Article Review #4: - Trends in Non-Store Retailing Essay

641 Words Oct 15th, 2013 3 Pages
Article Review #4: - Trends in Non-store Retailing

Companies in the Non-store Retailing business sell retail products through methods other than a physical store front. This type of retail includes online auctions, catalog/mail order retailers, temporary stands, door-to-door sales, flea markets and in-home parties. Telephone solicitation (telemarketing) and TV infomercials are also included in this industry. Non store retailing is patronized to time conscious consumers and consumers who can't easily go to stores or compulsive buyers the 21st century shopper. Most if not all non-store retailers offer consumers the convenience of buying 24/7 and with delivery at location and time of their choice. Over the last several years,
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Each consultant in the group gets his shares of benefits depending upon the purchases made by him and also by the number of the consultant under him (called downlines). This is called network marketing.

What is Network Marketing?
Multi-level marketing (MLM), also known as Network Marketing, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.
Controversy is again casting a shadow over the multilevel marketing industry, as nutritional supplement company Herbalife Inc., which has thousands of distributors in the Chicago region, has been publicly called a pyramid scheme by a prominent investor — an allegation the company vigorously denies.
The largest multilevel marketing companies, often known as MLMs, are household names: Avon, Mary Kay, Pampered Chef and Amway. MLMs have annual sales of about $30 billion, with about 16 million people in the United States selling their products, according to the industry group Direct Selling Association, which represents these firms and others.
The recent controversies might raise the question: What's the difference between a legitimate multilevel marketing company and an illegal pyramid scheme, in which only people who get in first — at the top of the pyramid-like structure — make money and everyone else is a dupe?
The harshest critics maintain there is no difference, that there's no such