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California based social network, Twitter has been valued at over 1bn but so far has no way of earning revenue. However, they have recently introduced a plan for ‘promoted tweets’. The move is in a bid claw at some of the 1bn of its estimated value as it so far does not make any money. Since 2006, Twitter have managed to resist the call of traditional advertising, claiming they are looking to build value before profit.

The new ‘promoted tweets’ are an unconventional service that co-founder, Biz Stone describes as “ordinary tweets that businesses and organisations want to highlight to a wider group of users”.

In order to avoid spam or the downfall of twitter, the executives maintain the tweets “resonate with users” meaning that if users don’t retweet it or reply to it, it gets deleted. Twitter hopes this rule will control the relevance of promoted tweets. At first they will appear at the top of relevant searches but a second development will see them integrated into the feeds of individual users.

Thousands of large and small companies have made use of twitter, some commercially, some just to have a presence but only a small amount have generated a truly substantial income from use of the service. They have been able to create ROI and boost customer loyalty and satisfaction. Starbucks has primarily used Twitter as a promotional tool but also a place for customer service. It has been hugely successful in promoting customer interaction and relationships with the brand.

There was a great amount of negativity surround the Starbucks brand as it forced it’s overpriced coffee down the throats of every high street consumer. A Coffee shop on ever street corner was the part of the company motto and their thirst for monopolisation had damaging effects. By using twitter the company has been able to be more personal with their customers and the new promoted tweets should allow them to target their promotions at relevant consumers with high conversion rate.

Experts have said how companies like Starbucks could provide offers and discounts to anyone who ‘retweets’ a message which could provide a huge level of ‘word-of-mouth’ promotion at no extra cost than the original tweet.

Starbucks have also begun to offer discount to customer who bring their own mugs rather than using disposable cups in a bid to tackle their environmental impact.

Posted under Internet Marketing

The term multi level marketing or MLM is commonly used by certain companies to promote their products or services. It is also commonly referred to as ‘network marketing’ or ‘referral marketing’. The strategy employed by individuals employing this system is often called ‘word of mouth’.

Commonly referred to as network marketing or referral marketing, it is a very simple and can be effective way of making money for the average person. The way that the system works is that individuals sign up to promote the company and to sell their products independently. They are able to gather their own customers and recruit their own ‘distributors’ who become part of their ‘downline’ or team.

These representatives do not get paid in a salary or wage by the company, but through a commission structure set out by the business. Not one will you get paid commission based on your own personal activities in gathering customers and selling products, but also through the actions of those you have recruited. The more you recruit, therefore, the more you can earn.

Commission are paid out through the companies compensation plan which will reward busy and hard working distributors with bonuses and different promotional ranks. These will depend on their level of activity and will help offer incentives to help new distributors get off the ground.

There have however been numerous skeptics towards the activities of multi level marketing companies. Often these companies are seen to have a greater view on recruitment rather than on sales, and are thus viewed in a negative light. They are also often compared and related to pyramid selling. This is however a common misconception and an unfair comparison. Pyramid selling itself is illegal and there are actually no products that change hands. It merely involves the recruitment of other sellers who have no tangible product to sell.

Despite these negative outlook however, there is good money to be made through an MLM company. They can offer part time distributors a great way to make some additional income through as much or a little activity as they can afford to commit to. For those willing and able to put in extra time, with the right company, big money can be made.

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Posted under Affiliate Marketing