EP1 - MLM
My competitors obsess over their supply chain.
They lose sleep over their CAC. They pay $100k to create ads with 1.2 ROAS.
I dont think they understand.
I manufacture a product of deliberately average quality. I sell it at a premium price.
I hold no inventory. I spend $0 on advertising. And my profits are swelling like the thing under me.
How??
I don't sell to customers. I sell the dream of a business to bored housewives and men who hate their jobs.
They aren't buying a lotion or a health shake. They are buying a LARP kit for being an entrepreneur.
I don't hire salespeople. I recruit "partners." They pay me for a starter kit and the privilege of selling my goods.
They become my sales team, my marketing department, and my customer service reps.
I created a reverse funnel (that looks like a pyramid)
Instead of pushing a product down to a market. I pull aspiring entrepreneurs up into a system.
A system where the primary product being sold is the opportunity to sell the product.
My COGS isn't the raw material in a factory. It's the cost of producing slick training videos and emotionally manipulative seminars. 1
I'm not in the business of manufacturing goods. I am in the business of manufacturing hope.
Follow me for more financial advice.
Footnotes
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A dead giveaway of a course or licensing model that is not worth the price is to check if the instructor spent more on making the content over building other parts of their business. ↩