RunawayLeg.com

Hello and Good Day to all.

I am back again to talk more about Marketing Plan. Let’s continue from my previous posting on the Stair Steps.

Every new distributors will reach the 21%-ter position. What will happen if your downline reached the same position as you?

You have build up a person "A" to reach the 21% position, as same as you. You will earn a certain percentage from him and his group.

In order for you to over rides A’s group sales of lets say, 4%, you will have to achieve a certain PV (sales volume) from the remaining group.

At times, one may buy up in order to earn from his 21%-ter. What will happen if the person at 18% achieve 21%?

Eventually there will be more downlines who will achieve the same position as you and your remaining group gets lesser. 

You will have to find more new recruits to maintain the sales to earn the 4% from all your 21%-ter downlines. The 4% is called Leadership Bonus, which you earn from building downlines to achieve up to your level.

There are still companies applying this Breakaway plan. And there are even new companies today, using this kind of plan.

Authored by kevinn on 9th July 2009

Stair Steps is one type of a MLM Marketing Plan. It is shown usually after the Retail Profit section.

The position or percentage goes up as the sales goes up. Its just like climbing a set of stairs. When a distributor achieve 250PV, he is a 3 % ter.  (Three Percent-ter) as shown above.

What is PV?

PV stands for Point Value. Some other names are like BV (Business Value or Business Volume), eV (electronic Value). Some company may call it CV.

How PV works?

PV derived from the amount of sales generated by you and your group. 0.50PV could equals to $1.00, which means if you purchase $100 worth of products, your Point Value is 50PV. Some MLM company calculate it as $100 equavalent to 100PV. It varies from one product to the other and from one MLM company to the other. The bonus or income are calculated based on the PV for the month.

There are 3 ways how we work out this plan.

1) Accumulative

After you reached a sales of 250PV and created a sales of 650PV this month, which comes to a total of 900PV, you are a 6% ter. Perhaps they may call you a position, "Two Star". If you do another 850PV, you will reach the 9% mark. As you keep on doing your sales month after month, at your own sweet time, you know that you will eventually reach 12,500PV sales, at 21%ter (Eight Star position)

2) YoYo

The percentage of sales for each month is not certain. It depends on the sales you generated in that particular month. If you did a 250PV on the first month in the business, you are at 3%. When you did another 650PV, you are still at the 3%. The reason is because you start from zero each month. Only when you did a 900PV in a month, then you are entitle for the 6%. You know how YoYo is played. Up and Down.

3) Combination of both

Your sales accumulated, lets say from 250PV up to 9500PV. But from sales of 9500PV to 12,500PV is a YoYo.

So you may be at 21% this month, next month you could drop to 18%.

Authored by kevinn on 29th June 2009

Retail Profit is the first income in a MLM Marketing Plan. It ranges from 20% to 30%.

Let take for example: a product cost at $198.00,  customer price (C.P) and you, as distributor buys at $165.00, which is at a distributor price (D.P)

When you sell that particular product to a customer at $198.00, you make a profit of $33.00 ( which is 20% profit )

A MLM company may have a wide range of product line, and the percentage of retail profit defers from one product to another.

Some distributors likes to sell. They make their profit from selling. 

Tips:-

To join a MLM company, one will have to pay a Membership fee. Most MLM companies requires a membership fee. A new prospect may initially sell the products to earn the profit. From the profit earned, they sign up as a distributor under you.

If the membership fee is $50.00, then he/she will have to make 2 sales of the above product.