MLM has a totally different pricing structure than mass distribution.
Without posting all of my research for the book that was never completed, here is a very rough example of why MLM structure requires MLM products to be necessarily higher priced than mass distribution products...
Mass Distribution Bottle of Vitamin C: Shipping - 25 cents. Advertising - 25 cents. MLB cost of manufacture due to high volume - $1.50. Retail shelf price - $5.25
MLM similar bottle of vitamin C: Shipping - $4.00. Marketing materials - 50 cents. Downline Commissions $4.00. Low volume MLB cost of manufacture - $3.50. Total delivered cost to consumer - $16.50.
Price is not the only factor to use in evaluating MLM's. Some of them have a lot of good to offer in pushing new products and new ideas into the marketplace. And, sometimes, MLM's are the only source of some types of products or some quality levels. In addition, buyers of MLM products can (sometimes) get a lot of useful consulting on the efficient use of some products.
Personally, I do not like MLM although I continue to hope that someone figures out how to improve it.
However, this thread was about Doug Wead. I totally and completely support him in his endeavor to sell MLM products into a free market. In his heart, he is a free marketer. If we do not support free marketers then why should anyone think that free market ideas will ever succeed?
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