Why efficiency in the MLM company and the sales force means success
Why do so many companies use network marketing as their chosen marketing method?
Simply put, it’s more efficient! They do not pay for marketing, distribution or sales until after the sale is made and the product is delivered. Contrast this with traditional marketing, where a company may spend millions of dollars on advertising, as well as all the costs associated with an employee-based sales force, such as benefits, support staff, communication, travel, and office, before it is realized. sell any product. Charles Givens, financial expert and author of the bestselling book Wealth Without Risk, points out that 80 percent of the cost of getting a product to consumers today is the result of marketing expenses. Companies are looking to move their cost as close to the point of sale as possible.
Network marketing companies replace traditional advertising and marketing costs with sales commissions to independent representatives, paid after the product is sold. In her bestselling book, The Popcorn Report, Faith Popcorn explains additional social trends that drive network marketing success. Her book describes consumers as wanting to “lock up” and stay home. She believes they want to avoid crowded malls and traffic jams, and seek the convenience of direct product delivery that Network Marketing offers. Advertising Age magazine claims that a friend’s recommendation is the most powerful form of advertising.
This is what Network Marketing is all about!
The changing workplace has shown that there is no security in the traditional corporate structure and career path. In the United States, more than 4,000 jobs are lost every day due to downsizing. Automation and technological advances are streamlining business and changing entire industries. Millions of people will be out of a job looking for the same kind of work their previous employer just eliminated at another company that hasn’t yet streamlined. This is postponing the inevitable. In fact, 47 percent of the companies that made up the Fortune 500 in 1980 are no longer in business, representing a net loss of more than five million jobs.
Technological advances affect the workforce of entire industries. One example is the vinyl record business. In 1985, vinyl records supported a $24 billion-a-year industry. Today it is almost extinct and has been replaced by producers of cassette tapes and compact discs. The steel and copper industries have suffered with the arrival of new plastics and alloys. The functions that computers are capable of executing have caused the replacement of millions of workers. Robotic technology has also taken its toll in the workplace.
One robot can replace twenty human workers and eliminates the need for companies to pay exorbitant amounts in employee benefits. Man Power, Inc., a temporary service, is now one of the world’s largest employers because companies find it less expensive to hire temporary employees and avoid paying benefits to permanent employees. There is no security in the change of workplace. Network marketing in a part-time endeavor can provide a financial cushion of residual income to ward off such events. A recent Wall Street Journal survey found that 80 percent of the workforce want to own their own business and 40 percent of those surveyed would like to work at home. This is exactly what network marketing offers. People are looking for ways to build a future that develops leadership and provides balance in their lives for their families and each other, without sacrificing their sanity in the process.
Network Marketing is that little secret that traditional corporate America doesn’t want you to know, and it provides you with a vehicle out of the rat race, which 1 in 4 millionaires in the US already enjoy through MLM. .