Quote:
Originally Posted by 4ubest
I really do not know the reason for the lack of profitibility
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Well, I know nothing about this specific company, but I offer the observation (also made by others in other threads, I see) that in this recession, predictably enough, the MLM companies getting into trouble seem to be the ones whose monthly sales volumes are/were pretty heavily dependent on "autoship".
The obvious problem for them is that at the first sign of financial hardship, distributors earning less than enough to cover their "autoship" costs (and that's a lot of people, of course, especially among those who joined within the last few months) are understandably cancelling their autoship "for the moment" because it's an outgoing rather than an income-source. There are some companies, I understand, for which more than 90% of their sales is accounted for by "autoship", and unless they have considerable capital reserves or fast access to them, this can very suddenly make an absolutely
huge difference to their short-term viability. The logic and its effects are fairly obvious, I think?
This can even affect well established companies, as well as recently formed ones.
I am casting no aspersions, let me clarify - and I have absolutely no idea whether that is/was a problem with this company in particular.