Thursday, May 27, 2004
MLM or Network marketing in 21st century
The death of jobs ?? In the last 10 years, millions lost their jobs through corporate mergers, acquisitions, downsizing and closings. One reason is that technology has made many jobs obsolete, from the factory worker displaced by automated production lines, to the middle manager nudged out by computerized office network. Or companies downsize because their plants have moved out of the country permanently. For whatever reasons, most of the jobs slashed will never come back.
More and more whitecollar workers are being forced into what Fortune calls the contingent workforce. Consisting of temps, part time workers, consultants, and the self employed. The contingent workforce is growing at a staggering rate.Many of those under employed professionals are going straight into network marketing companies. MLM recruiters are hard at working reaping Corporate America's human castoffs including doctors, lawyers, CPAs, stockbrokers, and corporate presidents tired of the rat race.
Based on available data from Directing Selling Association as well as other industry sources, annual sales through MLM organizations have reached about £20 billion in the US and £80 billion worldwide. The DSA conservatively estimates that about 8 million people engage in networking, in the US alone,
Conventional advertising and marketing strategies no longer worked. Market share was evaporating before an onslaught of interactive media, proactive media, proactive customers, and global competition. An average American today is exposed to 145 commercial messages daily. But the chances of any one advertiser making an impact have plummeted. Armed with remote controls, today's consumers now flit from one cabe station to the next, bypassing all the commercials. As the number of media outlets proliferates from cable TV to the Internet advertising messages are lost in the ever widening data stream.
The 21st century will see profound changes in shopping habits, instead of going to the store, the store will come to the consumers. Billions of dollars have been diverted from conventional retailers into catalog sales, televised home shopping, and virtual stores on the Internet. Network marketing play an ever increasing role in that shopping revolution.
In a world without shopping, more and more corporation will contract with firms such as Amway to deliver their products straight to the consumer. Indeed, many brand name companies have already taken this step. IBM for instance, is now selling Internet training programs through Big Planet, a division of NuSkin International. Dupont and Conagra teamed up in 1988 to form a bio technology venture called DCV which launched a network marketing subsidiary called Legacy USA to sell propriety nutritional products. In May 1999, the £572 milion nutritional giant NBTY acquired a Dallas based MLM company called Dynamic Essentials Incorporated (DEI), to use as marketing arm.
Perhaps no MLM firm exemplifies the Wave 4 modal of third party distribution than Amway. The company sells cars for GM, Chrysler, and Ford; appliances for Hotpoint and Whirlpool; and long distance service for MCI. With its virtual mall on the Internet and its catalog of 6500 products and Corporation it is showing the way to the future. Wave 4 networkers will provide a Distribution Freeway through which thousands of client corporations will move their wares.
Another MLM Success Story The Merger of Citicorp and Travellers Group Delirium hit Wall Street on April 6, 1998. For the first time in history, the Dow Jones Industrial Average soared above 9,000 points. The financial press buzzed with excitement. Yet the most intriguing part of the story went untold. Pundits completely overlooked the small but critical role that networking had played in driving the Dow to new heights.
It all began with the largest corporate merger in history, announced earlier that day an £85 billion deal between the world's second largest bank, Citicorp, and the insurance giant Travelers Group. Together, they formed a new entity called CitiGroup, which instantly took its place as the largest financial services company in the world. CitiGroup boasted nearly £700 billion in assets and 100 million customers.
So what did network marketing have to do with all this In fact, it lay at the core of the Citigroup merger. One of Travelers Group's most valued assets was an MLM subsidiary called Primerica. It acted as a distribution channel for a wide range of Travelers Group companies. Primerica sold everything from Smith Barney mutual funds to Commercial Credit loans and Travelers/Aetna property and casualty insurance. And it sold them with extraordinary vigor. Primerica had managed to sell nearly 50% of all outstanding Commercial Credit loans. In fact, Primerica sold more of a new series of Smith Barney Inc. funds in 1996 than Smith Barney.
The Travelers Group, in short, had synergy. Its MLM sales force provided the perfect vehicle for moving financial services. And Travelers' numerous subsidiaries kept Primerica well supplied with offerings for its customers. With Primerica, the Wave 4 Revolution had come to Wall Street. On the surface, the mega merger of Travelers and Citicorp looked like a consolidation of traditional corporate power a move toward bigness rather than smallness. But in fact, Citigroup sliding inexorably toward mass privatization. It cut workforce by 6% in 1998, laying off 10,400 people. And while Citigroup's conventional payroll dwindled, its MLM sales force grew, reaching 139,000 agents by 1999. Primerica agents descended on the market like birds in a flock, targeting tiny or inaccessible niches that conventional marketers might have overlooked.
Thousands of entrepreneurs acting in concert accomplished what the world's greatest financial giants could never achieve on their own.
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http://www.moneyseeker.co.uk
webmaster@moneyseeker.co.uk
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More and more whitecollar workers are being forced into what Fortune calls the contingent workforce. Consisting of temps, part time workers, consultants, and the self employed. The contingent workforce is growing at a staggering rate.Many of those under employed professionals are going straight into network marketing companies. MLM recruiters are hard at working reaping Corporate America's human castoffs including doctors, lawyers, CPAs, stockbrokers, and corporate presidents tired of the rat race.
Based on available data from Directing Selling Association as well as other industry sources, annual sales through MLM organizations have reached about £20 billion in the US and £80 billion worldwide. The DSA conservatively estimates that about 8 million people engage in networking, in the US alone,
Conventional advertising and marketing strategies no longer worked. Market share was evaporating before an onslaught of interactive media, proactive media, proactive customers, and global competition. An average American today is exposed to 145 commercial messages daily. But the chances of any one advertiser making an impact have plummeted. Armed with remote controls, today's consumers now flit from one cabe station to the next, bypassing all the commercials. As the number of media outlets proliferates from cable TV to the Internet advertising messages are lost in the ever widening data stream.
The 21st century will see profound changes in shopping habits, instead of going to the store, the store will come to the consumers. Billions of dollars have been diverted from conventional retailers into catalog sales, televised home shopping, and virtual stores on the Internet. Network marketing play an ever increasing role in that shopping revolution.
In a world without shopping, more and more corporation will contract with firms such as Amway to deliver their products straight to the consumer. Indeed, many brand name companies have already taken this step. IBM for instance, is now selling Internet training programs through Big Planet, a division of NuSkin International. Dupont and Conagra teamed up in 1988 to form a bio technology venture called DCV which launched a network marketing subsidiary called Legacy USA to sell propriety nutritional products. In May 1999, the £572 milion nutritional giant NBTY acquired a Dallas based MLM company called Dynamic Essentials Incorporated (DEI), to use as marketing arm.
Perhaps no MLM firm exemplifies the Wave 4 modal of third party distribution than Amway. The company sells cars for GM, Chrysler, and Ford; appliances for Hotpoint and Whirlpool; and long distance service for MCI. With its virtual mall on the Internet and its catalog of 6500 products and Corporation it is showing the way to the future. Wave 4 networkers will provide a Distribution Freeway through which thousands of client corporations will move their wares.
Another MLM Success Story The Merger of Citicorp and Travellers Group Delirium hit Wall Street on April 6, 1998. For the first time in history, the Dow Jones Industrial Average soared above 9,000 points. The financial press buzzed with excitement. Yet the most intriguing part of the story went untold. Pundits completely overlooked the small but critical role that networking had played in driving the Dow to new heights.
It all began with the largest corporate merger in history, announced earlier that day an £85 billion deal between the world's second largest bank, Citicorp, and the insurance giant Travelers Group. Together, they formed a new entity called CitiGroup, which instantly took its place as the largest financial services company in the world. CitiGroup boasted nearly £700 billion in assets and 100 million customers.
So what did network marketing have to do with all this In fact, it lay at the core of the Citigroup merger. One of Travelers Group's most valued assets was an MLM subsidiary called Primerica. It acted as a distribution channel for a wide range of Travelers Group companies. Primerica sold everything from Smith Barney mutual funds to Commercial Credit loans and Travelers/Aetna property and casualty insurance. And it sold them with extraordinary vigor. Primerica had managed to sell nearly 50% of all outstanding Commercial Credit loans. In fact, Primerica sold more of a new series of Smith Barney Inc. funds in 1996 than Smith Barney.
The Travelers Group, in short, had synergy. Its MLM sales force provided the perfect vehicle for moving financial services. And Travelers' numerous subsidiaries kept Primerica well supplied with offerings for its customers. With Primerica, the Wave 4 Revolution had come to Wall Street. On the surface, the mega merger of Travelers and Citicorp looked like a consolidation of traditional corporate power a move toward bigness rather than smallness. But in fact, Citigroup sliding inexorably toward mass privatization. It cut workforce by 6% in 1998, laying off 10,400 people. And while Citigroup's conventional payroll dwindled, its MLM sales force grew, reaching 139,000 agents by 1999. Primerica agents descended on the market like birds in a flock, targeting tiny or inaccessible niches that conventional marketers might have overlooked.
Thousands of entrepreneurs acting in concert accomplished what the world's greatest financial giants could never achieve on their own.
For further details:
http://www.moneyseeker.co.uk
webmaster@moneyseeker.co.uk
Cool Links:
Blog Search Engine - Search Engine and Directory of blogs. Looking for blogs? Find them on BlogSearchEngine.com
# posted by MoneySeeker UK @ 11:09 PM 
