Network Marketing Structure Part 1 Plr Ebook

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Buy Back Policy

A buy back policy is a clause in the company’s terms and conditions where it protects its distributors in case they quit their business and want their money back. Normally this applies more to offline companies.

A very strong company usually has money back guarantees for their products even after the product has been used halfway or if the product is totally used up. This kind of satisfaction guarantee normally compels the company to absorb the risk because there will always be lots of quitters in network marketing or people who want to rip the company off trying the product for free.

In most countries, they offer either a 10 day cooling off period, or a 6 months to one year period where they will refund 90% to 100% of the products (whether used or unused depending on the company) due to the laws of the country or by the Federal Trade Commission.

Downline Building Strategies

A buy back policy forces the upline to be at his best because the moment a downline exercises a buy back policy, he might lose future potential income or even has his commission recalled or deducted. This is quite normal as in network marketing, the upline must go all out for the downline and make sure they succeed. A good way to prevent buy backs is to train the downline to be good product users so that even if they quit in the business, they will always remain loyal customers.

Product Synergy

In network marketing (or direct selling), testimonial of a product is critical as it is the driving force of the industry. Citing a money back guarantee gives prospect the confidence to try the product.

Starting a New Company

If you decide to include a money back guarantee in your new company, you must be very careful as you are absorbing the costs for any type of refunds. It is no point to keep a customers money anyway no matter how much you try to stop them from getting back as complaints to the consumer associations or even BAD word-of-mouth can destroy your reputation. In the end of the day, you must make sure your product is superb or else people will accuse your company for being a Ponzi or Pyramid Scheme.

Breakaway

Breakaway is a feature found in most Unilevel or Stairstep plans where a downline reaches a target faster than his upline.

Let’s in this company, you need to recruit three downlines in order to advance from having a 9% commission to 12% commission. The SPONSOR has to recruit 3 downlines then only he goes to 12% but his downline achieves this criterion before him.

This is a very common scenario on network marketing because you can’t possibly as a downline to slow down (it is HIS business after all) and different people put in different amount of effort.

Depending on the company plan, a breakaway in this case means that the upline will no longer be eligible to receive commissions from the downline group forever. The commission that is due to the UPLINE will go to HIS UPLINE (the one even higher up) who has achieved the rank higher than all those under him. In some cases, the downline will even bypass his sponsor and his entire group will join his new upline.

Downline Building Strategies

It is very important to understand that the upline and the downline are all part of a team and as a team you have to work together. At the same time as helping the downline, the upline must work his own share as well. In some cases, depending on the relationship within the team, the downline may opt to ‘wait’ for his upline so all can achieve the goal together without leaving anyone behind.

Proper team planning and relationship building is very important to prevent factors like sabotage (the upline deliberately ‘slowing down’ the downline to prevent breakaway).

Product Synergy

In spite of the disadvantages of breakaway, it is very important for the upline to put in a lot of hard work. For example, if an upline sees his downline growing very fast, he will work harder to generate more product sales so he will be eligible for bonuses and also ‘catch up’ with his downline.

Starting a New Company

Breakaway has his advantages and disadvantages. The advantage is that it rewards distributors for hard work. Whoever recruits more or moves more products gets more rewards. This is very important for the company as you don’t want to pay out unnecessary commission to free-loaders. The disadvantage as the company, you must strike a balance between to fairly reward all parties. This is tricky and requires planning.

Infinity Bonuses & Blocking

A company may pay an achiever up to infinity levels of commission once he has built a solid organization.

Normally this reward system is useful for people who step up to the challenge to be leaders and are willing to work depth in his organization. Infinity bonuses also reward those leaders who help their downlines no matter how deep below they are within the organization.

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