at a Streamlined Network Marketing Company
With today’s technology, a much smaller staff is required & many can just as effectively work from home part of the time. Michael Dell proved this when he started Dell from his college dorm & took on IBM. Dell used technology instead of a large Overhead like the Corporate Model. When the products/services are of high quality & value priced, the Company has little incentive to pay Celebrities to endorse their products/services. Corporate Automobiles & Corporate Jets are no longer considered a legitimate use of the Company’s revenues.
In the above graph, the area between the Sales Curve & the Spending Curve is what is available to pay Distributors. As the Companies revenues increase, the Commissions that the Company can pay Distributors increased exponentially.
The benefits of a Streamlined Company are two-fold:
1. Value priced products that are more attractive to the end Consumer, whether a Customer or Distributor. Non-Streamlined Companies are forced to charge higher prices to cover their ever increasing Overhead.
2. Higher Commissions to Distributors. Also when the part-time Distributors are making money, retention is higher & fewer Distributors need to be replaced each month. It’s a win-win for all: Customers, seasoned Distributors, & newbie Distributors.
Most Network Marketers will see the advantages of being aligned with a Streamlined Company. The non-Streamlined Network Marketing Companies will be less able to compete because of their higher priced products & lower commissions paid to their Distributors. Most Network Marketers will choose to leave a non-Streamlined Company to join a Streamlined Company.
Here’s the Good News for Entrepreneurs
There is a Network Marketing Company that developed the Streamlined Company model. This Streamlined Company and their Distributors are Real Partners. This Company was founded 7 years ago by on one the most respected Leaders in all of Network Marketing. The dream is to create a model where part time Network Marketers can earn an acceptable income quickly. With the current non-Streamlined Model, 97% of Network Marketers do not make enough to cover their monthly Autoship.
This Streamlined Company has given their Distributors increases in pay at least 4 times in the last 5 years. The latest enhancement to their Compensation Plan was announced in January 2010.
If you are an Entrepreneur who wishes to ensure your financial future, give me a call. Please include:
§ Your contact information, including your mailing address.
§ And 50 words or less why you are interested in checking out this Streamlined Company.
I will be able to work with a limited number of people.
Wilma Woodson
303.322.8340
WilmaWoodson@gmail.com