Sunday, June 21, 2009

MLM... continuation...


Hi all...

I think that I am obliged to explain to you more about multi level marketing. As you all know. it is always in a shape of a pyramid... always a pyramid... not a cube.. not a cylinder.. not a hexagon.. The top management will always get the most income. Hmmmm... Think about it...


Lets look at it this way...


Manufacturers, manufacture products and produce stuff needed by consumers... How do you think they supply this goods to the end consumers? They have distributors and suppliers right? How much profit margin do they gain? And... how much does consumers has to pay for the goods in order to cover all the profit margins for the suppliers? Distributors? Manufacturers?


Lets say... a body powder manufacturer sells a box of baby body powder for RM12. There is a dozen bottles of body powder in the box. A distributor buys 12 boxes for RM144+ lorry fuel+workers wages... How much will the distributor sell the body powder per box to a supplier? He/she might increase the price per box in order to cover the cost incurred during the time of transporting the product to the supplier. Then, the supplier transport the body powder to retailers and this time they increase the price a bit more to cover the cost of the process, same thing the distributor does... So, consumer won't be supprised when buying a bottle of body powder straight from the manufacturer for the price of RM1 per bottle, whilst from a retail store for the price of maybe RM5 per bottle. It is expected right?


So, lets get backk to MLM. What does all these has to do with MLM right? Let me explain... Remember when I say that MLM is a pyramid?


  • Guess who is on the tip of the pyramid? Good ;o) the manufacturer ;o)

  • Whose working so hard at the bottom of the pyramid? Good... the retailers, which is also known as the marketers... Is it easy to market? No right? You have to work hard!!!

  • Who is sitting comfortably below the manufacturer? Yes.. the distributors..

  • Below them?... yes.. the suppliers... Ever heard "regional distributors"? Hmmmm... makes you ponder right?

I'm not saying it is a bad thing... MLM is proven as a method that helped a lot of people to get income... Undeniably hard right? Imagine and think... If the company is established in 1980, how long has it been around? And... if you join the company, will you be on the tip of the pyramid? the middle section of the pyramid? or.... the bottom of the pyramid???? CNI, Hi-O, Avon, etc were established in the 80s... If you join recently... I mean within this 5 years period... where are you actually??? Think please...


If the MLM company is established in 2007... is there any chance for you to be on the top half of the pyramid? There's a chance right? Think about it...


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