Business Distribution
The Greatest Entrepreneurial Opportunities
Business Distribution - The fortunes to be made in the years ahead will not be in physical delivery but in education, in Intellectual Distribution.
Business Distribution is the process of educating customers about products and services, typically items that they either don't know exist or don't know are now affordable.
Physical distribution is the process of helping customers physically obtain products and services that they already know they want.
Within distribution, the greatest entrepreneurial opportunities exist with wellness products and services - Because consumers don't know many of these products exist and because many wellness products and services have low or effectively zero marginal-unit product cost.
In the 1980s, Amway distributors launched consumer discount long-distance telephone service through an arrangement with MCI, as well as home-based electronic voice messaging through Amway's proprietary Amvox service.
In the 1990s, the most successful vitamin and nutritional supplement products were launched through direct marketing companies. Many of the most popular categories of supplement products, like ephedra (weight loss ), pycnogenol ( antioxidant ), and echinacea ( colds and flu ), were available only through direct selling companies before they became off-the-shelf store products.Business Distribution
Led by wellness products and new technology, sales of direct selling companies in the United States alone recently rose 50 percent, from approximately $17 billion in 1995 to $26 billion in 2000. This was almost twice the sales growth rate of traditional retail stores during a similar period.
Annual U.S. direct selling sales of approximately $30 billion today amount to less than 1 percent of the more than $3 trillion ($3,000 billion ) in sales at traditional U.S.retail stores. The sales of just one mass merchant, Wal-Mart, exceeded $165 billion in 2000.
Thus, teaching consumers about such products and services, Intelletual Distribution, is the greatest entrepreneurial opportunity now and for the foreseeable future |
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