When you step back and look at the history of e-commerce, you see that affiliate programs have independently evolved into something very similar to network marketing, which has been around for a long time. Ironically, though, network marketing itself has not taken well to the Internet. Most network marketing companies mistakenly believe that face-to-face interactions are necessary and that recruiting can not be effectively done online. (The research is in, however, and it shows the contrary to be true.) Another factor is that many network marketing companies do not encourage analytical examination of their opportunity, which is inevitable on the Information Superhighway. Thus, most network marketing companies only use the Internet to provide forms downloads and similar services to their existing representatives. They do not effectively use the Internet as a recruiting tool or to sell products to the general public.



Some enterprising independent representatives, however, have evolved the "downline clubs." Downline clubs sign people up on the Internet, promising to place them in multiple network marketing opportunities based on the order in which they signed up. Downline clubs theoretically offer the possibility of a large organization below you in multiple opportunities without any recruiting effort on your part. In actuality, though, most downline clubs have been disappointing. The greed of the club founders, the hope of instant riches, and the lack of focus due to joining multiple network marketing companies have usually yielded poor results. Training and commitment are lacking, so large downlines (if they get built in the first place) often crumble even faster than they were collected.

Thus, network marketing as we traditionally have known it has not grasped the potential of the Internet and does not appear likely to do so. Plus, and perhaps because of the Internet, the old model of network marketing is less effective in any venue of late.

THE NEW PARADIGM

SFI's founder, an experienced and successful network marketer, was one of the first to recognize that the old network marketing model quit working for many previously successful marketers around the same time that e-commerce was evolving toward a similar but different paradigm. He realized that an entirely new model was needed. He drew upon those principles of network marketing that remained viable and applied them to solve the current e-commerce challenge of promoting affiliate programs on the Internet. The results are phenomenal. SFI now has well over 7 million affiliates and the numbers of new affiliates each month is growing progressively.

SFI works because it is an e-commerce affiliate program. Unlike the old network marketing model, SFI does not require you to make unnecessary purchases or meet stringent qualifications to earn commissions. In contrast to almost all of the old network marketing companies, SFI fully embraces the powerful recruiting potential of the Internet. The SFI opportunity stands up well to the analytical scrutiny characteristic of the Information Superhighway. It is a forerunner in the next stage of evolution of e-commerce. Adding the multitier structure to an Internet affiliate program makes the new e-commerce channel of distribution fully workable. Because of this, SFI has been able to negotiate fantastic savings and commissions for its affiliates from world-class vendors and will continue to attract more and even better deals as SFI continues to grow.

CONCLUSION

The natural evolution of e-commerce has pointed to a multitier commission structure to give life to the new channel of distribution of goods and services created by the Internet. SFI is in the forefront of this new adventure in commerce. SFI embodies the most advanced stage of evolution of e-commerce. As Moore's Law (discussed in an earlier lesson) ensures the continued growth of e-commerce, history and logic dictate that affiliate programs will continue as the distribution channel for e-commerce. It follows that SFI, representing the most advanced evolution of affiliate programs, will continue to have lasting phenomenal growth and prove profitable for all involved.