The following is an illustration of why

when I took one of those career tests in the past, I was best suited for “Bank Examiner”. Not very sexy, but there it is. I was so astounded by the amounts of money involved that I thought some of you might be interested and bear with me to the end…

Once upon a time, when my friend was joining Market America, I started thinking about this very subject of paying for trainings, conferences, etc. After doing some research, I began to do the math in my head – then on a calculator. I tried to lowball things as much as possible, even to the point of being silly, and this is what I came up with:

Market America International Conference, held every year:

Approximately 20,000 attendees/distributors at $195 per ticket = $3.9 million
Approximately 20,000 attendees/distributors spending at least $20 each (this number may be very low) each on marketing materials, books, tapes, CDs, t-shirts, bumper stickers, etc. = $400,000

I read a newspaper article that described how, in 2004, Market America signed a deal with the coliseum (I forget its exact name) in Greensboro, NC to keep its yearly convention there for the next three years at a rental cost of approximately $75K per year, so that’s the cost of renting the building for the event. The coliseum even threw in some free marketing.

The Distributors pay for their own travel, food and lodging. Many of the speakers are Market America founders and higher-ups; I have no idea what, if anything, they are paid for their time. I have to imagine that the celebrities that are brought in are paid somewhere in the neighborhood of tens of thousands, 100K tops?

I think it’s fair to say that the annual convention brings in at least $3.5 million annually from the Distributors. Other than the building rental cost and guest appearances, there may be other costs but I don’t know what they are and can’t hazard a guess.

Market America Leadership Training, held every year:

I’m much less firm about the number of attendees for this, but I have to guess it’s at least half of the International Convention. It’s probably much more. Tickets are again $195 per distributor, and if they all spend $20 on materials, that’s over $2 million coming in each February. Again, less the costs of celebrity appearances, guest speakers, etc.

Market America Regional Conventions, held at regular intervals throughout the year:

Tickets = approximately $65.
I don’t know how many people attend each one in each region, but the number of 5000 is sticking in my head. Suppose it were lowballed into only 1000 distributors per Regional. That’s $65,000 for tickets. Maybe each person spends only $10 on accessory material. $75,000 per weekend coming in from Distributors throughout the year, less costs of renting a local conference center and paying guest speakers, if any. Again, all food, travel and lodging is paid for by Distributors.

Monthly income from Distributors:

Market America claims over 150,000 Distributors worldwide on its web site. Assuming around 125,000 of those people are in the U.S. and taking only them into account, and using Market America’s “Costs of Owning an Unfranchise” at the Coordinator level as a guide, guaranteed monthly income from required Distributor product buying alone exceeds $20 million per month. Some distributors pay more per month for product purchase than Coordinators, and some pay less – I’m assuming the middle ground. Market America doesn’t manufacture anything itself, so their costs would be whatever they’ve negotiated with the actual manufacturers of the vitamins, makeup, etc. that they sell under the Market America umbrella. The non-product payments made by Distributors break down as follows:

$3.75 million per month for email, voicemail, etc.
$3.125 million per month for web portals (recommended) (there was also a one-time $150 set up fee per Distributor; if they all paid it, over time it would be >$16 million)

If even half of the Distributors attended the recommended number of monthly meetings, it amounts to $2.8 million per month.

This is a page copied from a Market America web site detailing the costs of being a Market America Distributor (I didn’t include the web site link because I didn’t want it to be promotional).