When you are researching MLM and network marketing opportunities, you will often find disagreement about what is most important when choosing your business.
Some believe that the longevity and overall stability of the company is most important. Others believe that you should look first at what is actually being sold. Many others feel that the compensation plan and payout is king.
While all of these are valid considerations, the first key to success in this business is your products. The foundation of your business is your MLM products. Excellent products help ensure a stable, long-term residual income. Strong and profitable network marketing businesses are built on a foundation of quality products that have lasting appeal to consumers. Without a foundation based on quality products, all you really have to offer in the long run is a money-making scheme. Opportunities built around mediocre products tied to highly-hyped compensation plans don’t last, and should be avoided. Your products are the foundation of a strong network marketing business, and the compensation plan is the driving force that makes everything work.
Evaluate your product or service based on the following criteria.
1) The best MLM products should not be “faddish” in nature. A faddish product could be something like the “latest and greatest” weight loss drink. This might be very popular for a while, but will lose much of its luster and popularity when the next “latest and greatest” product comes along.
A few years ago, diet cookies were a hot fad that caused a lot of excitement. Entire opportunities were built around these cookies. They were a good example of fad products. If you are willing to take the chance, good money can be made quickly with hot new items like this. Just understand that your business might go away sooner than later, after you have spent lots of time and effort building it. If you want a long-term stable business with residual income, your best bet is to look for products with lasting appeal.
2) The best MLM products should be consumable. With consumable products, you can build up a customer base and enjoy repeat sales over and over. Nutritional supplements, skin care, and most personal care items fall into this category. You can make money with non-consumable products, but the residual income potential is not as good. Repeat sales will not be as high, and many of your customers will probably be one-time buyers. With non-consumable items you are always having to find new customers in order to make any ongoing income, and you will need a lot of referral business from your existing customers.
Examples of consumable items that have been sold through MLM include: nutritional supplements, skin care, cosmetics, and weight loss supplements. Legal, financial, and insurance related services could also be considered consumable since they are usually purchased on a regular basis.
Non-consumable products typically sold through MLM include: water filtration equipment, air purifiers, and electronic gadgets.
3) The best MLM products are premium quality. They will have expensive, high quality ingredients that are not typically used in ordinary consumer products. Your products should work better or taste better than anything you find in a retail store. This premium quality must be real, not just quality based on claims as described in sales literature.
4) Do the products offer real value for the money? Is the actual price that customers (not involved in the business) pay reasonable? Ask yourself these questions. Whatever opportunity you are considering, be sure to try the products for yourself before making a decision. Would you buy them at the retail prices if there was no potential for profit?
5) The products should have broad appeal with a large potential customer base. Nutritional supplements, home care, and other personal care lines are good examples of this. Consider whether the MLM products you are looking at could be used in almost any home. How can they enhance your lifestyle? Do they really work or perform as advertised, or is it mostly hype and slick packaging?
Take time to carefully evaluate what is offered by any opportunity you are considering. Whatever business opportunity you choose, the products are the secret to establishing a long-term residual income. Don’t pass over this step.
About the Author:
Eldon Beard is a network marketing professional who shows you how to start and build your home based business successfully. His popular network marketing and MLM blog shares secrets to help increase your income and build your business the right way.
