With direct marketing, companies are promoting their products and services directly to the customer by leaflets, fliers, direct mail, catalogues etc. Consumer Direct Marketing replaces this media with existing consumers. CDM promotes products and services, gains new customers and business developers from existing consumers’ word-of-mouth referrals.
Think “recommend a friend” schemes. Jimmy introduces Victor to Melaleuca, Victor becomes a customer. As a thank you, Melaleuca pay Jimmy a commission based on Victor’s monthly bill. However, Jimmy has to remain a Melaleuca customer in order to continue to receive compensation. Victor can also only become a Melaleuca customer is he has been referred by Jimmy or another executive.
To earn commission, you need to refer a customer to Melaleuca. They join Melaleuca and you earn money from their transactions. To earn commission with MLMs, you sell products directly to the customer, and earn commission from the sale.
As a Marketing Excutive with Melaleuca, you don't get the product from me. You get it from Melaleuca directly, not me.
That's why in Melaleuca, you don't sell. You are just educating other consumers to switch to a safer and better brand without incurring additional cost. After all you will still need to buy your household cleaning products and your health supplement. Only difference is you now buy with Melaleuca. No additional cost. In fact, its cheaper.
CDM Compensation VS. MLM Compensation
As a Marketing Executive, you will earn commission from your referrals transactions. Once you reach a certain target then you can begin develop some of your referrals into also becoming Marketing Executives, and so earning commission from their referrals.
So far, it seems like a standard MLM compensation plan.
Unlike MLMs, Melaleuca’s commission percentage remains constant. You receive 7% compensation from your first level, 7% from your second level, and your third, fourth, fifth…
Because MLMs commission rate decreases with each level, you need to grow your team at a rapid rate to earn a substantial income. Melaleuca’s generous, consistent compensation plan takes away this pressure, so you can earn a good income from a smaller down-line.
The key to earning more money with Melaleuca is to encourage your referrals to purchase more products. In order to earn commission, the referral must buy a minimum of 35 product points per month, approximately SGD $100, which is the amount a typical household will spend on household cleaners, beauty products, health supplements, etc. The CDM structure restricts the down-line to 7 generations. So, if we assume that the 6 people below you only spend SGD $100 each month, and you are earning 7% on each transaction, this will earn you roughly SGD $35 per month. You could earn more by starting more down-line chains, but you will again just be earning about SGD $35 per month for each down-line.
CDM places slightly more importance on buying products rather than expanding your down-line.
Many MLMs require their reps to purchase a certain level of inventory each month in order to qualify for commission. However, the commission they earn can be a lot less than the amount they spent loading on inventory, resulting in a substantial loss.
With Melaleuca’s CDM structure- there is no inventory loading as you are not selling products. It is true that you need to purchase a certain amount of products every month in order to maintain eligible to receive commission but frankly speaking, you will have to spend that amount for your monthly expenses anyway. It is only where you spend it on.
The difference with Melaleuca’s “inventory loading” is that the products are being purchased for personal use. Think of it this way- instead of spending SGD $100 on grocery store toiletries and detergents, you’re spending SGD $100 on Melaleuca branded toiletries and detergents. Melaleuca products tend to be better value for money than grocery store brands, so by undergoing this “inventory loading”, you are actually saving money. The Melaleuca products you are buying are products you would be using anyway, and so there is a slim chance that you will be left with a garage of unused stock.
CDM inventory loading involves you buying products to replace certain household items, whilst MLM involves you buying products in addition to your existing regular shop.
Think “recommend a friend” schemes. Jimmy introduces Victor to Melaleuca, Victor becomes a customer. As a thank you, Melaleuca pay Jimmy a commission based on Victor’s monthly bill. However, Jimmy has to remain a Melaleuca customer in order to continue to receive compensation. Victor can also only become a Melaleuca customer is he has been referred by Jimmy or another executive.
CDM Structure VS. MLM Structure
As a Marketing Excutive with Melaleuca, you don't get the product from me. You get it from Melaleuca directly, not me.
That's why in Melaleuca, you don't sell. You are just educating other consumers to switch to a safer and better brand without incurring additional cost. After all you will still need to buy your household cleaning products and your health supplement. Only difference is you now buy with Melaleuca. No additional cost. In fact, its cheaper.
CDM Compensation VS. MLM Compensation
As a Marketing Executive, you will earn commission from your referrals transactions. Once you reach a certain target then you can begin develop some of your referrals into also becoming Marketing Executives, and so earning commission from their referrals.
So far, it seems like a standard MLM compensation plan.
Unlike MLMs, Melaleuca’s commission percentage remains constant. You receive 7% compensation from your first level, 7% from your second level, and your third, fourth, fifth…
Because MLMs commission rate decreases with each level, you need to grow your team at a rapid rate to earn a substantial income. Melaleuca’s generous, consistent compensation plan takes away this pressure, so you can earn a good income from a smaller down-line.
CDM places slightly more importance on buying products rather than expanding your down-line.
CDM Inventory VS. MLM Inventory
With Melaleuca’s CDM structure- there is no inventory loading as you are not selling products. It is true that you need to purchase a certain amount of products every month in order to maintain eligible to receive commission but frankly speaking, you will have to spend that amount for your monthly expenses anyway. It is only where you spend it on.
The difference with Melaleuca’s “inventory loading” is that the products are being purchased for personal use. Think of it this way- instead of spending SGD $100 on grocery store toiletries and detergents, you’re spending SGD $100 on Melaleuca branded toiletries and detergents. Melaleuca products tend to be better value for money than grocery store brands, so by undergoing this “inventory loading”, you are actually saving money. The Melaleuca products you are buying are products you would be using anyway, and so there is a slim chance that you will be left with a garage of unused stock.
CDM inventory loading involves you buying products to replace certain household items, whilst MLM involves you buying products in addition to your existing regular shop.
Just to be real clear on why Melaleuca is not MLM. The fact that Melaleuca pays people on multiple generations does not classify Melaleuca as an MLM. What defines an MLM is how the money flows. MLM’s money flows from recruiting large amounts of people with a high start up fee and charges large amounts of money for overpriced products that don’t compete in the real marketplace. They are overpriced by 100′s of % to pad the pockets of the movers and shakers in the MLM world. In MLM your only truly in it for the money or business opportunity not the products. MLM is legal money laundering.
Melaleuca is built on every day customers that choose the brand over other large manufacturing companies. Melaleuca’s product truly compete for market share.
We invite you to come and visit our unique stores and discover for yourself the exceptional Melaleuca products and opportunity.
Please do contact a Melaleuca marketing executive near you or if you don't know one, please do feel free to contact me @ 65-9010 8654 or email me @ superzero2superhero@gmail.com
Please do contact a Melaleuca marketing executive near you or if you don't know one, please do feel free to contact me @ 65-9010 8654 or email me @ superzero2superhero@gmail.com
The potential for LIFE TIME earning is HUGE!!!!!!