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%
WholesaleCosts & 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.
This website is produced and maintained
by Sound Ideas an Independent Ecoflow Distributor. It is not nor has it any
connection with, the home page or other official website pages of Ecoflow plc.
All claims on this website are made by the website owner as an
Independent Distributor and Ecoflow plc accepts no responsibility for the
content of any such claims made in relation to Ecoflow plc, its products and/or
the Ecoflow business opportunity.