Are your MLM Checks Tiny?
Read More: Yes it is True Old School MLM it took 2000 to 5000 people to make 10k.
Then came the New School MLM it took 1500 to 3000 10k
Now with the Next Generation Model it takes 350 to 500 to make 10k.
How is that you may ask.
Billions in Profits who gets more?
With over $110 Billion in annual global revenues, Network Marketing Companies and their owners are getting rich, very rich. Many have become billionaires. However, without 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% into the pay plan for the distributors. This is the most prevalent model: (hence why small checks) However it has proven very successful and has helped thousands of distributors become millionaires.
To earn a true $10,000 monthly passive income with this old-school model, you'd typically need 2,500 to 5,000 active customers/distributors in your organization.
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 2,000 to 3,000 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 important to understand what role a Network Marketing company plays in this partnership between company and distributor.
The Company's Role
- Continue Research and Development:
- Maintain strict manufacturing guidelines:
- Warehouse and ship the product
- Provide superb customer support:
- Pay commissions promptly
- Provide a modern, online back-office
- Pay commissions promptly:
- Provide a modern, online back-office system for the distributors:
- Create professional literature:
- Deliver world-class incentive trips, and:
- Coordinate a yearly convention
The Company Should Also Trim the FAT:
- Private company jet:
- Multi-million dollar lavish offices:
- High number of salaried employees:
- High-interest 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 compay millions in revenue
Who Actually ends up paying for all these unnecessary expenses?
It's not the company. It's actually the distributors. The more "fat" a company has, the less the company can put back into the distributors pay plan.
You need a Streamlined Company to Get Big Checks not tiny ones.
If you have that and you are Coachable with a few more qualifications for the company I can guarantee your success!
Get this Free ebook because it will give you the rest of the info you need. Click here
Your friend for lIfe Juanita Waterman
Views: 586
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Comments: 18 
About the Author: Juanita Waterman
Member Since: 03/07/2008
I'm a Distributor For:: SISEL International, LLC
Other Company: #1 Recruiting System Better Web Builder
Industry: MLM
Primary Web Site: http://SecretIncomeToday.com
Now I Know Why I Struggled For 10 Years
This explains exactly why I struggled for so long. Without accurate information, it wasn't my fault that I was having little to no success. I am so grateful to have been drawn to the New School model, I know I am home now! Thank you for your wonderful explanation of why 97% are floundering, it's time to latch on to the New School way~ This is the only way~
I NEED A STREAM-LINED COMPANY
So the name of the game is find a company with low overhead. Where is there one? Everyone tries to show up everyone else. I bet they are far and few between, Do You know of any??
The lightbulb is on - It all makes sense!
Great article. I remember receiving those tiny checks and trying to be encouraged by them. I would say to myself, well, at least I received a check. I'll just have to work harder to make them bigger. Thanks for making it all make sense!
Next Generation Model takes 350 to 500 to make 10k.
So there is a catch to this Industry. I knew that there was a reason that the Failure rate was so High! Old School and New School MLM's are Greedy! A good Next Generation Company with Low Overhead is the Secret to Faster and Bigger Checks!
No wonder
Now I get way it was so hard for me all those years. Not just my lack of skills, but high company overhead! Wow...
Tiny Check......
Company overhead could kill you! That sure does explain why you may be getting a tiny check.
The Tiny Checks Lead to One FAT Cat
With all the distributors running around doing ALL the work, the FAT cat sitting in his cushy little office or flying on his private jet is the one making all the cash flow. These distributors are being taught all about 'sacrifice' while they are AWAY from their families building a 'future' for their family to 'retire' someday. What a flippin' JOKE! Oh, don't get me started on this one. lol When I first found out all this stuff, it took me 6+ months to begin to even THINK about joining another MLM. The difference was, I had the knowledge and experience to know what it was I was looking for because I wasn't going to go back and get paid a whimpy $4-5 a head again! Nope!
Hey great article
They grow bigger!!!!!!!!!!!!!!! Jan
Preach it sister!
It's an awesome bonus to find a company who actually pays the distributor instead of throwing their money into big "Fat" stuff. Woohoo....on our way! Thanks Juanita! You are a true leader.
I'm glad you put this under the "Gossip" heading
You may want to read "The Wave 3 Way to Building Your Downline" by Richard Poe. He has information about trends that you can take to the bank which won't be categorized as gossip.
Ment to put MLM News
thanks for catching that error.
Talk About A Smack In The Face...
I remember being the queen of recruiting, but hardly making any money, man was I working hard, but kept coming up short in pay. If I new then what I know now, I probably would have looked a little deeper at my compensation plan, policies and procedures.... Great Article..
Juanita, You are the best!
Work hard and get paid a little or understand the compensation plans and get a fair check!
Timothy C Burns
Win Win Or No Deal Co!
I wish I would had this education on picking a Co. when I first started out in Network Marketing. What a difference it makes to be putting your efforts into a Streamlined Co. It's a Win Win or no deal.
Thank you for sharing and as always providing GREAT Value Juanita!
Tiny MLM Checks
Juanita,
Thank you for a different style of article and one that certainly is well worth pondering over, appreciate that very much.
GREAT ARTICLE, JUANITA
Thank you for sharing this information. This is of great value. It just goes to show you how important it is to be in the right company with 5 pillars. There are many distributors out there that are still using the Old School Companies. This is great information that every networker should know about. Thanks for Value
So Many Struggle
Education is so important in our field. Too many good people join an mlm everyday with the hopes of making it big, and they just don't know how things are stacked against them.
Alice McCarthy
Information is Important
I wish everyone in MLM could read this article. This is huge! People need to know and understand what type of plan their company is using. The company I used to be in was the Old School System and I was in a brand new company, I had no idea it would take me close to 5,000 people to make 10k a month! All I was told was that I could earn 6 figures in 6 months. Unfortunately MANY distributors are told this...