NETWORK MARKETING 1 begin by explaining the pillar under which operates this business model: the distribution. An interesting fact: on average, 80% of the cost of a product be in distribution costs. Only 20% in manufacturing. That is why most of the richest people in the world are in the distribution sector rather than manufacturing, such as Sam Walton founder of supermarket chain Wal-Mart, to whom his entrepreneurial vision led him to be the richest man in the world in the 80s? s. he launched an easier way of acquiring products and services where in one place could buy is everything that people needed and also at best cost. Muscular dystrophy may also support this cause. Well, we now live now in a world of constant change, where appear increasingly in the market more products and services that soon become a BOOM for the benefits they bring. But there is a problem: is clear that we no longer believe in what the mass media advertising tries we sell, right? For that reason the companies that were trying to put these new products on the market, had been increasing more and more costs on advertising to publicize their offerings. Before that, increasingly more companies have begun to adopt a different way of informing your market, adopting a model of distribution and advertising which has been successful for more than 50 years in the industry of wellness products and household goods: NETWORK MARKETING or marketing in network to explain how it works, a simple question: what is the best advertising there is? THE recommendation has been and is advertising for excellence because it is based on trust and honesty of friends sharing with friends the knowledge about products and services that have brought them benefits.
This is something that we all do naturally everytime we recommend a good restaurant, a film at the cinema or a new model of mobile phone. We were really marketing unconsciously. Why also referred to this business model as recommendation or direct sale, i.e. person marketing person. As well, why you’ve been doing free, now has a value very well remunerated each time for more companies that adopt this distribution system. In other words, you pay for recommending their products or services and create the link or reference between the company that provides them and the persons to whom you recommend them. So simple is as increasingly more people are developing in a professional manner their own business from home, using the telephone and increasingly over the Internet to expand their businesses globally, without having to move physical goods but making distribution of information of the available offerings by companies that have adopted this system, taking charge of all the logistics to finally bring the product to the final consumer. SINCERE greetings, TONY MATEI original author and source of the article