MLM Marketing:
Ten Common Distributor Mistakes - And How to Overcome Them
Number 8
By Jeffrey A. Babener
Excerpted from Network Marketing: What You Should Know, Jeffrey Babener, Legaline Publications
MLM Legal and MLMLegal.com and Babener and Associates provides expert MLM Consultant and MLM Consulting advise on MLM corporate, MLM software, MLM Compensation, MLM Taxes, etc.

8  Look for Products with Profit Margins.

Too, often distributors are distracted by the compensation plan or the earnings hype to spend time looking at the profitability of the products and services sold by a company. A company with a proprietary product can justify a higher profit, which means the ability to pay commissions in the long term from the sale of products or services. Historically, this is why the largest and most successful MLM companies have had, as their mainstay, consumable products that are proprietary such as nutrition, personal care or household products. These products are unique to the company, allowing for sufficient profit to pay commissions.

The closer the company's product is to a commodity or something available generically in stores, the less likely the company can mark it up and achieve true profit margins for paying commissions. There can be no profit margins in selling a commodity such as an American gold eagle coin for instance, and thus companies must look for other inappropriate sources of revenue to pay commissions. Services represent a significant future in the MLM industry, but such services as telecom or Internet access carry a much smaller margin of profit. These are fine products, but a distributor who embarks on a career selling low profit, low margin services should be prepared for the fact that it will take a much larger volume of customers to achieve the same residual income as selling products with high margins. In addition, distributors should be careful to study the program and determine that the long-term future of the company is not built around the redistribution of high-priced training fees for distributors as opposed to the residual income from service sales.

MLM Consulting is an important component for MLM startup.  Careful Choice of MLM Software is another component of MLM Corporate.  A MLM Consultant and MLM Law and MLM Legal is part of the MLM Startup Team.   rs. . MLM Legal and MLMLegal.com and Babener and Associates provides expert MLM Consultant and MLM Consulting advise on MLM corporate, MLM software, MLM Compensation, MLM Taxes, etc. MLM Consulting is an important component for MLM startup.  Careful Choice of MLM Software is another component of MLM Corporate.  An MLM Consultant and MLM Law and MLM Legal is part of the MLM Startup Team.  MLM Compensation must be reviewed by an MLM Consulting standpoint by a MLM Consultant and MLM Legal and MLM Law professional and programmed by a MLM Software and MLM Technology provider.

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