In a recent conversation with a network marketer, an interesting question was raised regarding the compensation plan of the LiveGood affiliate program. This question sheds light on the business model we follow, which differs from traditional network marketing approaches. In this blog post, we will delve into the details of our business model, explaining why we prioritize affordable prices over high commissions and how it benefits both our customers and network marketers.
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The Question That Was Asked:
This knowledgeable and experienced network marketer asked why, despite bringing in $18,000 in sales revenue by selling LiveGood Organic Super Reds to 1000 people in his organization, he did not receive any commission. This question highlights the unique aspect of our business model, which focuses on offering high-quality products at affordable prices rather than inflating prices to accommodate large commissions.
SEE ALSO: What Is The LiveGood Business Model?
LiveGood’s Buyers Club Model: Offering High-Quality Products at Affordable Prices
Unlike traditional network marketing companies that mark up prices to pay hefty commissions, LiveGood’s approach is more akin to a Buyers Club model. To illustrate this, let’s consider a scenario where a group of individuals wants to purchase the highest quality organic protein products. They could individually buy these products from high-end retailers at a higher cost, or they could pool their resources, create a superior product using the best raw materials, and benefit from the savings of a bulk order. Our company follows a similar principle, offering our members access to top-notch products at significantly lower prices.
There’s power in numbers and LiveGood is using this advantage to benefit the customers. It’s a win/win for everyone!
To understand the pricing structure better, let’s compare LiveGood’s Organic Super Reds with similar products in the market. Our closest competitor, Organifi, sells a similar product for $69, while Superbeets offers their product for $39.95. LiveGood Super Reds, on the other hand, are available to our members for just $18. The cost of manufacturing the product in bulk, including raw materials, credit card processing fees, transportation charges, and overhead costs, amounts to nearly $15. Therefore, there is no profit margin on the product itself.
Wait, What? No Profit? No Commissions? How’s This All Work? – Reasoning Behind No Commissions on Products
The absence of commissions on product sales is a deliberate choice to keep prices low and ensure more people can afford LiveGod’s high-quality products. If we were to pay commissions on products, we would have to raise prices significantly, similar to other network marketing companies. However, our goal is to revolutionize the industry by offering products at fair prices, rather than inflating prices for the benefit of a few individuals.
The conversation with the network marketer also touched upon the challenges faced by individuals in traditional network marketing companies. Many struggle to make money or retain their organizations due to the high prices of products. Customers often find similar products at lower prices elsewhere, making it difficult for network marketers to justify the higher costs. LiveGood aims to address these challenges by providing superior products at affordable prices, making it easier for network marketers to share and retain customers.
SEE ALSO: LiveGood Compensation Plan (VIDEO)
LiveGood & The Future of Network Marketing
LiveGood seeks to redefine the network marketing industry by prioritizing ethical and fair practices. We believe that marking up prices excessively to benefit a few individuals is not the right way to market products.
By offering high-quality products at affordable prices, we aim to create a sustainable business model that benefits both customers and network marketers. This approach allows the average person to succeed in network marketing, retain customers for the long term, and create a stable income.
This conversation with the network marketer shed light on the unique business model of LiveGood. By prioritizing affordable prices over high commissions, we aim to provide high-quality products to a wider audience. This approach challenges the traditional network marketing model and offers a more sustainable and ethical way of doing business. As we continue to grow and spread the word about our products and opportunity, we invite individuals to join us in revolutionizing the industry and creating a positive impact on people’s lives.