To run a 100% MLM business there are a number of disciplines on which you need to focus. For this reason I have developed a basic score card. The scor...

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If you can successfully involve your distributors in supporting a worthy cause you will change them forever and in doing this, you will develop a deep and abiding loyalty to your brand and your company.

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The internet, and ecommerce in particular, has changed the face of MLM forever. The statistics are staggering. South Africans are migrating online at an unprecedented rate. According to STATSSA, R2 billion was spent online in 2010. This was a 30% increase on 2009 and 2011 is expected to top R2.8 billion. These are big numbers!

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There are 5 key drivers in most MLM businesses. They are:

1. The Product
2. Compensation
3. Recognition
4. Incentives
5. Social

Over the next few weeks I will be tackling each of these issues, starting with the product.

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Breakage is used by most companies to balance the network’s need to make large commissions with the company’s need to show a profit.

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The truth is that the compensation plan is only one small part of what drives a network and it’s not the most important part at that.

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The Unilevel Compensation plan is the great grandfather of all compensation plans. It is based on the principle that you recruit as many people as you like and they do the same.

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As members are promoted their income potential increases. In this example the first three ranks will receive differential commission of up to 45% depending on rank.

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The Fixed Matrix is a Unilevel plan with fixed width with the member being paid percentages on each level. This would you give you a total of 3125 members in a fully loaded matrix

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The compensation plan is one of the tools used to drive network behavior. Networks that have a consumption bias would use a different plan to those who favour sales.

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Achievement Level: A rank or title that is achieved by moving a certain amount of product per month and / or re­cruiting a certain number of distributors who themselves have attained a certain designated achievement level

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If you look at current global business trends, you will find that many small and medium companies are getting the vast majority of their business online. As a matter of fact, US stats show 4 out of 10 small companies receive more that 75% of their income online

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If you look at current global business trends, you will find that many small and medium companies are getting the vast majority of their business online. As a matter of fact, US stats show 4 out of 10 small companies receive more that 75% of their income online.

[Read the rest of this article...]

Over the years there have been many unethical people who have managed to tarnish the image of the industry. Their exploits usually land up in the news and they often end up in jail. Like any powerful and effective marketing mechanism, MLM is not immune to abuse.

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