"Strukkis" receive a commission and no hourly wage.
What exactly is the structure of the multi-level marketing
- Pyramid selling their models in the US and are also known as multi-level marketing schemes. Basically, this distribution system is to be found in many industries. So there is not only in the field of financial services, but also for example on the market for household goods pyramid selling (about the almost proverbial vacuum cleaner salesman).
- The model is based on the idea of an independent employee who works twofold. On the one hand he is selling, on the other hand he recruits new employees who resell independently and recruit.
- Important factor of the self is. This results in the company, the employee de facto belongs to no cost excluding commissions. This would be incurred on a salaried employee. Some multi-level marketing pay their representatives Although a salary, but they demand, "to bring to Earn" this by degrees. The representative must therefore generate at least as much commission to compensate for this initial advance.
- The staff lives solely by his commission, which he receives for each degree. However, the employee does not receive the whole commission. He must partially dispose to the employee who has enlisted him - his structure or Higher "Strukki".
- Even this has been recruited and so the employee who is at the top of the structure participates (eg the "General Representative" in the previous Hmi or "Head of Directorate" DVAG), at the commission who have "his people" generated. This duality of employees in two respects is motivated because he earned only by sales and can rise only through the recruitment of additional staff. The climb itself takes place within the structure.
The role of "Strukki"
- What makes the "Strukki" to "Strukki" is power. Unlike the regular sales this performance is measured less on sales than on enlistments. Remember therefore that is the rule of thumb that you back by selling your existence, by enlistments but your ascent.
- The "Strukki" is leadership and authority. Many multi-level marketing are criticized, among other things because the managers have by the nature of their rise is not necessarily about business knowledge, management experience or the ability to leadership.
- In particularly negative cases, this may encourage cliques, conflict and bullying. Many companies have recognized the signs of the times and lead appropriate internal training courses in order to qualify their "Strukkis" accordingly.
Multi-level marketing and pyramid schemes
- The most obvious difference between multi-level marketing and pyramid schemes is that the latter is illegal. But the demarcation perform properly, you need to look at what is sold as and what the focus is. A distribution system whose focus "inwardly" is on sale, at least suspected of being a pyramid scheme.
- The principle works in the following: The sales people need to perform their duties can, in companies or in their recruiters buy the products that they sell later. The aim of the subsequent sale are not only external customers, but also again be solicited employees, to their sales commissions they then participate again.
- The system therefore expects at best at the higher levels and breaks in the moment together, where enough staff can not be recruited to take off and set down in order to secure its own existence, the required amounts of the product. Many employees left the company in debt, because they first had to invest to acquire the products to be sold.
- But do not confuse this snowballing with the conditioning system of a Bernie Madoff. This had to constantly acquire new investments in order to meet existing contracts and compensate for losses. When the customer then demanded bigger paybacks, the system Madoff collapsed.
- Contrast is made clear to the outside the structure distribution of the focus. The employee does not have to buy the company or invest in expensive seminars, but receives a sales training, after which he then - autonomously sold and has the opportunity to build its own structure - a self-employed.
demonizing the multi-level marketing, so be sure just as wrong as it approve unconditionally. It is an opportunity for many people in difficult professional starting points to find by power a relatively good living - even if only a few are truly "rich". He places high demands on the human resources management, as not only the staff needs to be trained professionally, but also a productive corporate ethics out and has to be implemented.