Search:
Advanced Search
What is frontloading? Why should you avoid companies that do it?

 

Frontloading came to mind when someone told me about a company that was asking people to buy $500 worth of a product to join their company.  That is “frontloading.”  Here is how you can avoid being frontloaded .

 

When I looked up frontloading on Google, I noted that it referred mostly to frontloading washing machines. That led me to write this blog that suggests it may not be a great idea to ask people to buy bushel of product when they are only going to use a quart over the next 30 days.

Back in the “old days” of the MLM home business industry a leader would buy a lot of product direct from the company. He/she would service or supply buyers, customers or distributors. He delivered the product to his buyers or they came to his home business to pick it up. That was before companies began to take orders by phone, fax or online and ship the product direct to the consumer. This is a simple distribution system that works for hundreds of home business companies now.

Let’s remember, MLM is no longer a business about selling and delivering product. (Although a few companies still make exception to this concept.) Today, MLM is a home business model that encourages an independent representative to introduce a prospect to his company and their product(s) so the consumer may order direct from the company. The independent representative then will make money for the referral and a residual income with each future order from that consumer.

However, to increase first time or fast start commissions, some companies combine a large quantity of products into a “package” that requires the new consumer to order much more than will be consumed over a 30 day period. That is done so the person that referred him/her can make more money. Then, in 30 days, the autoship hits the doorstep and more products are stacked in the pile. Since 95% of people do not want to sell, what will they do with the extra product? Normally they are left with a bad opinion of MLM.

There is a solution. Look before you leap into a company and decode; is this first order realistic with my needs?  Is it realistic for the needs of the average consumer? The amount of product a person would use within 30 days should be a qualifying order to start a business and maintain membership.  Keep it simple and real.

 

Brought to you by Phil Darst

To take a 30 day FREE test drive, Click here.

Delicious Digg Facebook Fark MySpace
Views: 14347 views    Report Inappropriate Content
All Articles
Affiliate Marketing  (22 articles)
Article Mastery  (11 articles)
Before Joining An MLM  (18 articles)
Direct Mail Techniques  (3 articles)
Law Of Attraction  (9 articles)
List Building  (8 articles)
Managing Your Business  (18 articles)
MLM 101  (23 articles)
MLM Compensation  (1 article)
MLM eBooks/MLM Book Reviews  (2 articles)
MLM Lead Generation  (9 articles)
MLM Legal  (1 article)
MLM Marketing/Advertising  (25 articles)
MLM News  (1 article)
MLM Recruiting/Sponsoring  (19 articles)
MLM Sales  (1 article)
MLM Start-Up Help
MLM Training/Leadership  (23 articles)
Motivation  (20 articles)
Networking in Foreign Countries
Party Plan
Personal Growth  (30 articles)
PPC (Pay Per Click)  (1 article)
Prospecting  (7 articles)
Retention/Supporting Your Downline  (1 article)
Selling to Your Warm Market  (3 articles)
SEO/Driving Traffic  (16 articles)
Social Networking  (14 articles)
Women in MLM
Writing Ads