If a new product is rejected by end users over a short period of time the power of duplication will rapidly diminish. Therefore, companies using multi level marketing must produce highly superior and innovative products at an affordable price. Most don't.
I agree. What a great discussion topic. This topic comes up at the beginning of any Network Marketer's journey so I appreciate you bringing it up. Others may have different opinions but here's my two cents worth:
Products are important in any company to survive. The Network Marketing model is one of the most innovative ways to create long term loyal customers, regardless of the reasons why someone joined or are staying in for the business or just to get the products. This can be demonstrated by the millions of Network Marketers involved in 100s and 1000s of Network Marketing companies around the globe. Good examples of the international old and mature "giants" are Amway, Shaklee, Avon, Mary Kay, GNLD, Herbalife, and Nu Skin to name a few. All these companies were innovative during their early stages and supported their distributors with a compensation that was new to the market at that time.
Also, regardless of the industry, products are affordable for those who see the value in what they are purchasing so whether it's affordable or not is really based on the purchaser's value so it's a debatable topic without a right or wrong answer.
More important is competition from other providers irrespective of the distribution model. A product that is seen as hugely over priced and exposed in the media as being just that, will undermine the confidence of the end users and the distributors.
There is no escape from these 'basics' in the end whatever the compensation plan or hype.
Certainly, I hear your point and I agree that the media will affect some people. So even more I believe it's really a matter of opinion about the price factor because one can't ignore the facts.
I only know facts through my 20+ years of experience in the industry as a distributor and corporate employee. Taking the case of Herbalife, I've heard so many people telling me that it's "too expensive" and overpriced. It was for the people who couldn't afford it. But the fact is, millions of people still take the products and the company did over $3.2 billion last year. And speaking of people who can't afford it? Mexico, one of the poorest of countries, was by far the biggest market for Herbalife the last couple of years. I'm fascinated by this.
I'm on a roll here so just for fun, as another example, there are other successful MLM companies throughout the world selling water filters at over $4000 retail and another company that has successful distributors retail underwear at $6000+ retail. I personally know some of the top distributors of those companies who make their business work through lots of retail and these high end products. It doesn't matter what I personally think about those products and business models because it works for them with or without me. Those companies have tons of competitors out in the market who sell similar products in shops so I'm sure they have people giving their opinion that it's too expensive. But as we know in economics, there is a market share for everyone.
Anyway, I loved the way you stimulated my thinking and I appreciate the chance for me to share my thoughts. Having said that, saying my opinion won't help increase my business so I'll stop here and get back to doing my behaviors! Have a great day!
It needs to be pointed out that there are loads of failures for every success. Companies need to keep innovating and have a competitive pricing policy. It is common sense for the sales force/distributors to give feed back to their companies and for these companies to listen. Many great companies have been ruined by poor leadership.
Now 'back to basics' - making the calls and delivering a great service!