Pricing Strategies in Network Marketing

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When joining a Network Marketing opportunity, one thing you have to take into consideration, are the price points of the company's products versus the rest of the market.

One of the criteria, when looking at a Network Marketing business, is to ensure that the product's pricing structure is in line with the market. Many Network Marketing companies tend to over price their products in comparison to comparable products on the market. They do this for one of two reasons: to be able to pay their Network Marketers better rates or, they want to create a higher profit margin for the company.

The results of these pricing strategies in Network Marketing, can create negative effects on what the Network Marketers are trying to do, which is to sell the products. The foundational truth behind why we all get into the Network Marketing Profession, is to create residual income. Customers purchase the product, and we receive commissions on those sales. If the price points are too high, either potential customers never purchase the product or, after a few months, they cancel their orders. Why? Because they can go to another store and find a similar product, at half the cost. This creates this constant need to enroll new customers because the customer base continues to “leak”.

  • Product prices are at or below market value
  • Products have to be quality and provide value
  • When in a highly competitive product vertical, ensure the products have competitive advantages over the market competitors

Remember, the basic reason we are all building Network Marketing businesses, is to create residual income. These incomes start and end with the product efficacy and price points.

Do you homework when joining a Network Marketing company. If you would like to learn more about a Company that has been able to achieve perfect pricing positioning, visit our Fuxion business page.

If you would like to learn more about Network Marketing, visit The Balance You Need and soak up the information!

The Balance You Need

About the Author:

Professional Network Marketer and accounting, marketing, MLM, and business strategist consultant. Ben is a father of 4 and married to Jessica Mueller. The family resides in Westminster, CO.