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Here's a company that focuses primarily on health care supplements. The company's range of products includes products for weight loss, health management and professional supplements amongst others. Its estimated that within the US itself, people spend upwards of thirty-three billion on healthcare products. With the massive demand for these products already present, Advocare International with its product line that's shown to work is a forerunner in the health management vertical. Since 1992, when the company began operations, Advocare International has grown in an organic manner, with a focus on building a strong distributor base as well as a spread of active consumers.

The system marketing plan used by Advocare International relies completely on direct selling through network marketing. Network marketing works around enabling individuals to make very small investments in a 'starter' package comprising of Advocare International products. The company provides the essential knowhow and the appropriate training towards enabling these individual distributors to reach out to people who would require the products and supply them with the products directly. Once individuals have become distributors, they get to purchase products at a discounted rate and then resell the products to earn revenue. Also, the distributors may go o to recruit and train other individuals who become distributors by investing in a 'starter' kit. These individuals too, begin selling the product, the income benefits of which go both to the individual making the direct sale, as well as to the distributor that introduced the distributor to the opportunity. In this manner, various levels of distributors make a residual revenue as well as avail of bonus from time to time.

This system of providing commissions to distributors at multiple levels is managed through an ingenious system that the company owns as the distributorship business plan. You may ponder the fact that if so many people are being paid off, wouldn't the company just be better off by lowering the price of the product and retailing it directly. The answer to this would be an unequivocal ' no. It has to be looked at from the point of view of the regular marketing and distribution methods.

In a traditional marketing and distribution method, a product is taken from the site of manufacture and sent through various levels of distributors and storage centers until the product reaches a retail store shelf. All this routing, storing and selling through a point of sale builds up the cost of the product. What really makes the price of a product is the advertising required to create demand for the product. You see, if people do not know of or driven in some manner with the urge to buy the product, it wouldn't be bought off a store's shelf. Creating an effective advertisement is a costly affair. The cost is dramatically multiplied when you look at the number of times the advertisement must be repetitively run on TV, radio and through printed media ' just so that the product remains in the focus of the consumers. Now, the same money that it takes to create and maintain advertising is instead passed on to various levels of distributors, in reward for their effort to go out and sell the product directly, thus enriching the consumer that actually buys the product.