Network Marketing – The development
Historically, the customer loyalty by recommendation is nothing new. Even in the ancient world, travelling salesmen, local writers and craftsmen used the personal recommendation for the extension of their business. As there was no advertising media, word of mouth advertising was the only possibility to promote and recommend a dealer’s product and a provider’s service.
Network Marketing in the 19th Century
In the 80’s and 90’s of the 19th Century, with the appearance of Direct Marketing Organisations, the first data of the Network Marketing and Direct Marketing was recorded. While the industrial mass-production found its sales channel in the typical specialised trade and retail industry, several manufacturers started to sell their products directly to the end customer by cooperating with structured and hierarchically organised agents.
This was the beginning of 2 similar and still different channels of distribution. Later, Direct Marketing and Network Marketing developed differently. In Direct Marketing, company-owned external sales representatives showed and sold the products to the customers. In Network Marketing, the company offered a Marketing plan to the customer, so that they could become self-employed consultants or Net workers and resell the products.
Pioneer in Direct Marketing is Vorwerk. Pioneer in Network Marketing is Avon and Amway.
Network Marketing as a strategic edge
Originally personal recommendation represented a strategic cost advantage, because expensive advertising could be saved. Over the years this strategic cost advantage has been extensively lost. Especially in Network Marketing, which became a costly distribution system for a business company, because of the big number of self-employed consultants
Network Marketing today
Today many business companies consider old established structures and integrate Network Marketing into their marketing strategy. Due to the substantial expense factor of advertising on the Radio, TV and in papers, Network Marketing has become more attractive and lucrative again.
Network Marketing – Jobs
If you would like to know more about an attractive Job offer in Network Marketing, please click on our Job offer.
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