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Formula for C.P. [Manufacturing cost + Distribution cost + Advertising Cost + many other similar cost
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The 90% you talk about above goes to Distribution/Advertising/Sales in Network marketing.
The company doesn't need to advertise a product it wants to sell through network marketing. As an altantive it can spend that money on the "Network Marketing Model".
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Value depends on 'supply and demand' [hence, you can say it depends on price of the product, which is obviously decided by supply/demand] not on personal beliefs but on a general beliefs of all the consumers regarding the product.
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There are products with a high first unit cost and a low second unit cost where the supply of the product is practially infinitive (a book or DVD home study course for example).
Most Networking marketing products are in a nich where the company has full control over the supply.
Network marketing allows the company to pay people to sell unit, with little up front cost (a marketing campain is costly).