The Opportunity Cannot Justify the Product Price

Article by INM Guide

I have been using attraction marketing for several months now, and in addition to attracting potential customers and business partners, I have managed to attract a large number of solicitors of other business opportunities, as well. If I have the time, I always engage them in conversation, because I feel I can learn valuable lessons from anyone, even if the lesson is what NOT to do.

A prime example of this is when I ask about the product their company is offering. I will almost always question the price, just to hear how they respond. Some will talk about how fantastic the product is, and how it can't be compared to something similar on the retail shelf. That's ok. Some, however, will dismiss the price almost instantly, and explain that the opportunity, or some aspect of their comp plan, makes the price insignificant. This is a HUGE red flag for me, because it tells me there is not going to be a retail base.

There HAVE to be Customers

If everyone is in the company for the opportunity behind it, it's not going to work. It amazes me that people are so willing to overlook this simple point. Not everyone can make money selling the product. Some peoplehave to be happy with being a customer, and nothing more,if the company is going to survive for long.

Now, there is nothing wrong with people enrolling as affiliates, or distributors, or whatever the name is in that company, in order to qualify for wholesale pricing. Just as long as that price isn't contingent on them recruiting other members or customers themselves. This is the 'Costco membership' analogy. They pay a yearly membership fee and get reduced prices in return. That model works just fine.

When only the people seeking an opportunity to make some money are the ones using the product, this is a sure sign of disaster. Not everyone can actually make more money than they are paying for their product. If this were to actually happen, the company would go bankrupt. This is what most compensation plans are designed to prevent (if you thought they were designed to make you rich, think again).

So, what inevitably DOES happen in this scenariois that people become frustrated and drop out when they can't cover their product cost. To them, the only value of the product is in its potential to make them money, so when that doesn't happen, it's over.

You Don't Have to be a Customer, but Someone Does

I've often heard it said that in order to be successful in network marketing, you have to believe in the product and be a user of it. I don't think this is necessarily true. The reason this philosophy exists is because people have wanted to believe that network marketing isn't selling; it's sharing. Sorry. It's selling. And when you are selling something, you simply have to see the value in the product for your target market, and help them to see it too.

For instance, the sales agents selling Hoverounds (electric wheelchairs) are probably not users of the product themselves. This doesn't mean they can't help potential users to make a buying decision based on its benefits to them.

Does the Product Have Intrinsic Value?

The point is, when working with a network marketing company, it is not crucial that you be a customer of the product, but SOMEONE has to be. A good idea before joining a network marketing company is to ask yourself who the target market is for the product. Try to do some market research for that target market. Are they already buying similar products? How much are they spending on them? What does this product offer that those don't?

The most important question of all is, "would people buy this product if there was no money making opportunity behind it?" It is absolutely crucial that the answer to this question is "yes" if you have any hope of building a long-term residual income from this business.