30% or 40% – Which is More?

The obvious answer is, of course: 40% is more than 30%.

But now it's about something not so obvious.

It often happens that consultants from different network companies exchange ideas and the following dialogue occurs.

Networker A: with us, you earn 30% commission.
Networker B: but with us, you even get 40%!

And Networker B initially thinks that one earns more in his company. A common misconception, because one thing is not mentioned here: is it the trade margin or the calculation surcharge?

The Difference Between Trade Margin and Calculation Surcharge

The most important difference between these two terms is how their calculation is made.

A trade margin is calculated from a final price.
The calculation surcharge is added in the calculation to arrive at a final price.

It becomes easier with an example:

Let's say we have a product price of 100,- and an earning of 30,-.
What trade margin do these 30,- correspond to and what calculation surcharge?

So you can see from this example that it makes a difference what the basis for the calculation is.

In both cases, a partner earns 30,-, but percentage-wise it is a big difference.

Viele Network Firmen erwähnen nicht, was die Grundlage ihrer Berechnung ist und das führt dann zu falscher Argumentation, in welcher Firma man mehr Geld verdient. Ganz abgesehen davon, dass das Geld zweitrangig sein sollte, weil es in erster Linie eine Firma braucht, hinter deren Philosophie, Produkten und Ethik ich stehen kann.

But it is also fatal to see the following in this example:

Networker A is with a company that works with a 30% trade margin.
Networker B is with a company that works with a 40% calculation surcharge.

As we have seen in the example, Networker B needs a 42.86% calculation surcharge to have the same earning of 30,- on his products as Networker A.

So if Networker B actually has a 40% calculation surcharge, he has less earnings than Networker A. Because to add exactly 40% to reach a 100,- sales price, the purchase price (actually cost price) is 71.43.

In absolute numbers, Networker B earns 28.57 with a 40% calculation surcharge here instead of 30,- like Networker A.

Or simply put: 30% is more than 40%. Depending on what basis you calculate from.

Therefore, pay attention to what the calculation basis is and do not get caught up in the pure argument "but with us, you earn 40%". Even if the 40% actually also represent the trade margin.

Because you need a company and products that you like, that you can stand behind, and where you don't need to hide. Platinum Europe is such a company.

Maybe you'd like to talk to a consultant in your area? speak?