There are numerous marketing models and there will constantly be new ones emerging. This is a brief rundown of the basic types.
Retail Marketing: the local grocery store to the big box stores use this form of sales. You walk in, you buy, sale is made. Profits go to the store owner, the distribution company and the original manufacturer.
Mail Order: This includes anything from the flier you get in the mail to catalog sales. You order via phone, computer, or mail and the merchandise is delivered to you. Profits go to the manufacturer who pays for the marketing and advertising.
Affiliate MarketingThis is the new kid on the block. Instead of advertising, companies sign up affiliates (who may or may not have purchased products) and these presell the product and direct to the host company for closing the sale.
Their commissions can be as little as 4% for Amazon to $75 for one of the 4 all time top rated affiliate programs, Site Sell. Some programs will only pay you for a short period even though you may have directed a person to the company that ends up buying months later. Others have life time commissions.
This model usually has no cost to get involved and if a person becomes a super affiliate the income potential is in the 5 digit range.
Direct Sales:Mary K, Tupperware, Discovery Toys, insurance and even real-estate is sold this way. Profits extend from you, the person who signed you up, usually through a few levels and to the manufacturing company.
These focus on high end products which means higher commissions. Because of the quality however, often times there is no residual income. Once you stop selling, you stop earning.
Multi-Level MarketingVitamins, soap and even real-estate is sold under this model. The profits are shared in decreasing amounts from the person who initiates the sale making the most. Usually profits will extend up to the people who signed you up for about 5-7 levels.
NoteThis is the easiest marketing model for beginners to start a business with and have the greatest opportunity of success. But wait, you may have known of friends who failed with this model. True but compared to all small business startups that fail, this provides for the easiest entry and operating and the lowest start to profit time frame compared to brick and mortar businesses.
One popular design is forming two legs where the Up Line, the person who signs you up will place people under one of your legs while you build the other.
Often the MLM promoters will say all you need is just a few people. The reality is that you will need hundreds and eventually you will need thousands of people in your organization to make truly remarkable profits.
Hybrid Marketing Models
There is an emergence of Hybrids of MLM, Direct Sales and Franchise models.
One we highly recommend is Markets America. It is unique its marketing model.Although you build two legs under you, you get paid on all levels beneath you and there is no cut off for payouts. The payouts come from two different sources of sales. One is the basic product line and the other is their Mall With Out Walls program.
When most MLM’s pay a bonus every month to the top sellers, this program pays to out based on total sales reaching a certain level.
There is not cut off. If it takes you several months to reach the first level, you get a check. As more people join your organization, that time frame shortens. Once you reach that level, the process starts all over.
It is hard to explain.
Another feature is that you have an entire quarter to meet sales quota to keep active. They are very upfront that you have to sell. The benefit for you is that you have more time to meet your sales quota than other MLM’s that require monthly sales.
Web Marketing ModelsWeb marketing takes on several forms.
The most common is an online store complete with shopping carts.
Other models include affiliate sales where you can sell the product of someone else. You presell them and then send them to the sales page of the host site.
There is more to discuss on marketing model types. Check back for updates.
Next consider if the MLM model is for you or not. It is just a business.If you run it like a business and work it like a business will this be your kind of business?
