If your deal doesn't have either Protection, i.e. some sort of
exclusivity or even better a Patent, or you can Guarantee
the Lowest Price of anything out there you are living on borrowed time.
Remember the Acai Juice? Several MLM companies sprang up with great
systems and fancy videos, etc. to tout this amazing berry.
Have you checked the shelves of Walmart lately? There it is in all it's blazing glory, and much cheaper than the MLM companies pricing.
See many of those Acai MLM companies anymore?
If you can't offer something extra, something better then your sales are determined by price and convenience and you BETTER have the best price.
There is no question that you need an absolute KILLER system but
the big question is "How much does it cost?" If they aren't supplying
the bulk of the tools you need to succeed they are "Mining the Miners."
And then there are those MLM'ers who have decided it's better to be strictly on the supply side. They constantly preach that all you need is more training and seminars to succeed and they just happen to have an arsenal of tools and systems you can purchase.
Bottom line, if the deal you are looking at or involved in doesn't Include MOST of the online tools and systems you need to succeed they are simply "Mining the Miners."
It's safe to say that you need to start your own Home Based Business but not many folks do very well because they either received Bad Advice or they picked the Wrong Deal.
When I look at a business I look at it with Logic and I analyze the Facts to decide if it warrants my time. And then, I develop tools and systems to do it right.
Struggling in Your Home Based Business? Want to know Why?
Using this evaluation system I predicted these failures
long before anyone else.
"We're All Gonna' be Rich," or "It's easy using nothing more than a computer and our system," or "Our Secret Software is only available
for the next six hours so buy now before this page goes down."
You scroll down and find that "$500.00 valued package but if you act
today, $39.95... But wait, there's more. You also get..."
And then if you do buy there are always OTO's, (One time offers)
that are ONLY available if you act NOW, and they show a coundown clock. One thing is certan, the OTO is ALWAYS quite
a bit more money.
OK, so you take an OTO but guess what? Then comes the "But Wait, now we have an even better special offer...
(Another OTO and EVEN MORE Expensive.)
for the RED FLAGS
Most folks join a Home Based Business based upon emotion rather than logic. Somebody gave them a great 'pitch' and sold them on the concept so they jumped in and bought into the 'dream' without considering the facts.
"An investor who buys on emotion won't be an investor for long."
If their biggest Hook is their opportunity, usually there is a reason.
Their products or services are so weak they must do this.
The big scam here is to brag about how much they pay out but isn't the bigger question 'How much do they pay You?'
Companies that do this will have lots of requirements or hurdles, even blocks so it's nearly impossible to maximize their plan. Sure, they say it's possible but is it REALLY?
These Got-ya's are there for a reason, so the money flows up! Who do you think designed the plan? The guys at the top.
There is usually a higher Up-Front buy-in of product to get a higher commission.
Why would anyone have to pay more to make more? Why not just make more by moving more product through a larger organization? Does McDonalds charge you more in order to sell more burgers? Of course not, that's just nuts. They help you to build your business which sells more burgers.
Here's the dirty little secret. Companies doing this are merely front loading a commission for the folks above you and a dead giveaway is how hard they push it.
Then, when you don't make the kind of money you thought you were going to make their answer is always "You Need More Training." Refer to 'Mining the Miners.'
Have you ever been approached by someone who is trying to
convince you that you need this super-duper Juice or Vitamin?
how great they are or how good they try to make it sound, you probably weren't aware of any sort of need till they
started trying to convince you.
And even if you do give in and purchase their deal, what happens next? You have to SELL, you now have
to go out and try to convince others.
Most people aren't sales professionals and not good at trying to create
a need in others so they fail. If you have to get into Selling or Convincing mode you've already failed. You end up alienating your
friends, family, probably everyone you know. They'll cross over to the other side of the street when they see you coming. They just
don't want to be bothered with your "Deal."
Most companies (particularly the new pre-launch ones) are comprised of a few guys who have
done it all before and many jump from deal to deal. They play on the fact that most people simply aren't making enough money
and they are "to the rescue."
You Cannot create a Need. And even if you could, a Need simply won't
cut it. We need a Lot of things:
We Need to be more organized,
We Need to do a better job of cleaning the house, is that always the case?
We Need to be more healthy, are we?
need is actually a WANT or even better, a MUST HAVE, it will always be something that can be placed on the back burner. In a bad economy
when folks are struggling, what always takes precedence over all other purchases? Those things we Want or Must Have.
The ONLY way
you will succeed if you don't have something that poeple Want is to make it Free.
This is why all of the networkers are out there
are constantly pushing new deals, especially those in the Health related fields because in a down economy that's always the first
casualty. People stopped buying the potions and pills, the checks went down so they are out scrambling to find the next big deal.
First, you need to be dealing in a consumable.
Someone will reorder On Their Own when they reach the bottom of a box,
or subscription end.
If your product is a one time deal you are basically unemployed till your next sale, as are all of your people.
Second, it MUST stand on it's own...if no opportunity existed people would still buy.
The basic laws of Supply and Demand
apply. It doesn't matter how great you think your product is, unless there is a demand for it you will not succeed. Remember Floppy
Discs? I don't care how great your Floppy Disc manufacturing facility was, there was No Demand, and no matter how low you price them
nobody will buy.
If you are trying to entice folks into your deal with the dream of riches and success, that's a recipe for failure.
How many deals have you seen where success is only dependent upon how many people you can get into the deal? When the new
blood stops coming in the whole thing fails. These deals will have some sort of product but that's only to keep the Feds. off their
backs so they won't be labeled a Pyramid Scheme and shut down.
The Key to success is the External Consumption Model, customers
who buy your product without being involved in the opportunity.
typical MLM model is flawed, They have the WRONG MODEL - the dreaded INTERNAL Consumption Model - fueled by Forced Auto Ship
and DISTRIBUTOR Consumption.
The problem with the INTERNAL Consumption Model is ATTRITION.
Your distributors don't make enough
to cover their Forced Auto Ship so they turn it off and your check goes down.
Upline Distributors panic and the "Training Mode"
kicks in with the seminars, webinars, regional and national meetings, all in an attempt to Train the Distributors to
They assume more training on a flawed system will make it better.
The bottom starts to fall out and everyone
looks for the next BIG THING.
It reminds me of the movie GROUNDHOG DAY - the outcome is always the same.
These distributors go from
deal to deal and the next one is always the NEXT BIG DEAL that's going to make everyone rich.
They leave one company, join another
and do it all over again. They never quite realize that the basic business model is flawed.
Business Insanity is defined as 'Doing
the same things over and over again but somehow expecting a different result.'
Companies using this INTERNAL Consumption Model are
experiencing 70% or more attrition and most try to overcome this with EXPANSION, moving into new markets. But at some point you
run out of countries to expand into and the model starts to collapse.
So my point is this - If you want a stable residual income
your model MUST have a LARGE CUSTOMER component.
If a very large part of your business model isn't CUSTOMERS you are wasting your
In MLM? Which Industry?
Traditionally the Largest industry in MLM is Wellness.
It's most hyped, Hardest to do with the
Worst Track Record.
Competition from Walmart
Usually Not an Exclusive Product
The competition is Fierce and the
usual claim is "But WE have a Better Product."
Dirty Little Secret:
The AVERAGE RETENTION of Most MLM's (excluding Energy and
Travel) is only 10% after just 12 months. Not the kind of retention you were hoping for?
Mobile is Critical.
Most companies do it the old way with limited technology, i.e. hotel meetings, conference calls, spending tons of money on brochures, etc.
Now I'm not saying conference and 3-way calls or webinars aren't important, but if that's all your system offers then good luck. You'll need it.
Your prospects are on Mobile, are you?
But there is a problem, you must do it right and according to Google, most companies get it Dead Wrong!
Exclusivity or Best Price
The Party Plan
The Internal Consumption Model
The old "Hey, I have a buddy who is doing an exclusive meeting with a few friends over at the Holiday Inn, can I pick you up for it?
It's something you really need to see."
If your products demonstrate with a WOW Factor, then by all means this is a great way to show
It can be a fun atmosphere where you just Show and Tell or Demonstrate.
It can let some try the product and they when they say
"cool" you have a winner.
If you must launch into a long presentation and SELL them on the concept, forget it.
If a "Guru Closer" is
needed because folks much be Convinced, then it's a loser.