This is a real deal!
It might be quite easy to explain to a simple novice what MLM system really is, but according to my working experience in that field which is 13-years-long, it certainly isn’t. The reasons for my conclusion are numerous: either there are too many people who simply aren’t well informed about this type of branch industry or there are people who are vaguely or superficially informed, but which have shut down themselves because they disbelieve in networking. That is why I’ll try to explain the concept of MLM, in my opinion, the most genius type of network marketing: the consumers and traders association via network marketing, or just in plain words – the SCnet Company!
The Consumer Association
Firstly, it is a must to agree about certain basic assumptions concerning the consumer association:
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We spend money on a daily basis – we buy groceries, clothes, shoes, furniture, appliances, cars, houses, pour fuel, etc. Of course, we would all like to earn while spending.
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All of our shopping must pass through the trades, who as well have their own troubles: they have to find a fair price for a good bargain, to sell the merchandise at a higher price and to deal with tough competition. In order to survive, their revenues need to be higher than their expenses. The effective their business gets, the opportunity to get lower prices from their suppliers enhances. This leads us to the first economical legitimacy important for our business: the more you buy, the higher your discount gets!
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In order for us, as buyers, to come across a certain trader, he has to be “on our way” or we just have to hear about him through the grapevine. Advertisement via newspaper, radio, television, a personal recommendation, fairs, billboards and similar can connect us. But all of that doesn’t come cheap!
And now we have come to a genius idea called the Customer Association. For example, when thousand of us join together, make a list of names, and I go to a store and suggest to the owner to give our group a 5% discount if we come to spend our money at his place, although it really isn’t “on our way”. How will the owner react? Were exactly is his share in all of that? The fact that we’ll come to him is his real self-interest, because in retail there is an enormous chance that around 20-30% of prices are in fact the difference between the purchase and sale price, and let’s say about 15% is his exact profit, if we rule out the expenses. In order for the owner to stay in business, he will usually invest half of the profit from those 15%.
As we mentioned earlier, there exist the economical legitimacy which states: the more we buy, the more our rebate gets higher. If we present to that owner a list of 10000 potential buyers, what will happen? Or a list of 100000? He would probably give us a discount of 10%, or above even! Of course, not all of the businesses have similar rebates, expenses, or trade, etc. For example, it is impossible to get large rebates when you want to purchase a flat or a car, because the margins there are far more lower that 20-30%.
There are numerous types of association of consumers. There are local associations which are organized by specific traders business, as well as associations which are organized by several branches of trade, chain stores, etc. What about the genius squared idea, where we organize the traders, a thousand of traders, even ten thousand of them? Only then there is the possibility to cover all the fields of business where we buy on a daily basis.
Network marketing
Now, when we have established the basics, our next job is to define the business of network marketing. Let’s start with our needs.
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On one hand, there exist a certain number of people who have the need to earn extra profit, but some want to earn their basic profit. And all of them have the same problem: how and where to find profit. If they start a private business, there’s always the possibility of risk, whether they know how to do something which has to be done in certain way, and do they have the incomes for that business deal. There are a lot of people who would love to have extra spare time for themselves, for their family, for sport, a hobby, go to church, etc.
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On the other hand, we know very well by now, that in the field of economics it’s not important how you’ll start a business, but will you know how to sell your product. Numerous companies have the urge to find a perfect way to present their merchandise on the market. That can be done differently. For example, a classical trade – a factory sells their goods to merchants on a wholesale, and then it gets shifted to retail. Sometimes the goods get distributed via catalog, telephone or personal sale and so on. One of the ways to distribute goods is the advanced and specifically developed network marketing.
Let’s explain how network marketing really works. We’ll compare it with privately owned retail shops, which are situated in our neighborhood – usually known as markets or shops.
For example, we buy bread for 0, 30 cents and sell it for 0, 50 cents, and that is our margin. But that doesn’t mean that we have earned 0, 20 cents. We need do deduct our expenses from that profit in order to actually earn something. Why do we buy, as a market, from bakery bread for a price of 0.30 cents, and as a citizen we can’t do that? That’s why the market buys a lot more loafs of bread, and in that way the bread gets from bakery to consumers. That’s how things work in network marketing, when you become a distributor you buy from a company for 1 euro, and sell it for 1,4 euro. Sometimes you’ll give that product when you visit a friend, or to a colleague from work, sometimes you’ll mail it and charge it by that shipment. And you’ll always pay attention that your costs don’t exceed your revenues.
As an owner of a small retail shop, you can decide to open several new shops and hire and train people to work in that area of business. Then you’d buy even more loafs of bread from the bakery, and perhaps the bakery would lower their price to 0.25 cents per loaf. But you’d sell that bread for 0.30 cent per loaf to your costumer, and everybody is satisfied, because they wouldn’t get better bargain from the bakery. In that way you earn those 5 cents from the wholesale and from the shops that you have opened and trained your people. Logically, isn’t it?
... equals 4!
All we have to do now is join those two things together. Since SCnet is the consumers and traders association, there are certain discounts on which we have rights to. An average four-member Serbian family earns around 500 euro’s per month, and usually they spend that money right away and try to make ends meet. However, 2.5 million families in Serbia spend a large amount of money, an average discount of let’s say 5% from that sum which they spend, is an enormous amount. In general, that discount is fairly divided in our club by the existing system of distribution: network marketing.
In SCnet you actually earn money by spending. You earn money by buying products which you would normally buy anyway. As you will earn more, you would automatically spend more, and since you earn by spending, you’d earn even more. Of course, that doesn’t go into infinity because of the Zeno’s paradox, but it’s definitely beneficial for you in every way.
In order for you to start the network marketing, your private business, you don’t need any initial capital. You don’t need to have any high academic knowledge. It’s not important what gender, nationality, religion, and age you are, or what your financial status is.
It is important to have the urge for extra profit or for extra spare time, or to desire better achievements in your life. It is important to have the will and the spirit to advance your skills and enrich your knowledge so you could be a better person and teach and encourage others to do the same.
It is important to be a winner, not an eternal skeptic or a loser.
