Primary Income Producing Factors (10302 bytes)

Perhaps the most under-emphasized and overlooked aspects of any network marketing "income" opportunity is the product line. Or, more specifically, the volume generating potential of the product line. In fact, this factor is just as important as the compensation plan in determining the income generating ability of a network marketing program!

When commissions and bonuses (CB) are computed in any direct sales business, there is, of course, a number on both sides of the equation. The percentages (P) in the comp plan are multiplied by the sales volume (SV) that is generated.

SV x P = CB

It is this sales volume side of the equation that has an "unlimited" ceiling -- the percentages have a maximum limit. Furthermore, if a compensation plan paid 10% down 50 levels, five hundred percent of zero would be zero! Where as, even a very weak paying compensation plan can still generate large incomes if enough sales volume is moved through it.

Bottom Line: Product must be sold for commissions and bonuses to be generated.

Six Factors That Generate More Sales Volume:

1.

High Quality
This goes without saying. The products must be effective and beneficial. You simply must experience Longevity's products. To know them is to love them!

 

 2.

Quantity and Variety
It is very likely that a product line of 70 products, like Longevity's, would tend to move more sales volume than a limited line of four, eight or even twenty products.

 

3.

High Retailability/High Consumability
Non-consumables, such as jewelry, water purifiers, and electronic devices, produce volume only once. Consumables, such as nutritional and personal care products, are consumed and reordered over and over. One consumer may generate sales volume month after month ­for life! Also, there are degrees of consumability. Food products, like Adi's Fat-Free Brownies and Meal Plus, are highly consumable. Naturally, the faster someone uses their supply of products the more often they will reorder.

 

4.

Transfer Buying
Debates continue throughout the industry as to the benefits of a unique, proprietary line of products that no one else can provide versus staple products that one would likely have purchased at the store regardless of their MLM business. At Longevity we say Why not both! Why does one category preclude the other? Besides our line of unique, proprietary products, Longevity also offers a variety of products that lend themselves perfectly to "transfer buying" (meaning, you are simply transferring an expenditure you are already making from the local supermarket or retail store to your own business). The benefits are twofold: 1) It essentially costs you less to meet your volume qualifications -- a portion, or even most of the expense of purchasing Longevity products is an expense you would have had anyway; 2) This would cause those in your downline to move more than the minimum required volume since they love the products and it requires little or no extra out-of-pocket cost to obtain them.

 

5.

Commissionable/Bonus Volume
Many network marketing programs today assign a point value to each product which is usually referred to as Bonus Volume (BV) (or Commission Value ­CV). Commissions and qualifications are then based on BV rather than the actual wholesale cost of the product. It is not at all uncommon for the BV to be as little as 75% of the wholesale value and in some cases BV has reached as low as 33%! In other words, to reach a $150 "BV" quota you would have to purchase $200 to as much as $450 in actual dollar value. Conversely, if you did purchase only $150 in BV, perhaps only $120 to as little as $50 would actually count towards commissions and bonuses! Longevity's "CV" (same as "BV" above) not only varies very little from actual wholesale, there are several products with CV that are slightly higher than the wholesale cost! What's more, our qualifications are based on wholesale ­not CV! This keeps it simple!

 

6.

Competitive Pricing
Perhaps the most important factor of all is pricing. Due to the dramatic increase in competition within network marketing, more and more companies are overpricing their products (in some cases almost to the point of absurdity) in an effort to afford themselves "the most lucrative compensation plan in the industry." Of course, as the "P" side of the equation goes up (right along with the price of the products), the "SV" side drops! The retail market disappears (who'd buy a bottle of shampoo for $20.00?) and the line no longer lends itself to transfer buying. Distributors now only purchase the minimum required to qualify for income ­and not a penny more.

However, there are a very few companies ­ like Longevity Network! ­ with reasonably priced products that can legitimately be marked up and resold to non-distributors. In fact, during 1996 several Longevity distributors exceeded $1,000 in personal sales volume within a four week pay cycle! (Remember, only a $150 product order each 4-week period is required to receive maximum commissions). When there are many distributors in your organization moving far more sales volume than they are required to, the "SV" is increased substantially ­ thus your income can increase as well!

 

The bottom line, literally, is that Longevity's Multi-Match compensation plan and Longevity's ever-expanding variety of high quality, highly consumable, reasonably priced products creates a phenomenon rarely seen within the MLM industry today ­ the potential to have HUGE numbers on BOTH sides of the equation!!!

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