Welcome back to another episode of What's Your Game Plan. This segment is called profit zone, where I reveal where exactly the money is coming from. These videos are aimed to help you understand how big businesses work and teach you how to generate additional revenue, just like they do. 

Today we’ll talk about Nike. Last year,  Nike generated about $36.4 billion dollars in revenues or just under $16 billion in gross profit. So, most of us know that Nike makes money by selling footwear, apparel and equipment. But how else are they generating more revenue? Let’s take a look. 

1. Wholesale Product Sales 

Nike gets paid when they sell their products to wholesale customers. Those customers then distribute its products through a vast network of retailers. They sell shoes, clothes and sports equipment to 6 main segments. 

2. Consumer Product Sales 

Nike gets paid when you buy their products on Nike.com. They sell direct to consumer via their website.

3. Investment Revenue

Nike gets paid when the other businesses they own make money. They own a suite of subsidiaries like Hurley, Converse, and Umbro. 

4. Licensing 

Nike gets paid when they let other businesses use the rights to their name, patents or copy-written materials. 

So, it looks like Nike has done a great job focusing their efforts on design, development and marketing the business and the numbers really show it.  Nike does a whole lot of selling.  Do you think this is something you could setup in your business?

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Cheers to your success,



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