MLMs have come a long way from the time when there was a distributorship fee, sign up fee, or random monies spent to get in to the company. Recruiting bonuses were paid from the money generated by these upfront fees and a good income could be earned from just signing up warm bodies every month.
What? You think that still happens to some degree? Well, I guess it's a matter of interpretation. Let's look at how Kyani does it and you decide.
Hi! I'm Patricia, your friendly Kyani Independent Distributor, and I'm really excited about this great nutritional drink called Kyani. It's really good...(5 minutes of happiness about the product later)...and I have a bottle right here! Or would you like more so that you can have others in your family try it for 30 days, too? The cost is ____ (insert your retail price) and I'd be happy to take cash or a check.
Ok...retail sale accomplished, fast forward 3 weeks. "Patricia, I have felt so much better since I started taking the Kyani product! Thank you so much! I need to order some more bottles because I am going to tell everyone I know about it. Is there a volume discount available or can I also sign up to sell Kyani and get the distributor price?"
You betcha!
Not only do I sign her up as a Kyani distributor, but I commit to work with her so that she is trained and comfortable selling the product. I explain to her that she'll likely want to place a large enough initial order to ensure that she has adequate inventory on hand, but not to worry too much about running out because the company can ship more product if needed. And as the company benefits from smoothing out its manufacturing process by having an idea of upcoming demand, they create additional financial incentives for distributors who agree to a regularly scheduled monthly order, a minimum of 4 bottles.
And since I helped the company sell product to a new distributor, I get a commission on her initial order. And, as I am helping train her in her new Kyani business I will continue to receive a smaller commission on product that she orders in the future. While the structure in different, the principle is similar to other retail businesses for which I have worked. The manufacturer makes a profit, as does the distributor, the wholesaler, and eventually the retailer. There are also commissions paid along the way to salespeople, sales managers, regional sales managers, etc.
She's happy, I'm happy, the company's happy..and isn't that a nice place to be?
So, my bottom line to making money in Kyani is that I have to sell product to someone and hope that they continue to order more product in the future, either as a Retail Customer, Preferred Customer or Independent Distributor.
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