WORD OF MOUTH + DIRECT SALES (WITH MLM) DOMINATES ADVERTISING!

By Rod Cook

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WHY MLM WORKS BEST - WORD OF MOUTH

1 May 2004 - A strong survey by Planet Feedback reinforces that word of mouth advertising is the best vehicle for advertising. Top of the list was "WORD OF MOUTH" advertising, the major driving force behind MLM - Network Marketing. For tens of 1000's of years the human race survived verbally transmitted knowledge by word of mouth! When we look for a mechanic, a doctor or a dentist -- we ask our friends, don't we! This study reinforces what we all instinctively know! With quality products or services driving our belief system, word of mouth is the most powerful marketing tool that there is! All you have to do is make friends and talk to them!



WHY MLM WORKS BEST - DIRECT SALES

A recent study by Thomas Register has sent shock waves through the marketing world! Direct Sales and Network/referrals dominated marketing activity at 53% for the best return on marketing dollars spent worldwide! Both major marketing categories at the top of the chart encompass Network Marketing (MLM) and hybrids of MLM. This has helped direct sales to grow and gain this dominance - encompassing the entire World! With MLM plans sweeping insurance companies, real estate and mortgage this year, we can expect a tremendous growth in the total sales volumes for MLM companies and their hybrid relatives world wide!

In times of economic stress companies are getting out of traditional advertising modes because of high costs and 1000ís of confusing advertising channels! Direct Sales by human beings with "personal contact" can be expected to continue it's rapid increase because of "channel confusion" in media and print advertising. In the last few years MLM has become a more dominant in direct sales because it can provide "Bonus" models for team building in traditional Direct Sales such a real estate. Businesses are finding that these bonuses drive teamwork sales and retain top sales people by creating long term residuals. In the future look for more plans with a residual income based on variations of MLM pay plans. Pharmaceutical and auto companies are investigating the use of Multi Level Pay plans to increase sales while decreasing marketing costs. Vertical integration is increasing. Nutritional Manufacturers are starting their own Multi Level Marketing companies to fight high costs of shelf space.
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If you would like a copy of this article for your website please email Rod@mlmwatchdog.com Rod Cook is one of the major researchers in the Direct Marketing arena. He has almost 40 years of experience in Network Marketing (MLM). He and his staff of reporters at the MLM WatchDog review and analyze almost 1000 companies a year. He has done this for 10 years of publishing and is one of the most knowledgeable persons in the world on the subject of MLM Companies, their sales psychology and pay plans. He consults with many companies and top MLM Distributors.

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