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web20mentor
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Joined: 20 Jan 2008
Posts: 77
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#1 · Posted: 3 Apr 2008 11:37
So MLM has a 97% fail rate. Big Deal. So does online biz opportunity industry (affiliate programs like WealthMasters, liberty league, etc).
But why? (If you have failed at MLM, you don't get to answer here...we know you hate it and you want to make sure that everyone knows that your failure had nothing to do with your inability to gain enough mental leverage on yourself to do what was necessary to figure out an effective sales and recruiting approach...we have heard it 1,000,000 times already...we got it)
Regardless of how I feel about people's sudden lack of personal responsibility when it comes to failing at things, the sad fact remains that 97% are failing. So while I am not one to buy into people's excuse-making, I also know that the basic business model is pretty messed up if your getting results like that.
SO WHAT IS THE REAL PROBLEM in MLM????
It's very simple. MLM'ers have not learned how to stop CHASING DOWN THEIR TARGET MARKET! For that matter, they don't even know how to assess who their target market really is!
And even if someone does know how to define who their target market is, many will then go into that market with a big pile of business cards and their nice suit ready to put on a show:
"This company is 21 years old, we are debt free and we have THE GREATEST (insert your thing here) that has ever been in the market....AND we are creating 100 millionaires in the next 24 months! You should come to our meeting at (insert local cheese ball hotel) this Monday night! We have a guest speaker who was a (insert really crappy job here) and now he earns over XXXX per month!"
That is called "chasing". THAT is why you have your 97% fail rate.
Solution?
Learn to ADD MASSIVE USE VALUE TO YOUR MARKET. (first, you need to know who your target market is and where to find them)
Now, at first this can be difficult. But it's the difference between chasing a dream and being miserable doing it and having your dream chase you and having a blast.
Depending on the response to this post, I will do another one that will show you exactly what it means to add Massive Use Value.
I really hope that those that are still making the lists of their friends and family or just generally struggling (in ANY business) will pay attention.
Peace
Danny Arrington
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Breanne
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#2 · Posted: 3 Apr 2008 11:59
Now that really is speaking the cold hard truth. I think a lot of people may be afraid to admit that because they really want to believe in their company. And there is nothing wrong with that, but if they don't want to be in that 97% then they need to learn a different way of marketing. Most people at the top of MLM companies are probably spending tons of money in advertising, which the average person can not afford. The way to be in that 3% is for them to find someone who is getting the results the way they want and learn from them. Then they must duplicate their mentor's actions and they should start seeing better results.
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mountainmom5
Joined: 30 Aug 2007
Posts: 3116
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#3 · Posted: 3 Apr 2008 13:48
Another big reason people fail is because they don't take responsibility for their own business - they are depending on their upline or team to help them succeed....so when things go wrong - who do they blame? The company... The training... The comp plan... Their upline or mentor...
We can make excuses or we can make money but we can not make both!
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malibumentor
Joined: 27 Jun 2006
Posts: 354
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#4 · Posted: 3 Apr 2008 14:10 · Edited by: malibumentor
I lot of folks are attracted to MLM because of the "low barrier to entry" - yet when it comes times to run it like a real business they aren't sufficiently committed.
In general I have found that "without investment there is no committment" - what this means is that the person who starts a "business" for $50 and then finds out that the business has ongoing expenses finds it easy to quit.
I hire salespeople on straight-commission, no-investment terms. They aren't joining my business, they are working a J.O.B. - and I pay them FAT commissions when they produce results - and they quit like you would not believe.
The guy who hasn't invested enough money to cause him to make a promise to himself - "I'm gonna do what it takes to make this work," this guy always quits. AND he is typical of the legions who fail in MLM - they just don't do the work that success requires - often jumping from program-to-program looking for EASY when the truth is that building this business is more a matter of consistency than it is of anything else.
People who are simply willing to read and learn and practice to learn the relevant skills can make a lot of money. They are a rare breed - the culture of instant gratification has made them so.
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mountainmom5
Joined: 30 Aug 2007
Posts: 3116
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#5 · Posted: 3 Apr 2008 14:17
malibumentor: People who are simply willing to read and learn and practice to learn the relevant skills can make a lot of money. They are a rare breed - the culture of instant gratification has made them so.
Amen! Our microwave society needs some crockpot mentality
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opendomain
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Joined: 19 Aug 2007
Posts: 531
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#6 · Posted: 3 Apr 2008 15:09
mountainmom5: We can make excuses or we can make money but we can not make both!
That is the best line i've heard all year...granted it's still early in the year but I think it will hold
I've found that biggest issue with MLM is finding one where the company is not a scam.
My problem with huge investments is that typically that's the only real way to make money. I understand the need for commitment, but because many of the "scam" type companies use that as a hook point, "the money is to show you're serious" It can be very difficult to distinguish scams from non scams.
I would rather play the numbers game any day with signing up 10 $50 and having 6 drop, and building off of 4 than having 10 and 8 drop and building off of 2. The math is better long term.
3*3*3
Assuming you have an MLM going down 7 lvls with these drop rates then selling a 76.55 product to your downline with a 3 person retention rate is the same theing as selling a $500 item with a 2 person out of 10 retention rate.
I gues the argument can be made either way, mostly preference I suppose
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JenniferF
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Joined: 2 Apr 2008
Posts: 36
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#7 · Posted: 3 Apr 2008 16:32
web20mentor: It's very simple. MLM'ers have not learned how to stop CHASING DOWN THEIR TARGET MARKET! For that matter, they don't even know how to assess who their target market really is! And even if someone does know how to define who their target market is, many will then go into that market with a big pile of business cards and their nice suit ready to put on a show: "This company is 21 years old, we are debt free and we have THE GREATEST (insert your thing here) that has ever been in the market....AND we are creating 100 millionaires in the next 24 months! You should come to our meeting at (insert local cheese ball hotel) this Monday night! We have a guest speaker who was a (insert really crappy job here) and now he earns over XXXX per month!"
True, true, true and so much shades of a previous company I was with, sorry, but I laughed when I read it here. This same company taught me the 3' rule - two requirements for a prospect - they have a pulse? Are they breathing? Yes, Yes, PROSPECT. JUMP.
Definitely have to offer VALUE, not for oneself but for the customer or prospect. I for one vote for the next post. I'll be sitting on the edge of my chair waiting.
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mountainmom5
Joined: 30 Aug 2007
Posts: 3116
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#8 · Posted: 3 Apr 2008 16:35
JenniferF: two requirements for a prospect - they have a pulse? Are they breathing? Yes, Yes, PROSPECT. JUMP.
Also known as your 'meet market'.. if you meet them , they are your prospect - LOL
This whole thread has got me smiling - I think many of us have been thru the same school , by the sounds of things...
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opendomain
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Joined: 19 Aug 2007
Posts: 531
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#9 · Posted: 3 Apr 2008 17:10
Yes that education was costly for some of us...but in the end very informational...a what not to do in the future guide.
Is there a big book of mlm sayins out there somewhere?
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JenniferF
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Joined: 2 Apr 2008
Posts: 36
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#10 · Posted: 3 Apr 2008 17:14
opendomain: Is there a big book of mlm sayins out there somewhere?
Sounds like an opp for someone to start writing about...
~jennifer
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Jeff_Seely_RN
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Joined: 4 Apr 2008
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#11 · Posted: 4 Apr 2008 03:26
JenniferF: taught me the 3' rule - two requirements for a prospect - they have a pulse? Are they breathing? Yes, Yes, PROSPECT. JUMP.
This reminds me of a story I heard about a guys prospecting technique. "If it moved, I gave it a tape. If it didn't move, I'd kick it. Then if it moved, I gave it a tape!" Pretty funny, I guess.
I heard on another post or in a phone call that, "It doesn't matter how many people you know. What matters is how many people know you." I found that to be intriguing and refreshing and puzzling at the same time. Over time, I may not have know how to know the right kind of people to make the traditional route work. I wasn't thinking that way when I became someones acquaintance.
After talking to tons of people that I thought I knew I realized that I'm the most ambitious person I know...and that was pretty sad.
This video/web2.0 stuff has changed this old veteran salt. What got me motivated to learn it was the endless phone calls I got from distributors at the end of their ropes...not having anyone else to talk to. They either wanted me to "give them somebody" or reveal some secret technique for finding new people. Up until last October I had no way of helping.
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web20mentor
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Joined: 20 Jan 2008
Posts: 77
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#12 · Posted: 4 Apr 2008 17:23
Adding Massive Use Value is about finding your passion and having as much fun doing it as you can.
For example, I have a student named Frank Wall. He is in Monavie. He LOVES working out. The first time he called me he had NO CLUE how to do anything other than pitch, pitch and pitch some more. He could get so excited about Monavie! And you know what? He has a heart of gold. He really does believe in it. He is in amazing shape and says that his energy level is a result of drinking 2 oz's per day. Who can argue with that? He is a walking billboard.
But guess what? NOBODY CARES! His family tells him they don't want to hear about it. All of his friends are sick to death of it. His coworkers have all bought in and then fallen out on him. He is making no money and it's been over a year!!!
So he calls me and wants to know how I can help him. I tell him to describe to me his ideal life. He says "I would work out everyday, own a gym, teach people to eat right and get in shape."
PERFECT! I tell him to start making videos that teach people how to work out. He looks at me like I am crazy. "How is that adding value and making me Monavie sales?"
I say "when you teach others how to improve their lives, they become fans and fans want to follow you and do whatever you do."
He didn't believe it would work but did it anyway. It's been 5 months and he now has people all over the country following him around begging to know how to get in the shape he is in....how to eat like him...how to work out like him. He is a legend in the minds of hundreds and hundreds of people.
Now, Frank Wall is at the top of Google for the keyword phrase "atlanta fitness expert"....his video is the first and second spots. He has realized the power of living your life NOW and has also adopted MSI (Multiple Streams of Income) by becoming an affiliate for some workout stuff. He is writing an ebook and has totally expanded his mindset.
Another student, Karin Hiebert, called me wanting to know how a burned out hairdresser was supposed to "add value" to the market.
"What can I possibly do to add value?"
I asked her what her passion was. "Teaching people how to take care of their hair" was her answer.
"GREAT" I said. Make videos about hair then!
She laughed. I said "just do it!"
Her very first video was called "How To Properly Shampoo Your Hair". She was amazed at the positive feedback and the quickly realized that thousands of people wanted to learn how to "Shampoo their hair properly" and they followed her. She now runs a newsletter about hair along with a business coaching opportunity where she now teaches people how to stop chasing their market and how to start ATTRACTING it instead. All from following her passion.
So you see, adding massive use value is going to be different for everyone.
Listen carefully. Every single one of you has something inside of you that makes you as unique as a snowflake. THIS is your gift FROM GOD and TO THE WORLD. Use it.
How would it feel to wake up everyday and simply do what you totally love...only what is worthy of your life. To some, it's a distant dream. To the Dream Achiever, it is not optional.
So here are some more basic ways to add value to your market:
Give away free samples.
Train people to succeed before they pay you any money.
Do testimonials for people you want to meet or network with.
Do a weekly Q & A on something you love talking about (besides how great your company is!!!)
There really are hundreds of ways to add value...but if you write this down, it will be easy.
The NEW definition of marketing is the process of adding more in use value than cash value received with the intent to inspire, empower and build long term relationships based on the needs, wants and desires of others and not our own.
What I found in my pursuit of living by this new Attraction Marketing model was that it all came down to being willing to serve others. If I could find my happiness in helping other people succeed, I would easily get everything I wanted out of my online business.
I have far surpassed all of my expectations and the relationships I have built are the best of my lifetime. I have attracted others that are JUST LIKE ME and it's just a big party.
Have fun, follow your passion and serve others without any connection to what they can do for you and the world will bend to your wishes.
Let's see where else this powerful thread can take us!
Danny Arrington
PS...thank you all for the awesome comments!
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Breanne
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#13 · Posted: 4 Apr 2008 17:37
Wow, what an inspirational reply post Danny. It is wonderful to believe in being able to reach you dreams and go after your goals. I think what you are saying is so true about adding value and helping others. It has truly become my passion and I can relate to living the everyday party. I love what I do and it is because I am following my passion. Thank you for this wonderful reply in this post.
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Aspire
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Joined: 24 Mar 2008
Posts: 104
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#14 · Posted: 4 Apr 2008 17:49 · Edited by: Aspire
This thread reassurs me that this forum is without doubt MOST VALUABLE to anyone in HBB.
Great comments - Great advise
Paul
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JenniferF
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Joined: 2 Apr 2008
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#15 · Posted: 4 Apr 2008 18:01
I had a feeling the 2nd post would be as powerful if not more so than the first. WOW ! And SO eloquently put. Thank you so much for sharing this. I am sure you already made a video?
Thanks so much.
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AskVideoGenie
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Joined: 4 Apr 2008
Posts: 9
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#16 · Posted: 5 Apr 2008 06:52
Thanks Danny
your information is valuable and
Here is my person experience with these:
So here are some more basic ways to add value to your market:
Give away free samples.
(it cost more of my time)..payout is too little
Train people to succeed before they pay you any money.
(Now this one is most profitable strategy for me)
Do testimonials for people you want to meet or network with.
(This one really boosts my credibiliy)
Do a weekly Q & A on something you love talking about
(besides how great your company is!!!)
(this one is really awesome now I get to know the market)
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ownyourlife
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Joined: 13 Apr 2008
Posts: 31
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#17 · Posted: 13 Apr 2008 21:34
I agree! Know your market and learn how to advertise. It takes dedication and hard work. I've failed a few times but have done a lot of research and have aligned myself with a great mentor. That is the key.
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jschuman
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#18 · Posted: 14 Apr 2008 13:48
Considering that network marketing is now done equally online with affiliate marketing, the biggest reason that people fail is they do not acquire Internet marketing skills.
It takes skills to build an Internet business regardless of whether it's in network marketing business or another kind. But the most important neccessary skill is learning how to get traffic to a website and most people will never get enough meaningful traffic. Therefors, they will not retail enough product nor sponsor enough new distributors, to build a successful network marketing business.
This is not a reflection on MLM but rather on Internet marketing in general, as it is an extremely competitive world that we all live in today.
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AmyKay
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#19 · Posted: 21 Apr 2008 09:58
Thanks for the article, and all the replies! I'm one of those naive newbies. If I spend long enough here, I won't be so naive.
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jayatd
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Joined: 21 Apr 2008
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#20 · Posted: 21 Apr 2008 13:23
AmyKay: Thanks for the article, and all the replies! I'm one of those naive newbies. If I spend long enough here, I won't be so naive.
yup, so calm down and think wise..
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