If you are new to the Network Marketing industry the phrase “Internal Consumption” is very important and something you should understand when evaluating Network Marketing Opportunities.
Internal consumption is the purchasing of product by distributors/representatives and not an end consumer. An example of this is when distributors purchase large quantities of product to sell to customers.
This is very common in many companies and does not become a problem unless a large percentage of those product sales are from distributors and not actual customers. The reason this happens is because many companies have sales volume goals each month that need to be obtained by distributors to qualify for a commission check.
If someone is short of reaching their sales volume goal they may feel inclined to placing a product order themselves to reach the goal and qualify for a check. The reason they know they are short of their goal is because the company sometimes provides a volume line to call and find out that monthly sales volume.
Now think about this for a moment. Imagine someone doing this month after month and placing the charges on their credit card to pay for products. Over time they will end up with a house full of products and credit card debt. Companies have actually been shut down for this.
When evaluating network marketing opportunities keep this principle in mind. Successful businesses of any kind provide products or services to customers not an internal sales force.
You will find a list of criteria for evaluating network marketing opportunities here:
Wish you the best!
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