Why Are Network Marketing/MLM Products So Expensive?

Network marketing products are extremely popular ever since the business came into effect. You see these products every now and then on social media platforms, search engines, websites, blogs, and other content channels all the time.

Well, how do YOU feel about MLM products? Do you feel that they are valuable in terms of how much your customers can get from them?

Or do you think these MLM products are too expensive? This is the question that most people ask when trying to buy MLM products (courses as well). So, what’s the reason? Why are MLM products so costly?

Some MLM products are expensive because most products are named as “special” and hence, they come with special prices. The other factor that makes MLM products overpriced is the value-added tax that is imposed on those products. Apart from value-added tax, uniqueness, usability, and marketing efforts put on MLM products also make the prices hick. Lastly, the characteristics of these products affect the price.

Now that you have read the answer, let’s get into further details:

What Makes MLM Products So Expensive?

There are a lot of reasons why MLM or network marketing products are expensive. As you have already had a chance to go through them, let’s discuss them in detail.

Special Products At Special Prices

First, the products available through the sales and distribution model of network marketing companies are often so-called “special” merchandise.

These are inherently more expensive products containing more expensive components and more complex designs or formulas; They are just more expensive to make and pack.

If a network marketing company outsources these products, they tend to be produced in small batches, which does not take advantage of the low cost and bulk purchasing benefits that mass marketers enjoy.

The production processes are more complex and exclusive. Profit rates are higher. The result is a high-quality product with great attention to detail and quality control.

Value-added Tax

Network marketing and direct sales reps add value to the product they sell and make good money when they do it successfully. The exceptional level of service provided by network marketers is not available through mail orders or retail outlets. This is a real, tangible benefit, part of the value of the product and price.

Within 1-2 days, the network marketer contacts the person again for observation, inquiring about their performance, verifying that the client is following usage instructions correctly, making recommendations, etc. These service calls continue daily, biweekly, or weekly until the client is satisfied and happy.


Is your MLM product unique? The word unique means that it is unique and every consumer who wants a product should come to you.

They couldn’t get the product anywhere else in the market, be it malls or other franchise stores. If your product is not unique, you risk losing consumers, as consumers always prefer cheaper alternatives and better convenience.

Therefore, when choosing a product, you must decide whether this product is “just another product” on the market or if the product will serve a purpose that other products do not fulfill. That’s what unique means and they will come at different prices.


The reason we want to build an MLM business is that we want to create residual income streams that will keep the money flowing for as long as possible. In multi-level marketing, residual income streams are generated at a constant volume of sales.

That can only be achieved when people repeat their orders every month. And people are repeating their orders because they have finished their products! That’s what consumer goods mean!

If your products are consumables, you will be paid multiple times for your initial sales effort. If your products are not consumables, you will not be able to sell them until your next order.

By saying this, I don’t mean that reusable MLM products are not good products, rather they are unlikely to generate residual income for you. That is why consumable products come at different prices.

Marketing And Customer Service

The “salesperson” in network marketing adds value to a product through education, service, or sale to a customer.

All this has a price. And in line with consumer trends and the explosive growth of network marketing, selling these products directly around the world will make people think they are worth it.

Cost Conversion

Companies are preoccupied with glitter and glitter and have to bear those costs, hence the inflated prices. This large luxury office building had to be paid for with product sales, so they added that to the wholesale price.

Now, to make money, the seller must put in more effort to earn a living. At the moment, the product is overpriced and is not a good buy.

Here, you can see that the company was looking only for its image, and not for the long-term marketing of its product, all at the expense of sellers/consumers.

Quick Bet

A company looking for quick profits loves this “spray and rush” tactic. This spray-and-dash tactic doesn’t last long enough for reps to earn a part-time income while they’re working full-time.

Usually, with hype, hype, and a seemingly great reward plan, they create a fast, inimitable downline. When the bottom line starts to fail, they rush to the next company.

How Do You Avoid Overpriced MLM Products?

With salable MLM products, a good company, and a reasonable compensation plan, you can be successful in no time. If you have two-thirds or more of your MLM products sold to regular retail customers, your success will come faster.

So stay away from expensive MLM products. Whether cheap or expensive, if you can buy it elsewhere, find another company.

Don’t waste time paying for the owner’s yacht, join a company that allows you to buy your yacht. Remember that if the price is too high for your client, you will end up paying the difference out of pocket.

3 Reasons To Avoid Expensive Network Marketing Products

Of course, these are a thousand reasons why you should avoid purchasing MLM or network marketing products but here are the main ones (at least I think of them as the main ones)…

Similar Products/No Special Products

Special MLM products often have high prices. Many MLM companies pay great attention to these products. So, when you’re new to MLM, not everything that stands in your way is worth it.

It is important to draw a line between what you want and what you need. So a good choice can help you make the right decision. Many beginners are in demand for an expensive product unless they can afford it.

Need To Save Some Money

The other most important benefit of avoiding expensive network marketing products is that cheap products are cost-effective and fit into everyone’s budget. You do not need to spend a lot of money promoting your company.

Many small and large businesses are benefiting from this promotional strategy as the costs associated with it are greatly reduced due to better technology. So make the best of it before it’s too late. The money you spend on cheap MLM products is worth it.

You Have The Chance Of Upgrading

Purchasing inexpensive MLM products saves you a lot not only on the price itself but also on the many upgrade options available. A cheap MLM product can have many premium plans and gifts.

Whenever a customer wants to switch to a new friendly product, they can easily change it by buying the available costly one. Of course, these upgrades have limitations, just like everything else, you cannot buy what you do not like again.

The structure of a cheap MLM product is deliberately designed with the needs of newcomers in mind, which can be easily tied into the plan.

Benefits Of Joining Expensive MLM Programs

Well, this article is for both groups – consumers who buy goods, as well as, aspirant network marketers. So, now, let’s answer the answer from an MLM guy’s perspective!

The purpose of MLM is primarily to transfer goods without external costs, such as marketing collateral, but instead to use a network of distributors. The more products a company is willing to sell, the more profit it will make.

Here are some of the benefits of joining an MLM business.

Low Entry Cost

As a rule, the initial costs are usually quite modest. For a fair investment, you should expect your product, a few demos, and your preparation to be protected. This is commonly referred to as a starter kit and is supplied to you in a hard or soft format.

Some organizations are currently transitioning to cloud-based knowledge, which makes it easier for everyone to upgrade and deliver. While the entry fees are low, you can expect additional costs to set up and continue your business as if you were running your regular business.

Freedom To Do Business

In the traditional business world, versatility is very limited. You have much more say in network marketing agencies. You work for yourself in an environment where you feel relaxed, at the pace you like, to create an experience that suits you. Now you have complete control over how the workday goes.

It is important to note that you need an overarching mechanism and system to ensure that your time is invested and used effectively. You must be disciplined to use your resources productively and successfully, as time settles down easily.

Make sure that the time is as versatile and disciplined as possible. People are critical of network marketing and picking the right moment in someone’s life isn’t necessarily the easiest moment to sync up, so your one-stop mentality is a major success factor here.

The time you spend will come back to you later in the form of opportunities and profits. So, make sure you build a solid foundation with your network and versatility.

This is not something to be discussed. Reliable MLM software solutions built by a trusted MLM software provider can help you run your MLM business smoothly.

Huge Income Potential

One of the main rewards of network marketing, of course, is sales. He is also the biggest. Is that why we don’t do what we do? There are two different forms of income that you can earn from your hard work in network marketing.

This will help you focus on your company after the third year, after which you can quickly start the number of direct sales you generate and work towards the next level of growth. An MLM software provider can provide you with high-quality MLM software solutions to help you improve your business performance.

Are Expensive MLM Products Worth It?

My quick and direct answer is: “No. Expensive MLM products are not worth the money!” From a general consumer’s perspective, in most cases, you should actually stay away from expensive MLM products.

But sometimes, it can happen that the products are very useful and valuable. If that turns out to be the situation, they can be a good deal.

For the most part, you first hear about an expensive MLM product from an advertisement. And those advertisements can be either in digital ads format (Facebook ads, YouTube ads, Google ads, etc.) or offline marketing (digital billboards, posters, etc.).

One thing that you should remember is that these marketing efforts cost a hell of a lot of money to companies and the only way a company can recover them is by increasing the price of its products.

That’s the same thing that happens in the world of multi-level marketing. All you are paying a truckload of money for is the marketing campaigns, not the value.

In Conclusion

As you have seen, we have seen several reasons why MLM products are so expensive but you can avoid them by following the above tips. Lastly, you will get all the benefits listed herein by avoiding those expensive MLM products.

Well, that’s all for now. I hope you found this post helpful and found your answer here too. In case you have got something to ask, please use the comments section below.

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