Direct Marketing Network

Multi-level marketing, also known as network marketing, direct selling, referral marketing, and pyramid selling, is a marketing type in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation. A direct marketing network, just as almost all the other marketing strategies, has both advantages and disadvantages.

With all of the pros and cons from both the organizational aspects and buyer aspects, direct marketing network structures have increased and expanded in size and have somewhat been in a position to make an impact in the business world today. Many businesses have been using this kind of direct marketing method to promote their recently launched goods and services and, therefore, there are many direct marketing networks available nowadays. Due to the tremendous development of the web, a lot of organizations and businesses are now able to reach current or potential customers via email, whether the latter want this or not.

Unfortunately, probably one of the most typical technique of a direct marketing network is sending junk emails. These messages resemble leaflets or telecommerce and they range in a similar category with email advertising and voice mail advertising as well. With all these forms of direct marketing available and almost invading our privacy, it should not come as a shock that some states have adopted legal laws meant to prevent some forms of business specific to direct marketing networks. In addition, some email service providers allow recepients to report a message a spam and block the sender’s messages for the future.

Direct marketing network structures could bring some benefits to customers as well. Think about the situation in which a customer has been looking for a certain type of product or service without finding it. Then, all of a sudden, an advertisement promoting the respective item pops up and makes him/her happy. With this kind of marketing, a potential buyer has the chance to quickly order the product and comment on it thus doing good to the marketer, too, as the latter is able to collect data, analyze the process and act accordingly. This happy customer will, in turns, benefit from the marketer?s analysis the next time he/she receives another advertisement, which this time could be more personalized and adapted to his/her needs and desires. The ads have to appeal to the consumer’s needs in order to generate sales. And the circuit goes on and on!