Recently, I had a meeting with a Luxreal International distributor because I was interested to try one of the company’s product which is the Rosecenta Plus.
The reason I wanted to try the Rosecenta Plus was because of one of its key ingredients, Algae Astaxanthin.
I did my research on Astaxanthins and I was very keen to learn its effectiveness as a skin supplement.
The Luxreal distributor’s name that I met is Nell.
I met Nell in a cafe in One Utama Shopping Complex. Above is a picture of her.
From my first impression, I noticed Nell is not a Malaysian.
We had a chat and she told me she is from Zimbabwe and currently doing her post graduate studies at Sunway University.
Nell was kind enough to explain to me the benefits of Rosecenta Plus and she also showed me a sample of the product.
I ended up purchasing 3 boxes of the Rosenta Plus from Nell.
After I gave Nell the money, she gave me 3 boxes that she had brought along.
Above is a picture of 3 boxes of Rosecenta Plus that I got from Nell.
During my meeting with Nell, I was very keen to find out why as an international student in Malaysia, she decided to become a distributor with Luxreal International.
I asked her, “Why you become a Luxreal International agent in Malaysia?“
Nell shared with me her story.
She decided to join Luxreal International after meeting Dr. Devan, the company’s CEO.
Nell was very inspired after learning Luxreal MLM business opportunity from Dr. Devan.
I then asked her how much commission she is earning from selling Luxreal products.
She told me she doesn’t make much from direct product sales.
Her focus is to build a group in Malaysia and ultimately building her network in Zimbabwe.
Being a network marketing professional, I was interested to learn Luxreal business and marketing plan.
Nell briefly shared with the plan and I can see Luxreal has a decent multi level marketing (MLM) plan.
It uses a binary business model where a distributor focus on only 2 front lines.
I asked Nelly how she gets leads for her Luxreal business and she told me she does a lot of posting on social media such as Facebook Live and Instagram.
That was how I found Nell. It was from one of her Instagram posts.
It’s more than just the plan
When Nell was sharing with me Luxreal commission and compensation plan, at the back of my mind I was thinking…
To be successful in building a network marketing business, it takes more than just a good marketing plan.
Me and my husband have been building our network marketing business full time since March 2018.
We have our network of distributors locally and also outside of Malaysia.
From my experience, I know to be successful in network marketing, there are 6 essential pillars.
The pillars are:
- Company founders
- Marketing plan
- Education system
- Business culture
- Using technology
The pillar number two is the product in the business.
I will explain the importance of product for a network marketing business in the form of a story.
The idea of product selection is from the book The Blue Ocean Strategy written by Renée Mauborgne and W. Chan Kim.
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 ocean 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 network 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 your business.
By chance, back in 2018, the direct sales company that me and my husband partnered with has a blue ocean product line.
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 company that we 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.
We managed to grow our MLM business quickly with customers located locally and internationally by leveraging on the blue ocean product.
I shared the above blue ocean product concept with Nell.
Building a direct selling business in Malaysia is not difficult. All you have to do is do lots of marketing activities to generate leads and you will be able to generate sales sooner or later.
However, if you want to build a network marketing business using the multi level marketing (MLM) business model, there are 6 essential pillars that you will need to understand.
One of it is using blue ocean product.
If your business is selling health and wellness supplement product which is in the red ocean category, it will make building your network much more difficult.
Nonetheless, I had a very nice chat with Nell and we planned to meet up for coffee again.
Thank you for reading my experience meeting with Nell and I hope it was insightful for you.
If you are currently a Luxreal International distributor or agent in Malaysia and you would like to explore an alternative network marketing business with blue ocean product, please click the link below to message me on WhatsApp and I’ll be happy to share more with you.