Load up the back end, what about the front end?
Posted by admin
The network marketing world is going bigger. In order to exact more commissionable volume out of their distributors, companies are learning to take more advantage of what they have, instead of what they might have. There are several reasons for this, one of which is easy- the more you can charge monthly, the more commission you can pay. Look at Mona Vie, Xango, and others- they all have a “super” auto ship program- usually around $300 a month. Instead of the standard $150 (plus shipping, handling, and fees) that was a hard enough pill to swallow for newbies, it seems it is just as hard to exact the additional $150 out of them upfront. So why not? In addition, for the established distributors to take full advantage of the commission plan, the company essentially puts a gun to their head and forces the super auto ship on them. Lots of warm fuzzies there!
It is a well accepted rule that most new sign ups last about 3 months in a program. How long do the $300 club newbies last. Few if any companies are going in the opposite direction. What would happen if startup and autoship was $50 a month? Would retention be much longer? Would it be an MLM shoe-horn that will ease a newbie into the system rather than bust him in and out after three months?
July 25th, 2008 at 8:38 pm
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