05-09-2012, 09:25 AM #1
Multi-level business - light and dark
Multi-level event Agel corporate America's withdrawal from Vietnam's market is a hot topic in the network marketing world. So What is multi-level business? Why Agel to flee from a potential market like Vietnam? Where is the light, where the darkness of this type?
Agel headquarters is in Vietnam
Let us ponder together after a decade of multi-level type of business travelers to Vietnam.
Type of business advantages Vietnamese
My friend, a class golfers have had many years of living in Europe, in a conquered together 18 holes in Tam Dao, he said Aaron Green a question: If the Golf is a sport, the business elite has level is a great invention of mankind. It seems to illustrate the above, he opened a bottle of water and then mixed into a brown powder which branded Herbalife then explained: Products of America, very good, he used to be ten years, through multi-level selling.
Herbalife products do not know how good sized business and multi-level priority has to be as he spoke Vietnamese or not, but watching the swing of his powerful then everyone admired. Solid body as a professional sport and so he said, ten years, he did not know what sickness is. Add to that the years passed, but all the features of the body is not subject to old age.
Seeing him say so, I ended curiosity, find out about his new show is living on cloud nine. According to some multi-level sales company then this type was introduced in VN dozen years. The early 21st century, foreign firms have in VN organized sales network and pompous conference workshops, attracting thousands of participants. However, until the date of 24/08/2005, new official government issued Decree No. 110/2005/ND-CP on the management of multi-level sales activities.
We can say, from here, multi-level sales activities have been recognized as a legitimate business model in Vietnam. On 15/06/2009, Minister of Home Affairs issued Decision No. 935/QD-BNV on the establishment of multi-level marketing association in Vietnam. 31/3/2010, multi-level sales Association of Vietnam has officially grand opening ceremony at the Sheraton Hotel, Hanoi, very oach.
So far, though not yet complete statistics, according to this Association, there are more than 40 multi-level sales company, attracting over 1 million distributors, bringing annual sales of approximately 5 trillion , contributing nearly trillion corporate income tax and personal income tax. That's not to mention the charitable account, relief and other related benefits that are entitled to economy.
Wine business is direct sales to consumers, consumers can directly purchase the company without going through the dealer or retailer. Thus, this method also saves a lot of costs from advertising, promotion, money yards, warehouses, freight. The emergence of multi-level big business interests seem to conflict with the advertising industry.
The cost of promotion is used to pay bonuses to distributors and upgrades, product enhancements continue to serve consumers. Is this reason that there is a department in which the media have not liked the multi-level business?
Talk like that is not the type of business is perfect, no defects. Itself full of defects that participants can abuse.
Because the interests of distributors depends on the development of agents depends on the sales agents should be short-sighted, want to get rich quickly often find ways to increase sales, but despite business ethics. One way is to persuade the partners, they always compare with other partners, including good and bad about his opponent, dragging the agent of other companies on their side. But the reality is often not the same as the words of the agent.
Alternatively, more often the abuse is said agents to round up the Vietnamese superiority of the product, product attributed to the features that it does not have. Even the eyes of some agents grab, the product (usually food supplements, cosmetics ...) like the first type of drug the body, ailments. However, when consumers use the product, they do not enjoy those features so often disappointed.
A Tuesday with disabilities vulnerable to abuse as agents, sales pressure, the ranking in a network of secondary agents, when recruiting people to network usually gives a promise of revenue enter and to be accepted as members, newcomers often have to spend a certain amount for the purchase of used products. In some cases, new employees have to spend a few tens of millions to "hug" the product with the fragile hope for the future.
Here's how to make a multi-level network of premature death in a short time. The Agel retreated from the market of VN with this cause.
The future of multi-level business in VN
Multi-level business associated with the name of Karl Renborg American chemist (1887-1973). He was the first application of network marketing ideas to life, creating an economic system, a business that is considered most promising in the 21st century.
Renborg Karl has 20 years of living in China, between 1920 Karl Chiang detained by the authorities. The living conditions are in need of the prison, he saw the role of micronutrients for human health. To overcome the living conditions of undernourishment has found a way Renborg scrape rust iron nails and added to the diet and deal with the guards to get different kinds of vegetables.
He and a handful of inmates to follow this method should have better resistance to survive day to return home. In 1927, Karl in the U.S. and start processing the nutritional supplements vary based on alfalfa grass contains a lot of vitamins, minerals, protein and many other beneficial nutrients. He suggested that his acquaintance free trial products, but no one dared try because they do not want to do experiments.
After several attempts, but does not bring results, he realized that no one under review for good things do not, so he came up with an idea, which later evolved into an advanced business . Renborg his friends proposed to introduce nutritional supplements for their acquaintance, if someone said they bought the product promises to pay a commission.
He also decided to pay a commission for yourself if someone you introduce the next product of their relationship. Surprising results: information about the nutritional supplements are beneficial started to spread widely. Revenue from the company's sales increase beyond the imagination, people having recommended him to consult on new product information.
From the success of Renborg, a series of multi-level sales company was born. Especially in the 80s of last century, in America, every morning you wake up we could see hundreds of business the company announced the establishment of multi-level with a full range of products and business models. Since 1990, thanks to the progress of technology and communications, multi-level business brings new colors, the distributors can simplify their work thanks to the phone, internet ... whereby this type more quickly spread.
I think its part, in the context of low population, employment is an urgent matter, multi-level business is the form that anyone can use their idle time to participate in work and work anywhere. Look back, the comments of my fellow golfers in Tam Dao is not no reason.
What about Agel fleeing VN is not strange phenomenon in the market when any model that is also a failure, especially in difficult context of the current economy.
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