Best World

[Retired@52]

I got to know this stock from Boon's post. Thank you Boon.

Let's do a simple reality check on Boon projection, with an assumptions. The price to final consumers, should remain the same, in the shift from export, to Direct Selling channel. In other words, Best World and the Saloon Owners/Distributors, will re-balance their shares, during the channel shift. I am skeptical, Best World can keep all the gains from the shift, on the expense of the down-line Saloon Owners/Distributors, without any damage on the relationship.

I do agree the company, is more scale-able, than the existing export channel, once the license approved.

What do you think?

(not vested, but monitoring)

Hi CityFarmer,

First we must know how Multi-Level-Marketing (MLM) or Network Marketing works.

In a Traditional Business, huge cost goes to 3 major areas:

1. Whole Sellers, their Warehouses, their staffs & their profits.
2. Retails, their Shop Spaces, their staffs & their profits.
3. Company's Sales Staffs, Salary & Commissions.

Note: All the above have a Limitation.

In MLM, the company doesn't need all the above & the savings are passed directly to every Individual Distributor.
The potential is the multiplying effect. Every individual distributor can bring in more distributors to join the business.

Every individual distributors will have to use their products in order to receive the commission if any.
(This ensure the usage of the products.)

Currently, the Saloons can only sell to their customers and that's their limit. When they become distributors,
they can bring in their customers to join them as fellow distributors, unlimited.

Note: This is very sensitive to the Communist System because it can spread like wildfire if not properly control.
Therefore, the MLM company has to abide to certain quote of Conduct.
Example, they may not be allowed to use words like "recruit". They can say, bring in customers to join as distributors.

Hope that my simple writing helps. (There are a lot more to it then what I've written).