An Internet spin to network marketing

A new marketing strategy which allows network distributors to spend more time at home is emerging. It’s called relational e-commerce.

"Relational e-commerce harnesses the power of network marketing through the Internet," said Andrian Lee, president of the Philippine operations of Trevoca Corp. Ltd.

A Hong Kong-registered company, Trevoca distributes nutraceuticals or health supplements.

"We are the pioneer here in the Philippines," said David Quitoriano, chief information officer. "It took us about a year to develop the system which allows the user to do both business to business (B2B) and business to consumer (B2C)."

Trevoca’s host server, which is located in Malaysia, is equipped with a security system to protect all information important to the business such as the individual distribution networks of its sales force, how much each network has sold and how much commission is due each network.

A relational e-commerce distributor can access these data with her computer. Her home, therefore, becomes a personal business center which can track orders, shipments, deliveries, payments and the corresponding incentives or commissions.

Paying for ordered nutraceuticals is similar to paying the utility bills. It can be done online or through Metropolitan Bank and Trust Co. or Union Bank of the Philippines, where Trevoca has made financial arrangements.

Growing

Although only 17% of the Philippine population own personal computers, Trevoca has been able to register 10,000 relational e-commerce distributors so far since it opened for business six months ago.

"This is because of the proliferation of Internet cafes," Lee said.

Registering with Trevoca is similar to getting an e-mail. A distributor-applicant looks for Trevoca’s website and enters her personal information. With the purchase of one box of Trevoca health supplements, which costs the peso equivalent of $35, the applicant can start her own distribution chain.

Commissions are paid in dollars. Lee claims a part-time distributor earns an average of $200 weekly while a full-time distributor earns a four-digit income, in US dollars, every month.

"Health and beauty is a crisis-proof industry. In good or bad times, people buy products that will be good for their health," Lee said.

Expansion

Because of the Philippine success of relational e-commerce as a business tool, Trevoca will be launching the system in HK in the first quarter of 2002. It is also eyeing countries where there are a lot of Filipinos such as Singapore, Taiwan and the United Arab Emirates.

"Many dot-dom companies and pyramid schemes went out of business because they had an idea but they didn’t have a real product to sell. Trevoca has a working IT system and a product to sell," Lee said.

That’s the way to go in the New Economy.