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MLM Products Priced Too High?

by Jon Tees
7 replies
You’ve seen it I won’t name names, but honestly what retail customer is going to pay $25 for a box of regular unflavored coffee or $32 for a box of hot chocolate online, when they can easily purchase these items in a local retail store for alot less? Granted the products in question may or may not offer health and nutritional benefits, but I just can’t fathom customers who aren’t distributors getting a wholesale discount paying these prices.
This is why I feel so many people struggle to make money in mlm and network marketing (myself included until I got fed up and quit) when customers think and use common sense business owners lose money.
#high #mlm #priced #products
  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by Jon Tees View Post

    You’ve seen it I won’t name names, but honestly what retail customer is going to pay $25 for a box of regular unflavored coffee or $32 for a box of hot chocolate online, when they can easily purchase these items in a local retail store for alot less?
    Retail customer? No. Very few indeed. Mostly people who are distributors buying them toward their "monthly volume", "autoship", "qualifying levels" or whatever.

    That's just not honest MLM (according to regulators and courts, these days).

    Sales of products (or close equivalents) readily available elsewhere at lower prices are clearly no underlying basis for building a successful MLM business. This should surprise nobody.

    Originally Posted by Jon Tees View Post

    I just can’t fathom customers who aren’t distributors getting a wholesale discount paying these prices.
    No indeed - you're absolutely right. But these days, that's why MLM companies are increasingly getting into trouble (in the US anyway) because some are not even pretending to comply with the "70% rule", and state courts are now regularly and reliably upholding that as a rule of precedent law in closing companies down, when there are enough complaints about them for regulators to take an interest (which can still be very slow and selective, of course).

    I'll name no names, since you didn't, but these days even some "older, quite well-established companies" are finding that their legal compliance isn't quite as fireproof as they'd always imagined (i.e. the ones who made the mistake of imagining that the 70% rule was "just a guideline and not a law" and would never catch them out. Some have discovered to their surprise and dismay that precedent law can be just as enforceable as statutory law).

    Am glad to read that you've dropped out of your specific (unnamed-here) company, Jon. I think you did the right thing, and I wish you very well.
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  • Profile picture of the author Tsnyder
    Originally Posted by Jon Tees View Post

    You've seen it I won't name names, but honestly what retail customer is going to pay $25 for a box of regular unflavored coffee or $32 for a box of hot chocolate online, when they can easily purchase these items in a local retail store for alot less? Granted the products in question may or may not offer health and nutritional benefits, but I just can't fathom customers who aren't distributors getting a wholesale discount paying these prices.
    This is why I feel so many people struggle to make money in mlm and network marketing (myself included until I got fed up and quit) when customers think and use common sense business owners lose money.
    Agreed.

    In my opinion about 90% of the products sold via MLM are
    over priced. I'm fortunate enough to be associated with one
    whose products are actually 1/3rd to 1/5th the price of our
    non-mlm competitors (for the same or better quality).

    The business model is genius but you have to have the complete
    package if you're going to enjoy long term success.

    Tsnyder
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    If you knew what I know you'd be doing what I do...
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  • Profile picture of the author Jon Tees
    In my experience there is alot of deception when it comes to health and wellness products in particular here is a prime example.

    “Take this and you’ll look and feel 10-20 years younger, your aches and pains will disappear instantly.”

    In small print at the bottom where most people will never see it or bother looking for it.

    Warning product may cause dizziness, nausea, fatigue, impotence, diarrhea, constipation, dry mouth and death. Claims have not been verified by the FDA nor has the product been deemed safe consult a physician before you begin using this product.
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    • Profile picture of the author Raydal
      Originally Posted by Jon Tees View Post

      In my experience there is alot of deception when it comes to health and wellness products in particular here is a prime example.

      "Take this and you'll look and feel 10-20 years younger, you're aches and pains will disappear instantly."

      In small print at the bottom where most people will never see it or bother looking for it.

      Warning product may cause dizziness, nausea, fatigue, impotence, diarrhea, constipation, dry mouth and death. Claims have not been verified by the FDA nor has the product been deemed safe consult a physician before you begin using this product.
      It's ironic in a funny way that your post was in fine print.

      -Ray Edwards
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      The most powerful and concentrated copywriting training online today bar none! Autoresponder Writing Email SECRETS
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by Jon Tees View Post

      In my experience there is alot of deception when it comes to health and wellness products in particular here is a prime example.

      “Take this and you’ll look and feel 10-20 years younger, your aches and pains will disappear instantly.”
      I agree.

      I think it's a combination of deception, naivety, ignorance and lack of compliance, but some well-established "healthcare/nutrition" MLM companies have certainly been brought down (and closed down) by the irresponsible behavior of some of their distributor-groups and their illegal health-claims.

      In this current climate of increased regulatory enforcement and litigation, if I were looking at MLM companies, I'd certainly be giving a very wide berth indeed to any selling things that people swallow. Litigation City awaits.

      There are even people out there who are stupid enough to sell chocolate - a close-to-perfect product for MLM, you'd think? - as "cancer prevention" (it doesn't actually even matter whether or not it's true: it's still a stupid thing to do!). :rolleyes: :p :rolleyes:
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      • Profile picture of the author MerlynSanchez
        Originally Posted by Alexa Smith View Post

        There are even people out there who are stupid enough to sell chocolate - a close-to-perfect product for MLM, you'd think? - as "cancer prevention" (it doesn't actually even matter whether or not it's true: it's still a stupid thing to do!). :rolleyes: :p :rolleyes:
        I know, really! Most people don't need an excuse to buy chocolate ~ I know I don't!
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        • Profile picture of the author Tashi Mortier
          There are so many MLM Scams out there that really sell their stuff way too expensive.

          MLM isn't for every company. Too many people just think "Hey let's make an MLM company, other people are going to sell our stuff, we just do the Hype and desperate money makers will come!"

          And that's what happens a "me-too" product gets thrown on the market, people come, have no success and again lots of burned ground and prospects that charge at you when you start talking about MLM.

          I'm currently not active in my MLM company but I still buy and use the product. It's way more expensive than other products but the quality is way superior, too. I know a lot of people that always miss the products even when they quit the business.
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