Amazon’s Strategic Business Model Has Company

Network marketing is a multi-billion dollar business. As a business model, it is taught in major universities around the world. The Wall Street Journal stated, by 2026 between 50% and 65% of all goods and services sold in this millennium will be through network marketing. It is a business model that is perfectly suited to the 21st century information age.

With Amazon, millions of dollars are spent on advertising to entice consumers to buy through Amazon product listings instead of the virtually identical product from another company. With a network company, the advertising expense is channeled into sales commissions for distributors who promote the product through word-of-mouth advertising, i.e. by telling other people about the product. In the traditional business model, money is spent BEFORE the sale in the form of advertising; in the network marketing model, the money is paid AFTER the sale in the form of commissions. Which model seems to make the most sense from a business standpoint?

In network marketing, you can build a downline of 100, 1,000, or even 10,000 people, most of whom you will not know nor ever have contact with. This is because the majority of the people in your downline will be people who know somebody, who know somebody, who know somebody, who know you. By having a downline that is working with you, and for you, you can multiply your efforts many times. The earning potential of a downline of 1,000 people, each putting in only one hour a day five days a week, represents 20,000 hours of work in a month. It would take one person 10 years to produce the same amount of work. That iss the power of a network Many achieve it, most do not.

Perhaps Robert T. Kiyosaki, author of the Rich Dad, Poor Dad series, said it best. The richest people in the world look for networks. Everyone else looks for work.

For people who are interested in starting a home-based business, supplementing their income, and providing greater security for retirement and for their children and grandchildren, network marketing is an obvious choice.

To have the success you want in your business, plan how you are going to achieve it. Test the ideas you have and track the results. Use the knowledge gained to improve all aspects of your business. Be opening to learning opportunities so that you can adapt and modify your approach as circumstances change.

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