Why Most MLM Distributors Start Business With Two Strikes Against ThemMay 11, 2005 -- Not everyone plans to be a network marketer when they "grow up". But being a successful network marketer has been an aspiration of mine ever since I was first introduced to the concept in the early 1980's by the "Big A" company. However, my first committed plunge into the icy waters of network marketing didn't come until the early 2000's. The shock of this marketing immersion was intensified by the archaic marketing methods taught in the training of distributors. But I still trusted my upline and enthusiastically "hit the ground running." Diligently, I applied all the techniques taught to me and even created some of my own. After a consistent year of 20 plus work hours per week and no profit, I realized that I knew nothing about marketing. That's when I began my search for quality and proven mlm success training. Now I understand why the general public holds a generally negative view of this industry and its representatives. The pitiful fact is that there is a frightfully small rate of success in the multilevel marketing industry. In 2005, MLM Survivor.com records, "�Where data has been available on recruiting MLMs, approximately 99.9% of participants were found to lose money." In spite of the individual pathetic results, Dr. Charles King, marketing professor at the University of Illinois has written a book about the promising economic future of the network marketing industry. He says that "network marketing is emerging as the most powerful distributing method and most appealing enterprise model in the new economy." While corporate America is seeing a great financial boon in the network marketing model, the average Joe Q. Public is still generally cynical. All enthusiastic networkers have, at one time or another, bumped up against that cold, resistant wall of scorn. In hindsight, I can see now the glaring problems in network marketing training system that fuels negative reactions. The steps of training that any new distributor receives are typical throughout the industry. They are: 1) Compose a list of 50-200 names of friends, family, co-workers, professionals, personal contacts 2) Purchase marketing CDs, pamphlets, or samples for distribution 3) Contact the people on the list 4) Give the prospect the CD/pamphlet/sample/e-mail and ask them to listen to it or invite them to a conference call, or a web conference, or a sales presentation 5) Attend the presentation with the prospect which always explains the great business and income potential of this "opportunity" 6) Have an "upline" person do a 3-way telephone call in an attempt to "close" the prospect 7) Always utilize the "walking and talking" market to acquire new prospects and then start the process all over again. These methods have successfully created a continual stream of friends, relatives, and co-workers who feel obligated to purchase a token amount of products in order to not hurt someone's feelings. And then they politely avoid future contacts with the over-zealous marketer. At times this "hide-and-seek" drama has even has been known to disrupt a family reunion or two. Since this "warm market" of referrals is only participating out of an attitude of obligation, the ongoing purchase of products, is discontinued, and the marketer goes to public places in hopes of recruiting others to fill the void. Others who are recruited into network marketing are enticed by the promises of a large return for a small amount of work and a small entry fee. The simple business strategy upon which they rely is that they only have to sponsor "4" people (or whatever the number may be) who sponsor 4 people who sponsor 4 people each. Products are only purchased as the mandatory prerequisite to receiving a monthly check. Representatives are usually operating on a shoe-string budget and have no past business or marketing experience. Then within 90 days or so, new distributors "drop out" of the business because they are not seeing money coming "in" to their bank account, only leaving. This puts the original marketer back at square one, looking for his first line of four people. There are some real simple marketing basics that can solve the network marketer's woes. First of all, one needs to understand that network marketing is simply a compensation structure. The bottom line reality is that a distributor is paid a commission from a monthly volume of sales. Therefore, it only makes common sense for a marketer to focus on the promotion of the product and its value and benefit. All entry-level marketing college courses start by teaching you to identify your target market. That means that a smart marketer determines beforehand, those people who might have an interest in the specific product that is being marketed. Marketing is not about convincing any person that breathes that they need what you have. It's about finding those people who already have an interest in what you have. That's the difference between the miner who carries bags of dirt and rock to the bank, hoping that it will magically change to gold and the miner who "sifts" through the dirt to find the part that is truly gold that has been waiting there all the time. When a consumer experiences positive benefits from a product he will continue to purchase that product on a consistent basis, regardless of who is getting paid a commission! That solves the retention problem of distributors. Then, after a few months of product consumption, a distributor might be ready to embark on the business end. And when they do, they are committed to the long-term because they are driven by their passion for the product not by their greed! People then start a business because they already purchase the product instead of purchasing a product just so that they can have a cash cow business! I am still amazed that such a common-sense marketing approach is kept a mystery in the multilevel marketing industry. In fact, networkers are taught that promoting the product first is called "bottom-up marketing", as if to give the impression of dragging the bottom of the barrel, an inferior approach. Thankfully, there are some network marketing heretics that are beginning to cause a stir in the traditional dogma. There is a desire to change the negative perception of this industry to one of success and fulfillment. I have found personal network marketing instructors who have taught me the true definition of marketing. No longer do I drive home from the grocery store ridden with guilt because I couldn't force myself to pass out CDs to all the people wandering the aisles and standing in lines. I know that a "sales" mentality is one that promotes inappropriate and offensive "convincing" behavior. But true "marketing" is giving 110% of everything I have for the needs and desires of the prospect, not my own. I have learned fundamental marketing skills like prospecting and closing. No longer do I rely on a third party to close my prospect and then cross my fingers that this time she can actually do it. I am the captain of my business ship and have learned to run my business with the mind-set of an owner. I have abandoned the typical "employee" mindset of a marketer who expects the upline to fill up his (the downline) organization with "big hitter". Then the downline hopes to make money off someone else's work. The networking business model gives me the chance to be a true professional. People who are serious about sharing the benefits of their products need to seek a reliable and proven mlm success system. When networkers start applying true marketing and business fundamentals, John Q. Public's perception will finally be aligned with that of Dr. Charles King when he refers to networkers as the "new professionals". www.ProvenMlmSuccess.Info is owned and operated by DiAnna McDowell, a certified graduate and mentor in the art and science of marketing.
MLM JunctionOriginally Posted on 5/26/2005 5:40:54 PM
Content source: Manual Entry