The classic marketing plan has been in use for many years, and its principles are simple and well-established. The incentive system in this type of plan is built from personal invitations, participants are lined up in a tree structure, joining the direct invitee (sponsor). All purchases are calculated on a per-period, cumulative basis. Bonuses as a rule do not burn out, a partner can always use them.
The calculation of bonuses is conducted from a turnover of all branches, on a principle of decrease in percent in depth. That is, for the purchases of those who were personally invited by the partner, he receives the highest percentage, and for the purchases of those who were invited by his invitee, it’s less. This is fair and does not cause conflicts among the participants.
Recently, many non-network companies use elements of the classic marketing plan for motivation. As a rule, it is a simple accrual of bonuses from 2-3 levels. Bonus and referral systems are now used everywhere, all trading companies use systems of discounts and bonuses. It is common and does not cause denial among consumers, they willingly invite referrals, thus increasing sales.
Network marketing companies are characterized by advanced systems of accrual. In marketing plans not just pay % of the turnover of the lower participants, but also divide participants into buyers and those who are actively engaged in attracting consumers.
Contains common, familiar to marketers, blocks for planning and controlling marketing activities:
- Situation analysis – customers, channel sales, competitors.
- Goals – for example, an increase in traffic to the online store by 20%.
- Tactics – a step-by-step action plan – launch contextual advertising in Google Ads, prepare lead-magnets for the site.
- Budget – how much is the company willing to spend to achieve the goal.
- Controls – deadlines, performers, KPIs.
