Saturday, July 14, 2007

Multilevel Marketing (aaproach companies like Tupperware and Avon follow) is different from Buzz!

Buzz is nothing but all the word-of-mouth that exists about a product. This buzz travels through invisible networks where each node is a person.

Experts said that if people can create word-of-mouth about a product, why not use them to sell the product itself. This gave rise to Multilevel Marketing (MLM) where companies like Tupperware, Avon, Amway and Oriflame create distribution channels in the invisible networks. But it is important to note that MLM is not buzz. It has very different objectives and ways in which it operates. To give a clear picture on the distinction between the two, I am including an excerpt from the book “The Anatomy of Buzz” by Emanuel Rosen:

While these programs work for certain companies, it’s important to note that the phenomenon they’re based upon is not exactly buzz. There is a key difference between and a marketing scheme in which friends are supposed to sell something to their friends or recruit them as distributors. While buzz may be stimulated with an occasional incentive, it is usually free from any monetary transaction. A customer recommends a product because she truly believes in this product. Part of her credibility comes from the fact that she has nothing to gain by recommending the product, which is not the case when she is selling it.

Advocates of MLM love to point out the potential for exponential growth that comes with this method. (“If your friend tells two friends, and these two friends tell two friends, you reach a huge audience very fast.”) But in real life this exponential growth is hardly ever reached. Why not? Because many people don’t want to get involved in this type of business and don’t feel comfortable selling to their friends. Most people want to talk with their friends without having to sell them anything. When they meet a relative, they want to hear about the family, without thinking of how they could enroll him as part of their “downline” (the industry term for the chain of distributors one recruits).

MLM is far from gone, however. The very same trends that cause customers to rely on their friends in making purchasing decisions – information overloaded, customer skepticism, and customer connectivity – could help MLM organizations to expand, especially in product categories such as skin care, personal services, and food supplements. There is also evidence that this marketing method is more effective in certain social circles and countries than in others. But as MLM grows, it’s important not to confuse it with buzz. Don’t expect an MLM organization to grow at the rate of an ICQ or Hotmail. It’s a different phenomenon.

16 comments:

Achava said...

In SEO Service is a SEO Company India and Link Building service provides from India. Our main services include Search Engine Optimization, Social Book Marking, Directory Submission and Blog comment. Our proven method of Search Engine Optimization process has been very effective and we have guaranteed result many companies websites. We provide Directory submission services which are not only cheaper but also high acceptance rates.

Anonymous said...

Hello !.
You re, I guess , probably very interested to know how one can manage to receive high yields .
There is no initial capital needed You may begin earning with as small sum of money as 20-100 dollars.

AimTrust is what you thought of all the time
The firm incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

It is based in Panama with structures everywhere: In USA, Canada, Cyprus.
Do you want to become really rich in short time?
That`s your chance That`s what you wish in the long run!

I`m happy and lucky, I began to take up real money with the help of this company,
and I invite you to do the same. It`s all about how to choose a correct companion who uses your funds in a right way - that`s it!.
I take now up to 2G every day, and my first deposit was 1 grand only!
It`s easy to get involved , just click this link http://exyqysane.wtcsites.com/utybev.html
and lucky you`re! Let`s take our chance together to become rich

Anonymous said...

Hello!
You may probably be very interested to know how one can manage to receive high yields on investments.
There is no need to invest much at first.
You may commense earning with a money that usually goes
on daily food, that's 20-100 dollars.
I have been participating in one company's work for several years,
and I'll be glad to let you know my secrets at my blog.

Please visit my pages and send me private message to get the info.

P.S. I earn 1000-2000 per day now.

http://theinvestblog.com [url=http://theinvestblog.com]Online Investment Blog[/url]

Anonymous said...

Hello. My wife and I bought our house about 6 months ago. It was a foreclosure and we were able to get a great deal on it. We also took advantage of the 8K tax credit so that definitely helped. We did an extensive remodeling job and now I want to refinance to cut the term to a 20 or 15 year loan. Does anyone know any good sites for mortgage information? Thanks!

Mike

Anonymous said...

Good day!

For sure you didn’t here about me yet,
my name is James F. Collins.
Generally I’m a venturesome gambler. for a long time I’m keen on online-casino and poker.
Not long time ago I started my own blog, where I describe my virtual adventures.
Probably, it will be interesting for you to find out about my progress.
Please visit my diary. http://allbestcasino.com I’ll be interested on your opinion..

Anonymous said...

Correctly your article helped me altogether much in my college assignment. Hats afar to you post, choice look progressive for the duration of more interdependent articles promptly as its one of my favourite question to read.

Anonymous said...

Sorry for my bad english. Thank you so much for your good post. Your post helped me in my college assignment, If you can provide me more details please email me.

Anonymous said...

Just popping in to say nice site.

Anonymous said...

Hello i found a trully great site. I could watch my favourite movie for free at http://freemoviesplace.info

Anonymous said...

Hello i found a trully great site. I could watch my favourite movie for free at http://freemoviesplace.info

Anonymous said...

The excellent message gallantly)))

Anonymous said...

top [url=http://www.c-online-casino.co.uk/]uk casino bonus[/url] coincide the latest [url=http://www.casinolasvegass.com/]casino[/url] free no store perk at the foremost [url=http://www.baywatchcasino.com/]online casinos
[/url].

Anonymous said...

Whаt's up, I would like to subscribe for this weblog to take latest updates, thus where can i do it please help out.

Feel free to surf to my web page gsa search engine ranker coupon code

Anonymous said...

Do you have a ѕpаm problem on thiѕ blog; I
also am а blogger, and I was wanting to know your situatіon; we haνe developeԁ some nice methods and wе
are looking tо eхchаnge strategies ωіth othеr fоlkѕ,
be sure to shoot me an e-mail if interеsted.



my ωеb-sіtе ... http://www.paleodietprimal.info

Anonymous said...

This process is usually favoured by people newer to internet marketing and business, as those who have been running an
internet business realise that delivering products manually will not
only take up all of your spare time, but will eventually lead
to many disgruntled customers, and a number of customers thinking they've been scammed. With the "information age" well under way, this is not surprising. Its easy-to-use format allows anybody to search for their favorite books online.

Also visit my web page; free pdf ebook download

Tomspry said...

I am always in search of good marketing tips blogs and your post actually gave a some new concepts.

Multilevel Marketing