There are those who think that pyramid marketing and network marketing are the same thing, but in reality the distinction is very important. Network marketing is a completely legitimate practice and should not be confused with the famous “pyramid scams”.
In network marketing systems, salespeople often receive some sort of incentive for recruiting other salespeople and often get a commission on their sales. This doesn’t have to be a problem as long as the marketing is focused on the product.
When the majority of income comes from recruiting and not from selling the product itself, we start to fall into the territory of illegal pyramid schemes. And the final step to fraud occurs when people who join the network have to contribute money and this money goes to members who have joined before, effectively creating a “pyramid” that collapses sooner or later. In this case, the products are just an excuse to feed the pyramid.
As we can see, the fundamental difference is that network marketing focuses on offering a real product and that all parts of the network benefit, instead of taking advantage of new members.
3 examples of success and failure in network marketing
1) Avon
Avon is perhaps the best-known network marketing company in the world and has always been at the forefront of direct sales. It sells beauty asia mobile number list and cosmetic products and has a presence in more than 50 countries.
The most impressive thing about this case is that Avon was founded at the end of the 19th century, so it has 130 years of history. Without a doubt, it has known how to adapt to the times and throughout its history it has launched pioneering campaigns in areas such as women’s sport.
If you are thinking of converting your business to this sales model, looking at this company with a lot of experience is a great option. At Avon, they call their salespeople advisors , and they have created a specific page on their website where they explain the process and the characteristics of the collaboration and invite those blogs are popular because interested to join their network.
Something very interesting about this brand is that it has its
own mobile application from which advisors can manage some aspects related to the marketing of their strategy, as well as sales. In Complete Customer addition, it also does something very common in this type of strategy, which is to offer a welcome pack with the products to advisors at a much lower price than the one on the market. In this way, sellers can start trying out the products and form an idea of what they are like based on their experience.
As you can also see on the page where those interested can become advisors, Avon offers these sellers free courses so they can improve china phone numbers their actions and an advisor customer service so they can consult their questions with a responsible person in their area. And, in this case, Avon offers its advisors 45% of everything they sell .
