"From 90, we have been gradually dropping out of the store, the store comes to us."
Marketing person to person, network marketing or MLM is a form of "direct sale": the creation of a network through which sell products or services. The process of people speaking to others of a product or served, and take these products or served directly to consumers.
The "distribution channel" for direct sales, marketing person to person, network marketing or MLM, is developed through people inviting others to participate in the business. Therefore, distributors receive a percentage of sales (commissions or royalties) from others in a direct and effective.
Direct Selling carries the potential of significant financial rewards for those individuals who learn to create this kind of distribution system. A dealer starts to become a "tent", and has the potential to build many "shops" as a franchise without limits.
Why major corporations such as MCI, U.S. Sprint, Coca Cola, Colgate Palmolive, Gillette, Avon and Fuller Brush, among many others, take part in marketing by networks?
According to an article in Success magazine March 1992, written by Valerie Free, entitled "Magic Marketing" (Marketing Magic), many major corporations are finding that person to person marketing is a powerful and affordable approach to build market share. Network Marketing
refers to direct sales through a network. The network marketing is a sales compensation plan at various levels. Sometimes the terms are used interchangeably.
Today there are millions of people involved in direct selling, which, according to the Association Direct sales (DSA for short in English) set in motion some 12 billion dollars annually on products in the U.S. alone. Within its membership, the DSA has 150 firms and recognizes some 5.1 million sellers. Total sales for 1993 in the United States via this method came to 8.8% and the number of people engaged in direct sales "went from 3.6 million in 1987 to more than 5 million in 1992, and in other countries has been very successful. According to the World Federation of Direct Selling Association, in 1992 sold approximately 62.5 billion dollars worth of products worldwide through methods direct sales. It is certain that by 2006 these figures have already doubled.
The network marketing industry is growing at a rate of between 20 and 30 percent worldwide. Increasingly services are being sold through distribution networks.
The trend is clear, the most famous economist of the past few years, Paul Zane Pilzer, predicts that the next trillion dollar industry is the health and welfare and its distribution through network marketing or direct sales.
"The technology becomes increasingly efficient companies with fewer people," says economist Paul Zane Pilzer, author of Unlimited Wealth, Other People's Money, and God wants you to be Rico. "The most profitable companies are those that are declining more. This process will continue to accelerate."
Robert Reich, former Secretary of Labor, estimates that 20 percent of the workforce in the United States is already working on their own. If forecasters are right, that number can approach 100 percent in the coming years.
long ago, experts have predicted that the twenty-first century is an era of luxury, Internet, health and welfare, a world of abundance designed specifically to satisfy consumer expectations. And it will. But this opportunity will only be available for those who make smart decisions.
In the coming years, our survival is primarily determined by the decisions we make today, by the strategies we choose to build our business in the Information Age, health and welfare.
Those who choose to work in network marketing today are taking a giant step in the right direction.
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