No doubt magnetic therapy has always being within the debating
hot topics when it comes to products, and one of the 3 mlm
companies which i've being to previously even mentioning about a
public hosptial using it with photos.. LOL
but over time as I continue to watch and get updates, I can and
will agree to your thinking to a certain level perhaps 50/50.
With this in view:
Let's look at the issues from different point of views.
1)
Advertiser
To cut cost, getting mlm agents and company to sell it is the
most low-cost way that the current market know of, BUT i've learn a
even lower cost marketing strategy plus it's also word of mouth but
without any MLM practices..will keep it as my business secret for
now until I've made some decent revenue to proof the efficiency of
it first before I decide to share with anyone.
when a new product comes into a market, one of the possible
reason why they choose mlm is primary because it's low cost.
Backend reason which I presume only might because the
advertiser/supplier of the new innovative product has already spent
a huge chunk of capital to invest in the R&D segment to come up
with the finished product than with low cash flow, they have little
marketing/advertising choices left ma.
2) MLM
Company
They get to be the contracted SOLE Agent representing the
advertiser/supllier of the product, so once the advertiser signs
it, it's as good as losing control rights over the product at least
until the amount of years stated in the contract.
This benefits the company but not to the advertiser/product
supplier if he/she aren't well informed in making an informed and
wise decision to choose which mlm company to help market their
products.
3) MLM
Agents/Distributors
when given the right to sell a new product, they should be
happy, but due to heavy competition among the same company agents,
it's not recommended for a complete newbie to enter into the ring
of competition.
so depending on how the agent is taught and decisions made, be
it the success or failure of the mlm agent in the journey of mlm,
it all boils down to the decision he/she makes when she decides to
help the company market the product using whatever methods they are
taught if they are just mere sellers and not product consumers.
it's true that many are taught to be great sellers and not as a
consumer point because they themselves are hard up for cash thus
that's the main reason why people
OVERSELL/OVERPROMISE the advantages of the
products because they themselves the agents aren't using it. I
myself was once such an agent but only for a short period of 1-2
weeks before I see the super negative impact on my reputation thus
causing me to re-think and reposition myself to what I am
today.
4) Customer point of
view
from this point as a client, COST is the most
important factor, and for us to get good products at a much lower
cost would mean that the product that you want to buy already has a
HUGE DEMAND without any advertising locally in new
country (market) this way they can afford to MASS
PRODUCE.
Since it's about magnetic therapy, the concept nonetheless is
still new so demand is still considered
LOW, thus they can't MASS PRODUCE it just to bring
cost low. Just think of this from another view, if they have
no ready buyers to buy the Mass Produced Products,
they end up paying more on products space rental, storage, which
will gradually increase over time thus it makes no buisness sense
to mass produce without a ready market with results in huge
losses instead
I hope I have answered your questions and have given you a
balanced response which you're satisfied with. :)
If there's any queries, feel free to ask.
Best Regards,
the_fallen
1. Advertising. That's what a lot of MLM introductory videos
say. However, whether cash that potentially goes to advertising,
goes to R&D instead nobody knows. No one but the owner and
maybe the top handful of people in the MLM firm knows. It could be
just become more profits for the firm.
2. MLM Company. Do they really get to be the sole agent? Product
companies just repackage their product A to become product B and
assign another sole agent. This do not benefit the MLM firm at all.
In fact the product companies are "playing" the MLM firms. The
owner of the MLM firm knows, but to them any product is a good one
if it brings in the revenue.
3. MLM Distributors/Agents. Today be it you're an agent of a
particular firm, you compete not only with other agents but also
against the retail market. Take for example the Vit C, or the
whatever water purifier system that many MLM firms and retail
stores sell. Firstly, MLM's products are not distinguish-ly good,
secondly, they are not significantly cheaper. In fact, most are
more expensive. So how is trying to sell a more expensive, "never
heard before brand" of Vit C via MLM better than Guardian's Vit C
or Nature Farm's Vit C?
4. Customers' point of view. You got it the wrong way. A product
does not have any demand without advertising. Advertising creates
the demand, before people buys the product, not the other way
round. Will anyone buy colgate before they know colgate helps
prevent tooth decay? No. People buy colgate because through
advertising, they know that colgate helps maintain better
teeth.
MLM firms can say all they want about the power of word-of-mouth
marketing. There are several studies proving this, but there are
also studies that are inconclusive.
However let's use some common sense. Virgin Mobile came into SG
ard 10 years ago, I'm sure many would recall their official opening
with the CEO Richard Branson adsailing down their office building.
That advertisment alone informs more people in a short time more
than any word-of-mouth marketing can do.
Say today you really discover a new powerful product, say a
super vit that ensures the product user will no longer fall sick in
their lifetime. This SuperVit is so good that it immunises people
against cancer, heart diease, all the stupid flu-s, and SuperVit
ensures great skin with eternal youth. Would you go by slower
word-of-mouth MLM style, or would you launch your product through
all the retail lines via big bang advertising? This is a no-brainer
ya.