Profitable MLM Business - You Just Need A Few Good Products

It’s logical to think once an MLM company has a customer base, the easiest way to a more profitable MLM business is to add more products to sell to the current customers.

Very logical. It’s also wrong.

When I was a kid, I loved Bob Newhart’s comedy albums. He cracked me up. My favorite routine was titled, “The Grace L. Ferguson Airline & Storm Door Company.”

Picture it. The flight is on its way to Hawaii. The pilot (Bob) isn’t exactly a specialist in flying. But he knows a bit about flying and a bit about storm doors.

He makes an announcement asking for anyone who’s actually been to Hawaii to please come to the cockpit. When a gentleman comes forward, Bob asks him, “Kind of liver-shaped, isn’t it?”

I know: it’s absolutely ridiculous. But it happens every day in business. And if it happens in YOUR company, that is definitely not a good indicator.

Xerox became synonymous with copiers, number one in the industry. It seemed logical to add computers to their product line, to sell to all their existing customers. The idea cost Xerox millions. They finally gave up before it bankrupted them.

Remember the huge goof Coca Cola made some years back? They changed their formula to expand their market share. Naturally, it cost them market share. But I bet you didn’t know that was only Goof #1. When they realized their mistake, they logically decided to just add a new product: “Classic” Coke – the old formula – to go along with New Coke.

What happened? Well, up until that time, Coca Cola had dominated the fast-food franchises. But those stores didn’t have room for two regular colas. So Pepsi came in with one cola and ran Coke out of much of the fast-food business.

Ninety per cent of new network marketing products are introduced to fill a void in a company’s line, not to fill a void in the marketplace. And each new product needs a financial and personnel commitment to raw materials, manufacturing, packaging and promotion.

Reps often ask when their company will add new products. Wrong focus. If your company knows what they're doing, new products will be added – gradually.

There are a number of networking companies out there that qualify as the Grace L. Ferguson Airline, Storm Door & Vitamin Company. You'll never get to Hawaii - or financial independence - that way.

Building a profitable mlm business requires just a few good products. That is all you need.

Richard Dennis writes regularly about how to make more MLM money with more stability at http://RichardDennisNetworking.com/

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