Monday, October 24, 2011

Big MLM Tip - One Trick Pony

The MLM world is full of companies that fall into the "One Trick Pony" category. As a matter of fact, I would say that this accounts for a large percentage of MLM Companies. What is a One Trick Pony? It is a company that offers only one product or service.  You could widen this definition to include companies with a single product line. A single product might be okay to start, but more should be added soon. 

So, what's wrong with a single product company? We all have our niche, but a single product company creates a very narrow niche. This can put a serious dent in your number of prospective partners. 

For example, if your only product is a weight control product, you have cut your prospect pool down to only people who need to lose weight. While that is still a large number, it would be easier if you had a larger number of potential prospects to start with. Also, what happens when people use the product? In the weight loss example, either the product dose not work as promised, in which case people quit buying, or it does work, and people lose weight, and eventually quit buying the product. For MLM to work, it requires ongoing sales. If people stop using the products, for whatever reason, residual income is going to be non-existent. 

Now, there are companies out there who have several products listed on their website, but they would still fall in the category of a single product company. MLM Companies often times take a single product, then create a few different flavors and tell the world they have multiple products. The other way a company could fall into this category is by creating such a narrow variety of products they are virtually all the same. 5 or 6 products, all revolving around a particular ingredient, or all intended to have a similar affect, are the equivalent of a single product. 

The problem is, with a single product, or narrow niche, MLM Company is the field of prospective business partners. Face it; there are more prospective partners for a general nutritional company than for a company who focuses only on weight loss or some other narrow niche. Does this mean you cannot make it work with a Single Product MLM Company? Not at all. 

As with the most of this series, my intent is not to be overly critical, but to let you know what you have to work with. It is up to you to decide how wide a net you care to cast out.

Now, with that being said, this is where we enter the really critical part of this post. There is one other thing to consider when looking at a single product company. You have got to look at the company ownership, and where they got their start. Many of the single product MLM Companies out there are nothing more than an off shoot of a larger, outdated, flat-lined MLM Company. The original company starts seeing a lack of growth, so they find some new product, and launch a new company. Then, they pick the most active people from the original company and convince them to jump over to this new company. Sadly, the people in the original company just lost large portions of their business because their company stole them away. So, if they did it once, do you think they may do it again? Do you want your business stolen from you?
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