Marketing Networks: A New Alternative For Juventu

Marketing networks: a new alternative for Juventu

The present work wants to make known that marketing networks offer many advantages to youngmarketing, enjoying the benefits that this business provides, giving them another type of employment different from the common.

Marketing networks and/or multilevel marketing are a type of business in which a person can be their own boss, obtaining good income. According to El Heraldo magazine (2015), in the last three years sales of marketing networks in the country have risen 7.5% on average, thus offering young people a new way of employment obtaining extra money.

Marketing networks could become an informal employment alternative for students, since it allows them to empower their own time and be their own bosses, thanks to a small investment without fixed costs.

Many times this type of business is confused with the famous “pyramids” for the large amounts of money that this business moves, but thanks to Law 1700 of 2013 it can be recognized whether it is a pyramid or a marketing network. According to Arismendi (2015) director of the Amway company says that this law is very effective, since it prohibits pyramids disguising themselves into multilevel market companies, it also emphasizes that the Colombian has more and more understanding about the difference between both models(2015).

Many people want to enter a marketing network because they want to achieve financial freedom, others on the contrary because they want a source of income different from their employment already established.

The approach of this type of organizations is to group people who are interested in distributing the products and receiving commissions for the sale of these and thus calling more distributors to fulfill the same function and to increase the size of the network.  In this way, common distributors have the opportunity to build a lucrative organization of many depth levels that can have hundreds or even thousands of members.

According to the Multilevel ZGZ (2018) magazine, in the world there are more than 48 million people who generate income through this channel. Colombia has become one of the main markets in Latin America, providing economic solutions at 650.000 people who have found in the MLM a legitimate opportunity of additional income.

Initially this type of business begins with nearby people whether family or friends without having a lot of experience and having little money since a marketing network requires a minimum investment.

What should be taken into account to start a multilevel marketing company?

According to the magazine among Perupernar (2009) there are 10 elements that should be considered to start with a multilevel marketing company:

1. Mission and Business Vision: Business Objectives
2. Corporate image
3. Quality product: unique in the market and that is of mass consumption
4. Price to the distributor and price to the public: cost analysis against competition prices
5. Business plan: percentage of profits, percentage of commissions to the distributor and additional incentives
6. Control measures: Program for the company’s administrative and operational processes
7. Commercial strategy
8. Product availability: distribution centers
9. Financial projections: investment costs, equilibrium point and investment return
10. Competition analysis

What are the legal requirements to start with a multilevel marketing company?

According to Hernández (2014) these are the legal requirements to start a multilevel marketing company:

• Include express mention in its commercial registry indicating that it develops activities called multilevel or network marketing.
• Subscription of contracts with independent sellers (in writing), which includes at least: (i) object;(ii) rights and obligations of the parties;(iii) Compensation Plan;(iv) Requirements and payment method;(v) Parts data;(vi) grounds for termination;(VII) Dispute solution mechanisms;and (VIII) Directorate of the Physical Office of the Multilevel Company.
• Implement the means to answer questions, consultations and requests made by independent sellers, related to the products, services and terms and conditions of the contract signed between the parties. 
• Provide precise information about the characteristics of goods or services
• Review of compensation plans used with independent sellers, to clear. 
• Refrain from including contracts of permanence and/or exclusivity, abusive clauses (contractual inequality) and obligations to buy a minimum inventory higher than that initially agreed by the parties. 
• Have at least an office open to the public permanently. He will be responsible for complying with Colombian regulations applicable to multilevel activities and products and services (2014)

The entity that is responsible for everything in order in multilevel companies is the Superintendence of Societies, which monitors all the activities that these companies carry out in order to sanction the improper exercise of said activity and ensure due compliance.

Already having clear all the requirements that these marketing networks require, their definition and their way of exercising it is important to show the benefits that this business model provides. Multilevel marketing has many benefits for both adults and young people since they help them improve their communication relationships and personal relationships very necessary to achieve success in life.

Patricia Closa, director of the Colombian Association of Direct Sales (Aguvedi), says that the marketing networks model is beneficial because: “it represents an opportunity for men and women to organize their economic life as they wish. Provides the possibility of obtaining additional income to all people. Offers schedules flexibility. It requires low investment, which facilitates the beginning of its own company ”, among other advantages.

But as previously mentioned, there are also many benefits for young people since lately in this innovative society it offers these teenagers thousands of advantages which a few years ago could not count. These advantages that can be easily accessed today have a purpose and is to create independent people capable of developing that spirit of leader.

Youth is characterized by being constituted of globalized consumers that are in the midst of a much more sophisticated society and have infinite sources of information at hand to find all kinds of multilevel marketing versions. Entrepreneurship, digital shelters and collective consciousness are just some of the features they are looking for for any work decision making. That said, young people obviously intrigue this type of associations, since they address constant profitability, dynamic methodologies and the good use of information obtaining tools.

Porras (2018) highlights four advantages that young people have when entering a marketing network which is summarized in: better use of social networks, the confidence it can achieve, the financial and personal growth that the young man can possess andhave the possibility of being part of a group of people with related ideas.

An example about marketing networks in young people can be what is happening in the United States, the Willagirl Inc company. Call teenagers, usually girls who can distribute their products with their friends, offering them 25% of their sales. Christy Prunier founding Willagirl says that it is not a job that submits girls to do something for which they feel obliged, on the contrary, these girls like to do this type of sales and their moms are very happy since they are saving andThey are developing important skills.

But just as there are young people excited to start with marketing networks, there are also young people who feel frightened by the “failure” according to a survey carried out by the student María Camila Orrego of the Javeriana University which students think which is the main riskYou have when you enter a multilevel business.

But it is normal for students to feel fear of failure since they are in a dynamic environment where they learn to develop sales skills and build a solid business, without leaving aside their daily activities, but, just as that fear is normal tooIt must face.

To conclude, it can be said that marketing networks are used more frequently both by young people and other people, since it benefits them in different ways, such as generating income from the comfort of their homes, implementing the economy throughFrom technology, save time that can be invested in other activities and can mainly become entrepreneurial people capable of developing in today’s world, therefore, they are expected to take trade to another level, being an example for society.

REFERENCES

• Spinal, l.M. (2012). Marketing networks, recovered from: https: // www.EOI.ES/BLOGS/MADEON/2012/12/05/NETWORK-MERCADEO/
• Porras, m. (2018). 4 Advantages of young people entering the network market, recovered from: https: // vivaelnetworking.com/tips/4-adventures-of-the-you-which-English-al-Mercadeo-in -red/
• Flowers, j. (2014). Multilevel marketing reaches young people. The press. Obtained June 23, 2014, recovered from: https: // www.Lapresea.HN/Economy/Thewallstretjournal/722486-98/El-Marketing-Multinivel-Llega-A-the-Adolescents
• Silva, l. (s.F). Marketing networks for youth, recovered from: https: // www.Azinpa.com/Networks-Mercadeo-Crea-Jovenes-Millionaires/
• Myths and truths about marketing networks. The Herald. (October 15, 2015). Recovered from: https: // www.the Herald.CO/ECONOMY/LOS-MYMS-Y-VERDICES-OSOBRE-LAS-REDES-DE-MERCADEO-222811
• Orrego, m.C. (2015). Analysis of the impact generated by companies dedicated to multilevel marketing as a possible new informal employment alternative in Business Administration students of the Pontifical Javeriana University, Bogotá headquarters. Business Administration Degree Work. Pontifical Javeriana University, Bogotá. Recovered from: https: // repository.Javeriana.Edu.CO/BITSTREAM/HANDLE/10554/19681/ORREGOOVIEDOMARIACAMILA2015.PDF?sequence = 1 & isalowed = y
• Hernández, m. (2014). The ABC of the multilevel sales regime in Colombia. Recovered from: https: // www.Legal matters.com.CO/CONSULTING/EL-ABC-DEL-REGIME-DE-SALES-MULTINIVEL-EN-COLOMBIA-217181
• Colombian Association for Direct Sale, Aquadedi. (s.F). Us. Retrieved from: https: // cowedi.org.co/us/
• Turn your business to the multilevel. Entrepreneur. (July 9, 2009). Recovered from: https: // www.Entrepreneur.com/ARTICLE/262551
• RAM, o. (2012). What is Network Marketing? Recovered from: https: // sites.Google.com/site/preventionnatural/home/mis-anuncios-2/my-ancios-1/%c2%bfqueesnetworkmarketing