NETWORK MARKETING SOURABH SAINI ROLL NO.-88 RAVINDER KUMAR ROLL NO.-108
WHAT IS NETWORK MARKETING….? There are various definitions, but the simplest one is: With network marketing the inventor or manufacturer can put the product on the market without spending a million dollars. There is no need to give it up to someone else, and pay them to market it for the inventor or manufacturer. FORMING BUSINESS CONNECTONS AND CONTACTS THROUGH INFORMED SOCIAL MEETINGS.
……contd Let us look at say COCO COLA. They do not need you to move their products, they can afford to spend millions of dollars to put it on the shelves in all the supermarkets. They can also afford to spend millions of dollars on ADVERTISING. Whereas in NWM you are the ADVERTISER. In other words you help the company to grow and they reward you superbly.
……contd Most millionaires were made through network marketing. STATISTICS in America show that 20% of millionaires are made through network marketing.
…..contd. This is what Allan Pease has to say: “The network marketing business has evolved virtually overnight without fanfare or advertising and could eventually become the largest business system of them all. Its success relies on the referral – based distribution system and is driven almost entirely by the enthusiasm of its members. It is one of the most dynamic opportunities ever created by the mind of man.”
TRADITIONAL BUSINESS Vs NETWORK MARKETING SET UP COST Rs 300,00000 MONTHLY RENT OPEN AND CLOSE DAILY 12 TO 14 HOURS DAILY TRANSPORT PAY STAFF GAS/WATER/ELECTRICITY LAWYER TAXMAN ACOUNTANT LESS TIME FOR FAMILY CLOSE SHOP –NO INCOME PUBLIC HOLIDAYS ( U R closed ) SET UP COST IS THE MEMBERSHIP FEE NIL NIL 2 TO 3 HOURS DAILY NIL NIL NIL NIL NIL NIL MORE TIME FOR FAMILY PASSIVE INCOME NIL
VARIOUS TYPES OF NETWORK MARKETING MULTI LEVEL MARKETING (MLM): MLM means Multi Level Marketing. What is MLM? Marketing means moving a product or service from the manufacturer or provider to the consumer. Multi Level refers to the system of compensation provided.
VARIOUS TYPES OF NETWORK MARKETING (contd) RETAILING: Is going to the supermarket, grocery store, drug store or the department store. DIRECT SALES: Would usually but not always include insurance, cookware, Encyclopedias, the Avon lady, Tupperware, these are examples of direct sales. MAIL ORDER: You purchase from a catalog or nowadays online, eg. Amazon.com
A BRIEF HISTORY The 1980s saw a major shift as companies began managing the stocking and distribution of products as well as commission payments to their members. This allowed members to focus solely on marketing. Today, most NWM companies act as logistics companies that take orders, ship products and calculate and pay commissions.
A BRIEF HISTORY (contd) Amway in particular is a frequent target for critics for generating considerable revenues from selling instructional and motivational materials to its participants. The Federal Trade Commission (FTC) filed a lawsuit against Amway in 1976. Amway's victory paved the way for companies to adopt a multi-level distribution system.
……contd With the arrival of the Internet, NWM companies have started to go online. Many established NWM companies began to use the Internet to promote their products. At the same time, many other new NWM companies started their businesses on the Internet which we call online NWM
TRENDS Back in the 50’s to 60’s direct sales was the trend. By the 70’s MLM got going and people began to know what MLM was all about. In the next decade the 80’s. NETWORK MARKETING spread world wide and many people came to know about Amway, Mary Kay, Herbal Life, Nutralite, Usana, Omega Trend, Trend West and many more. Today from the 90’s onwards we have what is called INTERACTIVE REFERRAL MARKETING. The reason for this is they understood that times have changed.
LIST OF NWM COMPANIES (contd)
Tahitian Noni International
The Pampered Chef
Tupperware Brands Corporation
Usana Health Sciences
Weed music distribution service
World Financial Group
Amway Ameriplan ACN Arbonne International Avon Products, Inc. Big Planet BioPerformance Creative Memories DXN Equinox Excel Communications Forever Living Products Fortune Hi-Tech Marketing Fuel Freedom International Fund America Inc. Herbalife