Can you elaborate on your answer to my question
"I'm no gold investor, I'll say that up front. But I am a business man. If I own the mine and blah blah blah can produce gold at 999.9% pure at $433 an ounce and the market is $1400 an ounce, it makes no sense to sell it for less than the market price. That they are paying people money for customers to buy a product that has a market value of 3 times their cost already in place smells of scam. Am I missing something? "
Hi Agnostic
Yes, I believe you are missing something. In network marketing, people are paid to spread the word. They could take that hefty profit margin and do traditional forms of advertising, however, they would be expending money prior to a single sale taking place. By using a referral based model, they only spend money
AFTER a sale has taken place. Their products are sold at very competitive market prices, and they employ a preferred customer program providing customers with 3% MORE gold than they paid for, as well as the lowest spread on buyback, as a retention strategy. Afterall, there is nothing unique about 999.9% 24kt gold, other than the fact that it is kinebar and mined in an ecologically friendly way, and a customer can buy gold anywhere.
While many may be environmentally conscious, in this day and age, I don't think that is enough for most. When you want gold, you want it, and if the source pollutes the environment, ...then so be it. (I think that's how alot of people think)
But getting back to your question of why use a referral network when they have such a hefty profit margin? Please see
http://www.getbig.com/boards/index.php?topic=264882.msg3726050#msg3726050
