Network Marketing Buying Clubs

Now we’re going to cover some common myths associated with network marketing buying clubs. I hear these myths so often, that I decided to actually present the myth first, and then I’ll provide you with the facts to so you can see the contrast and understand the truth as it relates to one of the oldest, most traditional products/services in network marketing.

Wholesale buying clubs

Myth: Wholesale buying clubs are a powerful way to develop a large international marketing business while at the same time enjoying the benefits of wholesale prices on thousands of consumer products.

Fact: Wholesale buying clubs are a fantastic way to save money. However, MLM’s version of the wholesale buying club is not exactly wholesale. You can save as a consumer by skipping the middle-man retailers and going directly to the wholesale warehouse, but generally there is not enough profit margin left to run a true wholesale buying club. What you get instead is simply “a buying club.”

Here are some definitions of a wholesale buying club vs. a buying club:

Wholesale Buying Club: A group of consumers who band together to form a large purchasing organization to take advantage of volume discount prices. These clubs are exclusive to those who officially become members. Typically, wholesale buying club members will pay a monthly or annual fee for the exclusive right to purchase at factory-direct, wholesale prices. Traditional buying club members only shop at stores, but in today’s modern age, it is usually done through catalogs, 1-800 lines, and now, the Internet.

Buying Club: A group of consumers who band together to form a purchasing organization. The organization offers the same items you might find in the retail and wholesale store at similar prices, or possibly a bit higher. The organization retains the profits that would otherwise have been savings to the consumer. These profits fund the organization.

Most buying clubs are designed as fund-raising organizations for churches or other non-profit organizations. You may buy a ticket to an upcoming country western concert, and some of the proceeds go to the local fire department. Your church or school might sell chocolates that you could find at the store for about the same price or even much less; however, the church or school retains a percentage of the profits. Also, buying clubs are common among profit-producing organizations, such as direct sales or network marketing companies. A company offers items in a catalog that you can find for about the same price in the stores—the catalog prices could even be a bit higher. The company passes a percentage of its profits to independent distributors who are actively promoting the products and program.

Myth: Amway/Quixtar is a wholesale buying club.

You’ll be suprised by my answer, click on the ARTICLES section above for the rest of this article.