Unfortunately, I recently discovered that one of my friend's adult children has joined a multi-level marketing company. Despite the fact that it is not Amway, the pitch is very similar. Purchase the products, sell the products, and attract like-minded individuals to do the same thing you are doing. It was uncannily similar to Amway in that you were acquiring nutritional products that were both very pricey and certainly overrated.
Despite the fact that I was not given the compensation structure, it is likely that the rank and file distributors make very little, with the lion's share of any bonuses earned by personal use and any customer sales that may occur going to the top tiers of the organisation. Based on the prices I witnessed, I would estimate that most of the purchases are being made by sympathetic family and friends who want to demonstrate their support for the children.
Training and functions appeared to have become part of the total package, despite the fact that the distributors did not dress in business clothes for their meetings anymore. However, there was one thing that all of the youngsters had in common: they had no idea what I was talking about when I asked them about profits and losses, as if I was speaking in a foreign language. I asserted that a business owner, without a doubt, keeps track of spending and income. When it appeared that they were not understanding what I was trying to say, I inquired as to what their bottom line looked like.
Consequently, I went on to explain that they should be totalling up all of their expenses and all of their revenue on a weekly or monthly basis. If their expenses outweigh their income on a more frequent basis than not, they are operating a loss-making business and must figure out how to change their actions in order to cut expenses while increasing income. It had not occurred to them that they should do so until this point. As a result, like Amway and most likely other multilevel marketing companies, their financial expert uplines do not teach business 101 to their downlines.
It is not necessary for uplines to educate their subordinates on the bottom line because the bottom line is bolded in red ink.
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