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African American Merchants Overlook Key Distribution Opportunities with Bloggers

June 8, 2009


Distribution has been the downfall of African American business.  From hair care to other unique niche products, our observation and conversations, such as with The Great Hair Care Debate of 2008,  have shown African American merchants are simply overlooking what could mean the difference between passing on generational wealth to going out of business. The inability to work in a cooperative nature to succeed in distribution and to reduce overhead continues to take a toll on African American merchants.   For African Americans merchants these expenses exceed traditional business norms for various reasons however mainly due to lack of ability to offer competitive pricing affected by distribution.  In essence, when you sell less you have to charge more.

That was the handicap of yesterday.  There is a different outlook today that is not to be overlooked. The Internet should be looked upon as a virtual distribution channel.  This creates a unique opportunity to establish a relationship between merchants and bloggers.  Where there is a blogger, there is an opportunity for virtual distributions. The Internet allows smaller merchants to function seemingly with the same tools as larger merchants.

Pew Internet & American Life Project tells us:

The number of online adults who have used online classified ads has more than doubled in the past four years. Almost half (49%) of Internet users say they have ever used online classified sites, compared with 22% of online adults who had done so in 2005.

That means whenever a consumer is looking for or have heard of a product or service, the consumer turns to the Internet for more information.  Who has greater visibility on the Internet than bloggers? In order to manage a blog and maintain its high visibility, a blogger is already doing the job to aid merchants. Merchants are often overwhelmed with what it takes to maintain a web presence online.  Merchants also find that maintaining their brand visibility with growing social networks too time consuming.  Who’s minding the business.  This is the time for merchants to leverage their brand with bloggers who consistently deliver information to their target audience.

The growing addiction to mobile technology and real time information position consumers ideally for virtual distributions.  Moreover consumers are looking for information in sources not yet inhabited by African American merchants.  Is virtual distribution something new?  Not at all, but in its original context, African American merchants are absent.

Does history denote failure?  Can the Internet do with African American merchants what magazines and black radio have been unable to do in throughout their history — establish an on-going relationship with African American merchants and products craved by their audience?

Here’s where we start to create win/win results with virtual distribution. When launching a product online:

  •  Lanuch with a shopping cart offering ability to create and manage affiliate programs
    • In lieu of high advertising cost, bloggers and website owners promote products in traditional advertising space for incentives and commission for referred sales
    • the product gains visibility across the web with 24/7 advertising and promotion
    • the more competitive the commission and payout frequency, the more will sign up as affiliates
    • take advantage sites with existing traffic and connection to target audience
    • promoting the success of product launch is more news worthy than the launch of an unknown product

Before you launch your next product or go out of business with an existing product, create a virtual distribution plan which includes an affiliate program.   Your brick and mortar success can be guaranteed by your virtual success.

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