Conference 7.286::digital

    I've heard of it. Maybe even in this conference. I think it was some
    sort of sales company. Door to door or phone sales type of thing. The
    company they'd be starting was their own independent operation.

    		Alfred

    Gee, I'd bet that the margin on Tupperware(TM) is better than PCs.

.3>                                -< See 2031.19 >-
    2031.22 suggested it was Amway.  That triggered an idea that I'm
    posting here to give its own topic...
    
    
    Why can't Digital try to tap the potential of some of the many loyal
    and dedicated employees being given TFSO, by providing support for a
    new "network marketing" company?  :-) <pun accidental but appropriate> 
    
    What I have in mind is an MLM-style program that would help former 
    employees sell Digital computers into various small market niches.
    
    My model for this is generally what I plan to do if I'm laid off 
    next week, without the MLM aspect.  I have a specific vertical market 
    niche identified, into which I plan to sell a package combining some
    software and some hardware integrated as a turnkey package.  Now I know
    that so far this is hardly novel, VARs systems integrators, TPSVs, etc. 
    have been around awhile.  The innovative part of my idea would be the
    corporate backing by Digital to help former employees set up ("franchise"?) 
    this as an MLM program.
    
    This benefits Digital by increasing sales and revenues, and it benefits
    the individuals by establishing them in successful businesses.
    
    The need addressed by this concept is that one hurdle for small vendors
    in relatively bounded vertical markets is service.  Hardware service is
    easily solved by the many competing vendors, as the mail-order PC
    vendors do.  Software service and training looks like more of a hurdle. 
    Pre-sales consulting, remedial technical support, and training are all
    important, but consume resources for a small startup.  The innovative
    part of my idea is that the MLM approach to dividing the cash flow
    could allow the different support resources to be included in a payment
    scheme that rewards them all appropriately.
    
    So the general model would be that Digital has a down-chain consisting
    of at least two levels.  The next level down would be the former
    employee/TFSO victim acting as system integrator and general technical 
    support guru.  It would be up to each of them to build their own
    downchain to address some specific niche.  That chain would (in my
    conceptual model) generally include selected individuals intimately
    familar with the target niche.  Thus, to build a downchain targetting 
    the medical field one might look for doctors, or their receptionists 
    or medical technicians, to provide the marketing army in the downchain. 
    They handle the presales consulting and training that requires the most
    market-specific knowledge, and get their cut of the revenues for that
    and for recruiting other troops into that level (just like any other
    MLM).  The systems integrator level handles the more technical problems
    like packaging a custom configuration as a standard turnkey package,
    making sure all the various software pieces are loaded and play
    together successfully, and staging the package for acceptance testing
    before shipping to the customer.  They also could handle all the
    contact with the downchain, although (following the MLM model) the
    corporate parent should provide the accounting and bookkeeping services
    required to make the cash flow properly.
    
    Basically, I see this as possibly providing an additional channel to
    reach the small customers that Digital cannot now address easily within
    our corporate structure.  It won't siphon cutomers away from DECDirect,
    because those are knowledgable users not needing the benefits provided
    by the downchain (and thus unwilling to incur the overhead to support
    them).  I don't know if we have a strong presence among systems
    integrators and VARs in the low-end space, if we do this might be
    competitive with them but it is my impression that we don't.
    
    So, this looks to me like it might make sense - what do other folks
    think?
    
    More to the point, if it does make sense, how can we make it happen?
    
    --bruce

Sounds good- What does MLM stand for?

Why not use an existing network.  Instantly hundreds of thousands of sales reps
working on commision only basis.  Word of mouth advertising, etc...

Seriously it would all depend on the products being moved.  MLM's are very good 
at moving generic products to the mass market with minimal overheads.  Selling
into vertical markets via MLM is also being done, but requires additional
expertise in the product.

I believe that marketing in the US has tried a direct phone in sales for PC's 
and terminals etc?