Network marketing today can use new technologies, such as computers, communications, product delivery, Internet, videos and audiotapes.
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There are a lot of new network marketing companies today. These companies are very different from their predecessors, and it's important to understand how the industry has changed.
What has caused the differences between the network marketing company of the 1970s and one of today? In a word, technology. Five technologies in particular have revolutionized the industry.
Computers.
Fast, powerful, inexpensive computers have allowed companies to deal directly with all distributors, and increasingly with consumers as well. In the earlier days of the network marketing industry, top distributors were responsible for paying out earnings to their downlines. If a distributor failed to carry out his or her responsibilities, or if that distributor quit, chaos resulted.
Today, thanks to computers and software specifically designed to handle network marketing commission plans, a network marketing company can deal with all of its distributors from headquarters. A company can calculate, generate, and disburse distributor commissions in a timely manner. This approach is an enormous time-saver for distributors, who no longer have to perform these functions for their downlines. In the early 1980s, a traditional network marketing company conducted a survey asking their field leaders how much time they spent on administrative tasks. The average answer was sixty percent. Think of all of that time away from recruiting, selling, and training-what a waste!
Product Delivery.
Today we see rapid package shipping. This is another technology that allows a company to deal directly with everyone. Distributors no longer have to maintain large inventories. Companies can have a more extensive product line. Distributors can recruit or sell to people living outside their local areas; they simply drop-ship orders to their consumers.
Communications.
The telecommunications revolution, particularly in terms of inexpensive long-distance telephone calls. Conference calls have replaced most weekly sales meetings. This means that today distributors can recruit from anywhere. A company no longer starts in one region and slowly moves across the country or around the globe. Today distributors can be successful even if they don't know how to hold a meeting, because they can have their prospects listen in on conference calls hosted by others. Companies can afford to have 800-number ordering and even consumer service. This new ability can assist distributors in taking care of their consumers.
Videos and Audiotapes.
Today videos and audiotapes allow even relatively small companies to get their messages out in ways only major corporations could before. The use of videos for marketing and recruiting has greatly helped distributors to tell the company's story. It has also assisted in the explosion of remote sponsoring.
Internet.
Today Internet can give more effect on the industry than all of these technologies combined. Internet hasn't yet realized its industry-wide potential-but it's starting to, and some companies have been very successful in using the Internet.
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