This is the second in a series that examines the 7 deadly sins of network marketing.
Yesterdays post took a look at lust.
THE SECOND SIN – GLUTTONY
Gluttony, as you may already know, is the over consumption, and therefore waste, of any product.
How does this apply to network marketing?
In many multi level marketing operations there is a need for the new recruit to buy product before they begin.
The question, though, is just how much inventory do you buy?
And how much do you really need?
DOES YOUR MLM FOLLOW THE 70% RULE?
Gluttony, in terms of multi level marketing, can be likened to inventory loading.
Inventory loading can appear to be attractive to both the recruit and the recruiter.
For the recruiter, the advantages of front-loading are obvious – the more stock their downline purchases, the more money they make.
For the new network marketer, inventory loading can often be a means of qualifying for bonuses or perks to which they may otherwise not be entitled to.
The problem, of course, is that inventory loading leads to a glut of stock that is neither being sold nor used for personal consumption.
An ethical mlm would have rules in place to prevent this from occuring, i.e. by requiring participants to sell a minimum of 70% of their stock holding before being allowed to buy additional inventory items.
This 70% rule is, however, open to much interpretation with many mlms allowing the bulk of that figure to be accounted for by self-consumption.
I would be interested in knowing how many of you network marketers reading this have indulged in inventory loading, and what were your reasons for doing so?
If you are currently carrying too much inventory then would you agree that you have committed sin #2 and that you are, in fact, a glutton?
TOMORROW : #3 – GREED