Markets such as the health and wellness industry offer a variety of services and products, thus it is crucial to aid potential customers to understand what differentiates one product or brand from another.

Direct Selling has become more common due to improvements in technology, especially with the Net. Not only is this far more convenient for consumers, but also products are often available at an even more affordable price online. This is because of the nature of the distribution model, as buyers buy directly from the producer rather than from wholesalers, or retailers, who’re often responsible for major mark-ups on the price of products. However, this is understandable when you consider the running costs that a retail store must cover.

By ordering straight from a producer, consumers will have a closer relationship with the manufacturer of their goods, instead of the retailer. This sometimes leads to exceptional customer service and the buyer will have better access to detailed product information. The consumer is thus able to gain better insight into the benefits of the products that they buy.

Multi-level Marketing is a system used by Direct Selling companies to promote their goods and services. In Multi-level Marketing, Independent Associates (reps) promote the company’s products on their behalf, via word-of-mouth marketing and are compensated for doing so. The primary advantage of promoting products in this method is that potential customers can find out about the products from a reliable source (normally a friend, family member, work colleague, etc.) and they can learn how the products differ from the competition. In a market such as the health and wellness sector, new products might be lost on the shelf of a retail outlet, amongst other similar products! If the product is unique then the consumer will have no way of finding out how the product is special, unless they are prepared to do their own research.

Another reason why Multilevel Marketing might be preferred marketing strategy is when the story behind the products is vital. It may be difficult to share the story in a short television advertisement and if the products are superior then the story behind them may be crucial.

In conclusion, it is important to determine what came first for any MLM company: the product or the business design? The business model can be very lucrative for both the business and the Independent Associates, so many companies may produce products just to fit into the business model. This is entirely different from a company who has an excellent product and wants to adopt the greatest method for sharing information about their product. Try to differentiate what came first for any company who uses the business design.

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