MLM companies like Avon, Arbonne, Tupperware, etc.?
Could someone explain to me why these companies use face to face sales consultants? The majority of people in the Western world who can afford such products now have access to the internet and simply will find it easier to buy products online on by phone from the source. Essentially, this makes salespeople obsolete, as far as I can tell. The product comes right to your door, and you can call or email the company with any questions. Is there something that I'm missing? There are a few exceptions that are best demonstrated in person, but they are the exception. In today's world, what is the point of multi-level marketing (MLM)?
Public Comments
- to get the word out. Just like recommending a restaurant down the street. I myself don't care for MLM as most stuff is overpriced.
- YOU STILL HAVE SOME AREAS WHERE INTERNET IS NOT A STAPLE AT PEOPLE'S HOMES...NO OFFENSE BUT LIKE THE "GHETTOS" AND SENIOR CITIZENS...MAYBE PEOPLE IN THE HOSPITAL OR STUDENTS OR SOMETHING...IT IS TO TRY TO REACH THE "UNATTANAIBLE" MARKETS
- Becuase they DO use the internet as well as those sales people. They sell plenty on-line as the company and each consoltant has a web-page plus the sales reps are trying hard to get you to buy, and buying products themselves to get "gifts" for reaching sales goals. The internet can't force you to buy things and once agian don't forget that the sales people themselves will often be purchasing "inventory kits, samples, product carrying cases..." on and on stuff that the general public wouldn't buy. Simple answer they are making money off the sales people themselves and not just the product they are pushing.
- try this
- That's a good question and I hope I am able to answer it to your satisfaction. I have several points to make, but will try to be brief. 1. Cost - If a company is selling something online by phone or at a store they must advertise to get people to that website, to make that call or go to that store. If you do not know that the product exists then you will not go online and order it. Advertising can be very expensive, especially when done on a national scale. Also those advertising dollars are spent even if the campaign does not result in increased sales. It is also very difficult to track the effectiveness of advertising campaigns in traditional media. When you have a direct sales force the company is paying their advertising and marketing costs in the form of a commission that is only paid when a sale is made. Not only is it easy to track results, they are not paying out anything until they have the cash in hand. Some of these companies have very large and diverse product lines. It is unlikely that any major retailers will pick up their entire line, so they would have to set up their own retail stores. This would be very expensive as their is a lot of overhead in a retail store. 2. Trust - The basic premise behind direct sales/network marketing is that when we like something we tell others about it. Word of mouth marketing is the most effective form of marketing, because the "advertisement" is coming from someone the buyer knows and trusts. When you give that "advertiser" incentive to tell others about it there are going to tell even more people. We usually don't call people to tell them about the great new product or service we used recently, we only mention it when it comes up in a conversation. When people are getting paid for that referral they will pick up the phone and initiate that conversation. 3. In many cases things just make more sense when you have someone explain them to you, even though it may not seem that explanation is necessary. My stepmother sold Tupperware and we had every imaginable piece of Tupperware in our kitchen. There were so many things that I would see and think "What in the hell can this possibly be used for and why would anyone buy it?" After she showed me the thought changed to "Wow, what a great idea!" Demonstrating how a product is useful adds value to the product. It may only be percieved value, but the point is that when people see value in something they are more willing to buy and and the whole point of any business is to sell the product. Also people are typically more willing to buy something that they want, rather than need, when that product is right there for them to see, hear, smell or touch. Grocery stores figured that out a long time ago. That's why you have to walk by all the good smells coming out of the bakery before you get to the things you came for in the first place. That is also the reason and the gum, candybars, tabloids and individual cold drinks are in the checkout line. I market a service that people don't seek out. When they hear a little bit about it they typically think they have no need for it or it would be unaffordable to them. Traditional advertising methods will not work, because in 30 - 60 seconds enough info can't be conveyed for them to make an informed decision. When I actually sit down and take about 15 minutes to explain it to them most interrupt to tell me how they wish they knew about it before and about 90% buy. There are a number of other reasons that I can think of, but this should get the point across. Not everyone agrees that is the best way of doing business, but if it wasn't working then these companies wouldn't continue to do it and the industry wouldn't be growing as quickly as it is. An active sales for is always more effective than passive marketing.
- The MLMers who are still using face-to-face presentations are being taught obsolete techniques by their upline, I swear they will fail 100% of the time. If you are in mlm and you are still making list of friends and family and pitching your biz in a coffee shop, might as well burn your money and quit. I mean technology and Internet are here to present your business and people are STILL doing loser techniques old school???? LOL! Yeah, probably the best way to alienate friends, family and colleagues! My advice is to NOT do mlm unless you got a system. The SYSTEM is THE BEST WAY to make money in mlm. Money that comes from the mlm will be secondary, you will make 95% of the cash from promoting the system. Plus promoting the system is FAR less riskier than engaging full steam with ANY MLM company, you can quit it and still have your shirt, friends, family and colleagues intact! If you wanna have an idea of what an excellent mlm system looks like, click here now: http://bit.ly/6oRPN Don't whip out your credit card, at least read the whole page, you'll see it makes sense to promote the SYSTEM instead of the mlm. You don't even need a mlm company, it's a business opportunity all by itself! SELL THE SYSTEM, THAT IS WHERE ALL THE MONEY IS!
- Avon started out with door to door reps, they started very small. I think they just wanted to keep it that way because people know and love the person to person aspect of selling Avon. People will always order from Avon this way because that's how its always been, the old ladies really like when the store comes to their door. I don't do MLM, I just sell the products and make a profit, leadership is not for me. Also, Avon provides a way for people to work for themselves and choose their own hours.
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