What is a Horizontal Marketing System?
Horizontal marketing systems are used in most businesses today such as franchises, chain stores, multilevel marketing or direct sales. In a multilevel business with a horizontal marketing system you try to build several wide levels. These systems multiply the number of salespeople you need to have on each level you create. Since you lose a percentage of profit on each new level, after seven levels deep it may no longer be profitable to build. You also have no ability to earn more money than your senior partners above you. Everyone is a competitor in this structure and your business volume cannot be shared.
In many cases people can only buy their products through you so you are constantly ordering products and filling orders while at the same time paying monthly fees to the company you represent for the use of their tracking systems. You can also get stuck with excess inventory. There can be territorial restrictions as well. What happens when your time and resources start to run out and you are simply working too hard?
What is a Vertical Marketing System?
There is a new business structure called a vertical marketing system. It has only two vertical lines of distribution meaning you are building deeper instead of wider. The concept is simplified since you only need two good partners to start your business, one on your left side and one on your right side. Each of your two partners will then add two good partners, one on their left and one on their right and so on. The most important part is that your business can grow endlessly deep and never lose profit on any levels.
Another unique feature of a vertical marketing system is that business volume can be shared by all partners in the same chain. A top person in the chain can send his business volume down to anyone below him and watch as this shared business volume moves its way back up the chain. Every partner in that chain receives the same amount of credit for this shared business volume including its original owner. Therefore you can earn income from both the people below you and the people above you.
The organizational structure of a vertical marketing system encourages teamwork and compounds everyone's efforts. No one is in competition with the other members of his team. Support and encouragement are the norm. There is even opportunity for any partner to earn a greater income than their senior partners.
There seems to be greater stability to this system since everyone is looking out for each other and working as a team. With this type of support, fewer members of your team would become discouraged and quit. Compounding your hard work with that of your team could result in higher profits for everyone.
If you would like to know more about a vertical marketing system click here Vertical Marketing System Annie Cook is the President of a home based business and an author of many articles related to home business success and internet marketing. Annie is also part of a team of successful business people who are willing to train new entrepreneurs. If you would like to know more about Annie Cook click here Home Business Success
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