The ability to reach multiple levels of customers is extremely important in the world of business. However, few companies out there, no matter the location in the world, has proven to be as successful as Qnet. Based out of Hong Kong and originally out of Penang, Malaysia, Qnet has been able to grow its brand by reaching out not only to almost every single key demographic in the region, but also make money off of selling an individual product multiple times. All of this makes it extremely helpful in making it one of the largest, most powerful brands in all of Southeast Asia. So, for a company that is looking to base itself on a successful company, it might want to take Qnet’s approach and use what is known as multi-level marketing.
MLM for short, multi-level marketing is where a company is able to make money multiple times over off of the single, individual product. It is able to do this by offering distributors and retailers the ability to sell a product. Now, it is not always possible to opt into MLM when selling just one product. It needs to have a wide spread impact over the local community to the point where a customer is going to look specifically for the products and services offered. Once this happens, it is possible to take a product and use the MLM approach. Here, QNet’s home page discusses their business further.
So how exactly does an MLM approach work? It starts by selling a product to a distributor. When the distributor buys it, they are more or less buying the right to carry the product. This is because when the distributor sells the product to a retailer, they are not keeping the entirety of the profits. Instead, they keep a commission and the rest of the money goes back to the creator of the product. Even then, when the retailer sells the product, some of the money is kept by the retailer as a percentage of what is sold, another percentage is given to the distributor, which makes it desirable for them to push the product to as many retailers as possible, and then the remainder goes back to the manufacturer of the goods. In this case, it is Qnet. It shows that it is possible to continually make more and more money off of a product that is sold multiple times. In fact, it is possible to follow this practice through multiple times over. Some companies might actually sell a product four or five different times, each time bringing in more revenue. When it is possible to make money several times off of one item, it is going to be extremely beneficial for the company and go towards its long term financial goals.