Traditional business is based on a hierarchical management structure with clear levels of management

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Distribution of authority and responsibility. Such a structure ensures organization and control of activities, but can lead to bureaucracy and slow decision-making.

Network business is built on a decentralized structure, where each network participant is an independent partner who independently develops a personal team and promotes products. This creates a multi-level structure in which distributors' income depends on their productivity and contribution to the company's development.

4. Profitability

Profitability is an important indicator for any business, because it instagram data determines its efficiency and return on investment.

In a traditional business, profitability is largely dependent on initial capital investment and ongoing costs for rent and wages. These costs are usually quite high, so the profitability of the business is lower and often remains at a fixed level when the company expands due to the corresponding increase in its costs.

In MLM business, a critical aspect of profitability is the revenue distribution structure, which clearly defines the commissions and bonuses for distributors. Profitability here is also affected by the quality of training of partners, their trust and motivation, which contribute to the expansion of the network and increase in sales, ensuring the growth of profitability of the network company.