Several types of businesses would greatly benefit from using the network marketing distribution model..but why don’t they?
I think a lot of companies fail to seek this type of expansion for a few reasons: one being the mis-information and stigma surrounding the MLM industry. The second reason probably stems from the fact that it is difficult to set up all the necessary structure to make a MLM company work and that the company doesn’t know where to begin or who to turn to for help to make that start.
The biggest industry that would benefit from using MLM to market their products would be As Seen On TV products. People LOVE the “big reveal” of products that work wonders and it would definitely take off if the companies would just look into using this model.
If the compensation plan paid the independent reps well then they would be that much more motivated to move the products, thus generating more revenue for the parent company.
Other industries that would also make a killing using network marketing to distribute their products would be companies in the service industry, such as movie rental memberships like Netflix or game rental memberships like GameFly. If you had movie lovers and gamers promoting these companies the revenue, again, would be staggering.
Digital downloads would also benefit greatly from a people to people marketing arm. Think about audio books like Audible.com, Amazon e-books, etc.
All in all- big companies need to really look into marketing their products and services through Network Marketing, people to people marketing, affiliate marketing… call it what you will, but it works!