If It Quacks Like A Pyramid...
Below is a MRR and PLR article in category Business -> subcategory Marketing.
If It Quacks Like a Pyramid...
Who Receives the Pyramid Quack Award?
Recently, during a conference call, we delved into a common concern: how can we communicate and behave so that people stop questioning whether our business is a pyramid scheme?
The key is to completely avoid the behaviors that fuel this perception. These often involve individuals pressuring friends to purchase or sell products in exchange for a percentage. For too long, the focus has been on recruitment and sales over genuine customer engagement. Many have dismissed my students who prioritize customers, claiming, "There's no money in customers?"it's all in recruiting."
However, I've taught countless classes proving the value of building a customer base. This approach is profitable in certain companies and has helped many stay in the business rather than quit.
Yet, some companies still operate in ways that mimic pyramid schemes. To highlight these practices, we present the "Pyramid Quack" award, urging them to pivot toward more customer-centric methods.
Recognizing the Pyramid Quack Traits
A pyramid scheme places more emphasis on recruiting newcomers than on the actual products or services. Many MLMs are guilty of prioritizing distributor sign-ups over product sales.
In network marketing, there are two primary ways to earn:
1. Gaining customers (earning a percentage from their orders)
2. Recruiting sales reps who also attract customers and sales reps (earning a percentage from their orders)
Which companies deserve the Pyramid Quack award based on their compensation models?
For instance, Phyllis, a long-time Tahitian Noni representative, shared her experience:
A typical order costs $120 for Noni juice monthly. The compensation for acquiring a customer who solely buys (without selling) is a mere 6%, translating to about $5 for every $120 order. Such minimal incentives have discouraged customer acquisition for years. The message is clear: prioritize recruitment over customer retention.
Despite this, Phyllis proudly announced that Tahitian Noni International has recently modified its compensation plan?"possibly due to our advocacy. As of May 1, 2006, they now offer 20% on customer orders, equating to $24 per order.
This change came after nearly a decade of adhering to a flawed model.
Looking Forward
You can catch more details in our upcoming podcast episode on "Talking about Your Great Thing." We'll also explore the compensation plans of Young Living and Life Wave in our next blog post. Will they earn the Pyramid Quack award?
Want to see if your company deserves the award? Share your company's info in the comments. Include:
1. Typical customer order value and your earnings (range) when customers don't recruit or sell.
2. Company name and your name.
We'll evaluate and determine if your company deserves the Pyramid Quack award.
Remember, if it quacks like a pyramid...
You can find the original non-AI version of this article here: If It Quacks Like A Pyramid....
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