A Comprehensive Overview of Trade Evolution and E-Commerce Models
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Chapter 1: The Evolution of Trade
Trade, like all aspects of life, has undergone significant transformations over time. Initially, transactions were conducted through barter systems, which eventually gave way to monetary exchanges. In the early stages, trade was relatively straightforward, involving minimal intermediaries between producers and consumers, predominantly taking place on a local scale. However, as trade expanded geographically, caravan traders emerged as the first intermediaries, facing considerable risks but reaping substantial rewards.
With the passage of time, these caravans were succeeded by sea routes, airplanes, and eventually the internet. As populations grew and needs diversified, more complex systems of cargo management and dealerships were established. Furthermore, international transactions began to involve taxes imposed by various countries.
The rising cost of living has become a concern that often goes unnoticed. People frequently remark, “This fruit costs 5 liras, yet it’s 55 liras at the market,” or I recall my father saying, “An apartment should cost around a hundred thousand liras, yet they are priced at a million.” This disparity is largely attributed to intermediaries who, while taking on minimal risks, enjoy high profit margins. Consequently, as the role of intermediaries expanded, so did their share of the profits.
Carl F. Rehnborg, a pioneering entrepreneur, was one of the first to recognize this gap in the market. During his time in China, he discovered the link between nutrition and health, leading to the establishment of the California Vitamin Company, which later became Nutrilite. This company marked the inception of network marketing. Its distributors, Jay Van Andel and Rich DeVos, saw the potential in this business model, acquired the company, and evolved it into what is now known as AmWay.
This company, which generated billions by cutting out intermediaries, became a trailblazer in network marketing. However, it faced challenges, initially being compared to pyramid and Ponzi schemes, resulting in a lengthy legal battle. Although it emerged victorious, it continues to be associated with these illegal frameworks even decades later.
Moreover, the structure of network marketing had inherent flaws. Unlike traditional trade, which has evolved over centuries, network marketing was relatively new. Many individuals without adequate trading expertise operated the business poorly, tarnishing its reputation. For example, I chuckled upon learning that in South Korea, a country with high network marketing activity, some homes displayed signs reading, “No solicitors or network marketing distributors.” It seems the system had exhausted many.
As a result, referral and influencer marketing strategies emerged, allowing individuals to earn income through supportive roles rather than direct sales. While these avenues provided easier earning opportunities, they required a certain level of influence. Without a network, one could struggle to engage in referral marketing or to become an influencer. Personally, I feel I lack the influence to promote products effectively, as I might only convince a handful of people to make a purchase.
The intent behind exploring the history of trade is to gain a clearer understanding of the subscription-based e-commerce model. This model, while distinct from previous trade forms, integrates elements from them all, leveraging the advantages while discarding the drawbacks. Although new systems will inevitably arise, I don't foresee a superior trade model emerging in the next fifty years.
Let’s reflect together. What attributes would constitute a favorable or unfavorable trade system? I encourage you to share your thoughts in the comments section to engage in this discussion.
Positive Aspects
- Earning passive income
- Part-time job flexibility
- Business inheritance for children
- Home-based business opportunities
- Networking with new individuals
- Personal development opportunities
Negative Aspects
- The stigma of being labeled a trader (especially for public employees)
- Sales pressure
- The necessity of commercial skills
- The requirement of a substantial network
- High operational costs
- Potential associations with illegal activities
The subscription-based referral e-commerce model embodies a mix of these characteristics. It addresses the inventory and networking challenges associated with traditional network marketing while minimizing costs, linking commission structures to an economic framework that fosters passive income. Additionally, it opens doors for global expansion through e-commerce, enabling individuals to achieve passive income without needing extensive business acumen.
Given that this model is still relatively young, having been developed less than twenty years ago, it may face criticisms similar to those that network marketing encountered. However, it is poised to surpass network marketing in creating wealth for individuals worldwide.
The Benefits of Modern Marketing Systems
What advantages do network marketing, referral marketing, and subscription-based referral e-commerce systems provide?
First, for those stuck in salaried positions unable to afford their desired lifestyle or escape debt, these systems offer alternative income opportunities.
Second, considering that renting a house typically costs around twenty-five thousand liras, acquiring a property for rental would demand at least 3 million liras. These three systems, particularly the subscription-based referral e-commerce model, allow you to generate that additional income with significantly less initial investment.
Third, if you're not a manufacturer, such as a doctor or teacher, you lack the ability to pass down your profession after retirement. However, the subscription-based referral e-commerce model provides this opportunity. I recall a story shared by a friend whose teacher spouse passed away in an accident; they noted, “Though my partner is gone, they left behind an income to support our two children.”
Fourth, a well-structured network marketing or subscription-based referral e-commerce model provides avenues for personal growth. Reflecting on my journey, I can see a vast difference in my communication skills over the past five years. Where I once struggled to organize meals for a small gathering, I now manage events for hundreds with ease.
Ultimately, our path to success is shaped more by our learning experiences than by our existing knowledge. We are on the brink of a new era, and you too have the potential to make a difference and leave your mark. Wishing you all the best on your journey through life.
Chapter 2: Innovative E-Commerce Strategies
In this in-depth tutorial, discover how to set up a store using Google Sites to sell products for free, providing valuable insights into modern e-commerce strategies.