How Amazon makes money?
[ Amazon's business model decoded😃]
@dmuthuk @unseenvalue @FI_InvestIndia @Vivek_Investor @drprashantmish6 @caniravkaria
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1/ A person named Jeffery earns 100 dollars per month and has an expenditure of 120 dollars monthly. He has a very good reputation in the society. So, he takes a loan of 1k dollars for a month and this 1k cash is invested in new business ventures.
2/ For the next month, he pays his liability back by taking a loan from another person for 1.5k dollars. The loan of 1k is paid back and the remaining 500 dollars are invested in another business venture.
3/ By the end of the month, he earns 150 dollars through his old and new business ventures but has a total expenditure of 200 dollars. He again is in a deficit of 50 dollars. To pay back his 1.5k dollar loan, he takes a loan for 2k dollars
4/ This cycle goes on and on. Jeffery keeps on taking bigger loans to repay the previous loan and the leftover extra loan is invested in bigger ventures which produce more expense than income.