Friday, October 21, 2011 10:30:56 AM
You guys who want traditional advertising don't understand the business model. You need to read the pages where affiliates, sales, and commissions are discussed. It is all there.
You also assume that only through traditional advertising can a company be successful. That is not true. There are probably hundreds of very successful businesses that work through affiliates, or a sales force, not advertising directly to consumers. A few that come to mind that I never seen an ad by are: Amway, Mary Kay Cosmetics, Avon, Tupperware, World Book Encyclopedia, Fuller Brush, Electrolux, and others. They developed products, fired up the salesforce, and sent them out there. If the model is structured well, and the products are good, the salesforce will be successful without any advertising at all. Many times, the sales people already have a personal relationship with the customers. This makes it easier to close the sales. The benefit is that there is no cost to the company until the sales person closes the deal, then the money comes out of the product, and the company is still left with a hefty profit.
This is what David is doing. Net Savings Link is not appealing directly to individuals, though individuals can sign up one by one and buy things. The sales force is appealing to the management of large groups which can enroll hundreds, or tens of thousands of people at one fell swoop. It is a great model.
Try to get the traditional and expensive Groupon/Living Social model, of appealing to consumers one by one, out of your mind. This is actually better by far. It is also the model that many business to business companies use, and have used for over 100 years.
This is basic business 101. There is more than one way to create and run a successful business. Ozone is completely wrong and his lack of knowledge of business shows.
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