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For example, a typical product that is distributed to the customer in the traditional business sense, will pass through the hands of many people before the customer finally receive it. Each of these people will want to receive an income - so the more steps the product takes, the higher the eventual price. For example, a product that initially cost 10p to manufacture, could easily end up costing £1 - £2 in the shops after all the additional costs have been added. |
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It is easy to see now that by bypassing all of these steps, and using the agent or distributor to move the products directly from the manufacturer, to the customer can produce massive savings.
The
savings that the company makes through this method are shared
with our customers, and also paid back to the network of distributors
as a reward for their hard work. In 2001 for example, Kleeneze
paid out over £40 million to its network of independent distributors.
Is this industry regulated?
| Of course. Kleeneze was one of the founder members, and driving force behind the establishment of the Direct Sales Association (DSA). The DSA, in association with the Office of Fair Trading (OFT) ensures that all of its members adhere to a code of practice, to prevent rogue trading. Click here or on the logo to find out more about the DSA. |  |
There are a number of reason why direct selling is one of the biggest growth industries in the world today, to understand these we need to look at some of the basic economic and social situations affecting people at the moment. These are the primary trends that are pushing the growth of our industry.
Lifestyle revolution
Compared to the race for wealth and consumable items in the 80's and 90's, at the moment the real issue for many people now is improving their lifestyle, which doesn't necessarily mean more money to spend, but is more related towards time freedom and happiness. Having a job simply isn't the answer anymore. People don't want to work 40 or 50 hours a week, just to pay pay bills. More and more people are looking for alternatives direct sales can provide exactly that.
Self-employment revolution
The idea of a job for life does not really exist any more - and there has been a shift from the "job" mentality to an "income" mentality. People are more concerned now about doing what they have to do to create the income they need - which means alot more people are now looking at the self-employment / small business options.
Direct
sales has an advantage of most traditional small business options
however, as the start up costs are much, much lower, and often
no specific skills are required to get started.
Direct shopping revolution
There is also a move now away from the traditional distribution channel of the high street shops, to buying via the internet or from catalogues etc. Home shopping is now the fastest growing trend in retailing worldwide.
With
people working longer hours, long queues, congested road traffic
etc. more and more people are wanting the shop to come to them.
With improved distribution throughout the world over the last
couple of decades, the direct sales industry can provide convenience,
free delivery and personal service.
What makes Kleeneze so successful?
Kleeneze combines two of the most powerful concepts in business, direct sales, and network marketing.
Individually these two concepts are very powerful, but together (and combined with hard work of course) they form a dynamic business model that allows ordinary people to achieve extraordinary results. For more information on network marketing click here.
However, there are a number of other reasons why Kleeneze is such a successful direct sales company. To understand these reasons, it is useful to consider what a business usually needs to have in place for it to be successful. These factors are summarised below.
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Factor
needed for success
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How
does Kleeneze meet this factor?
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Be
in a huge and expanding market
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We
have all of the households in the UK and ROI (30 million)
plus Holland (since 2004), Germany (from 2006) as potential
customers, with planned progression through the rest of
Europe over the next few years
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Have
unique and consumable products
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Many
of our products are consumable and unique to Kleeneze, and
we also offer a unique method of distribution unlike many
of direct sales companies, direct to the customer with no
delivery charges
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Timing
must be right
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A
80+ year track record of success, and profit year on year,
added to the primary trends of the lifestyle revolution,
self-employment revolution and the direct shopping revolution
(see above) and add that to the pension crisis that is looming.
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Employ
others to get leverage
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Typically
this would involve taking on employees, but this creates
alot of problems in terms of man management. You can also
train staff, who may then go on to join your competition.
Network Marketing offers a solution to this, as we can leverage
from the efforts of others, but everyone is their own boss,
and responsible for their own management.
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Technology
supports success
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We
are also currently moving from the industrial to the digital
age. This means that the infrastructure is now in place
to enable us to share information, recruit teams, hold training
and development in ways that were simply not possible before,
using things like voicemail, emails, online conferences
and websites.
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The "X"
factor
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The
final factor which is crucial in separating network marketing
from other types of direct selling is the "people"
factor. People have and always will buy from other people.
A business that moves its products using personal relationships
will always have a much stronger and more loyal customer
base.
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