Why Some MLM and Affiliate Programs Have Mandatory Sales Quotas or Seller Fees
Even some of the greatest MLM and affiliate programs have sign-up fees and minimum sales quotas. It can be frustrating. You want to sign up and you want to be involved, but you don't want the extra cost. Despite the frustration, there are actually legitimate reasons behind these fees and quotas. One of the reasons is so that the person signing you up has an incentive to do so. They earn a certain commission from the act of signing on an affiliate. An individual having to purchase a start-up kit obtains the motivation to sell more products so that their money is earned back through commissions. Most people don't want to purchase the membership, only to waste that money by not earning sales. However, the purpose of the fee goes much further than that, especially if sellers receive discounts on their orders. There is a tendency for sellers to purchase the merchandise for themselves because of an affiliate discount offered. However, if the profit margin is being split between a few...