In itself, the definition of the word business – this is the case, which aims to bring profit to its owner. 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, What is most interesting, most are taken to evaluate people who have no experience nor that of any other. 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. So, let's begin. 1.
Return on what could be the most important thing when creating your business. There are people for whom the most important parameters will be income or profit, but it is wrong. Profitability – a measure that characterizes the efficiency of your business, shows what the return on your invested funds, measured in%. For example, working with a mlm company, you have invested in this business for the year to $ 100. Realizing the goods or services, creating a team and getting income from it earned $ 150. Minus the expenses of your profit is $ 50 and return 50%. If you continue to develop, for the second year your income will be higher, for example $ 250, net Profit excluding costs already $ 150, and the profitability of 150%, etc.
With regard to firms 'Barnyard', 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%. The basic idea: the profitability of mlm business is constantly growing, in contrast to tb. 2. Availability The second point that is worth paying attention – it's availability. Many here say no is meaningless. Try to create such a company as mts or the Magnitogorsk Metallurgical Combine, I'll bet that you just do not have enough money, even if to take in all the relatives and friends. Even open a small ,