How does network marketing work? Many people think that it is the best business model out there. Other people are so afraid of the concept that they just assume network marketing is a pyramid scheme or a scam.
The official definition of network marketing is a distribution channel that is defined by government regulations. It’s nothing more complicated than that. But exactly what kind of distribution program is it? The ideal way to understand network marketing is to understand what a traditional distribution model is first.
There are several key components to a traditional distribution model: the manufacturer, the agents, the wholesaler, the retailer, and finally, the customer.
Manufacturers create products in large quantities and they work directly with wholesalers and agents.
Agents are the middlemen who negotiate between suppliers and distributor to make contracts between different distribution channels. Now, some manufacturers don’t work with agents at all, and just connect with the wholesalers. However, agents still play a part in the transactions, because agents make sure all negotiations are legal under the rules and regulations of importing and exporting product.
Wholesalers keep large quantities of product and stock on hand. Wholesalers work with retailers directly. They are who negotiate with manufacturers and with agents about storage of backlogs of products, and they also distribute product in a way that makes sure that retailers have the right amount of product on hand.
Retailers are the only people who actually sell directly with customers. They carry product and stock on hand, after getting it from wholesalers.
The customer is at the end of this chain. Product moves through all of these channels and once the customer gets it, the price is raised considerably! The customer is not able to figure out the true cost of a product from what they pay for it.
Network marketing is a different way of getting product into the hands of the customer.
First off, there are no middlemen in network marketing. Instead, network marketers make connections directly between the manufacturer (which is actually the network marketing company) and the consumer. Basically, instead of having to go through the agent and the wholesaler, network marketing sales representatives put the product right into the hands of the customer, without all the complication.
An excellent perk of working in network marketing is the ability for the customer buying the product to actually become the distributer. It works the opposite way, too. If a customer likes their products so much that they would like to get a discount, he or she can actually become a distributor of the network marketing company, and get their favorites at a discounted “wholesale” price. Current distributors can actually use their products themselves, becoming their own customer!
Now you can understand why network marketing distribution is considered one of the most cost effective ways to get a product to customers. This system adds a personal touch to an impersonal transaction through person to person contact, customers save money by not using middlemen, and distributers are empowered so they can sponsor their own team of resellers (down lines).
Summary: How network marketing works. Why network marketing as a distribution channel is different from traditional distribution channels.
Jaz Lai
http://www.articlesbase.com/mlm-articles/how-does-network-marketing-work-anyway-724265.html
Originally posted 2010-02-28 17:40:14.
What rhetorical devices does the author use? How effective is the use of the devices?
Thanks to immigration laws that favor relatives instead of skilled workers, most of the immigrants being admitted are low-skilled. Out of all the adult immigrants admitted in 2000, 69 percent had no reported profession, occupation, or job at all.2 The average adult immigrant has only a ninth-grade education; more than a third of immigrants over 25 are not high school graduates.3
Claims That We Need Low-Skilled Workers Are False.
Some employers claim that they need to import low-skilled workers to compete in the world market, where wages are very low. But those employers have simply become dependent on cheap foreign labor to the detriment of American workers: “Network recruitment [of immigrants] not only excludes American workers from certain jobs; it also builds a dependency relationship between U.S. employers and Mexican sources that requires a constant infusion of new workers,” says economist Philip Martin.4 Such a strategy for our economy is doomed to failure anyway: “The low-wage strategy may work in the short run, but in the long run it’s a loser. In the long run, we are not going to win a wage-cutting contest with the Third World,” notes economist Vernon Briggs.5
Besides, the United States already has plenty of low-skilled native workers: “No technologically advanced industrial nation that has 27 million illiterate adults … need have any fear about a shortage of unskilled workers in its foreseeable future.”6
The effects are most pronounced in the cities where immigrants go. High immigration cities have twice as much unemployment as low immigration cities.7 Because too much immigration keeps wages low, wage increases in low-immigration cities have been 48 percent higher than in high-immigration cities.8 Thus, immigration contributes to the growing disparity between the rich and the poor in this country9 and the shrinking of the middle class.10 But the damage is not confined to high-immigration locales. The harm is carried to other cities when poor Americans whose wages have been depressed or who have been displaced from their jobs by immigration move to low-immigration areas in search of greener pastures.11
Wages Are Lowered By Competition From Immigrants.
The effect of immigration on those low-skilled Americans is profound, and the government knows it: “Undoubtedly access to lower-wage foreign workers has a depressing effect [on wages],” says former Labor Secretary Robert Reich.12 Research suggests that between 40 and 50 percent of wage-loss among low-skilled Americans is due to the immigration of low-skilled workers.13 Some native workers lose not just wages but their jobs through immigrant competition. An estimated 1,880,000 American workers are displaced from their jobs every year by immigration; the cost for providing welfare and assistance to these Americans is over $15 billion a year.14
Large-Scale Immigration of Low-Skilled Workers Must Be Stopped.
In short, the mass importation of low-skilled workers through immigration damages the job market for Americans, depresses wages for low-skilled natives, and costs the taxpayer billions a year-all for the benefit of businesses that have become dependent on cheap, foreign labor. An immigration system that admits too many people, without regard to their skill levels or impact on the labor force, is to blame. We must reform the immigration laws to lower the level of annual immigration and to ensure that those immigrants who are admitted complement, not compete, with our native labor force.
is this your homework? You need to do it yourself in order to learn.
References :
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LalliSig has added a photo to the pool:
Taken at a wedding I was photographing last month. Most people in Iceland have a driver for their wedding day and mostly go for an "antique" car or a brand new one, but this couple wanted a sports car so they got this Corvette, wich the groom is driving. Anyway, after a little encouragement from me (didn´t take much) I encouraged him to speed away as fast as possible from the church, leading to this photograph
class=” ” Very enigmatic! How are you now Raziel? Feeling better? what is your sign?