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.
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