Please Answer: How do direct sales companies make money?
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Not those companies who have a direct sales model for their OWN products (e.g Avon, Mary Kay..) I'm talking about direct selling companies that offer a variety of products (from other companies) for people to sell. What is their revenue model? How do the companies themselves make money?
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Answer:
Depending on what the company is... they may buy the original product and then sell it at a higher price, keeping the profit for themselves. Another way is if the company that makes the product pays a commission to the sales company for x amount of sales, basically paying them to do the selling for them.
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