Kaching-Kaching & The E Commerce Business Model
Kaching Kaching is blasting headlong into the world of online E commerce with an MLM model, where hopeful distributors can own their own online shopping portal. Wow! Unique concept! Not really, I can’t even count or want to remember all the E commerce MLM business models I have seen over the last 10 years, there probably have been hundreds of MLM startups following this gravy train. Not to mention the fact that every MLM giant out here has also wedged they way into that business model as a way to generate additional profits form an existing distributor base. The big MLM guys like Amway (Quixtar), NuSkin (Big Planet), and others, all have e-commerce divisions. So we know this is a popular marketing concept to bring distributors into the fold, but the real question is can you actually make money doing it, and should you actually join Kaching-Kaching and bet your financial future on them?So the basic business model with Kaching-Kaching is this
Once you sign up you will have your own online mall with a lot of name brand stores where you will have the ability to generate profits of 2% to 10% of your customers purchases based on what type of product they buy. You also will earn monthly binary commission bonuses on the monthly activity fees from people in your Kaching-Kaching downline, once you recruit and build a team. That may seem like a piece of cake, but in today’s MLM market there are lots of new companies coming online every day, and many with some pretty exciting products so competition for distributors can be heavy. So trying to convince someone that an e commerce shopping deal is the path to financial freedom may not be as easy as it seems. In the overall scheme of things you will have to have a pretty large downline to really capitalize on the commissions on purchases and the only other source of revenue is the monthly fees distributors pay to be affiliated with Kaching-Kaching, but those are in the $20 to $99 per month range so that is not a huge potential revenue source either. The challenge of the internet mall has always been trying to change a consumers buying habits and getting them to go to a particular store through an online mall interface rather than just going directly to the store. Now it appears the way Kaching-Kaching plans to do this is to make it in a shopper’s best interest to go through the mall by getting them to sign up as a “shopper” under your distributorship and in doing so they get their own online mall interface with Kaching-Kaching for free. So now they are getting a rebate for shopping through their store (they get 50% of the total commission and you get the other 50%). Not a bad plan really. I would have to say this, I think Kaching-Kaching is an making an ambitious attempt in a highly competitive retail marketplace, but then the founder Robert McNulty has done some pretty powerful online business models before. He was in fact the founder and CEO of Shopping.com from 1996 until it was sold to Compaq Computers in 1999 for $220 million. So obviously he has a lot of expertise in this area. Which brings us to the question of why go through the pain of having a publicly traded corporation? Now in the business world and especially the Dot-com world, that is the main way you make money. You start a company build up the business model, and then sell it to someone else for bundles of cash before you ever have to reach profitability. However Network Marketing companies can be fairly easy to get to profitability and once you do, they are virtual cash register that can throw off a huge cash flow. I mean why do you think that Warren Buffet bought two MLM companies recently? Because of this, very few MLM companies every go public in today’s market. Why would you want to give away a piece of your money machine? So there may be a bigger game at play here. With a public company, you can double dip into the greed well of your incoming distributors while they are in their excitement phase and they will probably jump at the chance to not only work the business but also to buy shares in the company. I mean it only makes sense. What better way to expose your stock to a huge group of people than though prospecting them to look at your MLM? From an owner’s point of view this is a killer combo, you have tons of distributors helping you build up a loyal customer base and then even if the MLM side does not work out you have a business asset that can be sold.Now the real question is should you jump on the bandwagon with Kaching-Kaching and start building your downline?
Well this is not a deal that I would ever do, but that is because I prefer other MLM business models, but if you like what you see and are excited about the prospect of getting a piece of a well set up e commerce business model, then Kaching-Kaching may be your deal. Just remember too many people treat MLM as a hobby and not a business. If you want to be successful, don’t leave your success to chance. Learn some basic marketing skills and draw up a realistic business plan that will give you access to enough leads to power your business on a daily basis. There are a lot of very good online marketing systems such as My Lead System Pro where you can learn some online marketing skills and approaches that you can then use to power your lead generation efforts in your businenss. Then Kaching-Kaching may become your favorite word!
Kaching-Kaching
No comments:
Post a Comment