Friday, October 16, 2009

The Industry of the Revolution


Multilevel marketing also known as ‘word of mouth’ or ‘viral marketing’ has created a buzz in the wellness industry. The products these companies offer are varied and range from health supplements such as multivitamins, beauty cosmetics, and household products. A lot of these innovative companies are focusing on non toxic lifestyles as mentioned earlier and staking their share in the rapidly growing preventive medicine industry. The most successful companies that will emerge out of the H&W Revolution would be the ones that offer ideal solutions to our overly burdened toxic lifestyle. The potential of this industry has been accessed by the world renowned economist Paul Zane Pilzer in his groundbreaking book ‘The Next Millionaires’ which predicts that there will 10 million more millionaires created in the American economy by 2016.

The majority of these fortunes will be made by entrepreneurs involved in direct selling, technology, home-based business, product distribution, or an emerging trillion-dollar industry like wellness.
He believes that the traditional way of distribution that involves the middle man will make way for the direct selling method that takes out the middle man cost. This is exactly what is practiced by multi level marketing linking consumers directly to retailers. An overview of the marketing plan will make this more comprehensible.

It has a unique marketing structure and compensation plan that attracts a lot of venturous entrepreneurs to start their own home based business. Although different companies have different compensation structures it basically works like this. A business owner has two streams of income. One is from retailing his products. This is ideal for generating some quick cash. They can also recruit members who generate income from retail as well. This time the owner gets a share of the profit from the new people that have joined the business. Then the new owners recruit more members and so on. As you can picture, the original business owner starts developing a steady stream of income not from only his own retail income, but from the retail sales of his affiliates.

Combined with the phenomena of viral marketing/word of mouth marketing as your affiliates keep on retailing and recruiting more, this type of compensation structure can become very profitable. What is more interesting is that as your downline members become more active and successful, the business takes on a momentum of its own requiring limited activity and interference on your behalf. As a result, you start developing passive income where the checques keep on coming regardless of your effort in the business since it has been established due to your efforts in the past and now it is up and running.

These companies have already made their mark in society and the media. Some examples are Herbalife, a wellness based company that sells vitamin supplements and nutritional shakes. They sponsor the LA Galaxy soccer team and their jerseys bear the company’s name. The name Amway might sound familiar to a few people. Afterall, it is the oldest running MLM company with a complete range of health supplements, beauty and household products. Thousands of viewers tuned in to watch the LA Lakers take on Orlando Magic which was hosted by the Amway Arena in the last two game of the playoffs. Coincidentally, the owner of the company also owns the Orlando Magic basketball team. So it is no surprise the Magic home stadium bears the name of an MLM company. Other notable MLMs are: Usana, Shaklee, Forever Living, Monavie, Avon just to name a few.

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