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I hate MLM companies with Autoship or a Monthly Commitment

Permalink 10/31/11 13:26, by admin, Categories: Features, MLM Startup Consulting , Tags: mlm autoship, mlm product, mlm residual income, mlm software, residual income


Why do these darn MLM companies all have this Auto-Ship program for the MLM distributors protection they say. What is with this constant MLM Mandatory Monthly Commitment MLM companies force members to purchase to earn MLM Commissions?

The fact is, if you want to be a successful MLM company LONG TERM and make a truly Viable MLM company with a truly Viable MLM Product, you need to have an MLM product or MLM service that will be purchased monthly so you can have an MLM Autoship.

An established MLM company growing appropriately say with 200,000 members who have signed up in 3 years, and about 20,000 active members purchasing or signing up in a given month, will normally have over 60% of their sales coming from those 20,000 MLM members who are active on MLM autoship or that MLM Member Monthly Commitment.

Yes, you read correctly over 60% of sales come from MLM Autoship.

While MLM distributors initially can react negatively to an MLM Monthly commitment, it is actually the key to MLM residual income. The fact that you can build a huge MLM group that loves your MLM product and agrees to have it shipped to them each month and you charge their MLM credit card forms the basis for MLM Member residual income, and some sense of predictability for the MLM company in inventory needs.

If the MLM product you intend to sell by MLM is not packaged in such a way that it will be consumed by a single MLM Member in a single month, you should re-evaluate your MLM product packaging and portion.

MLM Products that sell for between $50 and $100 wholesale that last a month with one MLM member consuming them, are the most successful MLM products.

The reason is, you do not want to closet qualify, or garage qualify your MLM members by selling them too much MLM product. Should you go down this road you will find your MLM members falling off of MLM autoship very quickly.

Conversely, if you sell an item for $200 that lasts 2 months as that was convenient and cost effective for your packaging, you will not get MLM members to stay on a monthly autoship as they will always be buying too much product to consume even though the overall value proposition is the same.

The concept of the MLM Member buying more than they need in order to sell to other retail customers is fine, but in todays marketplace tends to lead to failure more often than success. This is due to the fact that most modern MLM Software companies provide a way for the retail sales to happen through the MLM Replicated Member website giving the member credit directly without the MLM Distributor needing to inventory the item or handle money taxes etc.

Should you have more than 1 MLM Product in your MLM, then the rule changes slightly that the MLM Member should be able to consume a combination of your MLM products each month that add up to about $50 to $100 per month.

Should you have more than one MLM Product but they are all around $100 and there is no feasible way to package them to last only a month due to being possibly a skin care item that so little is used in each application the bottle appear valueless in a month supply, you will need a more advanced tactic.

You could package say the main items your MLM Customer needs on a daily basis in a 3 month package, then use advanced MLM Software with a Rotating Autoship engine to solve or lessen the blow of this type of less than ideal product scenario.

Having MLM Software that can support a rotating autoship can help you re-achieve MLM prodcut viability from this normally less than ideal method of selling in an MLM. The vanilla MLM Method is to "Set it and forget it" when it comes to autoship. As a result, many MLM Software companies simply have the ability for a member to choose what MLM items they want on autoship and get the same each month.

Advanced MLM Software companies like Consulting Ltd. recognize the world of MLM is changing and offer up unique options like a rotating autoship where a member can say give me this MLM Product this month, that MLM Product next month, and the other MLM Product the month after.

This allows higher margin items to be sold as you could have a set of MLM Products at say $300 for 3 items that the member purchases when they initially join and will last for approximately 90 days (3 months). In order to keep your autoship at $100 a month you wuold use a rotating autoship so they get the following month the MLM Product of your 3 that will run out the fastest, then the month after that the next MLM product, and so on.

This still allows a "Set it and forget it" method of MLM Autoship, but lets the member have 3 separate items shipped on a rotating Autoship basis without them needing to change their autoship each month.

In summary, a vital criteria for an MLM Product is consumability for the express purpose that you can grow a loyal MLM product following with Autoship.

MLM companies without autoship tend to fail within a few years due to no residual income and members becoming disappointed when the original excitement and recruiting falls off to a maintenance level as the MLM company matures. Consulting Ltd.
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