A great business idea

Talking to a friend we realized our lives were around working for others, still having a well paid job yet we miss having free time for other activities. My friend is an average young man who works in an electronic manufacture enterprise as a Quality Engineer earning between $40 to $60 dollars per hour which is a good salary.

After a good chat with him we decided that the best way to get a better life is starting a business. He said he had enough money to start a business from scratch. I had enough too. Years ago in my college years I was working in an internet-computer rental service part time. One day the owner who became my friend, described me a very interesting business idea.

The main idea was to become some kind of retailer of essential items like food by buying them from the cheapest supplier and resell them a little bit more expensive to five persons. Each one of these persons besides of just buying the packages will be able to sell packages to their own five persons. What this means? It’s about finding five associates; sell them a package and allowing them to sell the packages too. From each package sold by an associate he/she will receive 20% of the income from each package, so if an associate sells 5 packages he/she will receive a free package or the money. Also each associate may refer their associates to get their own associates and so on.

Where is the income for starter of this business? If we buy a set of 10 packages from the supplier and each one cost $100 dollars, if we resell it %15 more expensive we will get $150 of profit just by selling the 10 packages. The income for the associate is the 20% of the cost of the package; this means the associates will receive 20% of $100 and not from $115 which is the price of each package for this example. Either way the idea is to be a retailer and sell food packages, the business idea is how we sell the packages. Let’s imagine how would be if we have 5 associates and each of them have its own 5 associates and the second level of associates have its own associates: 155 associates! 155 packages, this means $2325 of profit just for the starter and this could be a weekly income.

When I described the idea to my friend, he was some kind of excited, he liked the idea, still we have to remember that costumers are not easy to convince. The owner of the computer rental service tried to convince a group of people to start this business idea but they thought he was trying to scam them, they preferred to buy at a supermarket rather to follow this idea no matter if is a lot more expensive and no income from it.