LLC "Tables and chairs" produces tables and chairs, while LLC "Best timber" produces good quality timber. The first company purchases timber from different companies at the market prices, while the second company produces and sells timber to different companies.

After some time, demand for timber produced by LLC “Best Timber” goes down because a new timber mill has been founded in the same region.

Managers of LLC "Tables and chairs” and LLC "Best timber" decide to meet and, after some negotiations, they sign a business agreement stipulating that LLC "Tables and chairs"  purchases timber only from LLC "Best timber", while "Best timber"  sells timber only to "Tables and chairs” at the price below market. The two companies also agree to coordinate volume of their production and terms of delivery.

As a result, manufacturer of chairs and tables receives cheap and high quality timber, while a timber mill eliminates risks of uneven demand.

Later, LLC "Laquer and paints" and advertising company "Region media" also enter into business relations. All together they merge into a Corporation "Tables & Chairs", and push competitors out of the market. The corporation opens up new timber mills and workshops, issues shares and attracts large investments.

Business is flourishing, sales are increasing and the company captures more and more market shares. Everyone is happy.



—But I have neither a timber mill, nor paint production and hired workers! I have nothing but ambitions!




The essence of business is sale

Sale is a business, which is available to everyone. The main thing is to sell products, which are in demand.

Online sales are gaining popularity nowadays, as online sales provide wider choice of interaction with customers than ordinary sales.

The logic of sales is the following: when the economy is booming and purchasing power of population is increasing we sell goods and services, which are in demand.

When economic development and consumption are decreasing, demand for anti-crisis financial management is increasing.

Sell product to the target group.

A target group represents people who are interested in the product or service you can offer.

For example, you have a video game channel on YouTube, we find partners — manufacturers of computers, accessories, video games and software and you advertise their products on your channel.


What can be always sold with a profit?                                                          

You can always gain profit from selling financial services, regardless of the state of the global or national economy. When a real market is getting weaker, consumers focus attention on the financial management and Forex market.

In the periods when economy and production are flourishing, it is beneficial to deal with the shares and other securities.

Financial brokers, such as LiteForex, offer wide variety of programs with different systems of remuneration to the sales managers. Some of these programs include:

Rebate program: you, as a manager, receive commission for every transaction conducted by a client attracted by you. So, attracted clients carry out trading operations in the market, while a manager gains profit. Sometimes it can be a fixed amount or an interest from each transaction.

Multi-level program CPS: you, as a manager, receive interest for each attracted referral (a partner) and a sub-partner (a partner who was attracted by your referral). Under this program a manager receives a fixed amount for each attracted referral and an interest for each attracted sub-partner.

CPL program: a manager receives a reward for referrals and interest from sub-partners’ profit.

The difference between CPS and CPL - is high liquidity of operations in CPS and stable, long-term profit in CPL.

Coordinate marketing plans with your partners:

  • Develop joint projects: do you have YouTube channel dedicated to Economics and Finance? A speech of the broker’s representative will be good advertising for a broker and, at the same time, will give your subscribers a chance to meet an expert in the field of their interest.

  • Take advantage of the seasonal activity: participate in promotions and other special events, share marketing ideas with your partners; it will help to increase the number of customers and your profit.  

  • Develop market together: Internet provides a wide range of free tools for sales, such as news sites, blogs, video channels, real-time translators and public pages in the social networks.  You can synchronize them all for greater efficiency

  • Take into advantage the state of your source: a blog, website or channel where you meet potential customers of your partners. If your site or blog is popular, you can connect semi-automatic affiliate programs of Google or Yandex, which pay for their ads.

Market is forcing sales managers to work more efficient.

On the one hand, affiliate program is a valuable support for online sales and on the other hand, it helps ambitious market managers gain good experience.

Affiliate programs give wide chances for the internet marketing. Follow an example of real business partnership between the timber mill and manufacture of furniture and you will all gain profit from mutual cooperation.  

Business Partnership: what does it imply and who makes profit from it?

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

Need to ask the author a question? Please, use the Comments section below. .
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