Downlining Niche Markets

danlandrum

I`ve heard that the Wellness Industry will be the next Big Wave and hence created an umbrella site, Harmony Wellness Products, which initially points mostly to 3 medical devices sub-niche sites, Harmony Chi Machine, Harmony Far Infrared  and Harmony Electro Reflex Energizer. I hope soon to refocus the umbrella to include other sub-niches.
One thing I like about the medical device products I promote is that they are marketed through a multi-level distributorship, which gives me another means to increase exposure while collaborating with others. Is that attractive to you, using specific multi-level distributorships or tiered affiliate programs as a basis to build a network within an industry sector?

FionaCameron

My experience with multi-level distributorships is that this business model is successful because it enables companies to compete without absorbing the traditional costs of advertising (e.g. television and radio), which is least affordable for start-ups. Why spend six and seven figures on advertising? Multi-level marketing is a legitimate, cost effective marketing strategy.
 
Who do you think sells more ice cream? Baskin Robins or McDonalds? The average person would say, "Baskin Robins" because they specialize in all different flavors of ice cream, but the truth is that since McDonalds has more stores, they outsell Baskin Robins with just two or three flavors. Imagine that! That is what makes multi-level distributorships so cost-effective. The more "stores" you have, the more you sell. In addition, it strengthens a weakened job market.
 
For those who dislike multi-level distributorships, I attribute that to a lack of understanding. Not all multi-level distributorships are scams (as it has been noted by so many who are uninformed). Independent contractors interested in multi-level distributorships must take the time to find out which one is right for them.
 
If you don`t like the way your local bank is doing business, would you never put your money into another bank again and ban all banks for life? No, you would find another bank with a good reputation. If you read in the local paper that your insurance company had some crooked employees, would you never purchase health insurance again for the rest of your life? I think not.
 
So I`ve addressed how multi-level distributorships are cost effective to the supplier, increases accessibility to the consumer, and provides relief to a stressed job market. Now I will show you that multi-level distributorships have suffered a bad rap as being associated with pyramid schemes.
 
As you can see, the gentleman who started this post has a legitimate product, so that should tell you that you can have a multi-level distributorship and operate just like any other outlet (and be totally legit). What most people don`t realize is that traditional employees are already part of another type of pyramid scheme. Corporate America operates just like a pyramid, where the people at the top make most of the money, and the mass of people at the bottom make very little.
 
In a legitimate multi-level distributorship, you do build a downline, but it doesn`t matter where you fall within that downline --- whether you are at the bottom or at the top. Why? Because what you earn depends on the amount of effort you put into your business. You could be at the top of the downline, but have people below you who are more successful. So let`s not mark all multi-level distributorships unfairly with the same brush. There are some that are doing it right and some are doing it wrong.
 
Furthermore, some people go into multi-level distributorships as independent contractors with the wrong idea of what it takes to run a business. Then when they fail, consequently blame their failure on the company instead of examining their own actions.
 
Regading multi-level distributors and independent contractors of multi-level distributors, when the dust settles, the cream will rise to the top, and the scum will settle at the bottom .
 
Multi-level distributorships have been around for a very long time, and with more and more companies recognizing the benefits, they will remain a strong business model far longer than you and I will probably live to see.
 
SIDENOTE: With the Internet and social networking, relationship marketing will only grow as a popular resource where conusmers and marketers share information. StartUpNation is one example of relationship marketing. Multi-level distributors use relationship marketing to promote their products and services. The result --- free advertising for the supplier and individual marketer, making it easier for small businesses to compete.

danlandrum

Wow, Fiona, well put! You really covered the bases.
 I also can understand Jeff`s point-of-view. It would be ideal to be the primary producer of the items you sell. But
this becomes increasing harder as a global workforce drives down unit
cost and maximizes profits across disparate economies. It`s unrealistic
for me as a web designer to try to go toe-to-toe with my counterpart in
India whose cost-of-living - food and housing may be a hundredth of
mine in San Diego, CA.
I like the emphasis of creating passive income assets the little
infomercial movie Doug points to. It makes more sense for me to use my
web skills to diversify and create niche markets that create passive
income assets than to try to be a primary producer. Of course the art
is in identifying which ventures to get behind. My feeling is it`s best
to take each opportunity on a case-by-case basis and see what you can
do with it.danlandrum11/10/2008 1:09 PM

WebJunky

dan,
 
do us a favor and keep us updated on what has worked for you. your dilemma is shared by countless other aspiring entrepreneurs here in the USA.  sometimes it feels like niches are running out because of the saturation and competition.  it is now a matter of doing something bigger, better and cheaper than your competition.
 
good luck