Some call it the best business in times of crisis. But the truth is, words more, words less, a good MLM business should have balance in the way in which distributes its expenses. There are 3 aspects in which companies invest their money, and evaluate them in detail will help you to choose a good and sustainable business that will allow you to generate excellent residual income, whether it be a multilevel binary, matrix, unilevel or rupture. What are those 3 items of investment? 1. Payment of commissions: the percentage of the compensation plan pays in bonds to its distributors, either by direct sale, reconsumo, bonds, affiliation, etc. 2. Product development: investment in making tests products to certify its ingredients and effects, and the payment of new inverstigaciones that lead to develop new products. There are no companies that persist for a long time with a product star.
They need to expand catalog, but consistently, this is the beginning of what is known as infinite Momentum. 3. Growth, logistics and operations corporate: everything that has to do with the payment of the corporate and administrative of the company, and the efficiency with which expand to other markets balancing cost and quality. Now, let’s see. If a company gives priority to point 1 above the other two, you’ll have a company that will proclaim everywhere which is which pays better. The problem is that, perhaps, does not invest enough in the development of new products or your own corporate. A company so won’t last long.
On the other hand, if the company focuses on point 2, will have excellent products, but maybe pay commissions lower than normal, and distributors will not be happy. Therefore, there will be little retention in that network. Perhaps hold, but you’ll always see new faces. Finally, if the company focuses on point 3, you will pay very high salaries to their managers and President, and will have an impressive infrastructure in their offices, but again they will suffer from the commissions of the distributors and the development of better products.