Mini IQ
From Wikipedia, the free encyclopedia
Mini IQ is a network marketing or multi-level marketing (MLM) business in the United Kingdom. The business profits from the sale of products to and by self-employed contracted associates.
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[edit] History
Mini IQ was founded by Book Club Associates (BCA), a direct marketing organisation, in 2004. The company was privately purchased from BCA in January 2006.
The company is purportedly based on a retail business for children's educational books and toys, although (as with most MLM businesses) the ongoing business model is heavily dependent on a turnover of associates.[1]
The company is renown in the UK for offering working parents (mothers in particular) a purportedly flexible and profitable business opportunity, and has hit the national headlines in this regard[2].
The company was further highlighted in the Summer of 2004 in a national magazine targeting mothers on the basis that it offered a "job in a box"[3].
[edit] Associate membership
Associates are recruited by existing associates and are required to purchase stock and sign a contractual agreement. Associates are self-employed and access earnings through two routes: through direct sales to customers at a commission rate of 25%; and through direct sales to customers of downline (recruited) associates at a commission rate of around 9-12%. Many of the associates are women taking a career break to care for children.
[edit] Products
The public face of Mini IQ presents a business model based on the sale of children's education books and toys. A small proportion of these products are exclusively marketed (in the UK) by Mini IQ, whilst the vast majority of the products are available elsewhere. Product prices reflect that the business is entirely commission based across multiple levels of associates, and so products can be offered at higher prices than they are available elsewhere.
[edit] Regulation
Regulation of MLM businesses in the UK is virtually non-existent. Such businesses are occasionally criticised for being pyramid schemes although this is not strictly the case since associates can only earn commission on their downline if they are "active" (which requires that they have personally sold a minimal quantity of stock). However, in the absence of the "active" criterion, such criticism would be entirely pertinent.
Mini IQ is a prospective member of the Direct Selling Association (DSA) of Great Britain. This means that the company has been recently elected to the DSA and is awaiting the compliance audit that precedes transfer to full membership and permission to use the DSA logo.
Mini IQ was recognised by the DSA in March 2007 for achieving the highest rate of growth in the industry (30% in 2006).
