Can you use Multi-level Marketing System to sell property? Part 2.
The few reasons MLM is not for property are easy to understand. It is not an everyday thing.
Firstly, there is NO repeat consumption like when a toothpaste is finished, you buy another new toothpaste. Purchasing a property is a lifetime event for many people.
Secondly, there is delayed transaction time for property. Thus, the reward of commission might take a long time – can be a year even. So, there is no growth that can be seen as a “tumour”. That is a turn-off for most MLM enthusiasts.
Finally, there is a membership subscription fee which usually is translated into some points which you can use to purchase some products. In this, there is NO “products” to buy as property is very unique – each is different from the other. Imagine 10 persons who joined this scheme, all wanting this specific “product” – say a corner unit, how can it be given to everyone?
Therefore, this small sum of membership fee (some I heard is not small sum) is just cost of buying a few Name Cards and for some Brand Advertisements. At the end, the uplines make some money through subscription or joining fee, that is all.
The only thing is most RENs are looking for best deal with the commission share-out. This scheme seems to pay very high percentage commission. Thus, no matter what, it is a sweetener in the time of market slow down. Eventually, the organic growth is still fueled by conventional agency appointment and closing deals. You would not expect your new recruit to buy property and sell property like using toothpaste, right?
Indeed, it won’t sustain, and the legitimacy is also questionable.