Wednesday, January 23, 2008

On Profit and Cost

This is an email conversation which ended up being quite a useful Q&A session for any of our store managers. Names and sensitive information have been replaced, of course. Here is a reply I sent a minute ago to Jane; her questions might bring you some welcome answers, too.

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Hi Jane,

Thanks for taking the time to write to us.

Q: How does the DistributorsTools store work?

A: You get your own web site which comes pre-loaded with every South African Herbalife product. Months of development has gone into making the store convert visitors into shoppers. The best way to see how it works is to see it in action. Go to http://www.distributorstools.com/demo.php

Q: How do I generate profit?

A: Herbalife Distributors buy product at 25-50% of the retail price, and sell it for 100% of the retail price. It is a good profit margin, but the Herbalife training puts too much emphasis on recruiting more Distributors to the network. We think you should focus on retail sales, where there is more immediate profit.

Q: What is the profit guarantee?

A: I have never heard of such a thing. Anybody who offers you a profit guarantee is a scam artist. If you advertise your site on Google and such you will profit. If you don't advertise you will not profit.

Q: What is the cost in doing this?

A: There are two costs involved:
1. A Herbalife Distributorship, so that you can buy products from their warehouses at a 25-50% discount.
2. A DistributorsTools web store subscription, so that you can sell products from your web site -- maybe even before you order them from the warehouse, if you live nearby! ;-)

If you are not already a Herbalife Distributor just write back or talk to the person who introduced you.

I hope this email has helped with your questions.

Shamus
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Floogy Support
http://www.floogy.com
AU: +61-7-3102-5622
UK: +44-207-193-3547
US: +1-800-881-3179

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