Assured Nutrition Plus

This Ohio based company has a range of health care shakes that are medically approved. The products contain forty three of the body's most required nutrients in varying quantities so as to help with weight loss, weight gain or even general health maintenance. The company runs its business via a multilevel marketing system that has six levels.

Multilevel marketing is an alternative marketing model that solely relies on its users to promote the product via goodwill. This is different from traditional marketing in a very significant manner since there is not demand creation through advertising. In traditional marketing, a product must be first distributed by engaging the services of a distribution company which contracts to move the products from the manufacturing location, through various points of storage and transportation with various partner distributors, wholesalers and finally for placement with a retail establishment. All this costs a certain amount of money, the cost of which is apportioned amongst a particular number of products within a manufacturing cycle. Further, the product must be promoted. For this to happen, advertising must be created which is relevant to the product and geared to create demand for the product, by enticing any potential customers. This demand then drives people to look for the product or to remember the product (product recall) at the point of sale, and then to buy the product.

MLM companies like Assured Nutrition Plus work around the entire distribution channel and advertising the product to create demand, which is in itself created by desire for the product driven by advertising. MLM companies enable its users to reach out to other potential users directly and then to enable the product to be sold to the potential customer. Let's say that person A has consumed and liked a particular product. That person figures that a friend (person B) would benefit from the product and approaches B to try out and perhaps buy the product. If B makes a purchase, then A makes a commission on the product sale. Now if B too realizes that another friend C would benefit for by using the product and approaches and gets C to buy a product, then B too will be compensated. A the same time though, A too will be compensated for the purchase of the product by C. This is called residual income. The reason MLM companies hand out residual incentives to introducers of people to the network is so that there is the desire created to make the network grow. In the case of the product being sold to C, not only would B and A, make money, but up to six levels of introducers before B would avail of commissions.

This part is very important and is the cornerstone of multilevel marketing. MLM companies, instead of paying large corporate houses for moving, selling and promoting its products, choose to instead pay individuals, who are also users of the products, the money that would have been used in advertising - as compensation for promoting the product.

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