Look through your collection of accessories and check them out if every one of them was made in your country alone or better still, do you have the contacts of the manufacturers of that your favorite product that’s always with you? I bet you don’t have all, you might only know where you bought them from, that’s all. Despite that, the full package of the product got to your hands just as it would have if it were from the producers directly. This is a result of what is called Multi level Marketing.
Multi level marketing, also called MLM for short, is a type of marketing that involves many different channels of distribution for goods and services (known as the middlemen) in order to get to the various parts of the world. The channels of distribution of a particular product can be so many that the goods on the ground might not be enough to satisfy the middlemen’s order because of the high demand where they (the middlemen) are. This forces producers to make more of the goods in order to satisfy the customers’ demands. And this, in turn, brings more income through all the channels it has passed including the producers.
Multi level Marketing Globally
Multi-level marketing is the world’s basic trend in the business world today. At the peak of the economy of nations, Multi level Marketing has its branches. How? There’s virtually nothing in the world today that cannot pass through this multi-marketing process. This is due to the fact that every good must reach the prospective customers because production is not complete until the product gets to the final customer. And these final consumers can be found anywhere in the world; that’s why marketing is necessary.
Two types of Marketing
Marketing is in two broad categories. It’s either through physical means or on-line means. The physical means of marketing is more like traditional marketing which involves the display of goods for buyers or customers to come to purchase them. The second type is online marketing which is commonly known as the digital marketing process. Digital marketing was best used for goods and services that needed to get to a wider category of customers, not just the ones that would come to the market to handpick what they want.
As time went on, it was discovered that the goods needed to get to really more people but they were really far from the point of production. As a result of this need, another marketing strategy was introduced which is Multi level Marketing. It should have b the third type of marketing but this strategy could fit into any of the two different types of marketing and bring even better results that are more profitable for the organization.
Multi-level Marketing stressed the need to distribute those goods produced through other people which would serve as channels to getting to the final consumers. Even as Multi level Marketing is individually attached to both types of marketing, digital marketing still has an edge over physical marketing though there are still many advantages that come with physical marketing.
Digital marketing is fast becoming a great source of marketing of goods and services globally. This is because the advertisement through different social media platforms and even apps is done on the internet making it to the whole world. Through the internet, we are all aware that it’s been concluded the world as a whole is already made a global village as a result of the easy communication between many different people who are miles apart from each other. This is possible as a result of the advent of technological digital devices today.
In digital marketing, your normal internet-enabled digital devices such as your phone, laptops, etc are used to reach out to the public that is the potential consumers of your goods through the advertisement. Anyone who then likes the goods or services displayed will then make an order from the one selling the goods. You should take note that the one selling the goods might not be the owner. This is when multi level marketing comes in.
What can one do to start their own MLM network?
Should you be considering starting your Multi level network, there are certain things you must put in place. First, your business of course. You should ensure you have a good business that is able to yield much profit. This is because some businesses don’t really yield much profit because of the expenses. This way businesses don’t grow instead, they diminish. So if you are among those who want to start this great business strategy, MLM, you must ensure your business is lucrative enough- not spending more than you earn.
Secondly, you should note where your potential customers are that is where your goods will be needed. This gives you an idea of where you need your goods to pass through to get to them. There would be many places your goods might be needed once you’ve listed the places out. As a beginner of the MLM strategy, it is advised you start from fewer places. Once you have tried it out and it works, you would receive more orders which would improve your sales.
Next, you should get channels. Multi level Marketing is all about the distribution of your goods and services. So you need a channel for it to be distributed to your potential customers anywhere they are. These channels also called the middlemen, can either release your goods to the public at a retail price or and wholesale price (in little quantities or in large quantities respectively). They can decide to sell your goods using digital means or physical means without affecting your sales in any bit. You should also note that these middlemen must get paid for helping distribute the goods. That is sometimes the source of their income. So to achieve that, you should sell to them with the commission on the goods so they can have that to their selves. The more they sell, the more they get more profit even as you get yours.
Then, you can decide on the quantities of goods to make to distribute to each of your channels periodically to get a fixed yield. You should make sure it would be able to cater to the demand of the customers at the locations of the middlemen.
Finally, you can produce your goods and start the distribution. You can monitor the distribution network using the internet or your digital devices at the convenience of your location.
This is a perfect way to start a Multi level Marketing network for goods but it might be a little bit different for services.
In the marketing of services, considering the various channels, you must ensure they have those middlemen who have the same skills you possess in rendering your services to the public. This might lead you to train the new candidates as the staff of your organization. And in such marketing, you might need to have branches at those different locations so the staff can work under your company still.
This training usually involves more expenses and more stress because you as the employer are trying to input some skills into people who don’t have them already that’s why in starting this Multi level Marketing, you have to make sure your business is lucrative enough.
You’ll also need to set up branches in the different locations where the services would be needed and this would involve huge capital to set up. After it has been set up, you can go check up on the other branch from time to time when you wish to see how the firm runs. There are great establishments that have succeeded in this type of marketing of services.
An example is KFC – Kentucky’s Fried Chicken. This restaurant is known around the world today because, at a point in time, the CEO thought about expansion as you are right now. And he took the move. He tried to make branches in different towns in his country then he went outside his country to develop other branches in different countries. A certain level of expertise must have been put into those employees for them to train them to carry out those same or similar services in whatever locations they may be. This earned them their trademark even though it was not an easy process.
Some people claim Multi level Marketing is expensive to run. Not annulling the statement but at the same time being more expensive, it creates more avenues to get money even at various times. For instance in farming, there are different seasons depending on the locations. Some crops might do better in some and not in some. You can easily transfer some goods where they grow well to where they don’t so there would still be sales of the produce.
So now, you know how to market your business whether it handles goods or services. Either way, you should just make sure, you have a good business plan to run your business to ensure you gain more than you spend on it. And I trust your business would boom!
In order to get a multi-level network managed, there is a major need of an online platform where, records of all the Leaders, Agents, Customers can be managed with all the transactional details, offerings, rewards and other relevant information.
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