Some perspective on Distributor Compensation for Marketing

[Brian Curry]

I stumbled over this on another list I am on. (NO attribution.)

===
My last company had Diageo [
http://www.diageo.com/en-row/ourbrands/Pages/default.aspx (They check
your age as you enter...)] as a client (one of the biggest hard
alcohol distributors in the world) and we implemented their global
electronic sales/pricing interaction with the local retailers. Of
their global budget _60%_ of it was devoted to marketing and
promotional activities - not payroll, taxes, making/buying/shipping
product. All those signs at various events around the place to promote
product is just part of that budget.
===

Think of that. SIXTY PERCENT of their budget was for "marketing". Nu
Skin by and large does not do "brand" marketing. (They did sponsor
the Olympics once, and they have done ice skating and I am sure others
too.) "We do that." That is why the distributor commissions are 40+%
of the budget. That is "marketing". We get it rather than
advertising agencies.

I bet if you checked into fragrances and high end cosmetics the "brand
marketing" percentages are even more.

So we aer "kinda" cheap marketing on a percentage basis, but the money
is spread around a LOT more.

Just FYI. Think of how to get that into your word tracks.

Also that is not 60% of what you pay at the store, that is 60% of the
manufacturers price. Then the governmental organs add their adders
(sin taxes) to it to really boost the price.

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