Are your MLM Products too expensive?

It’s a good question to ask, and there are a few slants on the subject to consider?

I am not going to give the same boring pat answers that most do, justifying the cost like “Well its only $6 a day for our health juice, and anyway, what price can you put on your health anyway?” Really well that’s $180.00 a month, for a fruit juice!

There is craziness with MLM Companies that think because they are an MLM Company they can charge what they want, and many MLM products in my humble opinion are TOO EXPENSIVE by far.

Many MLM products in my humble opinion are TOO EXPENSIVE by far!

You cannot justify a product being 2-3 times more expensive then it needs to be just because you have a thirsty compensation plan to pay out. In fact most Companies do not pay out much in direct sales commissions, it’s all overrides for greedy uplines.

In today’s market, obscenity and greed just do not cut it anymore. The challenge for all MLM Companies, especially the new ones hoping to make an Impact is to price their products using a formula I call “Par for Market”. In other words they should be perceived as “Justifiable value” to the consumer and distributor alike.

With a bit of creativity in compensation plans (Subject for another post) Companies can still pay out great commissions, but by pricing their products “Par for Market” they will make up in volume of sales over fewer sales at a more expensive price.

I see too many new opportunities where they fall into the old model trap, I mean imagine paying out $500+ a month for all the products they say you need?

Have you ever joined an MLM, carried by the hype and the stories of miraculous product results and paid the expensive Autoship for a couple of months and then found the only other people buying are other distributors, that the products are quite simply priced too high for the average consumer? I have, I felt so strongly about it (As most secretly do but often will not admit it) that after much agonizing in my soul I quit the business.

This is a tragedy, because if the same amazing product was sold at half the price, they would fly out the door, if that happened although your commissions (may) be less per sale, you would make probably more money as what do sales mean? Yes you are right, lots of DOLLARS, Pounds, Yen or whatever your currency is.

However because most MLM’s miss the point, they continue old ways justifying that its always been done that way, MLM Companies continue to get a bad name, and the once inspired entrepreneurial new distributors drop like flies with shattered dreams, they lose their belief as they just cannot justify the prices of the products to their potential customers or to themselves.

“Par for Market” is all about psychology, your customer has to feel comfortable paying the price, all distributors need to be proud of the value, and if so sales will flow, and if not, well you know the answer?

Today people demand more, honesty in pricing, value will win every time, folks just do not have the disposable income they had in the 1980’s or 90’s!

Today people demand more, honesty in pricing, value will win every time, folks just do not have the disposable income they had in the 1980’s or 90’s!

So MLM Company owners, if you are scratching your head worried about poor sales or crippling behind the scenes reality (Considering going out of business)then you need to ask yourself a couple of challenging questions. Are you products priced par for market, is your compensation plan paying using an out of date model that prevents you from selling your products for fair value? If not you need to perhaps consider a re-vamp of your marketing strategy.

If you are a distributor faced with such a reality, unless you have a large team, maybe its time to find a neat Company with nicely priced products? Or if you cannot find one, create your own!

 

 

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