Friday, April 12, 2013

Network Marketing

      Network marketing is nothing new to the world of marketing, however in the past 10-12 years there has been a sizable increase in popularity in the radical style of marketing one products. Most commonly seen within companies such as Avon and Mary K, Network Marketing utilizes its customers or "Company Partners" to do the marketing for them rather than to compete head to head on the shelves with competitors. How this system typically works is as follows, when a customer signs up to become a "company partner" they are now eligible to be a paid promoter for said company. This "partner" buys a set amount of product from that company and then (varying on the company) will either sell of their purchased product or pitch the idea to family and friends to obtain referred customers to earn money from that company.
      Now unfortunately, this style of marketing has received a bad reputation over the years and will be often considered as a "Ponzi" or Pyramid" scheme. In a majority this is entirely false! with exceptions to those few. the newest and in prediction, most successful, network marketing plan is used be VEMMA, a nutrition company based in Arizona. Vemma started with primarily a successful liquid vitamin with a goal to bring health the the younger community. With that they formulated an energy drink that contained this liquid vitamin and decided to use that to branch out into a younger demographic. While using this style of marketing, from personal experience  "company partners" can become extremely wealthy and create a sound business for them selves with little to no risk.




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