Once in a while I come across business trends, which are not covered by the mainstream Africa media; my job is to inform you anyway. As always, I will share my own little analysis how such trends could be of direct value to you or your business ambitions, or what the shortfalls may be.
The trend I want to discuss in today’s post is: network marketing
You may be familiar with it. Let me give you a simple explanation:
Network marketing is a business model where the manufacturer uses independent distributors (you!) to market products directly to the consumer without having to pay the costs of advertising or having to build and train a large sales force. You as a distributor simply recommend the product to others, and if they decide to buy it, you get paid a commission and bonuses.
You may have heard of Avon Cosmetics or Tupperware – they have used this concept successfully for decades, but it is spreading fast throughout other sectors such as travel, fitness, and food. And now it is spreading in Africa….just bear with me…..
There is another form of network marketing called multi-level marketing or MLM, which does not enjoy the best reputation in the West, because it has been exploited by many dubious characters. But some firms do use it responsibly. MLM models follow a sales hierarchy, meaning that the person who recruited you gets a commission of each sale you make, and you are encouraged to recruit your own sales team, making then a commission of each sale they make. This is how those at the top of that pyramid get particularly wealthy.
It functions basically like a micro-franchise. But instead of setting up a fast food restaurant or a plumbing service where you need to invest thousands to get started, network marketing usually requires a very small investment (sometimes less than $100) to get access to the products you want to sell.
So there is an existing brand, you hardly need any startup capital or experience, and you don’t require a shop to sell your products – instead, you use local connections and the Internet. Any required training will be provided by the company online or their local teams on the ground.
I think this is exactly why network marketing is now spreading in more countries in Africa, and why more networking marketing companies – many from the US – see Africa as a new market to conquer.
I don’t have any statistics, but I have been contacted by 3 network marketing companies in the last two to three weeks who want to spread into Africa and when you go to LinkedIn, you see Africans promoting the concept for a particular company. Travel, cosmetics, and coffee are the products I have seen.
One company, Organogold, has started to launch in Kenya and just moved into Nigeria, they too, have millions of ‘followers’ worldwide. They sell coffee and tea, with a special Chinese natural ingredient in it that is said to do wonders for your health.
Network marketing may be a great opportunity for you to earn some money on the side or even run it as a full-time business. It gives you the opportunity to start pretty quickly, be your own boss (while being part of a networking ‘family’, so you got a support network), and you can usually work with a great deal of flexibility.
It’s surely not everyone’s cup of tea, but I can see why it is becoming very popular in Africa.
Now, Africa Business JumpStart is all about the challenge of building grand Africa ventures for ourselves: Yes, you can become a member of an existing network marketing company, and if you treat it seriously, you can probably make a very good living out of it. But here is the real opportunity I see for you: Create your own products and build an African network marketing system around it. It has turned many American start ups into multimillion Dollar companies in a few years (without knowing the number of those who have failed, I have to say), but if done professionally I do see the great value of it all. Not just for you as an entrepreneur, but yes – why not – also for a continent that is struggling to create traditional jobs. To get you started quicker, you could for example partner with someone in the travel, cosmetics, or food industry in Africa who has a brand that could be sold in this manner.
Let me take the example of Zija, a US company selling health care products, also through distributors in Africa.
They were only established in 2005. You should see their offices now ! If you are interested in joining any network marketing company as a distributor you need to watch the You Tube video below that really explains the concept in detail (but be aware that this is a promotional video by a distributor, so he will tell you about all the positive things)
What I really would like you to watch however is the little link below. It leads you to a Zija company video about how the whole venture started, and I think you can get a great deal of inspiration and guidance out of this if you are ready to consider your own network marketing business. Click here to watch the video.
If you need more insights and a list of some of the renowned marketing network companies that are working in Africa you can read another great article on one of my favorite Africa business blogs smallstarter.com
Network marketing, who would have thought….
It’s still an unusual concept for Africa, but if you sell good products and you lead your company responsibly and with the much needed integrity, then I think it is a win-win situation for all involved. The rapidly growing consumer market in Africa coupled with the huge need for income generation among Africa’s jobless, is your best engine for this concept.
It would be interesting to hear your suggestions.
And still. Let’s be defined what dosage in this case approaches most of all. There can be it cialis 20mg or something another. To me I think it isn’t necessary to choose for you necessary. Think. Perhaps suits you cialis 20 mg It is much better.
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Africans are among the most trailblazing and inventive people on the planet, historically and even to a certain extent in modern times. Certainly AFrica is blessed with natural resources and yet it takes huge capital outlays to extract and export the resources. Individuals cannot do this and people need income now. Successful network marketing ventures can do this and the people who manage this process well often invest their money in other ventures of business if Network Marketing is not their thing. If it helps, and is not illegal, why not! And if the products and or services are beneficial, then even better. Eventually the markets will become saturated and it will adjust, and the business models will adjust accordingly. Another enlightening, insightful perspective Harnet! Superb! If it can be done in Africa, it can be done anywhere…. The toughest environment, the toughest customers, and the rewards are great. Ask any Fortune 1000 company today involved in Africa, and they will show you the money. If they weren’t making a profit or potential profit, they wouldn’t be there….