A Comparison of Conventional And Network Marketing

Conventional Marketing

If you have a product and want to set up a business selling that product you will need a lot of money up front.

You will need to set up a marketing campaign, pay for advertising, set up a sales team to persuade wholesalers and retailers to take your products and buy products in bulk for your marketing launch.   All that money is needed up front, before you can sell any products.   Most businesses borrow the money and effectively hand over control of their business to the money men.

The figure shows roughly where the retail price for the product goes.

Manufacturing Costs

20%

Sales & Marketing Costs

20%

Wholesale  Costs & profits

20%

Retail Costs & Profits

40%

 




Network Marketing

This has no up-front costs other than a small amount for stock. Basically, you can talk to people, show them your product, and when they are satisfied it works, recruit them to do exactly the same, talk to people, show them the product, and recruit them or get referrals to others

Thus you get an expanding network of distributors, all selling your product by word-of-mouth advertising.   A nice gentle build with no large amount of cash upfront required.   Control stays with you, not the money men.   Ecoflow was built this way building from £15,000 to £20,000,000.   The table shows where the sales price goes.

Manufacturing Costs

20%

Executive Bonus

20%

Wholesale/Training Bonus

30%

Retail Profit

30%







Read "Two Case Studies" in Proof.doc for a comparison of the two marketing styles.

How this works for you

It doesn’t matter when you join the business, your percentage of the sales price is solely dependent on the work you have put in.

When any distributor sells a product, they take the cash, keep their 30%, and buy the product from the company to supply the customer.  We’re ignoring tax and postage here.   There is no requirement to keep stock on hand.

The Wholesale and Executive bonuses are paid from the company monthly as long as you are an active distributor.

As you work your way up to executive distributor, you get more and more of the Wholesale/Training bonus.   The rest of it goes to your upline for providing support for you.

When you reach Executive status, you get all of the wholesale bonus.

Recruiting distributors

You do not get paid for recruiting distributors, you will only get bonuses when they sell products and thus make a profit for themselves.

When you recruit other distributors, you get a 'training' bonus for helping them make their business successful.

When your distributors become Executive Distributors, you get executive bonuses from the company from the products they and their distributors sell.

   
 
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