Is The Network Marketing Product Over Priced?

How important is the network marketing product to growing a successful MLM business? I'm not talking about network marketing in general but just the product.

Whether it's nutritional, personal care or any other type of network marketing product, it's long been believed leading with the product when prospecting is not the way to build an MLM business. I'm not so sure about this.

Promoting Network Marketing Products

Without the base products, what has an MLM company got? Nothing, so to say products are not an important part of the business structure is ludicrous. But you don't see distrbutors mass promoting products when you take a closer look at the world wide web or offline.

Why?

Well, network marketers create future big pay days by recruiting. They are taught to recruit and companies know their main bottom line comes from the strength of their distributor force. That's where the real money is for them.

It's all about creating a long term sustainable income and while distributors use the products themselves and keep up with their monthly autoship payments there really isn't any need to mass promote products on a large scale to the general public.

Take a look at some of these facts:nn- Did you know traditional network marketing distributors are responsible for over 75% of product consumption within traditional MLM companies.nn- The opportunity to make handsome retail profits selling network marketing products are limited. Margins of 10-20% are not attractive enough for distributors to concentrate their efforts in selling the product and to be honest, cheaper alternatives are usually available in many cases for consumers elsewhere.nn- Companies rarely incentivize the retailing of products for distributors so the attractiveness to retail them to the public is not really there.

It Starts With Your MLM Product

So how can your network marketing product help build your business? Well, just retailing them won't create a recurring, sustainable long term income for you but in the early stages of building a business, creating a customer base who use your products is important for two reasons:nn- You are creating front end income and volume which is critical during the early building phase because this is where you need supplemental income to support the early spending phase in your business.nn- Product users will sometimes become distributors. Yes, believe it or not some will join you in business. It may not happen right away but that's the beauty of the MLM business... it's one of leverage and the network marketing product is one cog in the game of leverage.