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Non-Consumable MLMs
As you are learning, MLMs ask you "To Swallow" allot
(sorry) <grin> However, one thing you should never
swallow is the notion that MLMs with out "consumable" products
are better than MLMs with products you either eat, rub on your belly,
sprinkle around the house. Since WWII there have been 40,000 MLMs
born in America, 130 have made it to their 5th birthday and $10 million
in yearly sales. Out of the 130 that "made it" 123 deal
in nutritional supplements as their main product line.
Yes there are some exceptions to the rule. They tend to be
service oriented MLMs (phone services, financial services, insurance
services, legal services) and they tend to be the absolutely lowest
"available commissions" MLMs on the playing field. The
hope is that you make up for the lower commission percentage in volume.
Generally speaking though, if the MLM Dream Weaver is saying things
like "And in our company there are no pills to swallow, no minutes
to sell, and no over priced household products to dump in your garages"
they are often selling some form of "Air". The Dream
Weavers love these "air" products because they are just about
95% profit. Some examples would be the "Gifting Clubs",
"Pay for Informational Reports", "Web Site / Internet
Mall Sites" MLMs. They are all companies based on
non-consumable, relatively non-tangible products. They may sound fantastic
and like the next bug thing but half a century of numbers predict they
will be the next bug flop!
On the other side of non-consumable spectrum are the durable goods
MLMs. Yes you can sell washing machines (or the laundry balls to
go in them) through MLM but you need a constant supply of new
prospects/customers. Without that customer getting to the end of
the bottle or box at the end of the month you need a constant stream of
new sales. If you stood on stage and said "who wants to pay
to become a professional salesmen" you would get few takers.
If you sold a dream you would get many more. The more durable your
product is, the more sales types you need to make a steady check.
One of the selling points of MLM is that it is a business for
everybody. When you consider that only about 1 in 10 people are
either "natural" sales types or can be trained to be effective
sales types it makes your potential distributor base much smaller.
On the up side is that you are less likely to hit market saturation very
quickly when you require sales types to sign on.
The bottom line is this; MLMs that don't have consumable products to
market have traditionally done even worse than traditional MLMs over the
last 50+ years.
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