Cheryl Baumgartner   Medical Billing/Coding/Insurance
Actually Arthur I'm seeing this with my own eyes. Mortgage agents, car salesmen etc. Smaller companies are going this route because of the bottom line. It's cheaper on the company to pay as a W-2 with the associated other payments and pay a lower wage than to pay out large commissions. It's security for the sales man to have a steady income. That is the trend.
Feb 24th 2008 11:39   

Arthur Webster   Just plain honesty
Well, Cheryl, if that is the trend, you have just explained the collapse of the dollar.
Feb 25th 2008 12:15   

Cheryl Baumgartner   Medical Billing/Coding/Insurance
That's a part of it. I think a bigger part is the manipulation of the economy by the Federal Reserve
Feb 25th 2008 12:43   

Jenny Stewart   
Whilst Arthur and Cheryl sort out the MLM industry - I would like to make one comment on the contratual relationships that MLMers have with their companies.

I am regretably not legal nitpicking Cheryl. To be employed, to be an authorized distributor and to be a customer who simply sells on are three very different things and with three totally different kinds of liability.

The majority of people who sell in the majoirty of the PRODUCT based companies in MLM, do NOT have any contractual relationship with the company - especially if they work off line - where there is no box to be ticked saying that you accept the TOS etc! They buy as customers and sell on. When they get a referral, that person in turn buys direct from the company as a customer and comission are paid to the uplines BUT with no contract having been signed. this is very very common.

This is very different from a distributor who has a contractual relationship with the company AND to their customers both themselves and on behalf of the company. In fact it can and has been the source of many difficulties for product based MLM ers when there are problems with defective products in some companies. And equally when there are complaints that are not about defective merchandise.

The companies give GUIDELINES on how to sell - but have very little control (nor want it). and do not generally have free training programmes to ensure that their mlm salesmen follow the official sales policy. They have the choice to supply or not supply their "salesmen" - no more as they are not employed by them.It is often the very same sales techniques that have given the companies that use MLM as a sales method a very bad name. Sadly they know this and dont seem very concerned in the most part as long as sales are made.

Couldnt just leave that one lying there on the topic - could I? LOL.
Feb 25th 2008 13:56   

Arthur Webster   Just plain honesty
Nicely to the point, Jenny.

Cheryl - if American salesmen are all being brought into the low pay scales of employees - THERE WILL BE NO ECONOMY FOR THE FEDERAL RESERVE TO MANIPULATE.

I'm at a bit of a loss to understand who you are talking about when you talk about 'salesmen'. I can't think of any reason at all why any company would rather pay their sales force a wage and then expect sales to be won at the same rate.

A commission only salesman gets paid on results and most salesmen I know are on the absolute minimum basic - if they have any basic at all.

A bean counter with both eyes closed would be able to see the effect on sales if commission only salesmen were treated so insanely.

I can only assume you are talking about people who serve behind counters in shops. These are not salesmen - these are order takers.

Salesmen go out and make the orders.
They find the prospect.
They develop the prospect.
They solve the problem the prospect did not know he had.
They sell the product.
They earn a lot of money doing it.

America was always the one place in the world that actually recognised and valued the sales force. Some countries - Germany immediately springs to mind because it followed the American model in its climb back to prosperity - are now letting their salesmen off the leash and receiving the benefits.

Remember - Until something is sold, only the supplier of the raw materials is making any money. In the case of service industries, not even them.

Feb 25th 2008 16:36   

Chuck Bartok   Veteran Entrepreneur now Sharing
More comments on MLM....

If those entering the MLM Network Business realize the FACTS,
their succes would be assured.

YOU MUST SELL THE PRODUCT
YOU MUST DEVELOP A CUSTOMER BASE

Then, within that group of people who are generating cash flow for
YOU and the Company, you may FIND some Ambitious Types who
have an entrpreneur MINDSET and want to learn the SYSTEM...
If there is one.

The reason I started Beginners Marketing Class was to help others
develop that Mind-set.

Do it first, before you parting with your money for that next great Opportunity.....
and Develop SALES SKILLS.

Yes IT TAKES EFFORT. Not necessarliy Work, because "work" is
only being somewhere you don't want to be
Mar 10th 2008 13:25