- 1 Growth of MLM Industry in India :
- 2 Basic needs of MLM companies to become successful :
- 3 Why physical product is not a good idea for MLM Companies these days :
- 4 How opting physical products these days can harm your MLM Business :
- 5 Emergence of Virtual Product Concept in MLM Industry :
- 6 Why Virtual Product concept is necessary in latest MLM Industry :
- 7 Most profitable Virtual Product for MLM – ONLINE EDUCATION :
- 8 How you can take advantage of it :
Growth of MLM Industry in India :
MLM industry has been growing in India these days like never before. With the growth of industry, trends of industry are also changing. One such trend which has been important or necessary in any MLM Company is Online Education.
Any company who wants to do BIG BUSINESS in MLM industry today MUST HAVE Online Education product in their product line. There are various reasons why Online Education has become necessary product in every MLM Company.
Any MLM Product other than online education, are products which are mostly physical products, which are available in high rates because of its high production cost and regular production process. It has to be manufactured again and again so it requires same investment again and again, and because of that, service providers of these products provide it in higher rates to ensure there profit margin.
Basic needs of MLM companies to become successful :
If we talk about MLM companies, any MLM company needs 2 basic things to operate effectively and do business well. These 2 basic things are :
- Enough profit of a company
- High distribution for attractive business plan
Without these 2 things, MLM Company can not survive for long time. And to have these 2 things, MLM Companies have to choose products and/or services which can save enough money for them.
Why physical product is not a good idea for MLM Companies these days :
As we discussed earlier, any physical product or product other than online education demands high investment. And if MLM companies add its own margin into rate on which they purchased physical product, they won’t be able to sell it to their consumers in reasonable rates. If they will try to sell it to their consumers in reasonable rates, they won’t save enough money as a profit of company or to distribute into distributors or associates. If they will try to make both of these happen then may be they will have to shut the company down because of the loss they can’t suffer !!
How opting physical products these days can harm your MLM Business :
In older days, when MLM companies were not aware with terms like “CONSUMER SATISFACTION” or consumers were not so much aware of “PRODUCT QUALITY”, MLM companies opted a solution in which they started purchasing products with LOW QUALITY which are available in LOW PRICES and started selling it in their MLM companies in market price of products with purpose of high margins and high profit.
These temporary solution created some consequences,which are as below :
- Low value proposition of physical product :
As discussed above, to achieve desired profit and desired distribution money, companies need to purchase products in low price compromising quality or usability of products and sell it to their consumers in higher rates.
These created low value proposition of physical products in market as consumers became aware about quality and prices of products. And this make consumers or users not to buy product from MLM Companies, which on some level effected reputation of MLM Industry and MLM Companies.
- Saturation in physical product segment Market :
As said, when users or consumers were not aware about product quality, they used to buy product of Rs.300/- worth in Rs.3000/- from MLM Companies. But that’s not the case today. Today people are more aware so they know it easily when they are being cheated by providing product of low price quality of which is low. And Products which have good quality is not affordable for MLM companies. These lead to demand of something new as a product in MLM industry which created saturation in physical product segment market.
Emergence of Virtual Product Concept in MLM Industry :
To solve these consequences, concept of virtual product entered into MLM industry. It started growing, getting famous and eventually became necessary.
Let’s see how these concept works in MLM industry.
In the concept of virtual product, manufacturer of the product design product or service they want to provide with good quality by investing necessary money into it for once. After completing the designing of virtual product or service, they provide it to users in nominal charges, the way big companies like Microsoft or Google do.
Once the company recovers primary investment, then they start earning profit with zero product cost and without doing any compromise in quality of the product. So end customer gets a very high value product in very nominal price. And for MLM Industry in India, the best virtual product or service is Online Education as considering the fact that India has large population of youngsters which mostly are students.
Why Virtual Product concept is necessary in latest MLM Industry :
Virtual product needs only one time investment, besides that there are some major advancement in Indian IT sector. For example,
- Internet has been started spreading all across the India.
- Service Industry has started booming. India became an IT hub for all across the world.
- Concepts of e- recharge, e-commerce and online education started booming in India.
- Smart phones are being available in cheap prices which a common man can afford and everything is available easily on smartphones
People are looking for something new and all these conditions mentioned above leads to emergence of Virtual product.
Most profitable Virtual Product for MLM – ONLINE EDUCATION :
- Concept of Online Education :
Online education is a method of delivering educational information via the internet instead of a physical classroom.It is for everyone whether you are student, Doctor, Engineer, Advocate, Programmer, Analyst, Economics etc. or whether you are 5 year old child or 75 year old elder. It serves skills you want from how to start to how to become master whether it’s your routine work or specialized profession. Many professional across the world learns about new advancements in their field via internet, via online education. Corporate companies are providing training to their employees from different locations at same time through concept of online education.
- How the concepts of online education emerged ?
There were key issues regarding traditional education system, Let me share some of it with you.
- Commercial approach in education
- Education for marks not to learn
- One teacher and too many students which makes teacher not being able to pay attention to everyone.
- Experts are not being everywhere and everyone can’t go at the place to experts. Etc.
As we know,
Necessity is the mother of invention.
Problems of unemployment were rising not because there were no enough jobs but because people are not enough capable to have it. That leads to a demand for learning skills which may or may not be related to degree but it is surely related to job in which a person wants to be an expert.
Era of Internet brings an opportunity to fulfill this demand. Now neither people need to go to the expert or experts need to come to the people. Experts can convey their thoughts, views, knowledge via Internet. Even people who are not expert in conventional manner but have different kind of skills and/or arts can share their knowledge. The way of doing all these is “Online education” or “e-Learning”. The emergence of online education is the key global revolution.
- It’s significance :
Now anyone can learn anything which they want to learn. There is no barrier of time and place because anyone can learn from anywhere and anytime they want. Google and YouTube have made it easier. Now are the days when if you want to find anything, you go and Google it. Smartphones made it easier to access knowledge online and people are accepting the concept of online education. Here is an article on YourStory supporting these statements and saying online education is future of education in India, click HERE and have a look at it.
- Why it’s so important ?
Online education is so important because it can actually be helpful for you to become what you want to be no matter from which background you are coming. You can learn anything anytime from anywhere, can become expert in any field you want to be and can explore unlimited amount of knowledge and skills.
- Important facts about Education Industry :
Refer following links, sources to get an overview of Global Education Industry :
- Bigger picture of Online education Industry : http://www.technofunc.com/index.php/domain-knowledge/education-domain/item/overview-of-education-sector
- Education Industry analysis in India: http://www.ibef.org/industry/education-sector-india.aspx
- Let’s have a look into what experts are saying:
- COM : http://www.ey.com/in/en/industries/government—public-sector/gps_new-roads-to-learning—perspectives-on-e-learning-in-india
Here are some people sharing good feelings about very big, rapid and positive growth of Online education Industry : https://www.quora.com/What-is-the-online-education-market-in-India-and-how-will-be-its-growth-in-the-next-five-years
- Online education product Model: Product as a service Model :-
Online education product is a product based on virtual product concept in which the courses of which education is being provided will be online. Right now in MLM Industry, this is the only product which is being served on ‘Product as a service model’. Let’s understand product as a service model. MLM Companies or their service providers invests their own large amount of money to develop a decided quality content one time as a product and then they provide it via their portal and/or app as a service to general users in nominal price so that users won’t be needed to pay the high price for quality content and quality won’t be compromised with the criteria of the targeted market can afford it or not.
As MLM Company needs to invest one time for setup and after the setup, MLM Company can sell its access to as many people as they want and they don’t need to pay extra. Wow! From some initial sales, MLM Company will recover their investment and after it profit margin for MLM Company in every single sale is 100%.
So user is getting Quality product. More quality than the payment for package. MLM Company is getting much more profit. And as MLM Companies are getting more profit,associates are getting high incentives.
So this product for MLM Company is Win-Win condition for both company and associates.
How you can take advantage of it :
In our opinion, Online Education is changing MLM Industry and no other product is capable to do this from existing products available in MLM Industry. If you know any product which can do that, please let us know in comment section.
Have a look at the video below to know how you can enhance your existing MLM Business with Online Education product.
Please feel free to contact us from HERE, to know how to get started with Online Education as a product in your MLM company.