In our previous article about Holiday voucher, we have seen how this MLM Product works, what are the types and classifications of Holiday Vouchers and how MLM company can use this product.
In this article, we will see pros and cons of Holiday Voucher MLM Product.
PROs of Holiday Vouchers as MLM Product :
Below is the list of PROs of having holiday voucher as a product in your MLM company :
- Holiday voucher is a attractive product as everyone loves to travel and see different places and having different experiences and pleasure. So it can entice or attract prospects easily.
- Travelling with good facilities or with accommodation at good place is quite costly these days. So Holiday vouchers can be presented in a way that you are providing so much of value to your members.
- Many of the members, let’s say majority of the members who buys your package don’t use Holiday Voucher. So this way service provider from where you get the holiday voucher won’t have to give service to every person who buys holiday voucher from you. So service provider can provide you holiday vouchers in mere cost of from 200 INR to 2000 INR depending upon what type of Holiday voucher you want from the classification of holiday vouchers given in our article Holiday Vouchers : MLM Product Information. MLM company can show its value high and thus can have comparatively more profit than some physical products.
- MLM companies can satisfy users or can make a good impact on members by providing good service to users who apply to redeem their holiday voucher, which can improve trust factor in the members of the MLM company.
CONs of Holiday Vouchers as MLM Product :
Below is the list of cons of having holiday voucher as a product in your MLM company :
- Holiday vouchers are product with complicated terms and conditions and with time limit. It can make negative impact on your members when they don’t get their holiday due to complicated terms and conditions. These negativity can spread easily in market and can affect reputation and business of the company.
- It can also spread negativity when user get the holiday but don’t get the good service as expected or as promised by the company or member of the company. This also can affect the reputation of the company and business in bad way.
- It can also causes loyal members f the company to lose trust in the company. As loyal members can have to deal with negativity or issues from people they promised good service of the holiday voucher from the company. It can make them leave the company, which eventually can affect company’s sales, profit and business.
- Not every member of the company who purchased holiday voucher can avail the holiday, because service provider can’t afford that. So it can turn to be risky if every member who purchase holiday voucher apply to redeem their holiday.
- In a way, Holiday vouchers are products with non-usability as it is just a printed paper or a copy of the paper and a code until every user get the holiday he/she asked for, which is clearly not possible.
- MLM companies have to provide solutions to problems arising due to interruption in the service of holiday voucher, which can cost time, money and energy to MLM companies, and this can affect MLM company’s core business, which is marketing.
- If MLM company is providing printed holiday vouchers, there are more chances of user getting it late due to the payment clearing procedure of MLM company and delay in courier issues. And as we know holiday voucher is a product with time limit, users can be dissatisfied when they receive product after a very long time from the day they bought it, which results into negative impression of the company.
- Holiday product is a product which is quantity based. So MLM companies will have to purchase it again and again, for each and every product they will sell. These means they will have to keep investing money in it. And with the increment in sales of the company, this investment will keep increasing. The more the sales, the more the investment.
- MLM companies have to purchase holiday vouchers in minimum of specific quantity, which cost a huge upfront investment to MLM company so MLM company can lack budget for other good and quality products.
- When companies can’t sell vouchers they have, which happens most of the times, it can also causes lose to MLM companies as it comes with time limit. And there are many service providers out there who claims to be providing good services but they are only there to collect money from you and not to give services as promised. These service providers keep looking for the opportunities to not to give you services.
We suggest any MLM company who is planning to provide Holiday Vouchers as product to consider all the pros and cons and than to take decision.
In fact, according to us, if any MLM company is planning to provide it , it will be more beneficial and profitable for them if they provide it and manage it on their own instead of purchasing from any service provider in the market.