Why do MLM companies still charge for web sites?
Why do MLM companies still charge for web sites?
A great guy just contacted me about his new MLM venture. He joined a brand new company and he wants to go really fast. So he contacts me about doing some consulting.
Well I checked out his web site and I was shocked.
The company is still charging distributors for web sites!
Why on earth would you want to charge distributors for their marketing web sites?
Wouldn’t you want your distributors to have every possible tool available to them to succeed in their business? In today’s world doesn’t EVERYONE need a web site? So why would they charge their own distributors $19.95 a month to have a web presence?
I’m sorry but this isn’t a smart business practice. Sure 99% of your distributors will pay the $19.95 a month but why do you have to do it? I know it adds a little more profit to the company and a little bit more commission to the distributors but I just don’t get it.
This is one area where MLM companies could really learn from successful affiliate marketers. Successful companies with massive affiliate sales forces give away tons of tools to help their affiliates. They give them away FREE. Just look at Amazon.com. You can get your own Amazon.com store to focus on a specific niche… FREE. Needless to say a lot of Amazon.com affiliates have setup their own stores. This helps get Amazon.com a ton of exposure and probably more sales than if they charged for these tools.
Why do MLM companies have to charge for everything?
- Ben Fitts
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That is a very good question. The only sense I can make of charging distributors for websites is its just another stream of revenue for the MLM company. Besides the websites aren’t all that effective. MLM companies make a ton of money from all of the marketing tools they sale to distributors. I guess I can’t really blame them for it, they have to do whatever they need to do to survive as a company…I guess.
Because they view it as another Profit Center, although some have both a free and a paid site. I don’t believe Company sites are very effective though…maybe helpful for signing people up, but they can’t be found in the search engines. I don’t think Companies realize this.
Good sponsors will put together a website with their Team and make replicating pages available. I’ve been doing that since the early 90′s and have built dowlines in the thousands. I don’t believe the upline should charge for that either…although most of them will
I many times ask the very same question!! Why do these MLM companies insist on charging for websites??A website is the basic too their distributors are going to use to market their product.If they would only pull their heads out of the sand maybe they would realize how much more profitable they could be if they only followed amazon for instance and gave their distributors all they need to market.
I’ve thought about this as well and I think there are a couple of good reasons why companies charge for their web sites.
#1. It weeds out the people who aren’t really serious.
#2. It helps cover the cost of maintaining the site.
I always recommend my team members wait until they are already producing an income before they sign up for a site, this way their business is paying for it’s self.
I disagree with Clement’s statement, the site can be extremely effective if you know what to do and how to use it. In fact they are no different than Cheryl’s self replicating sites, neither can be found in the search engines.
For me knowing I don’t need to worry about updating the shopping cart, security issues, payment processing, shipping, hosting etc gives me peace of mind so I can focus on marketing the products and helping my team members.