Jessica Chelekis and Susan M. Mudambi 's article "Emerging Markets: Direct Pyramid Direct Selling" are aimed at helping companies such as Avon to find and purchase global brands by consumers in the poorest areas of Brazil, It shows that we succeeded in creating a market in rural areas. A business model used by a company like Avon to accomplish this is to sell items directly through women representatives living in these areas.
A reliable direct sales company's sales and marketing program is based on a stepwise recognition and compensation of direct sellers to develop a customer base for the company's product consumption. The development and stability of the distributor business depends on satisfied consumers and direct marketing network members who need fair payment. On the other hand, the pyramid program provides a fast and rich program to attract participants to "bottom" or "leadership" positions. The pyramid sales plan has no long-term business opportunities feasible.
Explanation of the plan: It is not calm and direct and not lawful. Many (M - A - N - Y) people think that all forms of direct marketing are pyramid plans. Please know that this is absolutely not true. A well-structured direct sales company is ethical and legal in its framework and remuneration. Unfortunately, within the framework of a direct sales company, there are always people with structures that even show unethical or even illegal behavior. This usually does not reflect the company or product. Note: I own a retail store. I paid a lot of money (over 100,000 dollars) to purchase inventory, pay for employees, rent, electricity, supplies, marketing, insurance and contraction (shopping). This fee is not charged for direct sales personnel. The company that I bought shares is a paid salesperson who is the boss's duties of all my invoices. This part is not different from direct sale.
Many direct sales companies are already famous names. Some of the products of your home are from sellers directly. In a legitimate direct sales business, the seller's income is linked to that sales. They set their own working hours and sales targets and paid for product sales. On the other hand, the pyramid program pays for recruitment rather than sales of products. This is a feature of the pyramid program. Financial incentives are based on soliciting others primarily rather than selling quality products to consumers.