Bloggy Business Today

Marketing strategy is a part of business plan in every organization. This is one of the most important in running a business. In our time, many are using MLM or Multi-level Marketing as their strategy.

MLM also called as network marketing is a way of marketing in which the product and company is promoted directly to the consumers. The purpose is to create sales force that will perform as a distributor and generate income not only by producing sales but also by referring the product/company to the other people. Members of a MLM are earning income by commission based of their total independent sales plus the agreed percentage from the sales commission of their downline (recruit members).

Here are the reasons why many companies are using MLM or Multi-level Marketing as their marketing strategy.

1. Low-cost ways to promote company

2. Less workers or regular employee, meaning there is no need to hire salespersons and pay regular salary and other privileges of a regular employee.

3. No need to pay for big television advertisement

4. Salesperson has the high possibility to generate sales because they are earning by commission, they are more eager to gain sales than the regular employee

5. Easy to recruit members, many persons are interested to join for the following reasons:

a. The members success will be based on individual’s effort

b. Personal freedom

c. They have enough time to spend with their family

d. An opportunity to earn unlimited income

MLM companies are escalating, even in the web; they call each member as an affiliate partner. The process is the same; the only difference is as an affiliate partner to an online company, the task is to market the product online, either by sending emails or by putting the ads banner of the merchant to your own website.

I have here 10 lists of Multi-level Marketing companies (not in-order). They are successful in the field and you might at interest to know their background.

1. Forever living products
2. Herbalife
3. Mary Kay
4. Avon Products
5. Cobra group
6. Freelife
7. Nu skin Enterprises
8. Usana Health sciences
9. Amway
10. Kleeneze

If you are an entrepreneur on an investor, chances are you will be presented with a lot of business performance reports and financial data to show how your venture is doing. Let us say that all of these things are indeed a given but in the end you will find yourself, where is the cash?

Depending on how you look at it, the straight answer is that you are standing on it. Apparently, much of the cash investments made in putting up a business are in the assets and the operational expenses that are needed to make a company function accordingly. But do remember that not all investors are willing to listen to such reasoning. Many are just concerned with profit and seeing that their investments are indeed paying dividends.

All of these things are accounted for in the financial reports normally given to board of directors and investors. But you have to consider as well that they may not be all that good in reading them. Even if you supplement some notes to these financial reports, it remains that they want to see something concrete and see that they made a fine choice in investing. You will have a lot of things to do if you really want to satisfy their level of questioning.

Also, don’t disregard that some people just choose to be hard-headed and immature. They want to push their weight around because you are using their money. In such cases, you just have to suck it up and take it all in stride. You are their slave in business and for now, you cannot really do much about it.

Although home mortgage is mandatory these days, not all go through debt consolidation either. Remember, mortgages come and go, maintain an element of tenacity in your rules. If you work from home, stay out of unnecessary insurance deals as well.

[tags]cash_investments, operational_expenses, performance_reports, business_performance, dividends, entrepreneur, board_of_directors, investor, investors, money[/tags]