15 Ground Breaking Pricing Strategies for Your MLM Products

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What are the best MLM marketing strategies for double your sales? Absolutely, pricing strategies for products of any company (especially for MLM companies) have been proven by many marketers to generate a million sales.


Let me ask you a question.

How do you determine the price for your MLM products? Are you following any specific methods and strategies for pricing your products or just taking a price range by yourself?

What, just take a price range by yourself?

Oh no, it is utterly like killing your network marketing company. You must avoid determining MLM product price without knowing the price for the substitutes, your competitor and your current marketing situation.

There are numerous factors you have to study consciously. If you are not aware of any of these ideas just learn them.

Today, we are going to break down how to determine the price for your products plus 15 fabulous pricing strategies for products to boost your MLM sales.

Let’s dive into the topics,

What is the Importance of Price Mix in MLM?

The place is another important factor in the marketing mix. It ensures to find and retain the customers constantly. Price is crucial to marketers because it symbolizes the marketers’ estimate of the value customers see in a product or service and are willing to pay for.

Price is extremely important to marketers because it highlights the marketers’ estimate of the value customers see in a product or service and are willing to pay for. 

Other parts of the marketing mix (product, place, and promotion) may appear more glamorous than price and hence receive more attention, yet choosing the price of a product or service is one of the most crucial management choices.

Price is the only factor that brings you direct profits. The rest of the factors in the marketing mix are only facilitating factors. 

A price should cover all your manufacturing expenses. You can add a certain percentage of profit to this function. Remember that, you should avoid taking higher profits. In case you take higher profit, the product’s price will rise. 


Generally, people say that MLM product price is higher than the other retail products. 

What do you think?

It’s absolutely wrong. As per my research, the price is almost similar for both Multi-level Marketing products and retail products. But you forgot to consider the quality of your products.

You are losing your value of money by purchasing retail products. I will explain it in detail. Consider the case of retail products, generally, retail products reach the customers through various intermediaries. 

In such a case, the price will go higher. Additionally, it may cause damage, because of its long journey (transportation and logistics). 

For this reason, I’m telling you that you will not ensure the value of money for your products. There is no guarantee for the quality of your products.

On the other side, look at how Multi-level marketing (MLM) ensures quality by ensuring the value of money.

Difference of Price Mix in MLM and Traditional Marketing

Let me ask you a question.

How does the Price in Marketing Mix differ in Multi-level Marketing?

Difference of price mix in MLM and Tradictional companies

Companies determine their product price on the basis of various factors. These factors include company type ( MLM or traditional ) and marketing goal, positioning strategies, target audience, cost, demand and competition.

However, both MLM and traditional companies follow some common pricing strategies for pricing their products. Generally, they use penetration policy, psychological pricing, competitive pricing, premium pricing etc.

But where is the difference?

The main difference is that the traditional companies are pricing their products on the basis of the selected strategy. 

On the other side, Network Marketing companies are pricing their products on the basis of selected strategies and they set the final price by shortening distribution channels and constraints of mass communication.   

How to Determine MLM Product Price?

You must remember that you are going to sell direct selling products that are usually just like other substitutes available in the market.   

Therefore, you should consider every factor to minimize your price in order to get higher sales. You should aware of the factors such as production cost, market condition, Government taxes and duties, and the pricing strategy of competitors. Additionally, the super important thing is the price of substitute products. 

The cost for each stage in the manufacturing process is a production cost. In other words, it is the cost incurred for building and reaching it to the right customers. You should try to minimize these expenses.

Marketing conditions are another salient factor. Marketing conditions are not always constant. It regularly changes. A market is usually facing inflation and deflation. At the time of inflation, the price for goods and services goes higher. 

It is just the opposite in the case of deflation. You need to take the necessary steps to overcome the side effects of the marketing environment.

Government taxes are also an important factor. Because the Government charges a certain percentage of the value of the products as their tax. You can appoint an intelligent accountant to take down the tax. 

You need to take care of the Government policy and must follow them. Otherwise, you are going to pay a fine or penalty for your disobedience.

And finally, you should analyze your substitute products, competitors, what is their offer price and quality of their products. With this information, you will get great insights to draw an outline of the price strategy for your MLM products.

SWOT Analysis; Dire Need of an MLM Business

You have to start a deeper analysis in order to forge excellent MLM price strategies or pricing strategies for your products. Once again, you need to properly check your strengths and weaknesses by conducting a SWOT analysis.

An interesting fact is that the price for MLM products is always lower than the retail price. Because 60-70% of the cost goes through the high expense in the marketing campaigns. 

Promotional activities like advertisements incur more expense. Also, the products are reached through intermediaries.

However, MLM or Network marketing products are generally inexpensive. Because 60-70% of the cost of products goes through commission only. There are no intermediaries in Network Marketing. Therefore, the production cost is lower than the cost of retail products.  

What is the Pricing Strategy for Products?

Pricing strategies is a master plan for fixing the price of particular products by considering various factors. These factors include consumption of resources, market condition, customer capacity, demand and supply, product demand (regular or occasional), and so forth.

A proper pricing plan assists you in determining the price point at which you can maximize earnings on product or service sales. While determining the rates of your services, you must take into account some additional elements. These are some examples:

  • Costs of manufacturing and delivery,
  • offers of rivals,
  • positioning techniques, 
  • the target consumer base of the company


I need to say an important matter. You are not going to sell products if the price is too high. But if you fix low prices, you will not earn your desired profits.

Oh oh,

Then what should you do?

Let me say. You should price your products at an optimum level, it should never be too high or too low. You need to keep a balance while pricing your MLM products.

Here are some cool tactics many businesses use to decide prices for their products and services. It’s cool but super important.

Commonly, there are three types of pricing strategies available to you while pricing your products. They are pricing strategy for new products, product mix pricing strategies and price adjustment strategies.

What are the 15 Pricing Strategies for Products?


I already said that you can use three types of strategies for pricing your MLM products in order to reach your products to the customers, beat the competition, achieve your business goal, and flourish in your marketing industry (MLM/ Multi-level Marketing industry).

Let’s look at the 15 coolest pricing strategies to boost your MLM sales. The following are the three major types of pricing strategies.

MLM Strategy Plan Using Pricing Methods

  • Pricing Strategy for New Products,
  • Product Mix Pricing Strategy and
  • Price Adjustment Strategy

a. Pricing Strategy for New Products

Every product goes through a Product Life Cycle. According to this, a product has four stages: introduction, growth, maturity, and decline.

Here, the introduction stage is the most important while marketing a product. This is the stage where a product begins its journey. In this stage, you will face a lot of challenges. 

Think that you have a new product to market. But you are not the only person in the field you enter into. There are a large number of competitors in the same market industry. So, you have to beat them all to succeed in the industry.

You have a product that is unfamiliar to the customers in the market while marketing a new product. These are the best strategies for introducing a new product to the market. 

Price Skimming, penetration pricing are the two types of pricing strategies for introducing new products.

Let’s look at it in detail,

i) Price Skimming:

Skimming price is a strategy of fixing a higher rate for their products in the introduction stage. This method helps to meet their production costs. After meeting all their costs, they will reduce the price. In MLM, you have a huge number of competitors than in other industries.

Because MLM businesses usually focus on housing products, health and beauty goods etc. that have more substitutes.

ii) Penetration Pricing/ Loss Leader Pricing:

Pricing for market penetration or predatory pricing is a strategy where fixes lower rates for the introductory products. The main objective of this strategy is to attract buyers.

b. Product Mix Pricing Strategy

When you sell a variety of products, the pricing approach for each one is unique. This pricing fluctuation is dependent on costs, demand, and the level of competition that a product must encounter in the market. 

You now modify your pricing to maximize revenues on your whole product mix. As a result, numerous product mix pricing techniques exist. These are some examples:

i) Product Line Pricing/ Price lining:

If your company sells a variety of products, you must set distinct rates for each item within a product line. This price differentiation considers cost differences between goods within the same product range.

Furthermore, it takes into account customer views of the value provided by various goods in a specific line.

ii) Optional Product Pricing:

Optional Product Pricing is a cool strategy that will skyrocket your business. As per this strategy, marketers add the prices for the accessories to the base price. Customers will get an option to buy it or not.

For example, in the camera manufacturing industry, they fix the price for camera bodies and lenses separately. Usually, they charge higher rates for lenses.

Source: The three main ways you’re wrong about camera prices: Digital Photography Review

iii) Captive Product Price Strategy:

This method is almost similar to Optional Product Pricing. Here, a manufacturer produces products that are vital for the smooth functioning of the main product. Cartridges, for example, become captive products in the case of razors. Razors, on the other hand, are the principal items. Companies such as Gillette sell razors at inexpensive prices yet make a fortune on razor cartridges.

iv) By Product Pricing:

By-product Pricing is an intelligent strategy for finalizing the price of the by-product with the objective of selling the main products at competitive prices. By-product means another product that is developed as a result of making the main products.

v) Price Bundling:

It is another incredible tactic among the best pricing strategy for products. Companies sell their products at a lower rate than the rate at which each item is sold separately. For implementing price bundles, companies generally use combo offers.

c. Price Adjustment Strategy

In general, companies adjust the base price of their products. This is done by taking into account customer differences and changing circumstances. So there are several price adjustment strategies that companies follow. These include:

i) Premium Pricing Strategy:

The premium strategy concentrates on setting high costs for their products than competitors. By considering the product life cycle, it is a brilliant strategy for the early days of a product.

ii) Economy Pricing:

Financial pricing aims to attract the most price-conscious consumers. This strategy is used by advanced businesses. These include generic food distributors and discount retailers. Therefore, with this strategy, businesses can reduce marketing and production costs.

This further helps to reduce the price of the products. As a result, consumers can conveniently purchase the products they want.

iii) Psychological Pricing:

Price is definitely a concern before buying products or services. Psychological pricing means to the techniques marketers use to encourage consumers to respond on an emotional level rather than rationally.

It considers not only the economics behind the pricing of products but also the psychology of prices. Therefore, there are different ways for a marketer to use psychological pricing. Price ending and charm price is the alternative names of psychology pricing.

iv) Segment Pricing (price discrimination):

Segment pricing means selling products or services at different prices. Customer segment pricing, location pricing, and time pricing are the various types of segment pricing.

v) Discount and Allowance Pricing:

In order to reward customers for their behaviour, brands usually adjust the basic pricing of their offerings. These activities may include bulk purchases, early bill payments, off-season purchases or stays, and so on. As a result, discount pricing necessitates two adjustments: allowance and discount.

vi) Promotional Pricing (on sale pricing):

For a limited time, corporations may lower their product prices below the market price or even below cost. This method is used to boost sales in the short term or to reduce stockpiles. This is referred to as promotional pricing. This occurs in a variety of ways.

vii) Geographic Pricing (zone pricing):

This pricing technique entails altering the list price of the products depending on the customer’s location. Thus, the geographical pricing strategy reflects the shipping expenses involved in moving products from point of origin to point of sale.

As a result, if the customer’s location is closer to the site of origination, a lower fee may be paid. In addition, a larger price is charged if the customer is located in a remote location.

viii) Dynamic Pricing (demand pricing, surge pricing, time-based pricing:

Companies previously used a fixed pricing policy when determining the price of items. Companies, on the other hand, are now using dynamic pricing. Dynamic pricing entails regularly modifying the price of products to satisfy the needs of individual clients.

You just learned 15 magnificent pricing strategies for products of the MLM companies. Do you understand these techniques?

You have to do is check your object, product positioning, marketing, competition, and budget, and with these Pricing strategies for your products and select the best suitable one.

Pricing strategies for products of MLM companies

What are the technical ways or emerging trends to find and retain new customers? Read the following;

a. Social Network Marketing; Forge Your MLM Strategy for 2021

b. Whatsapp MLM | Promote Network Marketing Through WhatsApp

Let’s look at some examples of pricing strategies. 

Pricing Strategies Related to MLM Industry 

Do you know how top MLM companies use their strategies for pricing their MLM products?

Let’s take a quick session on various MLM companies and what strategy they used.

Pricing Strategies for Avon Products

Pricing strategies of various MLM products differ widely based on the target market and the category of goods sold by the company. It has a sophisticated pricing strategy for its premium market. The cosmetics manufactured and sold in Romania are priced in the middle.

In India, it charges consumers reasonable pricing that is comparable to competitors such as L’oreal, Natures, Sunsilk, and others. Avon sets its prices in such a way that its market image is that of an affordable and medium-priced brand catering to the mass market.

Source: Avon Marketing Strategy & Marketing Mix (4Ps) | MBA Skool

Pricing Strategies for Herbalife Products

This Marketing Strategy component necessitates an assessment of the worth of products to target clients. Herbalife Nutrition Ltd’s pricing strategies will centre on determining the list price for MLM products, credit conditions, payment period, and discounts.

If Herbalife Nutrition Ltd chooses the price penetration strategy, it must set a lower price than competitors. Discounted prices will allow the organization to gain market share. Management, on the other hand, should be cautious of the possibility of reprisal from competitors in the form of an unfavourable pricing war.

The selection of a skimming strategy will necessitate clear communication of the grounds. It is for differentiation and how such differentiation justifies the additional price.

Source: Marketing Strategy Of Herbalife Nutrition Ltd

Pricing Strategies of Mary Kay Products

Mary Kay used penetration pricing in its early days. Then they build psychological pricing as their main pricing strategy. Mary Kay uses this method mainly for attracting new customers and drive away competitors.

Source: The Marketing Strategies of Mary Kay Cosmetics

Pricing Strategy of Nu Skin

The current pricing approach used to determine the price level that follows is a competitive pricing strategy. Because of the vast number of competitors in the business, data on competitors is widely accessible.

It also considers expenses when setting prices for select products that have unfamiliar competitors.

sells its items at a higher price than competitors This is because it has additional features, which are offset by the higher price.

In a product bundle pricing products are combined together and offered at prices lower than the total of separate items.

Source: Marketing Mix Nu Skin Enterprises

As I conclude this topic, you should deeply look into the above 15 interesting pricing strategies for products. You need to draw your strategy in order to make your MLM company a successful venture. These MLM tips will empower you to grow in the Network Marketing industry.

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