Network Marketing Business
Written by Author on November 25th, 2009When you make a choice – to attend to network marketing or not, you should think over all possible variants, weigh all pro’s and con’s. You naturally will have a question – money in this or that company for payment of wages to employees and partners whence undertakes? Let’s consider the given situation.
1. Purchasing in a warehouse is cheaper; EACH sells at the price of the catalogue (more expensively). Has profit (for the fact that has brought the goods, has consulted the client, has spent the time). As any shop to which you go. A difference that to the client is more comfortable (to be houses or on work and to receive wished).
2. There is a percent from group. Here all is simple. Owing to special marketing the network companies are not spent for advertising (though, for example, «Oriflame» or «Mary Kay» not less known companies, than «Lancome»). That is the network companies from advertising (about 30-50 %) distribute money to the distributors. After all they also are «walking advertising» the companies. Here therefore many business of accessories with logos of the network companies is made, and distributors have possibility to purchase them under the scanty price.
That is, the usual company has such system of extra charge:
Production + delivery + distribution + advertising (it roughly and in abbreviated form).
The network company saves on distribution and advertising.
It is received:
Production + delivery + percent to distributors (which do advertising and are distributors). From here it has such great opportunities for this purpose what to pay interest to distributors.
And, production cost in both cases (and in traditional business, and in network marketing) will be absolutely identical (at the production condition in territory of one country). But distribution by traditional method is fraught with that the goods lie too long (from here frequent purchases of the poor-quality goods), extra charge on the goods reaches 100 %! Therefore many think that, time cheaply in the network company and that is expensive in the usual company, means, the goods are worse quality. It is a lie! Simply different money is put also different lines of thought to sales.
Also it is important to consider that if to make product in Russia (or any country where there is a winter), product cost will be above, than cost of the product made in any country with an identical climate (for example, in China on firm (!) factory).
It would be desirable, that my article have helped you to understand – whether it is necessary to you to attend to network marketing, or not. Anyway, hope you will make the right choice and will be satisfied with it.
Good luck and successes in any business you have chosen!
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