Search for Freedom
MLM and the reorder rate
So before to go further with internet marketing I would like to talk a little beat more about the selection process of a network marketing company. I find that for me, the most important is the reorder rate from customers every month. You have to be sure that real customers ( people who buy the products without the goal of building a business) are re-ordering every month because they are getting real value.
It’s the best proof that the products are unique and good value.
Be very careful to understand that lot of people are buying products for the wrong purpose:
They buy only to qualify to get a check!
Many company have a “personal Volume” requirement necessitating a minimum personal product purchase in order to receive a check. An if this minimum is $100 or even worst over $200, how many average people are going to be able to spend their money on the products ( worst when the product range is very limited to few items!).
Also if the majority of the people are business builders, you can be sure that they are not going to last long and you will have to recruit and recruit…
It’s the best proof that the products are unique and good value.
Be very careful to understand that lot of people are buying products for the wrong purpose:
They buy only to qualify to get a check!
Many company have a “personal Volume” requirement necessitating a minimum personal product purchase in order to receive a check. An if this minimum is $100 or even worst over $200, how many average people are going to be able to spend their money on the products ( worst when the product range is very limited to few items!).
Also if the majority of the people are business builders, you can be sure that they are not going to last long and you will have to recruit and recruit…
posted by Benoit at 10:02 PM
2 Comments:
Agel's policies and procedures state that: "the Company Sales Program is based on sales at retail. Each Team Member, upon request from the Company should be able to furnish a statement documenting such sales and listing at least four (4) individual customers. If a Team Member does not comply with this requirement, the Team Member is subject to discipline by the Company."
The policies and procedures define Retail Sales as: "the sale of products purchased at the wholesale or Team Member price and sold to customers at retail." Hence, Preferred Customers fall outside this definition because, a) they buy directly from Agel Enterprises, b) they pay less than the retail price, and c) the definition clearly describes a two-step process of a distributor buying products at wholesale and then selling those products at retail.
Agel distributor-generated training materials that are freely available on the Internet place no emphasis on retail sales and sometimes do not mention retail sales at all. The materials do place emphasis on recruiting other distributors.
Action: Ask distributors how many retail customers they have
Agel's products consist of widely-used vitamin and mineral powders and widely-used fruit and botanical purees and juices, mixed into a gel made from widely-used used guar gum, xanthan gum, and water.
Action: Decide the value versus price ($2.00-$2.50) of Agel MIN, with vitamin and mineral ingredients in gel format.
Action: Decide the value versus price ($2.00-$2.50) of Agel EXO, an antioxidant in gel format with an Oxygen Radical Absorption Capacity (ORAC) value of 850. Compare that with prunes that have an ORAC value of 5,770 per 3.5 ounces. The equivalent weight in prunes of an Agel gel packet, 0.75 ounce, is equal to an ORAC value of 1,236. That amount of prunes, 0.75 ounce, costs around $0.20.
Action: Decide the value versus price ($2.00-$2.50) of Agel FIT, a weight management product in gel format. The active weight management ingredient of FIT is called Super CitriMax. Compare Agel FIT with different formats of Super Citrimax that are widely available and can be bought at a cost of around $0.50 per serving with the equivalent Super CitriMax content as one Agel FIT gel packet.
Action: Ask yourself the following question: "Would I buy this product month after month if I did not stand to receive any income from doing so?" The answer can give you a sense of the popularity of the product at its price point in the retail market
Agel is heavily based on recruiting right now mainly because they got all of the "top recruiters" from other companies working on building their fortune through leverage. Ask yourself how much time the presenter spent on the product vs. how much time they spent on the comp plan? How many people are going to spend $65-$90 on 1 supplement every month without them having a stake in it? Rich people are smart enough to do their research on something before spending their money on it and the Agel product line pretty much eliminates the middle class and below from being a reliable customer base. Sure they may by it for a few months but they won't be able to substain a blow like that for too long before more important bills or needs pop up needing that money.
Over half of the team members in Agel don't get orders every month. The "big dogs" claim you'll be on an island in a couple years. You might not want to book that yacht yet because you're going to have to constantly work to keep your fortune with Agel. The people who don't have a cult following like many of the top people in Agel will have to work for years to continously replace the volume they lose every month due to cancellations and less volume. Agel is setup to make you to recruit more and more every month due to the fast start bonuses. Someone comes in at Exec. gives you 500 volume, the next month that person is only worth at best 100-200 volume if that as a lot don't even make a purchase the next month. Over half of the people that reach any position drop out from that position the next month because of that.
Also, in order to get all of those incentive bonuses and car bonuses and travel bonuses, you have to reach a position that very and I mean very few have achieved(some of the guru's haven't even achieved a bonus position having had a year to achieve it already) Not to mention that just getting there doesn't cut it, you have to stay there to keep the money coming. If you're eyeballing that bonus money, you may want to put that in your 3-5 year plan and that's just for the $500 bonus and you're certainly not going to get their on building a customer base because it's almost guaranteed that you'll have very few customers stay a customer every month for 3-5 years at $65 a pop as the cheapest option. Good luck on being on an island 3-5 years from now when you'll be having to continuously work EVERY year to keep that income from dropping substansiously.
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