Not too long ago, I read an interesting question published on Quora that I wanted to share on this blog.
Someone asked on Quora, “What are some good products to sell for a multilevel marketing business?‘
Back then, there were 5 answers given and I read through them.
After I’ve read all the answers, I was going through my mind and started to think how I evaluated the product for my multi level marketing (MLM) business.
Me and my husband started our own network marketing business back in March 2018 out of necessity.
To be honest, in the early days, I didn’t think I will be able to make it in network marketing / multi level marketing because I have never done any type of selling before.
Since then, my MLM business grew and I am truly grateful for my achievement to date.
I can attribute a lot of my network marketing business success to the core product in my business.
If someone is asking what is the best product to sell in a multi level marketing business, he or she probably is exploring which direct selling company to join.
Evaluating MLM business product
If you are currently evaluating which MLM business to join, I will share with you my personal evaluation process to determine if the product is right for the business.
Many people liked the idea of starting their own network marketing business, but the fact is, many people failed in their endeavor.
Please allow me to explain.
If you are planning to start a MLM business, one of your biggest challenge is to figure out what product to sell.
Choosing the right product is one of the cornerstones to your business success.
When you chose the right product, it will lead you to making sale, sign up new distributors, grow your network and have a good income stream.
However, when your product selection is wrong, it is unlikely you will make any sale or recruit anyone into your business.
If you have never done network marketing, direct selling or MLM business before, can you see how product selection is such a big challenge?
How do you choose the right product?
In this section, I will share with you a concept from the book The Blue Ocean Strategy written by Renée Mauborgne and W. Chan Kim.
I will explain it in the form of a story.
There were 2 good friends name Michael and Jeffry.
Both Michael and Jeffry went to the same primary school, secondary school and college together.
When Michael and Jeffrey graduated from college with their diploma at hand, they have the aspiration to start their own business.
Both have some saving in their bank account because they worked part time when they were studying in college.
Michael took out all his saving and started to look for product to sell for his business.
He wanted to sell smartphone accessories because everyone has at least one such device at hand therefore the market is huge.
He decided to to buy the smartphone accessories in bulk from China and sell it locally with a profit.
What Michael has done trying to sell smartphone accessories is equivalent to trying to fish in a Red Ocean.
The characteristics of a red ocean are:
- Compete in an existing market space
- Beat the competition
- Exploit existing demand
- Make the value-cost trade-off
- Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost
The fact is, it is unlikely Michael will succeed in his business due to the nature of red ocean where the competition is very stiff and the only way for him to differentiate with his competitor is to reduce his product selling price.
By being cheaper than his competitor, he will slowly but surely bleed his business until he cannot sustain it anymore.
The blood of every business in the water is turning it red…thus the name Red Ocean.
Is there a better approach to choosing product for a business?
That was what Jeffry thought to himself after seeing the bad experience Michael had with his business.
A better approach to selecting a product is using The Blue Ocean Strategy.
What are the characteristic of a blue ocean?
The characteristics are:
- Create uncontested market space
- Make the competition irrelevant
- Create and capture new demand
- Break the value-cost trade-off
- Align the whole system of a firm’s activities in pursuit of differentiation and low cost
For a better understanding of The Blue Ocean Strategy, check out the 2 minutes video below by Harvard Business Review.
In the video above, it highlighted a case study on Cirque du Soleil using The Blue Ocean Strategy to grow and excel in an industry with limited growth potential.
A compelling aspect of Cirque du Soleil’s success is that it did not win by taking customers from the already shrinking circus industry, which historically catered to children. Instead it created uncontested market space that made the competition irrelevant.Blueoceanstrategy.com
Jeffry realised that to be successful in his business, he has to avoid the red ocean at all cost.
Instead, he has to find a product which is in the blue oceans of uncontested market space and make the competition irrelevant.
How do you find a blue ocean product?
How do you find a blue ocean product ideal for a multi level marketing business?
Firstly, I would suggest you get a copy of the Blue Ocean Strategy book and read it.
By reading the book, it will give you some ideas on how to identify the best product to promote in a network marketing business.
By chance, the direct sales company that I joined has a blue ocean product.
It is a type of athleisure garment with far infrared ray (FIR) emitting properties.
Back then, there were no large or established product brands in that category in South East Asia countries.
The direct sales company that I partnered with created a new product category making competition irrelevant.
In less than 3 years, the company has dominated the category with its core product in Malaysia, Singapore, Brunei, Hong Kong and Indonesia.
That was how I grew my network marketing business quickly locally and internationally by leveraging on the blue ocean product.
Thank you for reading this article and I hope it was insightful for you.
If you are currently exploring which is the best network marketing / multi level marketing (MLM) business, reach out to me by clicking the link below to contact me on WhatsApp and I’ll be happy to share more with you.