Multilevel Marketing and Direct Selling have become increasingly popular in the past few years.
Many people have taken to this form of marketing fast, especially in developing countries and continents. A number of companies have adopted this method and reaped fruitful benefits. Companies like Qnet have grown solely through their strong direct selling and MLM strategies. A lot of people often don’t understand how this form of marketing works and as a result tend to enter into it and fail miserably. So here’s telling you everything you need to know about MLM and direct selling and how you can cash in on this craze.
Some companies use this form of marketing and selling for a short time or only for particular products while others like Qnet function only on it. So what makes MLM and Direct Selling so effective? First we need to understand what these two concepts are. Direct Selling can be defined as when the direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs. Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Modern direct selling includes sales made through the party plan, one-on-one demonstrations and other personal contact arrangements as well as Internet sales. Most direct selling companies require their members to abide by a code of conduct towards a fair partnership with the customers and salesmen. This form of marketing is distinct because it is about individual sales agents reaching and dealing directly with clients. It often, but not always, uses multilevel marketing over single level marketing. Although direct selling and multilevel marketing are often used synonymously together they are not one and the same thing. Multilevel marketing is only an aspect of direct selling and not direct selling all together. Multilevel marketing is a marketing strategy in which the sales force is compensated for the sales that the personally generate as well as the sales of the people they recruit. It thus creates a down line of distributors and a hierarchy of multiple levels of compensation. This form of marketing is also known by the names of pyramid selling, network marketing and referral marketing. Companies following this form of marketing are frequently subjected to criticism and are the main target for lawsuits. It’s criticism if focused on its similarity to illegal pyramid schemes, high initial start up costs, price fixing of products, emphasis on recruitment of lower tiered sales people over actual sales and encouraging if not requiring their sales people to purchase and use the company’s products. It feeds on exploitation of personal relationships.
Qnet is one of the few companies that have got MLM and direct selling right. They have managed to generate a huge loyal customer base all over the world and recruit millions of people. Qnet itself has a presence in over 30 countries worldwide. In this form of marketing there’s a thin line between right and wrong and so it’s immensely important for the company to take precautionary measures and apply this strategy is a correct and legal way.
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