There are many MLM companies who arrives in market, who have all the good product including online education but still fails to survive. Only companies who fail to sell their product can’t survive in MLM industry. Only having best product like online education is not enough, company must know how to sell online education product and could be able to teach it to their leaders and associates as well. We tried to understand a little why people fail at selling online education product and decided to share it with you all.
Try to sell business plan instead of product :
Generally MLM Companies sell business plan to people which is free of cost on paper only 😉 But the reason behind it needs to be understood. Most of MLM Companies sell product with very high margin which is the difference between cost of the product and price of the product. For an example: MLM Company purchase product in Rs.200/- and sell it in Rs.3000/- . They do it to provide high incentive to their distributor and get high margin for the company. Now in general business, you need to purchase a very high quantity of product to be able to get this much margin but MLM Companies get products in this rate with nominal quantity of 10 or 100 or 200. It’s easy to understand that if companies are purchasing product in these quantities with these much nominal prices, what would be the quality of product? So as product is not having quality according to its selling price, company needs to sell business plan.
When companies start this business practice, they start neglecting to focus on presenting good things about the product. As Online education is virtual product and although covers good content, MLM Companies fail to project unique selling points (USPs) of the online education product which can actually differentiate them from MLM companies providing physical products. Due to their general practice of focusing on business plan and compete on the basis of payment distribution, they don’t even try hard to project unique selling points of product. Just to be clear here, we are not saying that competing on the basis of business plan is good/bad, just don’t limit yourself only with it when you have good product.
Don’t understand product properly so fail to sell it to other :
Some MLM Companies may be rigid to adopt the new ways of selling and they fail to understand the product they are selling. When MLM Companies start to sell online education product, they need to understand the product first. Below are the things about online education which should be understood before selling it to other :
- The usages and application of courses they are providing to their users
- Depth of content
- How it will help their users in their career?
- How their users can take maximum advantage of it?
- How users can learn more after learning their courses?
- How their courses and services are different than YouTube, other coaching centers and books?
- What are the specialties of their content and content management system?
- Understand the way they are delivering the content.
But instead of understanding these things, they just project number of courses and some highlights which actually doesn’t make user aware about the product and then to convince user to join, they just focus on selling package on basis of business plan.
When MLM Companies are selling an online education product, they need to adopt new ways of marketing and selling which they don’t do in physical products.
Here are some ideas of some different ways MLM companies or their associates can adopt to promote online education product :
- They can use blogs on their websites to present the every small detail about the product.
- Can make a video to show the power of concept and education they are providing.
- Make a separate tab on website to show details of their content
- Create a brochure, booklet or something like that on how users can use the online education and how they can apply the knowledge companies are providing.
Companies can adopt other new approaches as well according to their terms.
Lack of knowledge of different aspects about online education:
MLM Companies who are lacking in knowledge of,
- Market of courses and content they are providing
- Quality of the product
- How they can market the online education more effectively
- Legal aspects of the product which includes
- Laws about the product.
- Are they having any rights on product? (Copyrights and/or distribution rights)
- Privacy policies about product.
5. What is an actual user experience they are providing?
Current market scenario of the concept and content they are providing.
Lack of knowledge of making a package with online education and other products:
MLM Companies fail to sell online education because they don’t make a package and/or combo of other products in a way which actually attracts users and sometimes when they do, they fail to project the valuation of package.
For an example: There is a package of holiday voucher of 3 nights & 4 days and online education of 50 Courses, Companies generally show it as the package price is of holiday voucher and online education is free. If you see it properly, holiday voucher is a product of luxury while education is product of need not luxury. The maximum value of 3 nights 4 days holiday package which company can show is maximum to maximum Rs.15000 to Rs.20000 but the valuation of 50 Courses which provide basics can be more than Rs.100000, which user can easily see if you provide enough details to users.
So isn’t it better to show the value of the package/product Rs.100000 rather than Rs.20000?
Lack of understanding of how to understand and promote online education product’s value proposition and package price :
Online education is a product which is totally virtual, which means MLM Companies will have to purchase or develop content one time and they can sell it to unlimited users. So basically they can decide a package price on basis of their targeted market segments and can make business plan accordingly. Now to cover their primary investment, they just need to count how many sales they will need.
Deciding value proposition of online education is tricky but it shouldn’t be done with hypothetical pricing model like: If you assume price Rs.1000 for 1 course and company is providing 50 courses then value of the product is Rs.50000/- . This is the wrong way of projecting value of the product.
To decide its value, MLM Company needs to understand features they are providing and the quality of the content they are providing. Some parameters can also be considered to decide value of online education product, please read our article how to evaluate value of your Online Education product – Based On Parameters.
After understanding it,try to figure out valuation of the product and present it properly.
We hope you will find this article useful and make your way into the list of successful MLM companies with Online education product, not in list of companies with online education who failed.
And still if you don’t have online education product in your MLM company, you are missing out very big opportunity to target larger market segment and do business more effectively. Don’t miss out,contact us from HERE and get started with your online education product.