Why is it that a lot of companies are using network marketing now as the chosen marketing approach? The answer is that network based marketing is more efficient since these companies do not spend much for marketing, do not distribute sales only until a sale is done and the product is directly delivered. Compared to the traditional marketing schemes wherein companies spend a lot on advertising, network marketing requires minimum costs for advertising and most of the times, even none at all.
According to Charles Givens of the book ‘Wealth Without Risk,’ about 80% of the delivery costs today is due to advertising and marketing expenses. Replacing such expenses in networking with sales commissions for individual representatives who does the marketing and the direct sales, network advertising has created efficient ways of promoting labor and allotting more financial gains for labor than in advertising or marketing.
Also the best selling author of ‘The Popcorn Report,’ Faith Popcorn, distinguished networking as a reason to the increasing societal trends that drive success among network marketers. In an essence this home based business strategy is an effective way to keeping consumers at home, believing that they can avoid crowded traffic jams and malls and providing the convenience of direct delivery of products. This phenomenon is what Network Marketing all about, according to the Advertising Age magazine. It is powerful enough to persuade people to doing things the easy way, a strategy that fueled the networking schemes as it grows today from strength to strength.
With the ever-changing world today that exhibited less financial security in traditional corporate structures and career paths, network marketing approach has been a big hit. It depicts a promise of employment to the people now that America has been reported to have people losing over 3,100 jobs a day due to downsizing and the automation of businesses or technological advances in various industries. Such has become the answer to the aftermath of having 47% of the Fortune 500 companies inoperable since the 1980. Thus, network marketing filled the need for more than 5 million jobs yearly. It has presented an offer for people to support their needs without the troubles of employment or regular work and encouraged business ideas come to life. By reckoning the commissions and increasing financial returns, this strategy has long survived up to the present times.
Doing this home based business has also allowed people to gain financial cushion and security. It has been the people’s resort to having an assured residual income without facing employment issues of working for a boss or working with another colleague. A recent survey facilitated by the Wall Street Journal supports this fact. The survey results showed that 80% of the work force wants to have their own businesses and 40% of them want opportunities of working at home. This is what network marketing is all focused on – to provide a condition that is most likely preferred by the workforce. In such ways this home based business has become a big hit in the marketplace.