HOW TO DEVELOP A WORLDWIDE DISTRIBUTOR NETWORK

 When you select a product, your choice should be based upon your

knowledge of how and to whom you're going to sell. You may have
the greatest bargain in the world, but it will be of no value to
you if you don't know who's going to buy it, or how you are going
to get the word out about it.

The first rule of achievement of a fortune is to produce or buy
your product for pennies and sell for dollars. So after
preliminary market research to determine who'll buy your product,
the next question to answer is: How munch will the majority of
this market be willing to pay for your product?

For the sake of our discussion, let's say that you've written a
"How TO" manual on how to make $100,000 a year compiling and
selling mailing lists. You check with a number of printers and
get a production cost of $1.50 per book in lots of 1,000. You
figure that with sharp advertising, you can "sell a million" of
these books at $10 per copy, but that advertising will cost you
$1.50 per book. Thus far, the basic cost of your book is $3 per
copy.

Even though you will probably be the one selling most of your
books, you must realize that it will take you an awfully long
time to move out a million copies of this book. It will keep you
busy 25 hours a day, 8 days a week to do it all by yourself. So
the thing to do is recruit as many other people as you can to
help do the selling. This means setting up a dealer distributor
network.

To do this, you must make it worthwhile for other people to sell
your product. You offer a percentage of the sales price to each
book they sell for you. Generally, this is about 50% for each
single copy sold; 60% when purchased in quantity lots of 25 to 99
copies; and 75% when purchased in lots of 100 copies or more. The
important thing is to shave your profits to a minimum when you
have other people doing the work for you.

Let's use, the, our example of a $10 book that costs you $1.50 to
produce in lots of 1,000. For people who buy from you in lots of
100 copies, you could cut your profit to $1 per book, sell it to
them for $2.50 per book, and let them do all the advertising, as
well as the selling. Don't offer more than 50% on single copy
dropship sales, because you'll have to furnish this type of
dealer with selling materials, and continue to do most of the
advertising yourself.

Setting up your distributor program will require advertising and
a sales kit for the sellers. Thus, you should make up a series of
"Dealers Wanted" ads and place them in as many different
publications as you can.

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