For business owners who want to understand the online marketing distribution approach, this is a SWOT analysis of the industry.
Advantage:
For decades, business owners have noticed that word-of-mouth advertising is one of the most effective ways to advertise. Companies that distribute their products in online marketing can experience exponential growth due to viral effects. Every day, people become dealers of your company and bring products to the local market. This is based on the idea that people are willing to buy products or services from people they know and trust, rather than sales representatives.
Compensation is performance-based because there is usually a payment grid to satisfy certain quotas. Having this compensation structure reduces the risk to the business owner and minimizes the financial burden of acquiring new distributors/employees if the new dealer does not perform. Customers are loyal to independent distributors and products that represent the company. Products are usually consumables that generate repeat orders, so an increase in sales from one quarter to the next is common.
weakness:
As a business owner, we want to use these weaknesses as part of our SWOT analysis of the online marketing industry. The first and obvious weakness is that the company's development depends on the strength of the dealer. This is not completely out of the control of the business owner, but it may be difficult to influence. Compensation is the main incentive for distributors. Retaining a distributor is a problem for the entire industry. Since it is easy for dealers to join the company, it is equally easy to leave. This distribution model is best suited for consumable products or services. This creates a repeat order, ideally set by month. Ideal for products between $30 and $180, which makes customers affordable and still profitable for the company.
Threat:
Take a look at our threat to the industry's SWOT analysis and be able to conduct downline attacks at any time. The offline is called a group of distributors who work and benefit from each other. If the major dealer decides to join another company and lead their team, some sales may be lost. Developing incentives and agreements is the best way to avoid this.
Another threat to business owners and companies is that dealers can freely promote on-site in accordance with certain guiding principles. These guidelines may not always be followed, leading to possible litigation or embarrassment to the company's brand.
opportunity:
As part of our SWOT analysis of online marketing, expanding into new markets is one of the most important opportunities. As people are satisfied with the products in a market, dealers will be ready to enter new markets. This is also possible because the low marketing budget required for major communications is through distributors who only get paid when the product is sold.
Since marketing budgets are not as laborious as traditional advertising methods, business owners have been able to allocate more resources to their products to make them more competitive in the market. As sales grow, another opportunity for business owners to use is to extend their product line to existing customers who are typically willing to adopt new products.
The SWOT analysis of business owners' online marketing is by no means comprehensive, but provides you with a starting point for expectations. The industry is growing rapidly and more and more people want to work with reputable companies. There are different strategies for building online marketing services for owners and distributors. It is recommended to integrate the technology to optimize your leverage to reach the highest number of qualified prospects.
Orignal From: SWOT Analysis of Enterprise Master Network Marketing
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