Tuesday, July 12, 2011

Big MLM Tip - Best MLM Opportunities - Value Pricing

The Best Best MLM Opportunities will always have value pricing. They understand that value sells and hyped, inflated prices do not. 

Some companies put such a mark up on their products that similar, or even sometimes the exact same, product can be purchased at a local store for a fraction of the price. You can bet there is no retailing going on in those companies. Sure, their comp plan will show some amazing commissions, but it is much harder to make the "sell" with inflated pricing. 

Here is a (somewhat) hypothetical example:

Company A sells widgets for $79 retail, but distributors can get them for $39 wholesale. Want to resell them at $49? Not so fast. The company has a strict policy against retailing at a discount. Sure, you can sell to people at your cost if you place the order for them, and you get credit for the volume, but what is your percentage, 5%, 7% or maybe as high as 12%? And that is on the RETAIL price. Of course, to get customers, you will have to order for them through your back office to get the wholesale deal for them. While this counts toward your volume, percentages on the wholesale price are typically less.

Company B sells a similar widget for $34.95 retail. Everyone pays the same price. If someone goes to your retail page and orders the product, they will pay the exact same amount you would through your back office. It is much easier to sell products when they are a good value to the customer. While it is rare in MLM, I have even seen a company that sells a better product cheaper than the competition. This competition even includes similar products in traditional brick-n-mortar retail stores. How many companies can say that? And, it is all due to value pricing

If an MLM Company, and its distributors, makes their money from the retail sale of products, which of these two companies do you think is paying out more commissions? 

It’s simple.
value pricing = More Sales = More Commissions Paid

Best MLM Opportunities - Value pricing

Best MLM Opportunities - Value pricing

Best MLM Opportunities - Value pricing

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