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I especially wish to highlight the dangers of front loading in a separate chapter in relation to the 2 topics above because through proper understanding of these features in the marketing plan will prevent people from losing money in the network marketing industry.
Front loading or inventory loading is more of a business maneuver where a distributor decides to buy lots of products in an effort to meet his quota or target faster and even buy his way up the ranking system (not usually at the entry level of the business).
Front loading can also occur when new distributors buy positions especially those at a medium to higher level. I have personally seen people invest more than $100,000 in buying products when joining a network marketing company.
More than they would like to admit, they are more interested in climbing the ranking and not as interested in using or selling all those products. Their decision in purchasing those products is purely to be in a more strategic business position (higher rank means better income) and most of the time, those products sit in their store rooms or under their beds.
I would like to stress that there is no crime or unethical actions in doing this. However, the danger is that many people fail to control their finances properly and that leads to financial struggles and ill feelings towards their company and their upline.
Furthermore, many people new in this industry make the serious error after they buy up their position. They sit around thinking that their ‘investment’ will grow. This kind of thinking is extremely wrong because after you have bought your position, you are not making any income (in fact people who build their network the ‘slower’ way has a more stable income than you) and you should work even harder to build your network since you have spent more money than before.
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