How to Manage Retail Income, Wholesale Income and Bonuses in Network Marketing

The World of Direct Selling recently published a must-read guest post by David H Hooker, Executive Vice President of Strategy India, a leading direct selling consultancy firm, about managing retail and wholesale profit and bonuses in network marketing business. The message of the post is very much in line with the customer behaviour QNET propagates and promotes – the culture of Repeat Purchase/Sales.

Here below are the most salient points, for us to read and learn from!

3 Areas of Income

There are generally 3 areas of known income – Retail, Wholesale, Bonuses.

Retail is income derived from your personal sales to your personal customers. Wholesale income you earn as an override on the retail (personal) sales of your down-lines’ retail sales, and bonuses are earned from activities outside of retailing and wholesaling. The key however is what to do with these various income programs.

Note: Wholesale income equates to Repeat Sales Points (RSP) in QNET.

Retail Profit Stays in Your Pocket

So you want a better lifestyle so let’s look at the ways and means to achieve that.


Find a product you like and could fall in love with.
Find a product that you would use continuously and could never be without.
Find a product that is truly unique, authentic, believable, ethical, and has good supporting documentation and market research.
Find a product that you want to sell.
Find a product that people want to buy.
Find a product that fills a need and that serves a purpose.


Use and become familiar with the product.
Don’t try to sell the product.
Talk about the product excitedly.
Tell people why you are using it, what it has done for you, and how it has changed you.
Get people to buy you first, then they too will try and buy the product.

This is how you start building a strong retail base with almost guaranteed monthly income. That being said, nothing is guaranteed unless you look after and nurture your retail customers. Value them, put them onto your mailing list, and send them literature as well as info on all upcoming events, pop in for a coffee at least once every month for a chat.

Build a trusting long term relationship. An important point to remember is, do not try to convert your customers into direct sellers, and they have far more value to you for referrals and leads.

Don’t give cash rewards or discounted product for referrals, it eats into your monthly income, instead buy bunches of flowers, boxes of chocolates, toys for the kids, Easter eggs as tokens of appreciation.

Do share with your customer how much money you are making from these referrals, it demonstrates a viable business. By sharing this information, you are automatically opening the door for them to ask you questions regarding joining your business.


Retail profit goes in your pocket.

So, if retail profit ONLY goes in your pocket how you do finance the building of your organisation? Well, that’s where WHOLESALE PROFIT comes into play. Wholesale profit is the income derived from the retail sales generated by your organisation. If retail profit goes in your pocket then wholesale profit “You Keep and LOCK IT” away for future development.

Retail profit is to be used for dinners out with your loved ones, going to shows, buying clothes, small home furnishings, weekends away, and those little extras that your current income cannot buy.

Retail income is for lifestyle.

As you slowly build your organization, place all income that is earned through their efforts into a jar or money box. Discipline yourself that the amount of money you spend and invest in your down lines and building will never be more than the amount in the jar.

Want to buy your downline a coffee, look in the jar. Want to travel to help your downline, look in the jar. Don’t spend what you don’t have – it’s called insolvency.

And, never forget that your best recruitment tool is in others seeing your lifestyle improvements, your increased social life, and the continual smiling face that has been generated by the extra $500 per month going into your pocket from your retail sales.

Now for your BONUSES.

This is the additional area of income that is earned through organisational bonuses, cash incentives, status improvements, anything that is outside retail and wholesale profits.

What do you do with this money? Bank it and don’t touch it. Place it in high interest earning accounts, places where it cannot easily be withdrawn and then watch it grow. And when it has grown, use it to buy private islands, helicopters, yachts, mansions, unlimited vacations.

So there you have it. The straightforward and honest approach to building a straightforward and honest business. Live your dream life.

You can read the post in its entirety here:


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