Before starting an MLM business, Everyone knows we need diligence and strategies for some business aspects. But, the things which are more important for MLM business vary from the perspectives of people. Some emphasize on choosing MLM compensation plan and payout. Some others believe a viable product is a key to business longevity. Many other’s have other thoughts on quality Service and retention, to cost-efficient production methods. As said above, out of this, which is most vital for MLM business is still a topic of debate.
We know all above matters for the long-lasting MLM business. But, From our perspective, choosing a viable and quality product matters more. If we have a consumable product in hand, people don’t care much about which compensation plan is applied or How much is the payout. They only have a better appreciation on long-term residual income that comes from the acceptance of the product in the market.
Generally, consumer product’s, especially fast moving one is always the de-facto product category for MLM business. In past decade, Evolution of e-commerce from a platform for tech-only people to an inevitable marketplace for business made this product view more rigid. Here is the Importance Of E-Commerce Software in Online MLM Business.
In recent years service sector also showed how to utilize digital landscape for various service-oriented businesses. Let’s make a point here, For any business looking to the future and long-term progress indispensably needed a digital front. Product or Service, whichever category you choose for MLM business, most imperative thing about it is developing a digital way to do business.
Alike choosing digital strategies, There were many aspects we need a concentrate on our product success. These are some areas we need study and research on the product.
Attribute For choosing Best MLM Products
1. Product Consumption:
A consumable product will help business owners to build a customer base and repeated sales. Fast moving consumer goods like nutritional supplements, Skincare, and personal care gives high repeated-sale index and remains the first preference of MLM industry. This product will provide good residual income for the representatives. Financial, legal and insurance services are always considered as a consumable because these services are purchased periodical.
Explore more to find How to Sell or Promote Products through MLM Business
In the case of non-consumable, residual income is relatively not so good as consumable products. We need to find new customers for these products and very low repeated sale index. But, the main benefit of non-consumable products in MLM is, the company can pay out more commissions on individual recruits since the profit from non-consumable commodities is generally higher. Consumer Electronics, Kitchen wares, are the main non-consumable commodities in the MLM Industry
MLM or Not, quality product is the main concern of every business. Providing our customers a taste of premium quality will have a positive impact on our bottom line. Moreover, recent studies found out that Nowadays customers are more inclined to brands and quality product & service. We can capitalize on this customer behavior by choosing a quality product for our MLM business
3. Price or Value:
Assigning a value to our product is a step that needs due diligence. Before launching our product, Research & study on the price and value of its competition is imperative. By only this means we can calculate the value of our product in the market. Manufacturing costs, taxes, and brand awareness took into account in determining the Product price or value.
4. Broad Audience:
Products that reach broad audience helps business owners to tackle the problem of diversity limitation since many products that are tailored to specific industry, verticals or customers can’t open new markets. A product that aimed at larger audience can also be introduced to price reductions, and many other offers simply by increasing the production quantity.
As said earlier, a successful and demanding product is the key to thriving MLM business and the combination of this above attributes are key to successful and Best MLM products. Try out our Free MLM Software Demo.
5. Company Profile
Many MLM companies just appear and disappear. Many people are selling illegal pyramid schemes and Ponzi schemes disguised as MLM companies. They may look like genuine MLM companies but would be nothing more than scams. And few companies that start with highly attractive plans slump down into losses soon after. So make sure that the company has been around for at least 5 years. The lifetime of a company can be an indicator of its genuineness.
6. Compensation Plan
Compensation plans vary depending on the company. Make sure the compensation plan you choose is easily understandable. There are basic and well-established plans like unilevel MLM software and binary MLM software. Make sure that the company is paying enough and considering their base-level distributors. If you notice any get-rich-fast schemes, be careful. Know if you are getting compensated for recruiting new members without any product selling. Genuine MLM companies do not do that.