For any company to even survive, it’s essential for its product or service to be top of the line, and for the product to fill a demand. 4Life Research has a line of health product aimed at improving immune system function, which the company claim brings about an improved immune system function by up to 437 percent. The company however chose to go the multi-level marketing route for marketing its products. Unlike conventional marketing, which requires a product to leave production and be transported via various distribution channels, passing through the hands of whole sellers, storage and to the retailer; multi-level marketing methods either dispatch its products directly to its consumers or passes products via consumers, to other consumers.
In the well established world of commerce, there is an acceptable method of moving goods and services between the point of production or creation to the end user. This involves a limited number of companies which control the distribution and retail of these products and services and this system although effective, brings with it costs in incremental stages, as the product passes from one system to another; with each point in the system taking a profit – all of which is a cost added to the final price of the product being purchased.
Now, this is simply limited to the distribution, but there is another cost that is massive – and that’s the cost of promotion. Promotion is a component of the marketing mix and involves making potential consumers aware of the product or service. This means creating advertising and getting the appropriate advertising via various media, communicated. This too is a part of marketing that is controlled and orchestrated by a limited number of companies operating within the economy. These companies creating, distributing and bringing the advertising to the consumers notice also add a tremendous amount of cost to the ultimate price of the product.
The multi-level marketing way to go about getting a product from the production line to the end consumer is – directly. MLM companies seek to utilize the path of least resistance and rely on the effectiveness of the product, and the goodwill of its consumers to distribute and market it’s products. One of the most natural tendencies of any person is to talk about a good product or service. Take for example a movie that you may have seen recently that really struck a chord with you. One of your first reactions would be to tell people about it, so that they too may go and see the movie and therefore, be enriched by the experience. It’s a very similar story with any product or service, and this is the idea multi-level marketing is based on.
The goodwill spread by people using a product is incredibly strong and convincing. What an MLM company like 4Life Research does is to capitalize on this fact and rewards its product consumers directly for both using and marketing its products (something they may have gone and done in the natural course of their lives anyway). The system in fact, enables its consumers to discount their own product usage in this manner.
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