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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%.

Here is another Amway product I took from my mum’s shelf. Its called Sun Pacer SPF 15, for skin protection against the sun.

This product has been helping us so much, until its skin peels off.

The day after I met Joshua, I went to see my neighbour at the back of my house about "sharing interesting events".

"Sharing interesting events " – is what I read in my SMS inbox a week ago. Both of us were in the same MLM business at one time. Adjusting my schedule to meet him, we are just trying to catch up with each other.

Looks like I was busy the whole weekend, trying to keep up with what is going on in the current MLM market.

Mr. Fabian was invited to attend MLM presentation by two different companies and he shared his personal experience about how those company does their presentations.

One similarity about Joshua and Fabian,is that both of them wanted me to start first with my MLM business, then they started to share theirs.

No product talk and No marketing plan talk. At the end of the day, Mr. Fabian just showed to me the brochures and flyers from the two companies that he attended.

This is USANA products that my friend, Joshua was taking about, last Saturday. This particular one was taken during early this year in my neighbour’s house. 

Last Saturday, my new friend called to meet up for some sharing. He is in a MLM business part-time and would like to show his business presentation to me.

This was the 2nd meeting. I was introduced to him by my downline. He wanted to show me his MLM business on the very first time we met. Then I said "Make it next time when we meet again,since this is the first time, let us get to know each other first."

He called and message me through MSN Messenger to meet up a couple of time. So, I set up an appointment to see him in the evening nearby my house. He is straight forward person. He even told me the name of the MLM company that he is doing.

That’s what I like about knowing what you are expecting before hand.

I reached the coffee shop and waited for him. He begin by talking about how I was doing with my new MLM business. Then he start to talk about his.

At first he sat in front of me. As he was doing the presentation, he pulled his chair and sat closely beside me. I guess he wanted to get the message through to me.

He showed me the product and the marketing plan and invited me to Kuala Lumpur for a seminar next week, on Saturday 27th June 2009, with a free admission ticket. I found out we have the same direction in MLM.

Let me show you the product he is talking about on my next blog post.

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.

Presenting, Echoes, product of L'Arome International. They have designed the same fragrance from perfume to talkum powder, hair shampoo and body shampoo for both men and women.

Why We Joined MLM – Steve and Linda Rhodes, Vermont

Linda is a licensed practical nurse, and before my accident, I did carpentry work. Even though I get around in a wheel-chair, there are days that I can’t get out because of weather or illness.

But my organisation still makes sales, which means that I still make a profit!

What impressed me about Multi-Level Marketing was the multiplication of numbers. At certain point in the business, it can continue to grow on its own.

I would encourage others in a situation similar to mine to do MLM. It’s simple to do, can make you some good money, and it doesn’t have to take up a lot of time.

There are days when I need extra rest or medical attention. If I were working for someone else, this could present a problem. With MLM, my income continues as my downline organisation keeps growing.

Written by David Roller, How To Make Big Money in Multi-Level Marketing, page 24

I would like to make a comparison between Conventional Business and MLM Business. 

Lets look at the Conventional Business and how it works.

Cost of a product from the Manufacturer is at $10.00, for example.

Wholesalers will raise up the price to $12.00, in making a profit of $2.00 for themselves.

When the product arrives in another person’s hand in every countries, it will add another $2.00.

For easy calculation, we use $2.00.

In the states, they will make a profit of $2.00. Now the price of the product will become $16.00.

When it branches out to the districts, they make their share of profit.

Finally, it reaches the shop to be sold to customers.

Customers ended up paying $20.00.

On the other hand, in MLM Business, the products arrives directly to customers. All the cost in between will be given to customers who distributes and market the products to other customers.

This diagram shows a bigger picture of how the business is run between a Conventional Business and a MLM Business.

The graph shows the comparison of income for those who are employed and those who are in business, especially in MLM.

If u are paid a salary, you are working for somebody. No matter how much is your income, there will be a maximum pay each month. I would like to named it a "Ceiling", above you. Since the day you started working, you will enjoy yearly increment and once you reach the maximum (Ceiling), your income stops there until you retire. Upon retirement, you got no pay, or for some sector, you got half pay. The moment you stop working, your income stops.

What do you do after retirement? Some may still have to look for a job. You have no future.

Inflation is always going up.

If the job that you are doing is for your own and you are not paid a salary, that job may have a future.

You are actually working for yourself and you determine your own income. Becoming your own boss and being in business is the way to create your own destiny. And as for the income, the sky’s the limit.

There are people who work for a month and get paid for many months to come. This is one of the benefits of MLM. 

MLM income can grow quickly, in a short period of time because of the multiplication effect.