Sunday, July 27, 2008

MLM And Celebrity Endorsements: Why the Waste?

Celebrity Endorsements: Why the Waste? Several companies these days are boasting of celebrity endorsements.  Many unsuspecting affiliates don’t have a clue about how this is impacting their income.  Those celebrity endorsements are NOT free.  They cost money and that money comes out or YOUR pocket. 

I am not impressed when celebrities like Oprah or Donald Trump are used to promote certain products or companies.  I know the truth!  They are costing my fellow network marketers MONEY!  Nor am I impressed when MLM companies by space on Indy racecars and other forms of sports.  It is costing anyone promoting that company MONEY!

The same is true with those fancy headquarters, corporate jets, and high paid executives.  If the company you are with is publically traded; it’s even MORE money out of your pocket. 

Most people don’t consider this when they join an opportunity.  They don’t ask how many people have to be in my organization to make $500, $1,000, $5,000 or $10,000 a month.  I know of one very well known company that has a customer service center second to none, but that center costs at least 2 million dollars a month to operate.  Guess where that money comes from.  It comes out of the affiliates pockets.  With that company, you would have to have OVER 3,000 affiliate’s, ALL on auto-ship, to bring in $10,000 a month!  Now just how many people would be able to sponsor that many people?  It is totally UNREALISTIC! 

I know of another company that will pay you $10,000 a month with only 350-400 people in your organization!  How can they do that?  They do not have to pay for celebrity endorsements, call centers, stockholder dividends, corporate jets, race cars, high paid executives, and the like.  They are what is called a “STREAMLINE” company.  They don’t WASTE money on frills therefore they have a more lucrative compensation plan.  To my knowledge, no one can touch it!

Do you wonder why you are not making any money?  Do you wonder why you have to work so hard and get so little?  You better think twice before getting involved with or even staying with a company that spends YOUR money on the frills I have previously mentioned. 

Do you want to learn more about how to evaluate a company; to find out if it’s a good fit for you?  Click on the title of this post to get free training on how to become a successful network marketer by becoming educated and informed about what works and what does not.  The program is totally free. 

1 comment:

Anonymous said...

Great point. Every dollar the company spends on things like celebrity endorsements, jets and expensive offices is a dollar they can't pay out to the field.

I never thought about the publicly traded MLM companies. You are right to be wary. To make the shareholders happy the first place they will go to increase shareholder value is cut commissions. Long run that type of decision will destroy any company.