Why do companies charge for start-up kits?
Last week I shared with you one of my biggest pet peeves in the world of network marketing: the fact that many companies charge distributors for their company sponsored websites.
Today, I want to talk to you about the start-up fees and required kit purchases that many companies require for new distributors to enroll.
(As you’ve probably already guessed, there are no start-up fees or kit purchases required for ColorMonthly…it’s simply enrollment in the $10 a month for 30+ printable coloring pages for adults autoship to join, which is the same price as being a customer. Simple. Ready to join us? CLICK HERE)
Why do most companies charge their new distributors in order to get involved with their company? First, there are two different ways that companies charge their distributors. Some will charge an enrollment fee. They may call it an administrative fee to set up the account. Those fees are yucky. The only thing the distributor gets is the privilege of making money for the company. Sometimes their upline gets a cut of the admin fee (which can make it attractive to sign up new distributors). Sometimes not. Depends on the company.
The second type of startup fee is the enrollment kit or starter kit that is required for a new distributor in many companies to purchase. This kit has training materials, business supplies, and product at a discounted price. Kits can range in price from $10 to over $1,000, depending on the company.There are some pros to having new distributors purchase a starter kit.
- Try the Products
First, the new distributor gets a chance to try the products she will be marketing. It’s pretty important for you to know what it is that you are selling. (Club ColorMonthly has one main product: coloring pages. No need to sample dozens of different products.)
- Receive Biz Materials
When you’re starting a new biz, it’s helpful to have catalogs and order forms available to make sales. When they are included in a startup kit, then you don’t have to think about ordering them separately. (ColorMonthly keeps things simple. You don’t need order forms or catalogs because it is simply printable coloring pages! No need to pay money for catalogs and order forms.)
- Kickback to Upline
Many enrollment kits have a built in bonus, sometimes called a training bonus, to the upline. This can be a nice chunk of change to the enroller or her upline.(Your upline gets paid every month from your autoship with Club ColorMonthly. No need to have a signup kickback. It’s easier to enroll distributors without one, and since the autoship is so inexpensive, it’s easier for the distributors to stay involved too!)
So we went over some of the pros to having a signup kit requirement, but what are some of the cons? (And yes, there are cons.)
It just gets so darn expensive! $100 for an opportunity kit? $500? When does it stop? Add to that your monthly autoship requirements, your website fees, and THEN any marketing you want to try and you’re spending a boatload of money. Didn’t you sign up to MAKE money, not spend it?
- Harder to Enroll
Which sounds better to you? “Hi Friend! I have a new business opportunity for you that will only cost you $399 to join, and purchase $60/m.” or “Hi Friend! I have a new business opportunity for you that will cost you nothing to join and purchase $10/m. Oh, and you’ll be earning commissions that rival those in competing companies who spend $60/m.” No brainer.
- Too Much Excess Product
I love the idea of sampling products from the company. Really I do. But when you get a smorgasbord of products that may or may not appeal to you (perhaps the flavor or scent is not to your liking, or you are unable to use the product -like you get dishwasher detergent and don’t own a dishwasher) that you are forced to pay for, it sort of takes the fun out of it. Ok, I know, they tell you to “just sell the products you cannot use”. Yeah. That’s simple. *sarcasm*
Wouldn’t it be easier to just order the products you were interested yourself, at the wholesale price? I guess that’s where I’m going with this message today. “Wouldn’t it be easier.” Yes, in fact, it is easier.
- It is easier to join a company with no startup or enrollment fees
- It is easier to join a company with no website fees
- It is easier to join a company with a $10 autoship
- It is easier to join a company with no monthly quotas or commitment requirements
You know, when I sat down to create ColorMonthly, I looked at all those other companies out there, and wanted something different. I wanted to offer an opportunity that was simple, inexpensive, and had the potential to earn my distributors a lot of money. And when I came up with Club ColorMonthly, I was literally shaking. It took me over an hour to calm down. Why? Because I saw the vision. I saw the potential, and the simplicity, and I thought to myself, “Why don’t other companies do this?”
Other companies are focused on the system. The complicated payouts, the extra fees, the warm fuzzies and meetings. ColorMonthly just wants to sell coloring pages to those who love this hobby! It’s a win-win situation.
It’s time for you to get started.
When you add it all up, there really is no business opportunity quite like Club ColorMonthly.