By reading this article you will learn that todays new Internet technology has turned the Network Marketing, Multi-Level Marketing industry’s lead generation mindset and strategy upside down and lead to a boom of moms and dads home based businesses
Some of the most famous successful entrepreneurs and authors like Robert Allen, Mark Victor Hansen, Robert Kiyosaki and even Donald Trump are strong advocates for this model.
So why do so many “dog” this Industry?
Many say wait a minute…is this a pyramid scheme…I don’t want any part of that!
Here is the reality, this is essentially the same model used by Fortune 500 companies forever. The success and growth of almost all companies today could be attributed to this tiered compensation structure, this is the model used by sales organizations all over the world.
It starts with a salesperson getting a commission, his sales manager makes an override and possible an incentive bonus and on up the line everyone gets a piece of the pie.
In short…one at the top and many at the bottom!
How’s that for a pyramid?
Maybe this is the big drawback, these Network Marketing and Multi-Level Marketing(MLM) companies typically charge a small sign-up fee…up-front…maybe like a franchising fee. By comparison, have you ever seen what a McDonalds or Burger King Franchises cost? Let’s just say they are out of site.
Does the problem lie with the business model of the Network Marketing and Multi-Level Marketing(MLM) Industry or the people it attracts, because of the small sign-up fee and a potential income projection through the roof?
All are valid observations through my lens…however; here is my take on the state of this Industry today.
First a rather profound statement, “The only thing constant in our world today is change”.
The Network Marketing and Multi-Level Marketing(MLM) started a long time ago and the most recognizable company still around today is Amway. Their products were good, but so were many of their competitors like products.
I believe the reason their initial and continued success can be attributed to their rather unique marketing platform at the time.
Since, many new players entered this field, most emulated the Amway model.
Since those beginning days, many things have happened in the marketplace and adjustments were made here and there to the marketing platform to remain contemporary.
Then came a real tsunami of change…the mother of all changes.
THE INTERNET
To better understand where we are today and how we got here, the following is snapshot of its timeline and milestones:
Internet marketing essentially began as a real commercial venture when major corporations begin to spend advertising dollars touting their products; the timeline for this beginning is around 1994 and grew to about $300 million with U.S. based companies in 1996.
As more and more people connected to the Internet…it did not go unnoticed by many of the major players and Internet advertising increased to about $1 billion in 1997.
This interest continued to grow as more and more individuals become connected; many large companies recognized the need to reach this new audience.
By adding sales promotions (highly discounted or something free) to their advertising they were able to add thousands of new names to their customer lists…and here is the real “kicker” the cost of obtaining those names was very little compared to that of traditional marketing methods.”
They found that having a website by itself was like having a “phone booth” in the desert. They realized they had to find a way to drive traffic to their websites and advertisements.
Advertising budgets grew and are projected to continue substantial growth regardless of economic contraction in the “bricks and mortar” world. The end result the birth of online marketing.
Sound familiar…the primary goal of any Internet Marketer today is to build a list of individuals you have “attracted” to you or your business for one reason or another.
Then along came the Dot.com bust. Moreover, with the resultant fallout, the Internet Industry did not disappear, quite the opposite…as more “user friendly” technology was developed, more and more individuals streamed online along with commercial advertisers to speak with them about their offerings.
Now let’s fast forward to today and why we feel the marketing models or platforms of almost all Network Marketing and Multi-Level Marketing (MLM) companies are the problem, not their products or services.
Below is our “readers digest” version of how we view the problem and the solution.
The Problem:
We believe any business, let alone and industry, that uses a marketing plan that has a failure rate of approximately 97+% of all that they recruit and sign up as Associates or Distributors is seriously flawed.
It would be expected that the attrition rate for sales people is usually much higher than the rest of the workforce…but at 97+% you have to be kidding!
It’s like the old story “just throw mud on the wall and what sticks, keep, and what falls off sweep up” and at 97+% there is a whole lot of sweeping going on!
In addition, to make matters worse a very large percentage of those that fail are disillusioned and disparage the Industry.
Here, in our opinion is the crux of the problem:
Agents/Associates are told:
■You can make a lot of money immediately with the promise of residual income.
■No special skills required and little financial investment needed.
■Just network with family, friends, anyone within reach or shouting distance.
■Attend meetings regularly, Local, Regional, and National.
■The “Pot of Gold” is just around the corner.
The typical result of diligently following the company-training program, they soon realize these same family and friends all run and hide when they see them coming. We all know a family member or friend who has become a distributor or associate of one of these cannot miss opportunities. You know who they are and after several of their “pitches”, you go incommunicado when they try to contact you.
However, we believe this industry has received a bad rap for the wrong reasons, not because of the motivation of the people entering this field, or the products, pricing or service, but simply because of its flawed marketing model.
The Solution:
In the marketing model used in the “bricks and mortar” marketplace, retailers spend a major portion of their budget on advertising and sales promotion…their purpose is to create “traffic” or attract potential customers to their offer. This is a highly successful model because it attracts customers.
Now here is the good news…this same “bricks and mortar” model has been adapted for the Internet, utilizing Web 2.0 technology…and is now available to the many veteran network marketers who have been through the multitude of failed “opportunities”, only this time with a very successful conclusion.
With the utilization of this new technology a new marketing platform has emerged, specifically, Attraction Marketing.
You can now reach an entire market throughout the world on a shoestring budget. You do not need highly evolved skills that require a degree or knowledge in things like programming, web development, ect…you can learn most of the skills as you go along…You can start slow and enjoy a low risk business-building environment, and work your way into a successful situation.
In essence, we believe this is a huge paradigm shift from the old marketing platform that just does not work…97 plus % failure…that is chasing prospects, to a new marketing platform that does work and you can build a real business with by…attracting prospects
“Attraction Marketing” it allows you to build the kind of business that you thought you were signing up for in the first place!
If you would like more information on how you can learn more about attracting prospects and developing your own online business…you are welcome to contact me and I’ll be happy to explain how it works.
