No, this is not a joke title. One of our prospective clients recently asked me how many “real” customers he needed. He asked me this question as he was familiar with the Federal Trade Commission’s actions against Vemma in 2015 and Herbalife in 2016, each of which required sufficient volume from customers who were not representatives…
All Customers Are Not Alike
“All animals are equal, but some animals are more equal than others.” This is the line I remember from the book, Animal Farm. Substitute customers for animals and you’ll be good. Customers who purchase more frequently and spend more money have a greater value. Preferred Customers All customers are not alike. Watch this video to…
Compensation Plans: Focus On Customers
This is the second in a new series of compensation plan articles, each of which will focus on one important element to be considered in the design or improvement of each and every multilevel compensation plan. If you missed the first article or if you’d like to read it again, click Compensation Plans: Focus On Compression….
Ask Victoria: Why Can’t Representatives View All Customers?
It is now more important than ever before to have customers buying products who are not independent representatives of direct selling companies. One of the questions Sylvina Consulting was asked recently may be a question you’ve asked as well…. If having customers is good for business, why can’t I see all of the customers of…
About Preferred Customers
“All animals are equal, but some animals are more equal than others.” This is the line I remember from the book, Animal Farm. Substitute customers for animals and you’ll be good. Customers who purchase more frequently and spend more money have a greater value. All customers are not alike. Maximize Customer Value The goal of…
Danger Ahead: Enrolling Customers As Representatives
In 2014, I wrote a prophetic post about the need for network marketing companies to have retail customers. Retail customers are people who buy and are not distributors or consultants of a direct selling company. I called this post The Elephant In The Room. If you can, read it first because, in 2016, the elephant is…
How To Price For Reps And Customers
One of the important decisions you will need to make for your new direct selling company is how to set prices for sales to your independent representatives and their customers. In this article, we’ll talk about options and provide you with some wisdom to help you in making your pricing decisions. Party Plan If yours…
The Elephant In The Room – Lack of Retail Customers
One of the elements of a pyramid scheme is the lack of retail customers. Pyramid schemes are illegal. A good number of network marketing companies have few retail customers who aren’t also independent representatives. This is the elephant in the room. In the Omnitrition, Trek Alliance, Equinox, and Burn Lounge cases, courts found problems with…
Carrot or Stick: Retail Customers for Network Marketing Companies
One of the differences between some network marketing companies and pyramid schemes is the presence of customers who don’t participate in the income opportunity. For many network marketing companies, however, there are very few retail customers who aren’t also independent representatives. In the Omnitrition, Trek Alliance, and Equinox cases, courts found problems with the payment…
Retail Customers Anyone?
Party plan companies have always generated a large percentage of their sales from purchases by retail customers. Retail customers, by definition, are non-participants in the income opportunity. Network marketing companies, on the other hand, traditionally have sold their products mostly to distributors. In fact, some network marketing companies don’t even have retail customer prices. Others…