One may ask,why are so many companies utilizing network marketing as their chosen method of marketing? Simply put, network marketing is more efficient and the fastest way to reach the end user! The company does not pay for marketing, distribution or sales until after the sale is made and the product is delivered. Compare that to traditional marketing where a company can spend millions of Shillings on distribution well as all costs associated with an employee based sales force, such as benefits, support staff, communication, travel and office, before any product is sold. Research points out that well over 70 percent of the cost of getting a product to end user today is the result of marketing and distribution. Companies are looking to move their cost as close to the point of sale as possible. Network marketing companies replace traditional marketing costs with sales commissions to the independent representatives, paid after the product is sold.
"If you can’t beat them, join them”
Companies like Microsoft, Gillette, Colgate-Palmolive, Rexall, Goodyear, IBM, and Firestone. Others include General Motors, Avon, Watkins Products, GNLD, SwissGarde Tiens etc, are all in Net work marketing today. Why are so many companies utilizing network marketing as their chosen method of marketing? Simply put, it's more efficient and the fastest way to reach the end user! It is interesting to note that many of the major network marketing companies started only as direct-selling companies. After discovering the awesome power of network marketing through the success of Amway and others, these direct-selling companies are somewhat 'forced' to adopt the network marketing plan. This perhaps explains why MLM plans are now being used by more than 70 percent of the DSA's member companies." They have finally decided,"If you can't beat 'em, join 'em."
1 comment:
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