Thursday, July 16, 2009

Ronnie Cruz is Switching Companies

You read correctly. After much deliberation, I've decided make the move to a new company. The company is so new in fact that it hasn’t even launched yet.

Now, it's important you all know that I don't take switching companies lightly. Jumping from company to company is incredibly unprofessional and not only does it do nothing for you as a network marketer but it presents a horrible example for those outside of the industry.

No. There were some strict criteria I adhered to, issues that I made sure were addressed with my new company, issues that I feel are problematic not only with my previous company but endemic to the network marketing industry as a whole. Below, I've highlighted what I feel are three major problems in Network Marketing.

TOP 3 PROBLEMS OF NETWORK MARKETING

  • Cost of Product - Network Marketing is anti-cyclical, meaning when the economy is down, the Network Marketing industry typically does when. So right now companies should be doing great. However, that's not really the case right now. Network Marketing companies are suffering losses in this down economy because the price points on their products are TOO HIGH. Expensive products not only makes it cost prohibitive for people to get involved in Network Marketing right now but it also makes building a business incredibly difficult.
  • High Monthly Cost/Poor Retention - With such high product costs, distributors are faced with the added burden of hefty monthly auto-ships. And unfortunately, most Network Marketing compensation plans have made it very difficult for the average part-timer to break even on their monthly costs. On average, it takes approximately an organization 25 to 30 people (there are some companies where the numbers are much higher) to break even on your costs. Building that size of a group is not necessarily easy for your average part-timer. With more money going out than coming in every month, these distributors very soon stop their auto-ships and eventually drop out of the business all together.
  • Too Difficult for the Average Part-timer to Advance in Rank - For the people that do endure the high product costs and the uphill battle of keeping people in the business, yet another hurdle stands in the way of their success. Network Marketing compensation plans have traditionally given the distributors only a few levels of achievement, levels that are usually very difficult to attain. This exclusivity is great for the 5% elite distributors that are able to achieve the higher ranks but it's not so good for the 95% of the part-timers that make up the majority of the network marketing population. Being stuck at a particular rank year in and year out does greatly to demotivate a person, instilling a feeling that they are not making any progress, that they haven't achieved their goals. Again, it is only a matter of time before these quit the business.

These and many more problems are what we distributors are faced with in the Network Marketing industry and for better or for worse we've had to live with them. At least that's what I thought until I was shown this brand new company.

Now, I had grown to love my previous company and it was my intention of making that company my MLM home for years to come. However, this new company just fell into my lap and after examining it very closely, I saw that it addressed all the issues and problems that have up to now plagued our industry. This new company had all the strengths and none of the weaknesses of my old company. Finally, I had found a company whose products were competitively priced not with network marketing but with the retail market, where a distributor could break even on their monthly auto-ship costs with as few as 2 to 6 people, and whose comp plan allowed even the most novice network marketer to advance in rank much more easily.

Now, in the interest of keeping this blog as generic as possible I will refrain from mentioning the name of the company. But I will say that I am currently putting my leaders together and we're preparing diligently for Pre-Launch. So, if you're looking for a new company to work with and you'd like more info on what I'm working on CONTACT ME and we can discuss the details further.




Find out more about my new company and join my team. Send all inquiries to CEO@RONNIECRUZ.COM or you can visit THIS SITE for more information.
 
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