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What Is Vertical Marketing And Is It Profitable?


The Benefits of an Online Home Marketing Business

People love to shop and online shopping has become a very popular trend! With an online home marketing business most of your customers can order their own products online and the products are sent directly to them. They can usually tap into special sales and gain rewards for shopping. Also with an online home marketing business you do not have to keep an inventory of products and you spend very little time placing orders for your customers. Your time and resources are maximized.

The question is: What is the most profitable marketing system for your small home business? What is vertical marketing and how does it compare to horizontal marketing?

What is Horizontal Marketing?

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 it may no longer be profitable to build. You also have no ability to earn more money than your senior partners. Everyone is a competitor in this structure and your business volume cannot be shared.

Most 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 Vertical Marketing?

There is a new business structure called vertical marketing. 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 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 vertical marketing is that business volume can be shared by all partners in the same chain. A person above can send his business volume down to anyone below him and watch as it moves its way back up the chain. Every partner in that chain receives the same amount of credit for this shared business volume as it rises up through each of their businesses and returns to its original owner. Therefore you can earn income from both the people below you and the people above you providing an additional source of income.

The organizational structure of vertical marketing 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 each partner to earn a greater income than their senior partners. There are no territorial restrictions.

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.

For more information about the question "What is Vertical Marketing?" please click here or visit http://www.wacookconsultants.com.
Annie Cook is currently a school teacher who runs a home based business. She has a desire to make a positive impact on other people's lives by helping them improve their financial situations.

Article Source: http://EzineArticles.com/?expert=Annie_E_Cook

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