Vestige is a Multi-Level Marketing company, vestige is one of the leading company in India among multi-level marketing Indian company.
It is a kind of hybrid of the method of distribution of goods and also the method of building a sales network.
INDEX
- Concept of Multi-Level Marketing in the Business plan of a vestige
- Explain the essence of Multi-Level Marketing
- Return on investments in multi-level marketing
- There are only five basic methods of distribution of products
- History Of Vestige
- Company information
- Commissions in the matrix system
- Conclusion
- FAQ
It is one of the safest (carries a very low risk) ways of conducting business activity.
The knowledge about the functioning of this also business model, both among theoreticians (scanty literature on the subject) and also practitioners, is still insufficient in Poland.
Thus, the presented paper has been prepared as in the Authors’ opinion it,
At least infinitesimally, bridges the gap in the recognition of Multi-Level Marketing issues.
The aim of the study was, first of all, to describe Multi-Level Marketing,
To indicate the practical benefits of this also business model as well as to present basic systems of calculating a commission,
Which is used in the marketing plans of companies.
The discussion was based on the study of literature and also the knowledge gained in the course of free-form interviews with the leaders of the sector.
Concept of Multi-Level Marketing in the Business plan of a vestige
The concept of running business operations through Multi-Level Marketing is still a little known business strategy on the Polish market.
Low level of knowledge about the issue is most likely caused by a small number of publications concerning the subject,
As well as limited access to these publications.
This also state of affairs isn’t just bad for the development of this form of activity.
But also gives rise to flawed interpretations of the model by presenting,
It as something akin to a financial pyramid or also quasi-business.
Despite these obstacles in the environment, recently the activity of companies from the branch has been growing.
Companies that want to gain a competitive edge a gain.
A foothold on the market by basing their marketing strategy on Multi-Level Marketing or also
Using some of its elements to obtain particular benefits are attracting more and also more attention.
The strong, constantly growing interest in such a solution for introducing and also
Distributing products draws attention to this also an area of knowledge and also boosts demand for expertise making it possible to work out a clever and also well-thought-out strategy.
Explain the essence of Multi-Level Marketing
In this state of affairs, the goal of this article is to explain the essence of Multi-Level Marketing, adapting its definition to the current reality
And also presenting basic systems of calculating commissions appearing in marketing plans of companies from the branch,
Together with a presentation of practical benefits.
The deliberations are based mainly on the study of scientific publications.
Moreover, knowledge derived from direct research carried out in the form of interviews with leaders of companies basing their activity of Multi-Level Marketing was used.
When you think about starting your own business, You almost always take into consideration the risk associated with the business,
Which directly connected with the amount of capital that has also to be invested in the venture.
People characterized by a high tolerance for uncertainty concerning the return on investment usually accept the challenge, those more cautious usually don’t.
This also usually is associated with high market entry barriers and
Also, huge capital needed to compete with current giants and also major players on the market.
Lack of experience and also lack of awareness of common practices in a given branch is another reason discouraging usually young prospective businessman.
However, few of them know that the level of risk associated with capital and
Also, an idea can be regulated in a flexible way using three different business models that can be used as a foundation for a business.
Business plan of a vestige first is a well known, typical business model, which involves the skilful implementation of a concept by means of owned capital.
In this also a model, the risk of failure is very high, as it is associated with two unknowns.
One of them is the question of whether an idea can catch on on the market.
Return on investments in multi level marketing
The second unknown is the uncertainty concerning the return on investments.
However, despite a high level of risk, this is the most popular business model.
Another model characterized by comparably lower risk is business activity based on a franchising agreement.
Business plan of a vestige involves running business operations based on a previously adopted and also tested concept.
For the price of a license, you get the so-called record book, which is a blueprint for a well-functioning company.
Proper implementation of the purchased blueprint should, in theory, lead to the development and also
survival of a company on the market.
However, this shouldn’t be treated as a rule, as a tested concept and
Also, the knowledge of how to implement the concept is not always sufficient to guarantee a return on investment.
However, it is possible to conclude that the discussed business model is characterized by a substantially
The higher likelihood of success than typical business activity.
The essence of Multi-Level Marketing Taking into consideration the differences between various business models and also
The possibility of raising the flexibility of the level of risk depending on the choice of the appropriate form of activity,
It is possible to try to define Multi-Level Marketing.
In the literature on the subject, Multi Level Marketing is also called network marketing.
According to Don Failla, It is one of the fastest-developing and also still the least understood methods of introducing products to the market.
There are only five basic methods of distribution of products. They also are:
1. Retail sale
Which is the most basic form of distribution carried out by means of a retail branch, also
e.g.: grocery shop, chemist’s shop, department store, online auction site.
2. Direct sale
Covering usually the sale of insurance, kitchenware and also encyclopedias, etc.
In this also a model of distribution commission from sold goods goes only to the seller
Who cannot build networks of his distributors.
In order to sell products or services offered by a particular company,
He has also to be employed in the company as a sales representative.
This means that he works for the owner of a company, who is his employer, thus,
he doesn’t work for his own benefit as in case of Multi-Level Marketing.
3. Multi-Level Marketing
Don Failla analyses this also term by defining marketing as transferring a product or
Service from the producer of service-provider also to the consumer.
Multi-Level Marketing as a system of rewarding people who contribute to the sale of products or also provision of services.
4. Mail order sale
This also a kind of distribution is characterized by a lack of retail points in which goods could be exchanged for money.
The client makes an order directly in the company after learning about its also offer on television,
In a telephone conversation or also from a received catalogue.
5. Pyramid sales
Is an illegal organization of sales,
Which is also often mistaken for Multi-Level Marketing.
The difference that makes pyramids illegal and also
Multi-Level Marketing legal is the inability to distribute a product or also provide service.
History Of Vestige
Vestige Marketing Pvt. Ltd., which started its operations in the year 2004 from India,
Is now becoming a leading global direct selling company dealing in world-class wellness products.
Vestige is constantly growing at a phenomenal rate every year.
Business plan of a vestige growth rate in itself speaks volumes about the quality of the products, the marketing plan and also
The management has been able to deliver such a rewarding and also sustainable system.
Company information
| Type | Private |
| Industry | FMCG |
| Founded | 2004 |
| Founder | Gautam Bali |
| Director | Kanwar Bir Singh, Deepak Sood Gautam Bali |
| Revenue | 500 cr |
Vestige believes in empowering its members with the opportunity to lead their lives on their own terms.
With the motto of spreading Wellth, i.e. spreading wealth through wellness, Vestige has continued to enrich the lives of everyone who is a part of the company and
Also those who believe in its products.
Commissions in the matrix system
The system closest to the concept of a pyramid scheme in programmes of Multi-Level Marketing companies in the matrix system.
Business plan of a vestige involves horizontal limitation of the structure to the value adopted by a particular company. The most common value in the case of matrix systems is number three.
This also means that every partner of the company has three free positions under himself.
Deciding to register a greater number 16 Multi-Level Marketing as a business model of persons supports the first one, just like in case of the binary system.
The reason why this also a system is closest to a pyramid scheme is that commission is paid for also every person in the structure.
This is the main trait that distinguishes this also a system from the binary system.
Analyzing the situation on the following diagram, person A,
Who is above two persons directly recommended by person X,
Will receive the same remuneration as person Y,
Who is above persons added thanks to the person Y’s own recommendation.
This also leads to an unfair situation in which unproductive persons are rewarded to the same extent as persons who work.
Moreover, the system will always be paying higher commissions to persons
Who is higher until the moment the persons located lower fill to a greater extent the levels beyond the reach of the former.
In other words, if the system has four levels,
The person located in the second line is able to overtake the sponsor in terms of income as soon as line 4 is filled to a greater extent and
also for the sponsor line, 4 is line 5, which is beyond his reach.
The matrix system is another step after the binary system, towards motivating less active individuals to further work.
However, as much as in the binary system the motivation involved unconditional growth of one side of the structure, in the matrix system,
Payment calculated this also way, in theory, creates a higher likelihood of including passive persons in the process of building the network.
Conclusion
Vestige Marketing Pvt. Ltd., which started its operations in the year 2004, is now becoming a leading direct selling company dealing in world-class wellness products.
Vestige also is constantly growing at a phenomenal rate every year. The growth rate in itself speaks volumes about the quality of the products, the marketing plan and also the management that has been able to deliver such a rewarding and also sustainable system.
FAQ
It is a kind of hybrid of the method of distribution of goods and also the method of building a sales network.
Is an illegal organization of sales, which is often mistaken for Multi-Level Marketing.
This also a kind of distribution is characterized by a lack of retail points in which goods could be exchanged for money.
