Comparison of Traditional Business to Relationship
Marketing
Relationship Marketing provides a path to success that is very different than
traditional business. For hundreds of millions of people traditional business
no longer provides the security that it has in the past. The vast differences
between Relationship Marketing and Traditional Business require
explanation and understanding.
There are four huge differences between Traditional Business and
Relationship Marketing.
1.) Cost of Entry. In a Traditional business merely to open the doors and
before the first product is sold can require tens of thousands, hundreds of
thousands, even millions or, tens of millions of dollars. In contrast, you may
become a Distributor with a Relationship Marketing company for $500 or
less.
2.) Profitability. In a Traditional Business ongoing and regardless of sales
or general economic realities, payroll, taxes and other expenses must be paid
each month. The company must survive long enough to become profitable. In
your own Relationship Marketing business profitability can occur quickly as
your cost of entry can be easily recouped and ongoing expenses are minimal
and commensurate with your ongoing efforts.
3.) Owner’s Income. Initially, the Traditional Business owner(s) may make
little to no income as all monies are re-invested into the business. If the
company succeeds ownership will often make ten to one hundred times or
more the income of those the company employs. Ownership and key
employees may also receive stock options and other benefits/perks that a
typical employee will not receive. A Relationship Marketing distributor
develops their business team and consequently has the opportunity to earn far
more than is ever possible in a Traditional Business, even for the Owner.
4.) Personnel. In a Traditional Business the largest expenditures are often
costs associated with personnel. Labor, employee benefits and taxes must be
paid weekly/monthly. In your own Relationship Marketing business, you’ll
pay personal income tax on what you earn, but you have no employees.