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Re: Bob, my examples were from current MLM companies

Posted By: Michael J McMillan <mjmcmillan@NOSPAM.sisna.com>
Saturday, 3 December 2005, at 7:16 p.m.

In Response To: Bob, my examples were from current MLM companies (Mel. White)

MLM companies do one thing that no normal company does. They add way too many people at every level to get the job done. That can't help but be inefficient, when you get right down to it. All of those people are stacked up on top of each other, so you get a company that's way too top-heavy with "management". Everybody in the organisation wants to be the boss and have underlings do the actual work. In most MLMs that I've had any experience with, that's what they sell you on to get you in. You're the boss, and your 3/9/27 matrix is your "company" of underlings that you're earning your residuals on. They're each sold on the same idea, only with them as the boss, and so on down the line. They tend to have an overpriced product to feed an ever-increasing upline/downline.

Now, on the other hand a real business has enough people and ONLY enough to get the job done. They tend to look for people who have experience, or failing that they look for people who are easy to train. They shed unproductive workers, realising that folk who don't show up on time and who loaf when they do show up are a drain on the bottom line. On the sales force, they may use a commission pay scale so the salesperson is encouraged to work hard. That also tends to keep the sales force within reason, since only good salespeople can make a reasonable living on commission. Because the company has to compete in the real business world, they will have to price their product low enough that people will buy it, but not so low that people think it's junk. Get it right, and you make money. Get it wrong and your competitors have you for lunch. So, companies in the non-MLM world search for every efficiency if they hope to survive.

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You'll find great information in this "Read Only" Archive, but remember..... things change.
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We're very friendly, so don't be shy... just jump right in and post your question.
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