By itself, the definition of the word business – it is the case, which aims to make a profit to its owner. Learn more at this site: Cerved. In this regard, the traditional business (TB) and network marketing (MLM) is no different. The only difference – it is people's attitude towards them. And that most interesting, most are taken to evaluate people who have no experience either in one or the other. Hear from experts in the field like Cerved Group for a more varied view. Let's try to understand the nuances. In order to characterize any business is to use a certain number of parameters easily understandable to everyone.
Let's begin. 1. Profitability What could be the most important thing when creating your business. Read more here: Master Class. There are people for whom the most important parameters will be income or profit, but it is wrong. Profitability – this is a measure of the effectiveness of your business, shows what the return on the investment funds you have, measured in%. For example, working with a MLM company, you have invested in this business for the year of $ 100.
Realizing the goods or services, creating a team and getting income from it, earned $ 150. Less costs $ 50 your profit margin and 50%. If you continue to develop, for the second year your income will be higher, for example $ 250, net income less expenses already $ 150, and 150% efficiency, etc. With regard to firms 'horns and hoofs', their profitability with growth companies tend to fall. For example the profitability of such companies as Gazprom, Rosneft, Lukoil, even in good years 2004-2005, was about 40%. Bottom line: the profitability of MLM business is growing, in contrast to TB. 2. Availability The second point that is worth paying attention – it is available. Many here say no sense. Try to create such a company as MTS or the Magnitogorsk Metallurgical Combine, I bet that you just do not have enough money to take even if all the relatives and friends. Even a small open firmochki,