Originally posted by Honeybunz:
Why do some companies insist on members maintaining min.
volume points or sales every month?
This is the question that has been bugging me.
Some companies (not to name any here) require members to maintain
at least approx S$300 worth of volume points every month. This
means that the member will have to purchase S$300 worth of products
from the office and the company assume that the member can clear
the stock every month. If the member fail to fulfill the min. in a
month, he will be downgraded or demoted (something like
that).
[b]If you came across
any, it is better not to get involve with this company - not
recommended.
I feel this is not the right thing and it's not fair to the
distributor. What if, in a certain month or period, the distributor
slows down in his business for some reasons? He will be demoted and
has to work hard all over again to go back to the original level
where he came down from. So many people got their fingers burnt
because of that.
I think a good MLM company should not require the member to throw
in money just like that or force the member to invest in so many
stocks. What if the member cannot clear the stock before it
expires?
Yes, that what a
great company should be, and on the market, there are this kind of
company.
Some MLMers or those interested in exploring are retrenched staff,
housewives with little allowances from husband, jobless ones etc.
We cannot expect them to throw in a few thousand dollars and call
it an investment, while they have not even made their first dollar
from the business. A good MLM company should have avenues for such
people, and should only require them to pay for the membership
processing fee (that's all).
If a MLM company requires members to purchase a min stock to do the
business, what difference does it make from pyramid or time sharing
company??? Unfortunately, while MLM is a great opportunity for most
people, there have been a lot of black sheep in the market.
To do a mantain
in the company is because they should have stock on hand, also, for
personally consume. That why, most company that I know require
Distributor to sold at least 70% of their previous order before
they can buy more goods.
Luckily there are still good companies that don't "eat" their
members' money. So for those of you exploring the business, do keep
your eyes and ears open. Don't be afraid to say "I have to think
about it" if you really need time to research and think deeply
about it. If the particular distributor force you to go into the
business (what we usually call Hard Sell), but the company system
is good, just walk away and look for another distributor of the
same company. You wouldn't want to work the business with pushy
people, right? [/b]
Correct
point.