MLM Myth: Danger of Market Saturation

Welcome to the last blog about the top 10 MLM (Network Marketing) myths that may have stopped many people from embracing this brilliant marketing model. If you have missed out on the other nine myths, feel free to start here.

Today, we are to talk about ‘Market Saturation” which is an issue that some people are concerned about. Yes, the company is great, the products seemed to be unique and reasonably priced. There seem to have customers wanting the products AND are willing to purchase. BUT…. what if the market is saturated? What if there are already plenty of competition out there?

The argument is that no-one would like to build a business that would eventually die out. Market saturation indeed appears to be a valid concern.

Who would like to have a diminishing or even no market for the products that we promote?

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Let’s examine this argument

What is Market Saturation?

Market saturation can be defined as the point at which there are no longer people who would buy the products, even if the products are at a reasonable price, because there are so many MLM distributors already involved in promoting the products. In short, the market is ‘saturated’ with distributors. A new distributor cannot sell the products because there would be no one that has not heard about the products.

It doesn’t take a genius to understand that as long as there is a market for a product, there will be new opportunities for distributors.

It is true that for a STATIC market, as the number of distributors increase, the market decreases. That is, a saturation point might be reached.

However, the market is NOT static.

Let’s look at the Baby Boomer Market in particular. People born between 1946 to 1964 are what most people refer to as ‘baby boomers’. In 2006, those born in 1946 turned 60. In the following 18 years, millions of people hit that 60-year-old age mark. That is, ‘NEW” market is created each year, from 2007 to 2024.

The demand for age-care related products or services is there, no question.

Portrait of poverty,

The question is: Are there more and more quality products to compete with what YOUR MLM company is offering, resulting in smaller market share for the new distributors to tap into?

Smart Go-With-The-Trend Strategies

Smart MLM companies typically use two strategies to deal with this potential market saturation issue.

First, they CREATE NEW PRODUCTS that has a competitive edge.

For example, while there are plenty of health and nutritional products in the market, most of those are in tablet form. The company that I am involved with have a range of nutritional drinks that look after people who might be challenged in swallowing tablets. Think about those who turned 60 in 2006. They are fast approaching 70. Can you see how liquid supplements would appeal to them?

Second, they OPEN NEW MARKETS.

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For example, the infamous MLM company Amway developed a whole new market for its products in the Japanese market years ago, racking up a billion dollars a year in sales. Smart networking companies are constantly cracking new demographic markets.

Despite the fact that my MLM company has over 25 years’ success record ‘globally’, it has yet to hit the Chinese and Indian markets!

Market Saturation can only be of concern to those people who ignore the OBVIOUS fact that Baby Boomers have been leading how the market performed in the past. It is going to be strong for at least a decade. I trust that Tim Sales’s educational video explains this the best. Click here if you have missed that.

Market Saturation OR Market Obstruction?

If you are exploring Network Marketing as a means for you to earn an extra stream of income, I trust that you have found this discussion helpful.

My sincere wish is that you have discovered that “Market Saturation” is the obstacle that is stopping you from moving towards a better future.

Ask yourself this one question:

Has there been any evidence of Market Saturation in the MLM industry?

Is this an erroneous perception that is actually more like “Market Obstruction”? Something that is stopping you from taking advantage of the market trend?

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I’d love to hear your feedback.

If you are involved in another MLM company that has constantly been introducing new product lines or opening new markets, feel free to share.


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