Dream of having biggest consumer volumes is not everyone’s cup of tea as consumer behaviours keep changing, they easily get shifted to brand “A” to Brand “B” just on good offers or some freebies with the products in the normal traditional marketing system.
when a new competitor comes in the market old one has to lose some market share and if that brand wants to foray into new product segments they need to start from zero again whereas in Direct selling consumer is loyal and directly attached to the company as he/she is entitled to get the commissions and promotions on sales of the products which is why every new range company introduced in direct selling pickups quick sales and instant profits reason being millions of direct sellers attached to the company.
Company’s introduction to the international platform becomes a much easier and ready hand. Once it is registered with the different countries the direct sellers out of those millions may simply reach the foreign customers and work wide open on the globe.
MLM, Direct sellings are cash-rich companies; because they sell goods to consumers directly and receives payments directly thereafter they need to deliver the goods whereas in traditional system products move with a channel of C&F, Distributors and wholesalers and payments to the manufacturers are always affected due to the middlemen cash retention behaviours. Sometimes the manufacturer has to suffer when these middlemen default in payments and this is a common practice in the traditional business system.
Sales are the first step of introduction in mlm, direct selling. You may call this system as instant cash sales ways of marketing, whereas in traditional business terms profits are minimal due to the ways various middlemen work and presence of these middlemen the profit possibilities are limited.