Voice over internet protocol has gained popularity and penetration over the recent years and one of the companies really enabling reach, has been 5LINX. The company is a fore-runner in VoIP services (besides a host of other products and services). But however great a company’s products are, breaking into an already congested marketplace with multiple competing corporations is a difficult and expensive task.
Going the regular marketing route, a company like 5LINX would have to develop a corpus of funds that it would have to dedicate just to promotion, well before its products or services became available. This promotion would have to be effected so as to create a demand for the yet to come products. What’s more, even though the technology may be different, the company would have had to compete with giants in the telecommunications vertical; companies with immense clout and maneuvering space within the economic environment.
So, as with many young companies that have great products, 5LINX has chosen to market its products via the network marketing route. Why this manner and not the conventional method you may ask? The answer lies in efficiencies. There are two critical areas where marketing the tradional manner and network marketing differ; the first being in the distribution method, and the second being the promotion method.
In the traditional method of marketing, a company would have to aggressively advertise it’s products. Advertising is a function of creating attractive product related communications and transferring these to broadcast or print media so that the maximum numbers of people are reached, within a geographical area (where the product is to be sold). This means gaining a market share of demand, which will be fiercely competed for, by preexisting companies that are already selling their products and services in the market.
The telecommunications market where 5LINX operates is just such a fierce company. This cost would then be added to the product price and passed on to the consumer. Next, the traditional distribution channels for products and services is severely limited in the fact that it is controlled and operated by a handful of corporate. These corporate route the products and services from the place of production via distributers at various levels, wholesaler and retailers (all the while incurring transportation, storage and handling costs). The time a product spends on the shelf too costs money which of course, the end customer ends up paying for.
To avoid all these issues, 5LINX being a young company, used the alternate marketing method through network marketing. This simply involves getting the product and service directly from the company’s plant and storage to the consumer’s place of consumption. But for the consumer to have a demand for the product in the first place, he/she has to become aware of the benefits. This is where the quality of the product and service come into play. Existing customers go about referring the product to friends and colleagues, who may try out the product, find it useful and thereby purchase the product. These customers would also go through the usage phase and then promote the product themselves – for which they are compensated through revenues on each sale.
Start Your Business Off Right Learn To Generate 50 – 100 Leads Daily => Here is How You Do It! <<=
