“Network marketing is nothing more than a distribution operation,” said Ridgely Goldsborough , of Network Marketing Lifestyles magazine. “To me, it is the most effective and efficient distribution business ever created. Clearly, distribution will be one of the great businesses of the next ten to twenty years.”
“For most people seeking wealth today,” said Paul Pilzer, author of God Wants You to Be Rich, “the greatest opportunities lie in the distribution sector of our economy.”
Why is that? In the 1960s, manufacturing and distribution accounted for equal portions of the retail cost of most items for sale in the market. Advancements in technology and the workforce have changed all that. Today the total cost of the same item has dropped because production costs have been substantially lowered. And although distribution costs have also fallen some, they now constitute the greater portion of the cost. Approximately 80 percent of the price of a retail product today is a direct result of distribution costs. The big opportunity today lies in finding ways to distribute everyday products less expensively and for that many companies are turning to the direct sales model. As long as distribution costs remain out of proportion to manufacturing costs, network marketing will be a practical solution.
