MLM is more profitable than regular business practices.
Having influential consumer volumes is not everyone’s cup of tea as consumer behaviours keep changing, they get shifted to brand “A” to Brand “B” for catchy offers or some freebies with the products in the usual traditional marketing system.
Any new contender that comes in the market old one has to lose some market share.
On the other hand, if a brand wants to start with the new products they need to start from zero again.
Whereas in Direct selling consumer is loyal and directly attached to the company.
The person in Direct selling system is entitled to get the commissions and promotions on sales of the products.
Every new range of products introduced in direct selling company pickups quick sales and instant profits, the reason being millions of direct sellers attached to the company.
Company’s introduction to the international platform becomes a ready hand task once it gets registered with the different countries, the direct sellers out of those millions may easily reach the foreign customers and work wide open on the globe.
MLM or Direct selling companies are cash-rich companies as they sell goods to consumers directly and receives payments directly there-after they need to deliver the goods. Whereas in traditional system products move with a channel of carried and forwarded, Distributors, wholesalers and their debt to the manufacturers are always affected due to the middlemen cash retention behaviours. Sometimes the manufacturer has to suffer when these middlemen default in payments which are usual practices in the traditional business system.
Sales are the first step of introduction in mlm, direct selling. You may call this system as instant cash sales ways of marketing, where-as in traditional business terms profits are minimal due to the ways various middle-men work and presence of these middlemen the profit possibilities are limited.
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