Joshua Fuson:

Amway ConventionAn MLM or network marketing company is no different. They have a client base. They call these clients “distributorsâ€?. These distributors have demonstrated the propensity to purchase a particular type of product. Usually, they are buying it monthly on “autoshipâ€?. So if I’m a company, and I’m looking to generate more revenue, how can I do that?

Well, one option is to have a mega-event. An MLM or network marketing company can advertise this “rah-rahâ€? meeting as an annual (or semi-annual) mega-event, training conference, whatever. The company can fill an auditorium with current clients (distributors), and then bring in key speakers that talk about how much money they can make with this company, how great the product is, how fantastic the opportunity is, etc. They charge each distributor a premium price (usually several hundreds thousands of dollars) and at the same time, qualify the distributor as being both a “buyerâ€? and as having enough money to buy additional products.

Once everyone gets in the auditorium, and everyone gets real excited, the company can then launch a new product or product line, and literally guarantee that the launch will be successful. Because the company qualified everyone as both a “buyerâ€? and as having enough money to buy, the new product launch is an absolute success. The company generates revenue. The distributor spends money.