Network Marketing is almost everywhere,. More and more people are involved. And at the same time, there is a lot of confusion about the true nature of network marketing, also known as mlm or direct selling. There are many differences between the companies, as in traditional businesses. But there is a general business model that differienciates the Network Marketing companies from the traditional one. I’ve found this interesting article written by Bruce Bailey, phd. that describes in a very simple and comprehensive way what makes the network marketing model so different. I hope you’ll learn from this article. Here it is! Enjoy! - Louise G.
“Network marketing is a multi-billion dollar business. As a business model, it is taught in major universities around the world. The Wall Street Journal stated, “…between 50% and 65% of all goods and services sold in this millennium will be through network marketing.” It is a business model that is perfectly suited to the “information age.”
“What is this «Business Model»? Network marketing is a way of doing business that is different from the “traditional” model used by most consumer packaged goods, food and drug companies. It is one of the most promising income opportunities in American today. It is the idea of many people each doing a little work, as opposed to a few people doing a lot of work. (…) ”
Distribution – “ Rather than using the customary distribution process of moving products from manufacturer to wholesaler to retailer to consumer, network marketing companies use a network of independent marketers to move products directly from the manufacturer to the consumer. Further, the cost structure of a network marketing organization is different than a traditional packaged goods marketer.” Continue reading
