Product pricing is spiraling upward, partly due to the massive influx of MLM opportunities in an already over saturated market. To attract distributors, companies compete for distributors by offering better compensation plans. As the percentage of each product sale that goes toward commission increases, so does the margin between company cost and wholesale, and thus the retail price increases as well.
In 1945, MLM compensation was three percent down one generation. By the 60's, paid overrides had risen to 15 percent down four or five generations. During the 80's, total payouts were common. Most compensation plans today have theoretic maximum payouts of 60-75 percent or more, although the common actual payout is about 45-60 percent.
The result is an 8 ounce bottle of shampoo for $25.00. The normal wholesale cost for an average bottle of shampoo is $9-12, so much for superior quality or lower costs than your local store.
