On the Business For Home Facebook page we asked recently our industry experts and top leaders community the question:
Are Products Network Marketing Companies dead?
An argument often used by services orientated recruiters. Nothing wrong about services network marketing companies, however the statement – “Product Marketing companies are dead” is just not true.
The overwhelming majority is very positive about the power of product based companies, as they support the opinion that it maybe takes longer to build up a team and a customer base, however product network marketing companies are here to stay and reliable.
- Andrea Orru says:
“In my opinion, the stability and longevity of an MLM are stronger with a unique, high-quality product. A tangible product often enhance customer loyalty and sustain long-term growth. On the other hand, service-based MLMs, (those one valuable and legal ), may face a challenge in differentiating themselves in the market, as many services are basically the same stuff with just the “brand name” different.
I am not against the potential of service-based companies (the legal one, of course), but I believe a strong, unique product can be a more solid foundation for building a stable business.
- Lance Smith stated:
“While product companies were arguably hit the hardest over the last three years, they have an undeniable ability to fill the majority of the top spots year after year.”
“That thought / “fact” is laughable. Product MLM’s drive this profession with the greatest marketplace force.”
“All sales occur because someone is buying a product or service. Not sure why anyone would not understand the importance of customer and distributors buying products or service.”
“I love product mlm. A product that is high impact and makes a difference in people’s lives. We are experiencing double digit growth month over month and almost double sales volume from 2021 to 2022. We have a very high percentage of customers on auto ship – they don’t quit because the product is that vital to them.”
“It’s always funny when I hear that. Product companies are all the biggest MLM’s in the world. Show me a single service-based company that is in the top 10 or even 25.”
“It’s only dead for those who subscribe to the message. My message is when something has died inside you, never invite others to be a part of your mental funeral.”
The growth of product network marketing companies can vary depending on a variety of factors, including market conditions, the specific company, its products, and its business model.
Here are some general key points to consider regarding the growth of product network marketing companies:
- Market Conditions: The growth of MLM companies can be influenced by economic conditions, consumer trends, and the overall demand for their products or services. In some cases, network marketing companies may experience growth during economic downturns as people seek additional income opportunities.
- Product Quality and Appeal: The success and growth of an MLM company often depend on the quality and appeal of their products. Companies offering innovative, high-quality, and in-demand products may have a better chance of growth.
- Recruitment and Retention: MLM companies rely on recruitment to expand their networks. If they can attract and retain a large and active distributor base, they are more likely to grow. However, maintaining a strong distributor base can be challenging.
- Regulatory Environment: MLM companies often face regulatory scrutiny and legal challenges, which can affect their growth. Companies that operate within the bounds of the law and have transparent compensation plans are more likely to thrive.
- Online Presence: The internet and social media have become powerful tools for MLM companies to reach potential customers and distributors. Companies with effective online strategies may experience growth.
- Reputation and Trust: A company’s reputation and the trust it builds with its distributors and customers are crucial. Negative publicity or unethical practices can harm growth.
- Global Expansion: Some MLM companies expand internationally to tap into new markets, which can lead to growth if done successfully.