Why MLM products are so expensive

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Why MLM products are so expensive

Does a network marketing company really need a big, big, big, big, big home office? It's comical. They say, "Oh, we're debt free."Yeah. They're debt-free off the backs of distributors. That's how they built that big home office. Doesn't help you at all.

They call it "breakage." That's the difference between wholesale product cost and reta1l cost ... mark-up from $39.95 reta1l to $79.95 wholesale. That pays for the building. And maybe a company jet or two.

A few years back, a prepaid phone card company charged $2 or $3 a minute for prepaid phone calls. You bought a phone card for a dollar a minute. But these were collector's cards, said the company: "If you don't scratch the back of the card off, and don't use the time, it makes it more valuable.")

So this plastic card, which cost maybe 25 cents to create, was selling for $2 a minute. And the company convinced the people not to scratch it off, so they never had to pay for the phone time.

Isn't that amazing? It's no wonder network marketing gets a bad name.

Part of being successful is to find a company with an excellent product at a reasonable price. Hint: if they have a glitzy 27-story home office, keep searching.

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To Your Success,

Bob Shoaf
(575) 415-8671
A Mentor with a Servants Heart

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