Lesson 2 of 8 · 22 min · v2
How the model works
Distribution, margin, and why companies choose this route to market.
How the model works
15 min · video hosting arrives in Phase 4
A traditional company spends heavily on advertising and retail distribution. A direct selling company spends that money on distributor compensation instead. The product still has to be worth buying — no compensation plan saves a product nobody wants.
Assignment
In your own words, explain to someone outside this business how the company makes money and how you make money. Two paragraphs. If you cannot write it clearly, you do not understand it yet.
Lesson complete
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