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The Codes

The marketing plan (compensation plan) of a company is still crucial to the initial investment. In this marketing plan, paying the Distributor is regulated. Here it is important to note what income levels there are and how to reach them. Are there any conditions to qualification in an income level, what is the case with the most network marketing companies, and are these qualifications on a one-time or recurring to meet what may vary from company to company. The most important thing for someone who chooses this type of independence is that the initial investment to cope with are and there is no stressful fixed costs for premises, labour costs and other costs.

Be the financial risk that is already small, goes to zero as legitimate direct selling companies according to the codes of conduct”. That means these companies give their distributors the possibility of one, within a period of 6 months, some even 12 months their To return the initial investment in products and to get your start sum minus 10% fee. This means a maximum investment of 5.000,-euros is a loss in business from 500,-euro. Each company must bring its products and services opportunities in direct sales to the end customer, no money. This channel from the manufacturer to the consumer or user service, should be for a company cost-effectively, effectively in the sales figures to be as nationwide.

That would be the ideal state of which in conventional companies however due to wholesale trade, distributive trade, transport and storage costs, so how sales areas, personnel costs and more expensive advertising never can be achieved providing. The direct marketing offers an enterprise as the name suggests, to bring the possibility of its products through qualified distributors directly to the consumer. The advantages for the company are obvious, apart from manufacturing – transport – and the costs of storage costs for wholesalers, middlemen, salesrooms, staff and advertising.