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Module 2

The business model

Duration: 240 min

The strength of
Social Economic Marketing

When a consumer product has been produced and it leaves the factory, it has to be marketed to the consumers. There are various routes/methods to make products known and available to the consumer. This is called the “Route to Market”. There are different “routes” to market.

Traditionally products get sold from the factory to wholesalers, wholesalers to retailers and retailers sell to consumers. This involves substantial distribution, marketing, advertising and sales cost.

To cover these cost the products typically triples in price by the time it can be found in the store (retail). Meaning if a product leaves the factory for 10 euros, it sells for 30 euros in the retail store. This 20 euros (representing over 60% of the retail price) is needed to cover the “middlemen” (distribution channels and all marketing and sales expenses involved).


An other way to market a product is to give this 60% back to the consumers. This can be done by motivating happy consumers to refer others, by sharing their love for the product with others. Happy consumers can do this on the side, creating a side income, or it can be done professionally, creating your primary income.

Giving back this same 60% to the consumers that refer other consumers is called referral marketing or network marketing. A fantastic alternative, 21st century marketing method that motivates word-to-mouth advertising, the strongest advertising there is.

Empowering many individuals to earn this margin, instead of a few companies. A socially more responsible way to bring a product to market. Below you’ll find a spoken explanation why this marketing method, opposite to common thought, is the most honest method that exists:

Because this marketing method is much more fair than the traditional ways, it is socially far more responsible. Below you’ll find the many advantages this word-to-mouth marketing/sales has over the traditional marketing/sales. It makes you realize that it actually is socially irresponsible or “selfish” to market a good innovative product the old-fashioned way, via the retail chain.

Traditional marketing (20th century)
Traditional marketing (20th century)
  • 60% goes to the middelmen, few big companies

  • benefits a few (topmanagers/companies)

  • pyramid structure. There is a top and bottom. Top typically earns more than the bottom

  • People lower in the company can not make more than people above them

  • If someone is good, they become a threat to the one ''above''

  • To increase your income, you often have to put your own interest first

  • Almost impossible to educate consumers well about the product. Via short commercials, typically less than a minute

  • Consumer pays always 100%. No choice

  • The product only serves one purpose: improving health

  • 60% goes back to the consumers

  • benefits many (consumers)

  • Galaxy structure. A criss-cross network. There is no top nor bottom

  • Same earning potential for everyone

  • The better you make the other person, the more you benefit

  • To be successful, you have to put the other's intrest first

  • Consumers will be extremely well educated about the product. Extensive personal, interactive information and education

  • Consumer can discount their price if they choose to

  • The product can serve multiple purposses: improving health, finances, balancein live (freedom), self development, social contacts, happiness

  • It offers consumers from all backgrounds or education to create different types of income: Side income, Primary income or repetitive income (more passive) income

  • It can create more spare time and with that a better balance in life

  • It offers consumers from all backrounds or education an equal chance of self-development

  • It offers consumers from all backgrounds or education additional social development

  • It offers more flexibility in work location and times

  • It offers the opportunity to acquire coaching skills with which you can help other people achieve the above. A higher purpose.

Discover through the video library

These videos offer an introduction to the concepts of income building, entrepreneurship, and the structure behind 4Life’s business approach.