Thoughts on SuperDistribution

March 20, 2007 by James D Kirk
Filed under: Notes 

Fred talks about the concepts of Super Distribution on his blog. A VC Blog Following are some of my reactions to Fred as well as the many intelligent comments left.

My take is that people are always going to have their (mostly warranted) skepticism towards “recommendations” made from those they “know and are close to”. Several (negative?) comments have been made in the specific direction of Amway Corporation, and multi-level distribution systems in general. The interesting aspect of becoming successful within most of these types of “communities” is that the top producers usually burn through their immediate friends and families quickly, and end up finding their “numbers” in an ever expanding network outside of those close to them.

I’d imagine (I would assume, but…) that SuperDistribution systems would fall into similar patterns. Yes, these are easily viewed as “pyramid” structures (note there really is a difference between the “structure” of an organization and a “scheme” to separate you from your money.) Most any company or organization is structured with few people at the top (president, vp, etc.) and many at the bottom (middle managers, workabees, etc.).

Again, I would see the development of SuperDistribution networks being the exact same way. Organizations are going to surface (and whose to say these organizations are not created by the larger retailers out there?) that will support SDnets, and promote them to their customers (users). It really only becomes another marketing/branding channel for the retailer at that point.

“Join the WallyMart SuperDistribution club. Refer your favorite products and when they are purchased from our retail outlets, you’ll get 0.005% credited to your WallyMart account.” Or some such.

It really is close, and not too many steps far removed technologically from what is capable now with all the “saver club cards”, etc.

And you’ll likely not purchase something recommended from someone you “know”. Just doesn’t seem to be human nature (until of course that someone becomes SO that they can “come home again” and those close to them will actually pay heed to what they have to say/recommend.

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