2.) Sales quotas. A quota is a required monetary value of products that you and your team must sell each month. This varies widely and could be from $2,000 to $200,000 per month or more, depending upon your company and your performance level.
3.) Recruiting quotas. This refers to a certain number of people you must add to your team each month. They are your "downline," and you are responsible for training them and keeping them motivated and working. Your paycheck relies very heavily on the sale your downline makes. If they quit a month after they join, not only do you waste valuable hours training people who leave, you also take time away from building your own business.
Quotas can be very difficult to maintain over time. What if you have a family emergency? Or you're having a baby? What if you just want to take an extended vacation? That’s why we want a home business in the first place -- so we can spend more time doing what we really want to do.
Very often in direct sales, you have what is called a 2-up program. This means each associate’s first 2 sales go to their mentor for their assistance in training and closing their first few sales. With this business model, you get paid first for helping your new associates, rather than waiting years for them to build a team, just so you can earn pennies on the dollar.
When you’re bound by quotas, I can tell you the last week of each month is a gut-wrenching experience trying to keep your business afloat. You end up working your business out of the fear that you’ll lose what you’ve already built. That’s no way to motivate someone. It’s not fun and it doesn’t end.
Samples, Inventory, and Paychecks
In most network-marketing companies, you need to have samples to get your prospective customer interested in the product. Think these are free? Think again! You’ll likely have to buy catalogues, samples, pamphlets ,and other company literature to share with others. f you can believe it, these samples and catalogues will not count towards your monthly personal product purchases or your sales quota!
Besides samples, you’ll want to satisfy your customer’s need to buy right away, so you’ll be encouraged to have inventory on hand for them. So you have to pre-purchase products, before you even know if you’ll be able to sell them.
Then, you have to wait for your company to pay you. Let’s say you have a great month. You’re all excited with your progress. At month’s end, you usually have to wait two weeks for the company to process your payment, then another five days to receive your check in the mail. So you’ve worked your butt off for 30 days, only to have to wait another 20 days to receive your small percentage check.