Retail compared to multi-level marketing
Nothing comes from doing nothing. Success never comes from procrastination. If you are committed to change your own financial future, now is the time to start. Only you can do something about it. There are many get rich quick and stay rich schemes, but they seldom bear fruit. Hard work and wise work always bears fruit. Everybody wants to be like “Somebody”. “Somebody“ is a billionaire today because he/she chose to change.
Having changing his/her mind-set and habits, he/she is able to go on holiday regularly, drive the latest model car, and have a modern house. He/she changed his/her thought patterns and working habits and started somewhere. Everybody wants to work for themselves. The problem is, not everybody has the knowledge or succeeds. By making a choice you could commit yourself to change. Change is not easy, change might cause you to do things that you are not used to. Many business persons do not even grow in health, wealth and prosperity because of not wanting to adapt to change. But life is full of opportunities and chances.
You could apply for a franchise at R750 000,00, spend R1 000 000,00 on a shop, fixtures, fittings, training and stock. You might need R500 000,00 in running capital. You could spend 5% on monthly royalties, 2% on advertising and 1% on training. Your friends and family might assist you to present guarantees for that amount. You might end up working 16 hours per day. You could make money or end up working for your employees and creditors.
Normally a business starts off small – let’s use a national clothing group as example. One or two persons started from home, they manufactured clothing, produced stock, and then sold off this stock and made a profit. With the profits they bought more fabric and produced more stock. The one person was an excellent seamstress and the other person did the marketing and handled the finances.
They created trust with their clients and their clothing was in demand. Eventually they could not supply the demand for their products anymore! They hired seamstresses and tailors, later they hired the services of a designer and eventually appointed a bookkeeper. They then opened a shop in town. Friends and families of the customers wanted the same clothing.
A need arose in another city. They ended up with two outlets and had to appoint a manager for the one and managed the other themselves. The manager was very competent and he wanted more money for his services, so they agreed to pay him a salary and to give him a target to reach for receiving that salary. Should he out-perform his target and have a greater turnover than expected, he would receive a percentage of the gross profit exceeding his target.
The manager was a wise man and appointed salespeople according to the same deal: a target for salary and a percentage of the gross profit on sales above target.
The salespeople sold to their regular clients and even found more clients among their friends and their friends’ families. Some friends saw the prosperity in some of the lives of the salespeople and wanted to become agents. The salespeople became wise and appointed their friends as referral agents on a commission basis. When a client bought clothes from the agent, the client was a happy customer/user/consumer, the agent received commission; the salesperson received his salary and commission; the manager far exceeded his targets and his income increased. More shops were opened and today we have many national clothing stores in different outlets in every town and city. The manager became the national sales manager; the salespeople were promoted to provincial managers, area managers and branch managers.
The company is still owned by the original two persons who started it, but thousands of people earn an income based upon the quality of the service or products; the management plan and all are inter-dependent on the next person for his own income and performance. Each person is paid on a different level according to performance.
The same applies to multilevel or “network” marketing. Some people, however, confuse multilevel or “network” marketing ventures with disreputable pyramid schemes. There is a huge difference between multilevel or “network” marketing and these illegal pyramid schemes, though.
Multilevel or “network” marketing is a lawful and legitimate business method that uses a network of independent business owners to sell consumer products and/or services supplied by an established company. Business owners sell these products and/or services that are not available in fixed retail stores, to consumers/users/clients, but through person-to-person relationships between business owner and customer.
Business owners can also build teams and manage their own sales force by recruiting, motivating, supplying and training others to use and share those products. Compensation then includes a percentage of the sales of the business owner’s entire consumer group, as well as earnings from their end users. It is often worthwhile, for the end user, to become a distributor or sales agent for the business owner. This could lead to discounted rates for own usage or consumption, and, by creating an opportunity or income, the user or consumer becomes enabled to easily afford the product or service.
Pyramid schemes are illegal and participants are required to invest large amounts of money in exchange for the promise of receiving profits by recruiting additional participants to make a similar investment. Scam artists attempt to resemble multilevel marketing methods by introducing a product line. However, little or no effort is made to actually market the products to consumers. Instead, compensation is paid for recruiting investors only.
The MYPORTFOLIOVAULT Marketing Plan is based on sharing the product and opportunity with friends, family and associates, and not on inflated promises demanding large sums of money for nothing. MYPORTFOLIOVAULT CC offers this business opportunity to existing customers only. It is not a prerequisite to become a Business Builder before buying the product, but rather a prerequisite to buy the product and service and then, having full knowledge about the business, you could decide to register to become a Business Builder. A small fee is required to become a MYPORTFOLIOVAULT business owner.
MYPORTFOLIOVAULT CC does not impose a minimum sales value. Business Builders earn commission from the first product shared with others wishing to utilise the products and services offered by MYPORTFOLIOVAULT CC to manage their Estates, and no commission is paid for the mere act of sponsoring or recruiting another person.
As a registered client of MYPORFOLIOVAULT CC, you could register as a Business Builder and start earning an income from day one.
