What is SaaS?

What is SaaS?

What is SaaS?

Do you own online software? Can you buy cloud-based software? Am I buying or licensing my software? What are SAAS fees?

What is SaaS?

SAAS is short for Software As A Service. In today’s real-time cloud-based world, many companies that provide online services or software are moving to what’s called a SaaS environment. A SaaS environment for you is going to your MLM software provider, sales tax provider, commission payment system, logistical warehousing system, etc – and there’s going to be some sort of fee associated to that.

For example, in MLM Software, you’re normally going to pay some sort of base, monthly fee. Then you’re going to pay a fixed amount or percentage of sales, per transaction, per customer, or per distributor etc. Why should you be happy paying these fees? Well, you need to understand what that provider is doing for you as a company. First of all, if it’s MLM software, you don’t have to pay tens or hundreds of thousands of dollars on the development of the software, setting up servers, setting up your cloud, hiring and managing your development and customer service staff, all of those things are handled by the SaaS provider.

As you grow, you’re going to pay more in fees, but those fees are more predictable than trying to do it yourself and are ultimately going toward the improvement of the platform you’re already using which benefits you.

In this industry, it’s got to be a win-win for everyone. It can’t be a zero-sum game.

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If you’re looking at MLM Software, be happy that you’re looking at a SaaS provider, be happy that they’re going to generate a profit, because that’s going to make you as a company and your distributors better while taking the headaches off of your shoulders. At the end of the day, you’re all going to be happier and more successful.

If you think I can give you some value or education on the direction of your network marketing company or help you with MLM Software or Logistics, give me a call or shoot me an email.

What Is 2FA or MFA?

What Is 2FA or MFA?

What is 2FA or MFA?

Should my MLM Software have Two Factor Authentication or MultiFactor Authentication?
This is brand new terminology that you’re likely to hear more and more from software companies.

What is 2FA?

2FA is short for Two Factor Authentication. If you’ve ever tried to login to your bank account, and then received a text or email from your bank asking you to confirm the login before proceeding, that’s an example of 2FA, it’s a new security precaution.

MFA is the same thing essentially, but means that you can add additional authentication factors.

Over the last few months there has been this explosion in attention to cryptocurrencies; bitcoin along with a number of other “alternative” coins. On all of these cryptocurrency exchanges, they’re using these security precautions to help prevent unauthorized parties from gaining access to what it supposed to be a more anonymous payment system. We’ve even integrated this into our own software.

We’ve all heard the horror stories, the hacks on Target, on Neiman Marcus, on Equifax. We can’t ignore the world around us and because of all this, today we are more concerned about the security of your data than ever before.

What You Want

You will want to talk to your software company about whether or not they’ve adopted Two Factor or Multi-Factor authentication or whether they have plans to implement it in the future./span>

You’re going to want it to support more than just an email confirmation – emails are much more easily hacked into than a cell phone number to intercept a confirmation text.

This is something that you’re going to want to offer to your customer’s and distributors to help prevent fraud – for example requiring authentication not only for logins but also for specific actions like changing a username, password, email account, or tax ID’s.

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There are some really important areas of your MLM software that could benefit from the use of 2FA or MFA for security. I’ve been involved in the security side of network marketing and software for over 20 years. I’ve seen a lot of companies come to us because a failed software company didn’t have the proper security in place and their data or credit card information was stolen. The last thing you want is for your database to be hacked, for data to be stolen, commissions misappropriated, etc.

If you think I can help in determining what you should really be looking for in a software provider, give me a call on the phone or send me an email.

Pricing Your Products & Services

Pricing Your Products & Services

How Should I Price Products and Services? How should i price my MLM Products? What markups or margins should be in a product in MLM or Network Marketing?

How Do You Determine the Pricing for Your Products or Services?

What you need to keep in mind is that your products are usually just like the ones being sold in traditional retail environments.

What many people don’t realize though is that in a typical retail product, 60-70% of the retail cost goes to advertising. In network marketing, that 60-70% is going to commissions. The advantage is that you’re only paying for performance while in retail you’re putting that money out in advertising and hoping that it will generate a sale.

In network marketing you typically want to have a 6-8x markup over your cost of goods.

So if you have a product that costs you $10, your retail should be $60-$80. Keep in mind that’s a retail price, not the price you’re going to sell to distributors or preferred customers.

Preferred customers; customer’s that may have signed up for a monthly autoship, or some other form of subscription membership, typically you’ll want to provide a 10% discount. Based on our prior example, that would be a sales price of $54.

For Distributors, they’re going to want to see a discount in your retail pricing of about 20-25%, so your distributor pricing for the example product would be $45.

That’s $35 left for the company and you’re going to need to pay a portion in commissions to the distributors that sold these products. Typically you want to pay about 40% of the retail sales price in commission. 40% of our retail price is $24, and if we take that out of the $35, that leaves $11 left for the company.

You can adjust that commission between 30-40% going to your commissions, but you’re going to want a 1:1.5 times your cost of goods in profit for the company.

But really it depends on the product. Some markets are drastically higher, for example, skincare products can see as much as 10-15x markup and ingestibles and shakes, 8x-10x.

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Pricing your product is an important tool in establishing the perceived value of your product or service.”

If you got some value out of this video, or you think I might be able to help you price your MLM products or services, I invite you to contact me.

Are you treating your Distributors like Employees?

Are you treating your Distributors like Employees?

Is a distributor an employee? How should I treat my distributors? Do MLM distributors have requirements like employees do?

Distributors are NOT employees and you shouldn’t be treating them like they are if you want to keep them in your organization.

Are You Treating Your Distributors Like Employees or Distributors?

Employees work for you and earn a paycheck. Distributors are a volunteer army selling your products and services in exchange for a commission.

A few weeks ago I was on a call where I overheard a company owner screaming at one of their distributors because they hadn’t met their recruitment or sales goals. Even as the CEO of a company, I don’t yell at my employees. I speak to them professionally, in a professional manner.

For some reason, I’ve witnessed many entrepreneurs treat their distributors, their volunteer army like employees.

As an owner of a network marketing company, you’re not paying for your products to take shelf space, or for the expensive marketing costs that traditional businesses rely on. You have a volunteer army that believes in you, and your products or services, and in the opportunity you’ve presented them with.

They’re going to hit the streets to edify you, to edify your products and services, and you know what? They’re not going to get a paycheck unless they show results. MLM and Network Marketing is a “Pay for Performance” Industry.

Unless they’re a sales director or other executive employees of your company, these are volunteers that have taken on your opportunity because they believe in it.

The beauty for you is that you only have to pay them when they perform. What you can’t do is REQUIRE them to perform. With an employee, I can require that they come in from 8am to 5pm, take a 1-hour lunch break, and I pay them for their time and their performance during that time.

With a distributor you can’t require that they be there at 9 am or 2 in the afternoon. Most distributors are working jobs and they joined your opportunity believing that it was going to improve their lives.

 

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Before you get on conference calls or speak publicly about how you treat distributors, think about what it was that made YOU become a distributor and start your own business. You wanted to make your own path. The same is true of your distributors, they want to start their own company because they saw a vision, they wanted to change and improve their lives.

But they’re entrepreneurs at heart, Not employees – you need to remember that.

If you’re thinking about starting your own MLM or Network Marketing Company, I invite you to call me or send me an email. I have over 20 years of experience in this industry and would love to help you with your new or existing company.

5 Reasons You SHOULDN’T Start A Network Marketing Company

5 Reasons You SHOULDN’T Start A Network Marketing Company

What are the reasons I shouldn’t start an MLM or Network Marketing Company? Is an MLM an easy way to get rich? Do I need a good product for a Network Marketing Company?

Here are 5 Reasons Why You SHOULDN’T Start A Network Marketing or MLM Company.

1 – You’re only focused on the money you will make.

Network Marketing isn’t about how much money you’re going to make. It’s about how much impact you can have on other peoples lives. It’s about how much value your product provides to other people. it’s about putting other people before you. Because, if you put others before you and provide a product that has value to your customers, the money will come.
These days so many people are focused on the end game, the harvest. Not on the planting, the watering, letting the sun grow on their distributors and customers.
When you put people before money, the money will come.

 

2 – Your Product or Service Doesn’t Provide Value

If you want to start a network marketing company, you need to start with a product that provides value. If you start your company trying to sell coffee mugs, they’re probably not going to sell because people can buy coffee mugs anywhere, and they’re probably going to find it for less elsewhere.
If your product or service doesn’t have an impact on people and provide true value, you shouldn’t be starting a Network Marketing company.

 

3 – You’ve Never Been a Distributor

I’ve met a lot of companies and entrepreneurs that want to start want to start a Network Marketing business but have never been a distributor. In my opinion, you need to ‘walk the walk, before you talk the talk’
You need to walk in a distributors shoes to see and understand what they’re experiencing when they start talking to customers, recruiting distributors when they’re afraid of taking negative words or No’s.
You need to have been a distributor, you need to walk that walk before the talk that talk.

 

4 – You Don’t Own Your Products or Services

When you purchase your products from outside vendors instead of manufacturing them yourself, you have no control over your supply line. Example; if you go to a wholesale market and buy your products there, everything is fine until that product is no longer available anymore. Whether that be the result of a vendor going out of business / not selling that product anymore, a change in marketplace policy, or any other reason, your business is now in jeopardy.
If you don’t own your product, your don’t own your destiny.
You need to own that product or the rights to your service.

 

5 – You’re Requiring Your Distributors To Purchase Your Product To Join Your Opportunity

As a Network Marketer, I may not like or have a use for your product. As a Company Owner, you cannot require me to purchase a product or service you’re going to pay commissions on in order to join your business opportunity.
A Distributor should be able to join your company, pay a minimal amount for a distributor kit, or non-commissionable samples maybe pay a minimal amount for the back office and be able to go out and talk about your products and services and not necessarily have to buy them.
Should they buy them? Yea, in order to really be successful, they need to be a product of the product and a service of the service but you cannot legally require them to do so.
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If you’re only looking to make money for yourself, your product doesn’t provide value, you’ve never been a distributor, you don’t own your product or service, or you want to require distributors buy your products in order to join your opportunity, you should not be starting a Network Marketing company.

Network Marketing creates a community that can impact people’s lives for the better, and if you’re willing to help others and make an impact the world with a valuable product or service, I invite you to reach out to me so I can help you launch your vision!