How to untangle fact from fiction about crowd marketing

Share on facebook
Share on twitter
Share on linkedin

Direct sales is an option that many people are considering, especially with Covid-19 causing instability in the job market. But depending on who you speak to or which article you read, you’re bound to find different opinions about crowd marketing — the business model used to sell products directly to the public.

Even though there’s plenty of information on the Internet, it’s hard for the layperson to know what crowd marketing actually is and if it’s a good option. If this sounds like your situation, you need to untangle fact from fiction by considering how established brands have successfully used crowd marketing in the past.

It works for multi-million dollar companies

You’ve probably heard about Herbalife, Amway and Avon. Those are all big companies using crowd marketing as their business model. Previously mentioned companies have distribution chains in countries around the world — and they’re growing! That’s quite an achievement considering how long they’ve been around. In 1886 (134 years ago) Avon’s founder recruited women to sell perfumes and they have never looked back since. Similarly, Amway launched in the U.S state of Michigan in the 1950s with its first consumer product: a multi-purpose cleaner. The company has expanded into new markets ever since.

Products are at the heart of the business

Sales representatives in a legitimate crowd marketing model earn a commission when they sell products and recruit new salespeople. Depending on the payment model, they could also get a cut of their recruits sales figures. Brands that have successfully used networking marketing to increase their sales force have an important thing in common: they are selling products that are trusted by people and that people want. ‘Pyramid schemes’ are very different; they are scams that don’t sell any products. People who join a ‘pyramid scheme’ try to make money by recruiting more people into the programme with the promise of high returns. But it’s usually only those at the top of the pyramid who reap the rewards, which is how the scam gets its name.

No more 9-to-5-work!

Crowd marketing is an opportunity for anyone to become self-employed and financially independent. The products, marketing material and training are supplied by the company, which means you just have to focus on your sales pitch and finding new customers. Essentially, crowd marketing allows people to start their own businesses without needing to source startup capital (which is the biggest hurdle for new entrepreneurs). This model also allows you the flexibility to work the hours you want, instead of a regular 9-to-5.