Alright, let's all put those personal moral issue aside and have
a constructive point to point discussions on the MLM business plan
compared to traditional ones. And what are their main strategy in
market penetration.
1) Does all MLM companies have a mission statement? If they do,
shouldn't they include current practices of retailing, advertising,
sponsorship and dynamic MLM to raise product awareness?
2) Human resource. It seems that there's no limit to how many
"recruits/employees/distributors" they can recruit. No company
complains of too many end-customers, but for hiring employees, they
need to check on its profitable standing to come out with
calculated number to sustain its business. As for MLM, a newly
recruit is as good as a end-consumer, till he finds his own. Thus,
their recruitment drive is as good as selling?
3) Supply and demand. Without creating product awareness through
other means of traditional marketing, how can the products
penetrate the market to sustain largely unlimited
"recruits/employees/distributors"? Would MLM companies be concerned
of market saturation?
4) Profit and losses. With the task of overhiring
recruit/staff/salesrep/distributors and overflow of products, it
will eventually sustain some loss along the way particularly
downliner. Does the company top make adjustment from the losses? Or
do they profit from the losses?
5) Eligibility. How does one be eligible to be a
recruit/staff/distributor of a MLM company? The means to spend
thousands on products in intial sign-up or the ability to sell
products? If I don't have thousands to spend but willing to help
push product sales, would MLM give me monthly salary to work for
them?
6) Failed ventures. How does the top react to so many failed
ventures in their MLM company? Any measures in place? Wouldn't it
be a bad rep if someone fails trying to distribute the
products?
To sum it up, what's the mission statement of MLM companies? What
are their business value? Whats the strategic marketing plan? Are
these being spelt out during recruitment talk??
