The DHS Club Business Plan

Back in late 1996, after DHS Club Founder Dick Burke had sold his real estate and new home construction business, he was thinking about starting a new business, that would use the power of the Internet to bring buyers and sellers together to form a new kind of buyer's club. For months he researched his idea to see if anything like he was envisioning had already been created. Although a number of "opportunities" purported to do so, none of them offered what Dick could see as a new business model to create real "group buying power" vested in an international buyer's club, in order to negotiate discounts from retailers, wholesalers, service providers and manufacturers.

In early 1997, he continued to pursue his concept and started to locate potential suppliers of products and services, while considering the type of marketing plan he would use to grow the membership for his new buyer's club. Although he had been a successful MLM (Multi-Level Marketing) distributor back in the 1970's, he had walked away from his business and vowed he would never be involved with MLM or "Network" marketing again, due to the problems and abuses that he had observed with that type of business.

The biggest problems that he had seen with MLM, was that the products were always expensive and that 99% of the people that got involved, lost more money than they made due to purchasing requirements of these expensive products and the costs involved for having a "system" or "training" consisting of overpriced books, tapes, meetings and weekend functions. Add to this these expenses, the difficulty for most people to sponsor others and build a network large enough to provide a decent income, then one can see why most MLM opportunities fail.

A New Idea Is Born

But Dick wondered if a new type of marketing plan could be created that did not have expensive products, or purchasing requirements, or an expensive motivational and training system, but rather a system and training program that could help anyone learn how to:

  • Prospect and find potential Customers and Marketing Representatives
  • Build an organization of Customers and Marketing representatives to create a residual income
  • Manage their Marketing Representatives
  • Direct their Marketing Managers
  • And create an actual vested, pension income

If this could be done and the two ideas merged, then a completely different kind of consumer and business opportunity could be realized! So Dick spent the first few months of 1997 considering the difficulties and downsides of traditional MLM or Network Marketing plans and crafted a new plan and model. In March of 1997, he determined to start a new company and went full time into the research and development of his idea. On June 1st, 1997, the Discount Home Shoppers' Club, Inc. (DHS Club) was born.


A New Business Model Is Created shaking hands

Since that time, the DHS Club has developed the online and international ClubShop Mall and the ClubShop Rewards Card program to be used to shop offline and it has grown and become stronger and better with each passing year. Besides standing the "test of time", the DHS Club has pioneered and developed a unique new business model - Managed Organizational Marketing or M.O.M., and along with it, has created an incredible marketing and management system, and training program, called the ClubAdvantage Business Building System.

Comparison Chart - DHS Club's M.O.M. Plan versus M.L.M Plans

DistinctionsDHSC M.O.M. PlanM.L.M. or Network Marketing Plans
Initial InvestmentSmall and AffordableVaries, can be expensive
Cost of Products or ServicesDiscounted - Less than RetailMore expensive than normal retail
Types of Products or ServicesMost Popular - Brand NamesUnique and Exclusive to company
Management StructureBuilt InNone to little
CompensationPaid to WorkersShared "upline" even if not working
Residual IncomePension Plan
No More Work Required
Promised, but rarely seen
Work required to maintain
TrainingExtensive and IncludedNone to little
SupportRequired by Team CoachesNo accountability
Tools ProvidedExtensiveNone to little
Proven To WorkYesNo
Money Back GuaranteeYesVaries

Utilizing our Mananged Organizational Marketing Plan, we offer free memberships worldwide to our buyer's club. Members are able to use their membership to gain real Group Buying Power.

With the help of our Marketing Representative (known as VIPs or Vested Income Partners), the DHS Club contacts and negotiates with Merchants (retailers, wholesalers, service providers and manufacturers) around the world so that we can offer their products and services to our membership in exchange for a commission percentage paid to the DHS Club for every product or service ordered.

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Merchant Commissions

Typically, at least half of the commission paid to the DHS Club by a Merchant is returned to the purchasing Member in the form of Reward Points. These Reward Points can be redeemed for Gift Cards or Certificates or as a Cash Back Rebate.

Most of the other half is paid out to our VIPs as sales commissions, override commissions and pension income per our VIP Compensation Plan.

The balance is retained by the DHS Club to pay our staff and overhead expenses.

piechart

So rather than offer overpriced products to our Members (as MLM plans do), we offer our Members discounts, savings and rewards on the type of purchases they are already making! As a VIP, you simply give away free memberships and when you refer someone to become a DHS Club Member - everybody wins! The Member you've referred saves money and earns Reward Points AND you earn Referral Fee Commissions and Pay Points.

The DHS Club Motto: Together Everyone Achieves More!

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