When trying to decide what Network Marketing MLM Lsd to promote, it can get a little confusing. There are over 900 active companies worldwide and most of those companies have more than one product, so imagine how many products you have to choose from. Again, a person could go crazy analyzing every product. Therefore, I’m going to show you how to use the top 4 components you need to easily identify a product or service that is designed for success!
When you’re researching products, a very important aspect to that product is whether or not the industry it belongs to currently growing or declining, and what has the growth pattern been for the last 10 years.
For all Industries combined in 2010, in the United States alone, direct sales were 28.56 BILLION dollars. Wellness accounted for 23% or 6.57 BILLION dollars of those sales. Ten years ago, in 2000, Direct Sales for all industries combined were 25.57 Billion dollars, and Wellness accounted for 16.9 %, or 4.32 billion dollars. That’s a 52% increase in sales in that industry over the last 10 years. Folks, that’s HUGE!
In 2000 the Personal Care Industry accounted for 26.4% of over-all sales, or 7.54 billion dollars, and in 2010 accounted for only 19.4% or 5.54 billion. A decrease of 26.5% decrease in overall sales. That’s also HUGE!
It doesn’t mean Personal Care is a bad industry with bad products, these are all good industries and good products. It just means through the distribution of Network Marketing (Direct Sales), the sales have been steadily declining over the last 10 years.
These are the kinds of things people who have become or people who are millionaires analyze when making decisions. They find out what the demand trend is before they begin to market a product. They don’t base it on whether it’s only a $500 investment or a million dollar investment. Start thinking like a millionaire or you’ll never become one.
Some products create “repeat sales” while others create what’s called “A one-time sale”. Now, I don’t mean to pick on a specific industry, but I need to show an example of a one-time sale product. So for those of you already marketing these products, this is intended to help you understand business concepts, not make you feel bad.
One-Time Sale: Let’s say you promote jewelry, and one of your friends buys one of your products. They aren’t going to buy that same piece of jewelry again. Therefore, that is a one-time sale. In Network Marketing, the “One-time Sale” forces you to do two things:
Repeat Sale: Let’s say you promote nutritional shakes, and a person buys your product. They get a 30 day supply, and every month after that they get another 30 day supply of that same product. This type of consumable product creates the “Residual Income” that is the primary concept behind the Network Marketing MLM model.
Again, neither of these is good or bad. Just know what you’re getting into. If you’re starting a business to build an unlimited stream of income, then it stands to reason that a consumable product that creates a “repeat sale” is a very important requirement.
Despite what most people read on the Internet, pricing is not a huge factor when choosing a product or service to promote. The product just needs to be competitively priced. More importantly, you need to be able to identify which product you can easily promote (meaning do they have a great marketing plan with a perceived value). So don’t get too hung up on pricing. You have to know your product is competitively priced, but the reality is, it’s the marketing plan and perceived value that will drive the sales.