On its route towards building a billion dollar business of itself, AmeriSciences has a range of products that it markets via the multilevel marketing route; covering nutrition, oral science and skincare segments. With its products developed based on guidelines provided by the FDA for pharmaceutical products, AmeriSciences believes in maintaining a stringent focus on the quality of its products and the actual effectiveness as compared to what the company says its products are capable of achieving. The company’s flagship product is called AS10 which is a liquid consumable product that is derived from extracts from the Amazonian wonder fruit – cupuaçu. The company is also undertaking research in conjunction with NASA to develop nutritional products for training and in-flight consumption that would deliver the required amounts of nutrition and mineral intake for long duration flight to astronauts.
To market its products, AmeriSciences has selected to utilize the efficiencies provided by multilevel marketing where honing in on potential customers and development of a distribution and promotion base is concerned. Unlike regular marketing, that relies on advertising to create a demand for a product, by bombarding the general consuming public with product and usage related messaging, AmeriSciences believed in the MLM concept of only approaching the people that need to be approached with its product.
In the course of traditional marketing, there is a tremendous loss of focus because of the spread of communication. Take for instance television commercials. A TVC that is broadcast promoting a beverage would have to reach out to the entire spectrum of people that watch television, even though its target audience only consists of young teens. This creates a waste of spread. Also, in order to reach out to the small audience that it actually wants to communicate to, the product’s advertiser would have to reputedly promote the product at various times of the day, across multiple channels and over a period of time. This activity would have to be kept up until a sufficient number of the target audience has been made aware (realized by the off-take of product from store shelves); after which it would need to seed the TVC along with regular programming to reinforce the messaging, and thus the demand.
In the case of AmeriSciences’s MLM system, a product would only be bought by a person who’s actually preconditioned to be acceptable to the product. In effect, the demand is driven not by the push of advertising, but by the pull of requirement. A current user of AmeriSciences’s product would be in the best position to identify and then to approach another potential user. If the potential user becomes a consumer by making a purchase, the introducer is rewarded for the promotional effort with a fee. Such a fee is also provided to the introducer of the first person too (and in this manner through the chain of introducers that led up to the sale made to the final consumer) – and, is called residual income. Residual income is paid out of the portion of the product cost that would originally have been used for creating and running an advertising campaign.