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  1. #1
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    Qualifying purchases

    Since this topic keeps coming up in other threads, I thought it might be appropriate to have it's own thread.

    Qualifying purchases in MLM are product purchases that must be made by the distributor in order to join or stay in the business.

    Should these purchases be required for members to stay/join? Why or why not?

    Also, should a member who recruited someone receive commissions on their downline's qualifying purchases?
    Last edited by UsanaReport; 12-08-2008 at 04:44 PM.

  2. #2
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    Re: Qualifying purchases

    Quote Originally Posted by UsanaReport View Post
    Since this topic keeps coming up in other threads, I thought it might be appropriate to have it's own thread.

    Qualifying purchases in MLM are product purchases that must be made by the distributor in order to join or stay in the business.

    Should these purchases be required for members to stay/join? Why or why not?

    Also, should a member who recruited someone receive commissions on their downline's qualifying purchases?
    Of course they should. It's product sold. Why wouldn't they?
    As long as it is acceptable for a person to beLIEve that he knows how god wants everyone on Earth to live, we will continue to murder one another on account of our myths. ~ Sam Harris, 'The End Of Faith'
    ~~~~~
    Christianity demands the crucifixion of the intellect.
    ~ Susan Kierkegaard

  3. #3
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    Re: Qualifying purchases

    Quote Originally Posted by ohein56 View Post
    Of course they should. It's product sold. Why wouldn't they?
    Because it's essentially like going to your downline and saying "buy this stuff from me or you're out."

    So why should it be done? Enough about the cons, what are the pros?

  4. #4
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    Re: Qualifying purchases

    Quote Originally Posted by UsanaReport View Post
    Because it's essentially like going to your downline and saying "buy this stuff from me or you're out."
    No it isn't like that at all. You're wrong.

    Quote Originally Posted by UsanaReport View Post
    So why should it be done? Enough about the cons, what are the pros?
    It creates revenue. It's why people show up in NWM, revenue based on products they love, use, and recommend to others. Sometimes handsomely.

    If you don't like the way money is earned in NWM, I suggest you find a different way to earn it for yourself & leave NWM alone. It is what it is. Quit trying to change the entire NWM world just because you don't like the way it pays some of their commissions. It just doesn't make sense.

    It's like going to a Toyota dealer and telling them you don't like to haggle over a car deal, and that you won't buy one until they start selling cars like their local Saturn dealer! Have fun with your Saturn then, cause Toyota doesn't sell their cars that way. (Hint! If you don't like haggling over a car, either, DON'T! Pay retail, or retail minus 2-3% & be done with it. You'll be less frustrated & so will the dealer!)

    Don't hold your breath. Volume is Volume. If it's there you should get paid on it.

    Kerry
    Last edited by ohein56; 12-08-2008 at 05:19 PM.
    As long as it is acceptable for a person to beLIEve that he knows how god wants everyone on Earth to live, we will continue to murder one another on account of our myths. ~ Sam Harris, 'The End Of Faith'
    ~~~~~
    Christianity demands the crucifixion of the intellect.
    ~ Susan Kierkegaard

  5. #5
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    Re: Qualifying purchases

    Quote Originally Posted by ohein56 View Post
    No it isn't like that at all. You're wrong.

    Why?

    Quote Originally Posted by ohein56 View Post
    It creates revenue. It's why people show up in NWM, revenue based on products they love, use, and recommend to others. Sometimes handsomely.

    Sometimes they don't use it at all. Sometimes they buy it just because they have to in order to stay in business.

    Quote Originally Posted by ohein56 View Post
    If you don't like the way money is earned in NWM, I suggest you find a different way to earn it for yourself & leave NWM alone. It is what it is. Quit trying to change the entire NWM world just because you don't like the way it pays some of their commissions. It just doesn't make sense.

    I assume you're talking about my blog? I'm not trying to change MLM. I want people to know more about it before joining, so they can make educated decisions.

    Quote Originally Posted by ohein56 View Post
    It's like going to a Toyota dealer and telling them you don't like to haggle over a car deal, and that you won't buy one until they start selling cars like their local Saturn dealer! Have fun with your Saturn then, cause Toyota doesn't sell their cars that way.

    Again, not trying to change how business is done. Just think that would-be MLMers should know what they're getting themselves into.

    Quote Originally Posted by ohein56 View Post
    Don't hold your breath. Volume is Volume. If it's there you should get paid on it.
    Quote Originally Posted by ohein56 View Post

    Kerry

    There's a way to call a fee “volume.” Just because there's a product attached to that fee, doesn't mean that the buyer wanted that product. They might have bought it just for the opportunity. That would explain why so many people are selling Usana products at a discount on ebay. They clearly aren't using them, and apparently can't sell them for a profit. So it makes sense that they cut their losses by selling for whatever they can get in an open marketplace.

  6. #6
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    Re: Qualifying purchases

    Quote Originally Posted by UsanaReport View Post
    They clearly aren't using them, and apparently can't sell them for a profit. So it makes sense that they cut their losses by selling for whatever they can get in an open marketplace.
    Bet they could sell them for at least what they purchased them for by going door to door....especially if all they have to sell is a measly two or three bottles of herbs or whatever..

    They could dedicate part of one day out of the month to knock a few doors and have it gone in no time, recouping even their shipping charges by adding a "delivery fee."

    Who says they have to use it themselves? If they want to, fine...but why should they settle for less on ebay. That seems like a lazy or shy person's way of taking care of the excess to me...

  7. #7
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    Re: Qualifying purchases

    Quote Originally Posted by bibleman View Post
    Bet they could sell them for at least what they purchased them for by going door to door....especially if all they have to sell is a measly two or three bottles of herbs or whatever..

    They could dedicate part of one day out of the month to knock a few doors and have it gone in no time, recouping even their shipping charges by adding a "delivery fee."

    Who says they have to use it themselves? If they want to, fine...but why should they settle for less on ebay. That seems like a lazy or shy person's way of taking care of the excess to me...
    I'm not them so I couldn't tell you a definitive reason why they sell it on ebay. But I think that it's because the price of their products is so high, that no one is really willing to buy them, even if they went door to door for hours. In addition, customers of Usana can buy directly from Usana as preferred customers and get the same price that the distributors buy for. So even if the customer didn't see the cheaper products on ebay, they could still buy from Usana without paying for the markup. I'd imagine that's pretty hard to compete with.

  8. #8
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    Re: Qualifying purchases

    Quote Originally Posted by bibleman View Post
    Bet they could sell them for at least what they purchased them for by going door to door....especially if all they have to sell is a measly two or three bottles of herbs or whatever..

    They could dedicate part of one day out of the month to knock a few doors and have it gone in no time, recouping even their shipping charges by adding a "delivery fee."

    Who says they have to use it themselves? If they want to, fine...but why should they settle for less on ebay. That seems like a lazy or shy person's way of taking care of the excess to me...
    Exactly!

    Is that MLM's fault, or the sponsoring distributors?

    If you're too shy and can't sell anything to anyone, and you have a closet full of products you don't want, can't use, AND can't sell, wrong business for you then, I guess. Lesson learned!? I certainly hope so!

    Great point BibleMan!

    Kerry
    As long as it is acceptable for a person to beLIEve that he knows how god wants everyone on Earth to live, we will continue to murder one another on account of our myths. ~ Sam Harris, 'The End Of Faith'
    ~~~~~
    Christianity demands the crucifixion of the intellect.
    ~ Susan Kierkegaard

  9. #9
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    Re: Qualifying purchases

    Quote Originally Posted by ohein56 View Post
    Exactly!

    Is that MLM's fault, or the sponsoring distributors?

    If you're too shy and can't sell anything to anyone, and you have a closet full of products you don't want, can't use, AND can't sell, wrong business for you then, I guess. Lesson learned!? I certainly hope so!

    Great point BibleMan!

    Kerry
    They could learn that lesson faster and cheaper if they found a website that described exactly what would be expected of them before they joined.

  10. #10
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    Re: Qualifying purchases

    Quote Originally Posted by UsanaReport View Post
    They could learn that lesson faster and cheaper if they found a website that described exactly what would be expected of them before they joined.
    Would it make a difference, really?

    Most of what can be expected can be found quickly regardless, by asking?
    As long as it is acceptable for a person to beLIEve that he knows how god wants everyone on Earth to live, we will continue to murder one another on account of our myths. ~ Sam Harris, 'The End Of Faith'
    ~~~~~
    Christianity demands the crucifixion of the intellect.
    ~ Susan Kierkegaard

  11. #11
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    Re: Qualifying purchases

    Quote Originally Posted by ohein56 View Post
    Would it make a difference, really?

    Most of what can be expected can be found quickly regardless, by asking?
    Apparently it would. People search for stuff like "usana scam" all the time. My guess is that they're looking for the side of the story that Usana isn't so eager to tell them.

  12. #12
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    Re: Qualifying purchases

    Quote Originally Posted by UsanaReport View Post
    But I think that it's because the price of their products is so high, that no one is really willing to buy them, even if they went door to door for hours.
    Na. That may be their excuse for not going door to door, but it has nothing to do with the reality that if they knocked some doors, people would buy. Trust me, I know from experience. I have sold plenty of things door to door ranging in value. Door to door sales is one of the easier ways (my opinion) to sell. It doesn't matter whether it is a big ticket item costing over $1,000 or a $5.00 toy.
    They can't hang the phone up on you because you are in their face. If your pitch is good, they have no choice but to either run away by slamming the door in your face, or agreeing to see more. Then, if your pitch is done correctly, they cannot say no, but choose whether they would like to pay by cash, check, or credit card (if you are set up to handle cards...).

    Quote Originally Posted by UsanaReport View Post
    In addition, customers of Usana can buy directly from Usana as preferred customers and get the same price that the distributors buy for. So even if the customer didn't see the cheaper products on ebay, they could still buy from Usana without paying for the markup. I'd imagine that's pretty hard to compete with.

    Yeah, that's all well and good. But if the door is knocked with the intent to sell products, not recruit by showing price comparisons for direct sales vs preferred customers, how would this even be a factor?
    Seems more likely that you would pick up dedicated customers that you could offer a discount from "retail" on as a benefit of joining later if they like the products.

  13. #13
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    Re: Qualifying purchases

    Quote Originally Posted by UsanaReport View Post
    They could learn that lesson faster and cheaper if they found a website that described exactly what would be expected of them before they joined.


    Who does that?

    If a curby vacuum salesman was at your door, would you tell them to hold on while you did price comparisons online?

    Door to door sales is all about impulse buys and followups to keep the buyer happy after the sale.

  14. #14
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    Re: Qualifying purchases

    Quote Originally Posted by UsanaReport View Post
    Apparently it would. People search for stuff like "usana scam" all the time. My guess is that they're looking for the side of the story that Usana isn't so eager to tell them.


    But the question is, would they do it while you were standing there looking at them?

    No they wouldn't.

    If they already have researched and found whatever they think is proof against the legitimacy or whatever of Usana or anything else, if you were to knock their door, they'd be the door slammers, to which you may loudly exclaim, "Next!" and sell to their next door neighbor instead.

  15. #15
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    Re: Qualifying purchases

    Quote Originally Posted by bibleman View Post
    Na. That may be their excuse for not going door to door, but it has nothing to do with the reality that if they knocked some doors, people would buy. Trust me, I know from experience. I have sold plenty of things door to door ranging in value. Door to door sales is one of the easier ways (my opinion) to sell. It doesn't matter whether it is a big ticket item costing over $1,000 or a $5.00 toy.
    They can't hang the phone up on you because you are in their face. If your pitch is good, they have no choice but to either run away by slamming the door in your face, or agreeing to see more. Then, if your pitch is done correctly, they cannot say no, but choose whether they would like to pay by cash, check, or credit card (if you are set up to handle cards...).




    Yeah, that's all well and good. But if the door is knocked with the intent to sell products, not recruit by showing price comparisons for direct sales vs preferred customers, how would this even be a factor?
    Seems more likely that you would pick up dedicated customers that you could offer a discount from "retail" on as a benefit of joining later if they like the products.
    You're right, it's possible for a given person to turn a profit from their required purchases. But in reality this doesn't seem to be happening. There's clearly a large number of people who are either unwilling or unable to sell the products for a profit, and turn to ebay. So of course you say the business is not right for them. But the business and their upline are still earning profits from their qualifying purchases.

    So that's wrong isn't it? Qualified purchases benefit the company and the upline regardless of whether the distributor is making profits.

    So at it's worst it's exploiting people who cannot or wish not to sell. And at it's best it's a product that one would've bought anyway in order to sell. Or is there any better reason that anyone can offer for it's implementation?

  16. #16
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    Re: Qualifying purchases

    Quote Originally Posted by bibleman View Post
    Who does that?

    If a curby vacuum salesman was at your door, would you tell them to hold on while you did price comparisons online?

    Door to door sales is all about impulse buys and followups to keep the buyer happy after the sale.
    Personally? If I was at all interested in what they had, I'd ask for their contact information and do my own research at my own leisure. But most likely I would firmly but politely tell them I'm not interested.

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