Eugene Goh

Eugene Goh 26 November 2009 Marketing No Comment

What Is MLM or Network Marketing?

MLM or Network marketing is basically marketing a range of products to our network of friends and relatives.  The term MLM, meaning multi level marketing, is when a multi level organization is built when marketing the products through our network of friends and relatives.

The important essence of MLM or network marketing is that the person has to use the products first and only through self satisfaction of using the products, could he or she market the products to others.

Most people has a misunderstanding of the MLM or network marketing business thinking that the price of the products is supposed to be cheap but because of the payout it is given to the satisfied distributors, the prices are jacked up high.

Now, if you will to look at the traditional way of marketing products to consumers, how much do you think is the manufacturing cost and the distribution cost?

Based on studies have shown, the manufacturing cost nowadays is about 20% of the product while the distribution cost is about 80%.  Let’s take the popular soft drink for example, how much do you think it cost to manufacture it and how much does it cost for you to buy it?

The distribution cost like retail rentals, sales staff at retail outlets, wholesalers’ profit, distributors’ profit, retailers profit, advertisement are all the cost that we have saved and given at a certain percentage to satisfied users of the products from the network marketing company.

Some people asked why not place the products on retail if the products are so good.  If the products from the respective network marketing companies, it will cost too much for people to afford it.

I know if you are reading this post this far, you might have some questions that you would like answered.  Contact me and I will be delighted to answer your questions.