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Market America Unfranchise Business – Compensation Plan Review
This article will give a quick overview of Market America, but will concentrate on some of the specifics of the compensation plan. Market America calls its business opportunity the “Unfranchise”. Why? Because Market America offers the solid benefits of a franchise like training and systemized methods but doesn’t have the traditional headaches like huge overhead and start-up cost, insurance, employees and many other aspects involved with franchising. Market America is a product brokerage company that prides itself on one-to-one marketing and mass customization. The company headquarters is located Greensboro, North Carolina and was started by James Ridinger formerly a rep for Amway.
As mentioned before Market America is a product brokerage company which means they don’t actually produce any products but instead survey customers, find out what they want and then find a manufacture to produce the desired product. This allows Market America to carry only products that are selling well for their reps and can drop poorly performing products, keeping the company much less vulnerable to market swings. The manufacturer then researches and produces the product while Market America concentrates on bringing the product to the consumer through its network of independent distributors also known as an “Unfranchise Owners”. There are currently hundreds of products in the “mall without walls” from unique nutrition products, skin care and make-up, weight-loss products, an anti-aging hormonal line and many more. On top of their exclusive product lines they also have thousands of affiliate partners that allow the “Unfranchise Owners” preferred customers to shop and buy online through a web portal. Familiar names like Wal-mart, Target, Best Buy and many more are stores that allow the reps to get paid when their customers shop online.
The Business Structure and Payout
Market America has what they call a binomial compensation plan. Here are some of the specifics of the pay plan. Each rep or “Unfranchise Owner” retails product to preferred customers and recruits other reps to do the same. The benefit of this is of course leveraged time and financial gain. An Unfranchise Owner begins by purchasing 200BV of product to “qualify” their business center and remains on a 50BV-150BV “transfer buy” per month. This is product the rep can purchase for personal use or to sell to customers. BV is a point value assigned to each product that is used to determine when commission checks will be earned.(Average BV is 80% per dollar of the product, so $100 would be 80 BV). After that the rep must recruit two people and place on on the left side and one on the right side. This “activates” the business center and the “Unfranchise Owner” can begin receiving commission checks. As your business organization grows and more reps are selling to preferred customers and recruiting new “Unfranchise Owners”, the amount of BV accumulated on each side results in commissions being paid out.
Here is a little more detail about how the compensation works. To “qualify” your unfranchise business center you must, as stated above, purchase 200-300 BV in product to use personally and to sell to customers. This initial purchase is going to cost an average of $400-$1000. There is included financial leverage benefits for “qualifying” with 300BV or more instead of only 200BV because the unfranchise owner can start with 3 business centers instead of only one. Once “qualified” you must remain on a monthly “transfer buy” purchase of 50-150BV, depending on how far along you are in the compensation, plan which equates to $100-$300. Again, this is product for your personal use and for selling to your customers so you should be selling a lot of the product to make a profit every month.
Now that you are “qualified” your next goal is to get “activated”. This is done by “qualifying” a rep on your left side and one on your right. To do this your sponsor will teach you how to introduce the product and business to people you know that may be interested in starting a business of their own. When you “activate” your business center with your two reps you are able to collect commission checks based upon the amount of BV produced in both legs.
This is an example of how the residual compensation plan works and how you are going to be paid. Once “active”, each leg begins accumulating BV. Once the BV in each leg reaches 1200 a $300 check is released to you. This goes on to accumulating 2400BV in each leg and another $300 check being released. Then, 3600BV in each leg for another $300 check. The last stage is 5000BV in each leg for a $600 check. So, the total pay out for accumulating a 5000BV cycle in each leg is $1500. The cycle then resets to zero on each side and is done again. This process of course starts out slow as you begin the business, but begins to speed up as new reps come into your organization and they begin selling to their customers. This process continues to speed up until you go through the entire 5000BV cycle in one week meaning you earn $1500/week or $78,000/yr. There are also weekly bonuses for helping people in your organization succeed which can bring your yearly income to $109,000. You can open as many centers as you want meaning once you max out one centers earning potential another can be opened and begin earning commissions.
The Market America “Unfranchise” is not a scam. It is a legitimate business opportunity that provides a large selection of market driven products for the rep to choose from for selling. But, like any other business, networking or not, it takes serious commitment, continuous action and learning new things that you may not be familiar with when it comes to starting a new business. It also takes time to build the system and is not a get rich quick scheme, but can provide significant income over a 2-3 year period if you focus on following their systemized business plan. Market America may or may not be right for you from a business stand point but either way I would encourage looking at their quality products they offer at http://www.marketamerica.com/deigenfeld .
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