With, say, 100,000 sales representatives in 50 countries, a door-to-door sale of your product and service is really costly. If you are a multinational company, you would probably be trimming your production, marketing and management especially now that the cost of transportation is becoming more expensive.
Trimming your large sales force, which is widely dispersed in 5 major continents, is however not too feasible too. It may cut your transportation costs but it will probably cut your distribution channels.
This cost-cutting dilemma can however be resolved on a win-win scheme. You can keep your 100,000 sale representatives and cut transportation costs. Successes of multi-level marketing are basically impossible with small network marketing, but possible with smaller transportation costs.
You can keep your large network marketing, but ship and market your products and services in bulk. In every country, deal directly with 500 main distributors or wholesalers and cut costs to 75%. Thereby, if you have direct network marketing in 50 countries, you trim your shipment from 100,000 to 25,000.
You do not only cut transportation or shipment costs, but also communication costs. It will also facilitate faster distribution to your main distributors. The main distributors will definitely shoulder local transportation costs in distributing your products and services to its downlines or sales representatives. Thereby, 25% of your 75% saving from shipment can be appropriated to offset lower price of products and services bought in wholesale.
Another 25% of the 75% can also be appropriated in either incentives for performing main distributors or warehouses or distribution or service centers for all 25,000 main distributors. Incentives may be cash or non-cash. They can also be multi-level benefits and discount prices or special privileges like travels and exclusive memberships.
Building distribution or service centers can also be more encouraging for main distributors. Bulk supplies of products can simply be vulnerable to damages when stored inappropriately. These centers will serve as standard warehouses and satellite offices of the company. These distribution centers can also be their service centers, where they can hold product seminars, sales representative meetings, customer services and motivational trainings.
Market with a core of few main distributors, ship in bulk, provide continuous product support and earn more.