Let me explain how this industry works. Imagine you going shopping at a shop. To get more sales, the shop has a promotion – buy 2 and get 10% discount. Buy 4 and get 15% discount. The more you buy, the more discount you’ll get. Now that work fine for both parties. The shop gets more sales and turn over their stock and you get your groceries at a cheaper price. So if you sell it to someone at full price, you’ll make a profit of 10%, 15%... Now the shop decides that they want to turn over their stocks faster. So they tell you, their regular customer, if you help them get more customers like yourself by recommending your friends to buy from them instead of their competitor, you’ll get a 5% cut of the total purchase price of your friends. To qualify for this eg. 5%, cut you must purchase a certain amount so that you also continue to shop with them. So the more your friends you recommend, the more you’ll earn. So if the shop wants to turn over their stocks even faster, they’ll extend it to your friends’ friends and you’ll get maybe a lower cut of their total sales. So if you want to earn more, you recommend more friends and also help your friend’s friend ….. to buy from the shop. In this scenario, everybody wins. Notice that there is nothing illegal here. Nothing unethical is carried out also. Marketers have realized that this method creates more sales and help them save lots of money on advertising, cutting out the middle man in the distribution channel etc… It’s a brand new marketing method and lots of organizations are catching on and are turning to this sort of marketing strategy. If you don’t know what this strategy is called, then good for you and if you think you know what this strategy is called, good for you too. It comes with many names. Network Marketing, Multilevel Marketing (MLM), Direct Marketing, Direct sales, Home business etc..
Notice that for all these to work, everybody is promoting/selling a product or service. It only becomes a scam when there are no products or services involved. Just joining for a fee and then ‘recruiting’ and getting a cut for it.
Subscribe to:
Post Comments (Atom)

No comments:
Post a Comment