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Concept
1. Use distributors to sell products in their homes or one-to-one to their
friends and contacts
2. Allow them to buy products at a discount for self-use or to make a
retail profit when they sell the products to their customers
3. Allow them to sponsor people into the business and to earn a
commission off the purchases of their downlines
Benefits
1. Expand sales channel of retailers beyond their retail stores
2. Develop loyalty in customers by making them stake-holders
3. Increase reach of business through consultants sponsoring others
4. Increase credibility of products through word-of-mouth testimonials
5. Increase customer support through servicing by distributors
6. Distributors will sell using demonstration in an environment that is
less pressurising, increasing base by acquiring customers who may
otherwise not enter the retail stores
Compensation Plan
Depending on the margins and the focus, the company should adopt
one of the following 2 compensation plans:
Unilevel- Earn from retail profit. Allow sponsoring when a certain amount
of sales is obtained. Earn an over-riding commission from the sales of
their downlines. When their downlines are able to sponsor, the original
consultant will also earn over-riding commission 2 levels deep, but not
more.
MLM (Stairstep)- Earn from retail profit. Depending on productivity, they
will be paid varying bonus levels. Company determines the maximum
bonus paid out. Bonuses will be paid out to distributors and the
differential between the bonus of the seller and the maximum will be
pass up to the uplines depending on their qualification levels. Also
implement a breakaway concept and leadership bonus for the leader
and his/her upline.
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