Billions in Profits. Who Gets More? The Company or the Distributors?

 With over $110 Billion in annual global revenues, Network Marketing companies and their owners are getting rich, very rich.

 Many have become billionaires.  However, with out the distributors there would be no sales.

 So who ends up getting the lion's share of the profits?

OLD-SCHOOL NETWORK MARKETING MODEL

Traditionally,  the company keeps 60% to 70%  of the profits and places the remaining 30% to 40% in to the pay plan for the distributors.

 This is the most prevalent model:  it has proven very successful and has helped thousands of distributors become millionaires.

To earn true $10,000 monthy passive income with this old-school Model, you'd typically need 2,500 to 5,000 active customers / distributors in your 

orginization.

NEW-SCHOOL NETWORK MARKETING MODEL

Recently, some companies split the profits right down the middle,  50/50,  with their distributors.

This even partnership' has allowed distributors to achieve financial success faster.

To earn a true $10,000 monthly passive income with this new-school model, you,d typically need 2000 to 3000 active customers / distributors in your organization.

NEXT GENERATION NETWORK MARKETING MODEL

"IF A NETWORK MARKETING COMPANY WAS OWNED BY THE DISTRIBUTORS, WHO WOULD GET THE LION'S SHARE OF THE PROFITS?'

You guessed correctly:  the distributors would get the lion's Share.  Naturally, the next question is,  "Is such a company model even possible?"

Before we answer this, it's importaint to understand what role a Network Maarketing Company plays in this partnership between company and distributor.

The Company's Role is to:

* Continue Research and Developement:

*Maintain strict manufacturing guidelines:

*Warehouse and ship the product;

*Provide superb customer support:

*Pay commissions pomptly:

*Provide a modern, online back-officesystem for distributors:

*Create professional literature;

*Deliver world-class incentive trips, and:

*Coordinate a yearly convention

THE COMPANY SHOULD ALSO TRIM ALL THE FAT:

* no Private company jets:

* no Multi-million dollar Lavish offices:

*High number of salaried employees:

*High-intrest outside funding sources:

*Paid celebrity endorsements:

*Allegiance to stock holders vs. to the distributors

*Army of attorneys and advisors:

*Spending millions on convention props:

*There are hundreds of places to cut fat, saving the company millions in revenue

WHO ACTUALLY ENDS UP PAYING FOR ALL THESE UNNECESSARY EXPENSES?

It's not the company.  Its actually the distributors.  the more "fat" a company has,  the less the company can put back into the distributor pay plan

 " Can a Company Pay the Lion's Share of the Profits to Distribtors?"

Yes, as long as the company

1)fulfills its role as efficiently as possible and 

2)constantly cuts all the "extra fat".  They would then become a "Streamlined" business.

Non-Streamlined Company:

As sales increase, the extra profits go into the owner's pockets.  this shows up as "increased overhead".  

This overhead grows at the same rate as the sales.

Streamlined Company:

As sales increase and the company's overhead continues to remain relatively low,  the extra profits created go directly into the distributor pay plan.

A "streamlined company" can go far beyond the "New School" 50/50 split.  The company can move from paying 40% into the distributorpay plan,  to 50% then 60% and ultimately even as high as 70%.  Thats right, up to 70% of the profits going back to the distributors!

This "puts the distributor in the owner's seat"  by allocating the lion's share of the profits directly to the distributors. Not only does this allow distributors to achieve financial success faster, but they can do so with far fewer customers / distributors in their organization.

To earn a true $10,000 monthly passive income with this "next generation model,"  you'd typically only need 400 to 1500 active customers / distributors in your organization.

I recieved this info from a Freedom Magazine if you would like a free copy get back with me

http://Juanitawaterman.com

207 592 5524

Juanita Waterman