Saturday, July 4, 2009

76% total payout? Wrong!!

Lets look at Venture Era business plan (compensation plan).

1. VE claimed to payout more than 76% to distributor. WRONG ! The correct figure is less than 33% !

why? lets take an example Fresh Air. It has 1080 PV and distributor price of S$2600.

76% payout means 76% x 1080 PV = $821

However, the distributor get the fresh air from ve at $2600, which means the company kept $1779 ($2600 - $821).

So, for every Fresh Air sold, the distributors at best get $821 (31% of distributor price) while company get $1779 (69% of distributor price).

Dont forget, the 31% payout is distributed by so many distributors.. SE, ME, MM, BM, BGM, BAM, SAM etc etc. So who earn the most in MLM system? ONLY THE COMPANY DIRECTORS !

Well, VE always come out with excuses like logistic costs etc etc.. thats why they need to get 69% of the cash collection. Seriously, if the payout for distributor is so good... we think the company directors would have become distributors instead of setting up a MLM company.. right?

Remember what the sales consultants always said? MLM IS A GOOD BUSINESS OPPORTUNITIES !

If the business plan is that good... the sales consultants would have become distributors.. rather than became consultants getting basic salaries !

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