Networkers: A Lack of Retail Sales Can Destroy Your MLM Business
by Debbi A. Ballard copyright, Debbi A. Ballard, 2010 All rights reserved worldwide.
Heed the following warning to networkers: a lack of retail sales can destroy your mlm business. Many networkers around the world have fallen prey to accepting misinformation concerning retail sales in an mlm business.
To succeed as a networker, you don’t have to actually retail any products. No one likes to sell and in your mlm business you can succeed without doing so.
This is the destructive message conveyed by some uninformed networkers to others.
You can just buy products each month for yourself and get others to buy for themselves and you’ll be just fine. The mlm compensation will come rolling in. Right?
No, that’s not right.
Just check with any reputable mlm attorney on the many mlm legal issues regarding retail sales and you’ll be set straight very quickly.
Regulators do not want to see networkers only buying products for their own personal use just to participate and receive bonuses from the mlm compensation plan in some way.
Buying products for your own personal use and having that volume credited towards your sales volume can be fine as long as you’re also creating sales to customers who are not participating in the mlm compensation plan.
Remember the following:
Creating retail sales to end consumers is the foundation for what legitimizes a network marketing company in the eyes of regulators.
If a review of an mlm company is done and it’s found that there are little to no retail sales made to those outside the network and that the sales are being made primarily through networkers purchasing for themselves to just receive some form of compensation on other networkers (who are also purchasing for themselves to receive compensation), then you and the mlm company both could be very vulnerable to legal challenges.
It’s an issue relating to the integrity of the program. If there really is a market for the product and the mlm opportunity is not a pyramid scheme, then there should be people willing to pay for the product as customers without any attached remuneration for doing so. Those are the thoughts expressed by regulators.
Yes, a lack of retail sales can destroy your mlm business. Don’t overlook this mlm best practice being conveyed through this mlm consultants’ blog post. Networkers, make sure you are consistently creating retail sales.
(Neither INLC nor the author provides legal advice. Consult with a reputable mlm attorney regarding this and any other mlm legal issues.)
About the Author: MLM Consultant, Expert Witness, Author, Blogger, Speaker and CEO of International Network Liaison Corporation...but more importantly, wife, mother, daughter, aunt, cousin and friend.
John Counsel | Nov 6, 2010 | Reply
Ah… singing from the same page of the same song book again! :D
Thanks, Debbi. This is a constant refrain of mine, too. So many people buy the line “you don’t have to buy, just consume” without realizing that it’s the very first test for an illegal pyramid scheme.
John
Jamie Gaymon | Nov 23, 2010 | Reply
Debbi, this is an excellent post! I’ve never really understood why people WOULD’NT want to make retail profits, but I think a lot of hit has to do with a reluctance to invest time, effort, energy and money into learning how to market professionally.
Jamie