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Saturday, January 16, 2010

The Differences In Between CDM VS MLM

What is CDM or Consumer Direct Marketing? I already discussed in my previous post.MLM is Multi-Level-Marketing or Network Marketing, I believe most of you are familiar with these.

Actually, nothing wrong about MLM.It is just a business model.You can read more to get more ideas from my Typepad's blog Here.I just had to tell you how wrong people perception towards CDM model.Any business that consists of ranking position in an organization also being called as MLM.This is daft and irritating.Do you understand what is a ranking position? Let's have few examples the following.

Example A:-
Owner; Management team; Sales Team & Customers.

Example B:-
Marketing Executive; Director &; Senior Director &; Executive Director &;Corporate Director >President or CEO.

Both show a ranking position to an organization structure, we called it a Hierarchy structure.Anything wrong with that? And my question is why some people think this is MLM? Therefore, we need to teach and guide those people that are in a too negative and narrow-minded the right way to accept a really good thing.If you're one of those, you should let go thinking that way.This is the important thing to do, without a clear mindset, you won't get really understand Melaleuca's Consumer Direct Marketing System.

I have created a diagram for the comparison of the differences in between Consumer Direct Marketing vs Multi Level Marketing.

The detailed of the 5 points above can be explained like the following.

Point 1:
.Melaleuca CDM no selling and focus on a customer.

.MLM focus on selling and is a recruitment company, you have to pay some money to start, be it deposit, capital or keep some stocks.

Point 2:
.Melaleuca CDM offers a 60-day trial, backup with 100% satisfaction money back guaranteed.E.g.Let say you use one of the Melaleuca health products contains 60 capsules, you used up until left 1 piece of the capsule and you are not happy whatever reason it is, under Melaleuca CDM, your 100% money will be refunded to you.

.MLM or most Direct Sales companies do not allow you to try and protected with 100% satisfaction guaranteed.

Point 3:
.Melaleuca CDM focus on maintaining customer is the company first priority or partner, the repeat sales are high within the range from 90% to 97%

.MLM priority focus on maintaining marketing executive is out of their partnership or profit sharing, low repeat sales and within the range from 5% to 20%.

Point 4:
.Melaleuca CDM can accumulate customers received many benefits from the company.CDM price is low and high in quality.They save money and earn some extra income happy returning customer.This resulted from residual income can be generated.

.MLM cannot accumulate customers, no ongoing income would be generated.MLM price is high.Bear in mind, we are talking about a customer and not marketing executive or marketer.

Point 5:
.Melaleuca CDM allows anyone to make money based on a single line referral or the total referrals under your downline.One elephant line also lets you earn good money.

.MLM has at least 2 referral lines system.Some to have 3,5,7,11,15,18,22 and so on.One elephant line still unable for you to make money despite you have many customers.

Other than the differences as above, another very important thing you have to understand why selling is a nightmare to selling industry.This is because selling to cause the following problems.
1.Re-order stock
2.Keep stock
5.Price slashes

If you are in MLM company, you have a sales target each month, you need to fulfill the monthly quota, so, your order stocks and place in your house.When time went by, you piled up enough stock in your house.And the question is, what are you going to do with all the stocks in your house? The answer is, you are definitely trying whatever way you can by clearing all the excessive stock you kept in your house.You might offer free to your friends, or you might drop the price and get rip all your stocks.

Hence, your profit margin is dropping.Not only to that, you put hard to new comers that want or may already join your business because they have no way to compete with your price in the market-place.How are they going to do such business?.

At this point, we should be able to have understood completely the differences between Consumer Direct Marketing and Multi Level Marketing.

I hope you can make a wise decision for your future.
Have an awesome day

Post Falls, IdahoImage via Wikipedia
.Frank L.VanderSloot is Idaho business leader of the year 1998.
.Idaho's Hall of Fame Inductee(2007).

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Melaleuca vs MLM

Melaleuca vs MLM

Some Melaleuca Products

Some Melaleuca Products
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