Why is everything in MLM / Network Marketing always overpriced relative to the retail sector?

by admin on September 29, 2009

I thought MLM was supposed to cut out the middle men like advertisers and wholesalers so that it could bring lower costs…instead we see ridiculously priced vitamins, $100 6 packs of juice, phone services with ridiculous rates, financial services twice as expensive as anywhere else…etc etc…the list goes on and on.

Simple. in MLM, you replace one middle-man with five or six. You get a commission, the person above you gets a commission, the person about them gets a commission and so on and so on. That’s a lot to pay out in commissions, so the price has to be higher.

I hope that helps.

{ 5 comments… read them below or add one }

Allison N October 2, 2009 at 1:17 am

MLM Pyramids are scams. That’s why the products are overpriced. Seriously.
References :

Michael K October 2, 2009 at 1:39 am

Simple. in MLM, you replace one middle-man with five or six. You get a commission, the person above you gets a commission, the person about them gets a commission and so on and so on. That’s a lot to pay out in commissions, so the price has to be higher.

I hope that helps.
References :

theosharatos October 2, 2009 at 2:22 am

that’s why you have to be picky. be sure you can benefit from it.
References :

Minkow October 2, 2009 at 2:50 am

If it was such a great deal… Participants would lead with the product and/or service.

It is the job of the rep to get customers (friends and family) by making them feel as though they are supporting them whether it is more expensive or not.

Anyone who has been involved or has studied the compensation plans or the MLM/Network Marketing industry knows that the money comes from recruiting. Anything else is pretty much hog wash. Especially making claims such as price savings and that the industry will someday take over the retail sector. i.e. wouldn’t you rather buy from someone you know?
References :

janesjunque October 2, 2009 at 3:32 am

I belong to a company that has savings as the top product. Seriously, the main purpose of the company is to find ways to save you money! I just got started with this company. It is called Team National. My sister has been with the company for about a year now. She has around 45 people in her network at this time.

There are many ways to make money with this company. BUT, it is also has a great benefit package. The first time my sister used her benefits package she saved more than the cost of her membership.

It does not cost anything to be an Independent Marketing Director for the company. You just sign up, and when you sell a benefits package, you get paid weekly. In order to receive the savings of the benefit package, you do have to buy one, though.

She has been after me to get on board with her for a year now! I finally did, because I told her to "show me the money, and she did!" I’m going to give you a link to her website, because I don’t have one yet. With this link, you can find out all about the company and its many benefits.

The company has been around for over 10 years, so it has stability, yet the market is not saturated with people. So, there is LOTS of opportunity for advancement. They are also members of the BBB, the DSA, the US Chamber of Commerce, and Dunn and Bradstreet listing. To me, the D & B listing is very important, because it means the company is financially solid. The others are also important, because they are in good standing with all of them. I feel this means that they are a reputable company.

My Sister’s name is Vikki, and I am Jane. You can tell her that I gave you a link to her website. You can also send me an e-mail if you are interested in learning more.

Jane
AKA janesjunque@yahoo.com

http://www.bign.com/TeamNational.aspx?site=vacole

References :
DSA- Direct Selling Association
BBB- Better Business Bureau
US Chamber of Commerce
D&B Dunn & Bradstreet

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