How To Choose Best MLM Products for Your Network Marketing Business
How To Choose Best MLM Products for Your Network Marketing Business
Their will be a lot of questions in your mind like “How To Choose Best MLM Product for Your Business? What are the things to consider while choosing an MLM product ? Right.
Products are the backbone of every direct selling company.
Did you know
According to DSA (Direct Selling Association) 2020 report , Most popular product categories in direct selling in 2020 are wellness, cosmetic & personal care, and household goods & durables.
Earlier companies were adapting MLM compensation plans to promote their products and operate direct selling businesses. But now things got reversed, MLM companies choose products for their compensation plan.
The right combination of MLM compensation plan and products makes a direct selling company perfect.
In this post, we are going to discuss more about MLM products and give you some ideas to pick the right products for your direct selling business.
So let us first understand what exactly MLM products are.
What are MLM Products?
MLM products can be physical goods or any type of service provided by MLM companies. MLM products are either promoted to end customers or consumed by direct sellers.
There is different product price for the direct seller which is often called DP (Distributor Price) and MRP (Maximum Retail Price) which is the cost to the customer.
On every sale of MLM products, MLM Company shares commission with their distributors.
A company’s revenue, sales, and compensation plan highly depend on the products they sell. So it is crucial to choose the right products for MLM Company considering all vital aspects.
These are a few important attributes to consider while choosing products for an MLM company.
In our MLM products recommendation, we will not consider any services. Earlier MLM companies used to sell holiday packages, coupons, education packages, and other internet services. But now most of these services are either free on the internet or available at very low prices. Therefore using these services will not create any significant impact in long term.
Now various MLM companies use cryptocurrency as services, but most of them are money circulation schemes.
So we don’t want your company to look like a fraud scheme. We will only look forward to genuine physical products, which will make your direct selling business a legitimate opportunity.
The most important attribute to consider is to get a high margin on each sale.
MLM companies have to distribute a large amount of commission to a network of distributors. If MLM Company is not able to provide a high commission on product sales, then distributors can move to some other MLM company.
The difference between MRP (Maximum Retail Price) and product cost to the company should be at least 25%. So the company can provide products to distributors at a lower DP (Distributor Price) and distributors get a decent retail commission.
Meanwhile, products should not become overpriced for consumers, which is our next attribute to follow.
Cost-effective is another major factor to consider. Products of most MLM companies are expensive than the retail market, which is mainly due to commission distribution to direct seller network.
It is a challenge for most MLM companies to make products inexpensive
Moreover, average income varies according to country. For example, $10 for a T-shirt is the usual price for Americans while same price is expensive for the average Indian.
Hence MLM companies should avail products at an effective cost as per the respective market and competition.
This can be made possible by choosing high-margin products, bulk productions, better supply & distribution and efficient warehouse management.
MLM Software of your company can also help to some extent. Advanced MLM Software has features of inventory administration, order management, and shipment tracking which supports rapid streamlining of product supply.
Our MLM software solution Ventaforce provides all these features at your fingertips. You can take a free demo now.
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Another trait to follow while choosing MLM products is demand. It’s hard for distributors to find new customers and downline every month. Hence customer retention comes into the picture. If products are purchased every month then it will benefit distributors and the company both.
This is only possible when MLM Company has demanding products. Like we all need grocery products every month, so active customers and distributors will make purchases at regular intervals. Most MLM companies have such products and the same should be considered.
To make products cost-effective and highly profitable, sometimes companies compromise with the quality. MLM products should be reliable and of decent quality justifying the price.
Distributors have to promote products ahead. If there are flaws in products, then distributors will not choose that MLM Company.
So quality is an important factor while finalizing MLM products. Moreover, special attention should be given to product packaging to make products look premium, as the first impression matters a lot.
There are various product options available in the market which follows the above points, but all of them can’t be used in MLM business due to supply, distribution and storage issues.
Direct sellers need products with easy supply and distribution. MLM companies can’t sell the following products for the given reasons.
- Electronics like TV: They need special care and installation.
- Milk & Dairy Products: They need a daily delivery system and are low-margin products.
- Furniture and Major Home Decorative: Need a store for showcase and a rigid transportation facility for delivery.
Products of MLM companies should fit in monthly shopping beg, so distributors can promote and deliver them using their own facilities.
Best Products for the Network Marketing Business
Now let us move to our MLM products recommendation which you can choose for your company.
The world is continuously growing. People are getting wealthier and more aware of themselves, which induced the use of personal care products.
Personal care mainly includes caring products for different body parts, such as hair, skin, eyes, lips, nails, and genitals.
Personal care products also vary according to age, gender and weather. Companies have a large product segment to offer in it. Many individuals follow a daily personal care regime so they need these products on regular basis.
Moreover, people want the best personal care products for themselves, therefore the luxury personal care products range is also an option to get a high margin.
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Another product range that is currently most popular in the direct selling industry is nutrition and wellness.
Multivitamins, multimineral, protein powder, mass gainer, and all other supplements provide heavy profit to known brands.
So you can also build your direct selling business on nutrition products and create a legacy. As per the current body state of individuals, demands can be created. Nutrition products are consumed on daily basis, hence customers will make repurchases.
Many people are done with artificial cosmetic products and want to move towards chemical-free products. Here herbal products come to pictures, especially organic ones.
From personal care products to health supplements, they can be made from herbs using 100% organic processes.
The herbal product market is getting bigger every day and demand is also increasing, either manufacturing or taking supply from another manufacturer both choices can opted.
Even distributor’s work gets easier with Herbal products, as their marketing task become easier for promoting 100% natural products.
FMCG product list is consists of thousands of products. Processed foods, cleaning products, office supplies and baked foods, most of the products available in your nearest supermarket are in FMCG products.
FMCG products are low marginal but they are most demanding and fast moveable which offers easy supply. Every civilized individual needs FMCG products. Quality and cost-effective FMCG products can change your MLM business game.
Selling premium clothing is another best option for direct selling companies. There are different types of clothing requirements as per age, gender, weather, and interest.
The clothing industry is majorly dominated by popular brands. But offering premium clothing at a reasonable pricing and distributor support can make things goes right. User reviews are important while purchasing clothing items and MLM is based on word-of-mouth marketing, this is another plus point to utilize.
There are some health and medical products which can be sold without prescription.
We are not talking about OTC medicine which requires strict approval from health authorities of different countries. But some products like face masks, sanitizers and other small medical items can be used.
MLM companies can import such products from approved and trusted medical product suppliers to promote the best products to consumers. These products provide heavy profit on each sale.
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