In our previous article, FMCG : MLM Product Information, we have seen what it means, what this product contains and how MLM companies can use this product.
In this article, we will see some of the PROs and CONs of having FMCG products in MLM companies
PROs of having FMCG MLM Products :
- As these are products of daily need of people, MLM companies can target large segment of market by providing FMCG products.
- These products are consumable products, it means people have to buy it again after using it once if they want to keep using it. Which means, MLM companies can up sell these products to their exiting customers as well.
CONs of having FMCG MLM Products :
- It is hard to compete big brands who provides FMCG products with so many offers, discounts etc. Companies can face difficulty in convincing people to buy products from them.
- Quality of these products service providers provide in MLM industry is questionable. And when it comes to products which user consumes, it is not appreciable to risk users’ health. MLM companies can face issues like this and sometimes they can face legal issues as well.
- FMCG products can be consumed, which means MLM companies will have to keep purchasing it again and again. Which means companies will have to keep investing money in buying products again and again. The more the growth in sales of the company, the more the investment in products.
- With so many trusted outlets of big brands, members will prefer to buy FMCG products from there instead of any MLM company.
- If MLM company provides FMCG products, they have to either set up outlets at every place or they have to make products available to members via courier services, both of these will cost extra time, extra money and extra man force to MLM companies. This can affect company’s finances and business in a bad way.
- Users will compare quality of the product company providing with the same product from other big brand available in market. If products MLM company is providing is not as good in quality as the same products in market, they can lose their trust in members and reputation in market.
Besides these, there may have many other pros and cons. As of now, after going through and seeing that there are more CONs than PROs of having FMCG products in MLM, we recommend MLM companies to choose this product only if they are ready to handle all the hassles which comes with the product.