Discontent In Network Marketing
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PROVO, UT – Tahitian Noni International (or TNI) is one of a many Network Marketing companies that populate the mountain valleys of Utah. Utah, where there are more “mlm” distributors per capita than anywhere else in the world. With such fierce competition, one would wonder what would motivate an established company who essentially raised that bar of excellence in the industry to break one of the cardinal rules of network marketing- cutting distributors commission checks.
“The name of the game in network marketing is getting in at the right time, with the right company, with the right product,” says Ron Wilson, a seasoned network-marketing executive. Ron has experience more companies than he would like to admit. One of his favorite quotes is, “companies have failed me, products have failed me, but network marketing [as an industry] has never failed me.” TNI, for a long time, was his saving grace, his final home for a battered distributor.
Sadly, as history has proved with most network marketing companies, they have a life span- even the good ones. Once a certain sales level is attained, a company must innovate to take sales to the next level. Innovation usually is centered on a new product, a new system, a new bonus, or when all that doesn’t work and as in TNI’s case, cut commissions to the lifeblood of the company, its sales force.
Cutting commissions is what TNI, and many other companies do when on the brink of self- destruction. Other prominent companies that have resorted to this have suffered, and suffered dearly. Usually cuts are a result implementation of one bad program after another, loss of touch with their distributor base, and/or flat out arrogant shortsightedness in decision-making. Ron was a victim to this, and sees what his company has done to him as nothing less than betrayal. “If someone asks you to build a house for $100K, you build it, and they only pay you $75K, are you going to build them another house? Fool me once shame on you, fool me twice shame on me.” Unable to recruit, unable to feel passionate about what he once loved, Ron once again finds himself in the typical network marketing cycle, living off what’s left of his monthly checks, and patiently look for the next big opportunity.
Discontent is not uncommon among network marketing professionals, not to mention the countless distributors who are part-timers. Distributors, although technically self- employed, are at the complete mercy of the company they distribute for. Contractually powerless, once sold on a company, every effort, dollar, and moment is dedicated to a company that owns him, and has virtually no accountability.
Ron is among the elite, able to make a living off the system, literally one in a thousand. A dedicated dreamer and believer of what network marketing offers; financial freedom, self-reliance, healthy innovative and cutting edge products, and the chance to strike it rich. What many “on the outside” believe to be a cult of predatory opportunists that feed off the weak and naive, network marketing is a vibrant and legitimate business to many others.
With a loss of heart, but not a loss of spirit, Ron is optimistic about the future. “Like I said, network marketing has never let me down.”
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October 21st, 2007 at 9:28 am
Not sure what the writer is talking about here. TNI has not cut commissions unless you are referring to the modification of the placement option a couple of years ago. Many distributors who were collecting checks because their upline was stacking other distributors under them stopped receiving commissions after a year or so. TNI actually gave these beneficiaries of other peoples hard work more than ample time to get off their duff and start building a team so that they could keep the large checks coming in.
November 13th, 2007 at 12:31 pm
Good point Dennis about the placement issue. However what I am talking about is the changes in the bonus pools. Bonus pool checks dropped about 1/3 when “non contributing markets” were removed from the bonus pools. I am certain that this has nothing to do with an upline getting off his duff and working, especially when much time and money has been spent in building these markets by these uplines. Its typical corporate snobery, and I would sue if I was a TNI “upline.” Thanks for your comment.
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March 27th, 2008 at 4:18 pm
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