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Dubli
#1
On another thread a poster mentioned Dubli, an online ecommerce auction business that uses MLM/NWM to market the products. I thought I'd check it out and have a look at their compensation plan.

There model is interesting, they have a reverse auction site, where you have to buy credits to see the price, and the price goes down the more people look at the price until someone decides to click "buy". There's a few other reverse auction sites around, but their bait is you can earn an income through referrals.

I haven't analysed the compensaton properly, but they have this example -

The average customer spends approximately $25/€20 per month on DubLi Credits.

75 Customers x $25/€20 = $1,875/€ 1,500 x 25% = $469/€375 per month
12 BAs x 75 Customers = 900 Customers x $25/€20 X 5% = $1,125/€900 per month
Total $1,594/€1,275 per month


Frankly this made me take pause. Each agent bringing in 75 customers? And each of these spending $25? To be honest I doubt their average customer spend figure. One has to ask though - would the average customer spend €25 every month on an auction website? Or would they do what I do? Go check the auction sites to see if there's any good deals on something I want?

It seems to me the market for repeat business on the site is not high, certainly not compared to the consumable of something like Amway, and how realistic is it for a rep to introduce 75 non-rep customers?

Let's compare with Amway and a pure "buy for yourself model" (which I do not recommend) but consider the majority to not be active but merely wholesale shoppers. IBOs generate an average of $120/mth of sales volume .... 900 such "customers" would be generating $108,000 in sales and 36,000 PV a month ... way exceeding a Founders Platinum business, which in EU generates an income of €2500/mth.

Indeed, the statistics indicate a solid Founders Platinum business has 15 or so solidly active IBOs and maybe another 100-150 others registered, plus 100-150 customers linked to the IBOs - so around 300 "customers" to generate an income twice that of Dubli.
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#2
They are very heavy on RECRUITING more Licensee as they call it, and as per conversation that how the big money is made (in new people signing up spending over $1000 in registration)

Crazy if you ask me

My question was, if I spend money on Credits to look at or bid to drive down the price and I don't win the bid, where is my money and where is my product????

The answer was, your upline will get the $0.25 for every time that you make a bid and that where I said, 'ok, i think i have heard enough'

i can see how you can make some big dollars short term as there will be a lot of spending happening but what happens in 12 months time??
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#3
A little more on Dubli.... the concept is to grow customers through viral word of mouth, using social networks, facebook twitter etc. Also a lot of existing businesses of all sorts are adding dubli customers under their own licence from their existing customer base as an extension to their business.
The business model is for the Reverse Auctions to be an exciting bargain site and the shopping mall portal to be as big as Ebay, Google, Amazon and it is certainly heading that way.
Licensees earn a commission on the rewards points that the individual merchants offer the shoppers. This is by far the greater part of Licensees income.
As an example Ebay makes less than 10% income from the auctions and 90+% from the traffic they send to other businesses, same as google with their click ads.
Dubli is growing faster than Ebay did.

I know for a fact that the Australian launch has been extreemly successful and the full reverse auction and shopping mall opens 1/3/2010.
The success has been lead by ex Amway tripple diamonds, because the customer to licencee ratio is around 85:1 world wide.
It's not competition to Amway as it is a portal to other merchants ...same as google is. I wouldn't be surprised if Amway joins as a merchant, Amazon and Yahoo have.
Ecommerce is growing flat out... things are a changing.
Yes I do have a Dubli licence ($175 US) and have integrated it into my business and it is growing a second income stream Smile

Greg Dalla
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#4
What percentage of people who purchase the $1000 startup credits purchased further credits?
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#5
Dubli credits are worth 80 cents, Business Associates/Licensees purchase a package of credits Bronze-800 credits at a 10% wholesale discount, Silver- 1500 at a 15% discount and Gold-5000 credits at a 25% discount. Thats $575 US for bronze through to $3000 US plus your annual licence $175 Thats it you then sell retail and buy wholesale as your stock is sold.
Average spend per customer per month is $25 around 30 credits.
Dubli rewards your customers if they use the 'tell a friend' button on the site by giving your customer 5 free credits for speding the word... and the new customers are yours too.
Dubli customers buy more credits (min 10) from the 'Load Credits' tab on site and Dubli's back office takes the credits from the business associate's stock and pays you the full retail amount. All customers are linked to a licensee/business associate.

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#6
You didn't answer my question.

What percentage of people who buy credits buy more credits?
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#7
Well that would be 100%... to be counted as a Dubli customer the customer has to purchase at leased 10 credits per year.
The official DubLi figures for the US and Europe for every 3.4 customers who experience the dubli auctions 1 will become a regular customer and spend on average $25 per mth. Similar to Ebay's ratio, however, DubLi is growing 10 times faster than Ebay did, helped of course by the increased acceptance and use of viral marketing through social networks, facebook and twitter especially. Nowdays if you have some thing of interest, word of mouth can now spead it throughout the world in lightning speed.
The difference is Ebay does not pay you when 'your customers' and friends bid at their auctions... Dubli does.
The reason why the dubli rep/licensee to customer ratio is so high is because the licenses are only $175 and selling credits all happens automatically online, you just have to introduce customers to the site via your link....and watch them grow.

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#8
DubLi reps have to replenish their stock of credits as their customers buy. I started with 5000 credits (25%discount) and have 4937 left after my first few weeks. As my customer base grows more sales... how often I repurchase depends on how many customers I have, some reps have tens of thousands of customers.
Hope that gives you a better understanding ... if not ask away I'll be here.
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#9
Intrepidthinker Wrote:Well that would be 100%... to be counted as a Dubli customer the customer has to purchase at leased 10 credits per year.


So you're saying that if someone buys $1000 worth of credits, they're not a customer unless they buy more credits next year?

Or are you just avoiding the question?

Quote:The official DubLi figures for the US and Europe for every 3.4 customers who experience the dubli auctions 1 will become a regular customer and spend on average $25 per mth.

This is people NOT connected to the opportunity in any way? Better than 1 in 4 customers who try the auction site purchase new credits every month?

Or is this people spending the credits they bought at signup in order to get a better deal?

Quote:The reason why the dubli rep/licensee to customer ratio is so high is because the licenses are only $175 and selling credits all happens automatically online, you just have to introduce customers to the site via your link....and watch them grow.

Amway licence is $49 and people can all order online once they're introduced to your site too. That's standard network marketing these days, and it's not as simple as you imply.

I ask again, what percentage of people who buy credits at registration buy credits again?
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#10
Intrepidthinker Wrote:DubLi reps have to replenish their stock of credits as their customers buy. I started with 5000 credits (25%discount) and have 4937 left after my first few weeks. As my customer base grows more sales... how often I repurchase depends on how many customers I have, some reps have tens of thousands of customers.
Hope that gives you a better understanding ... if not ask away I'll be here.


How much did 5000 credits cost?

You've sold 63 of them in how many weeks to how many customers at what profit?
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