Thursday, March 3, 2011

Natural of direct sale company

1. Cash rich on hand but those money are no belonging to them.

2. Business revenue suddenly jump up then consolidate a few months after that, this is due to distributors tend to store up or use their own money to buy stuff in order to get higher commission or get higher rank.(a good direct sale companies should not have this kind of situation as they focus on their quality of products, not the marketing plan)

3. Revenue or member suddenly drop significantly due to large number of people leave the company and jump to another direct sales company.

4. No much assets as their main asset is human. If a direct sales company has too much asset, then you have to beware.

5. Cost of the product is only 10% of the selling price, 50% of the selling price will go to distributors' pocket.

6. When you see the members are getting less or no more growing, then its market is almost saturated already, unless the management change strategy, else there is no way to grow.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.