I would like to make a comparison between Conventional Business and MLM Business.
Lets look at the Conventional Business and how it works.
Cost of a product from the Manufacturer is at $10.00, for example.
Wholesalers will raise up the price to $12.00, in making a profit of $2.00 for themselves.
When the product arrives in another person's hand in every countries, it will add another $2.00.
For easy calculation, we use $2.00.
In the states, they will make a profit of $2.00. Now the price of the product will become $16.00.
When it branches out to the districts, they make their share of profit.
Finally, it reaches the shop to be sold to customers.
Customers ended up paying $20.00.
On the other hand, in MLM Business, the products arrives directly to customers. All the cost in between will be given to customers who distributes and market the products to other customers.
This diagram shows a bigger picture of how the business is run between a Conventional Business and a MLM Business.
Authored by kevinn on 10th June 2009
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