Let me throw some numbers at you to help you understand the situation.
- According to the annual reports of many MLM companies , along with research done by numerous tax preparation companies, only 1-2% of network marketers earn a substantial income.
- Similar studies indicate that 97% of network marketers fail. To be more specific, 97% of network marketers never reach a positive cashflow in their business.
- 70% of network markets end up dropping out within 3 months of joining an opportunity.
I began my network marketing career twice. First about 1 1/2 years ago when I had spent the past two years cleaning rich peoples houses and again just after moving to Los Angeles.
After the big move, I had a very strong reason to succeed. My big "why" as they call it, was because I didn't want to compromise work for my family and this would provide the balance that I needed.
When I got serious, I went on a knowledge trek. I read books, I listened to audio, I subscribed to e-newsletters, I found meetings in my area, I attended training. I milked my upline for all the wisdom and advice they could give me. I did everything I was told.
I made my "list of 100"...contacted everyone on it...set up meetings...passed out cards and catalogs...did home parties...prospected everyone I met....joined groups so I could prospect some more....
I have been exasperated and frustrated with my business. I don't understand why it is so hard, or why it isn't working for me.
I haven't made a profit. I am tired of spending money for corporate "training" that has done nothing but pump me up momentarily and talk about how great the company is. I am sick and tired of the monthly meeting and the "fake it till you make it" mentality where everyone puts on a face even though they are not going anywhere. AND, I am fed up with my upline telling me to "just do more of it".
Here is my biggest problem: I have completely exhausted my list of 100 and have nowhere to go. I have bled every last contact dry. If you run out of people to talk to where do you go? Expand your "sphere of influence" by joining social clubs and getting involved in group activities specifically for the purpose of generating leads? Give me a break! Been there.
There are two key things that make multi-level marketing very different from all other ways of making money. And I believe these two factors are the true root cause of all the problems that consultants experience in this business.
1. Network marketing is the only business 'model' that's ever been marketed to the general public on such a massive scale. Think about this. There are huge implications. MLM has been sold to the everyday American on the premise that 'anyone can do this.' There are other businesses opportunities that market in this way, but none have even come close to the size and scope of network marketing.
2. Nowhere will you find a bigger group of people all trying to do something that they don't know anything about. It's amazing really. 13 million people (that's just the U.S.) all trying to run a business and only about 1% of them actually understand sound business principles. You won't find this many clueless people in any other line of work. Except for maybe our government.
The average newbie has almost zero sales skills. That's okay - I'm not putting people down for that or anything. That's just what the situation happens to be. What's not okay is that people are told - 'Hey, no problem. Don't worry about it. You really don't need to have good sales skills to do this business anyway. You really don't need to know anything about marketing either. In fact, forget about qualifying people, forget about the whole benefits vs. features thing, forget about what your prospect really wants... just start talking to people. That's really all there is to it. Start sharing this wonderful business with everyone you know and just like magic, it'll start to grow."
So, right off the bat, people are given the impression that a 2 year old could do this. The little sales training that companies do provide is insulting. Here're some of the problems with the way MLM is taught :
No real, professional training is provided. Training that is provided is old, ineffective and flat out annoying. Consultants are not told the truth about the skills, time, money and resources they will need.
Consultants are taught to sell based on hype. The sales methods in use are 'I' centered vs. 'You' centered. In other words, MLMers resemble the stereotypical salesperson that everyone hates. People are fed one of the most blatant and deceptive lies ever: It's not selling - it's sharing! And of course, the universal answer to everything: "You just need to talk to more people!" What's worse is that companies encourage this by doing it themselves at the massive 'revival' conferences!
I remember when I used to go these inane events. Some superstar director of the company - a gal who everyone looks up to - was running around on stage, sweating up a storm and flailing her arms like he'd been snorting cocaine for the past 2 hours. Consultants are told (directly or indirectly) that the surest way to sales success is to get all riled up and be bubbling over with so much enthusiasm about your opportunity that it will be contagious. People will want to do what you're doing just because you're so bonkers about it. All this really does is add to the 'cult' image that many people label the industry with.
As legendary copywriter John Carlton puts it:
"The effect is like a three-year-old kid pestering you for attention. It's damned annoying in kids, and a huge turn-off in adults. Don't grab my lapels and scream in my face, no matter how blissed-out you are about your product."
Remember Tom Cruise on Oprah not too long ago? Jumping up and down and hollering may show that your passion runs deep... but we all thought he flipped his lid, and were certainly hoping Katie would think twice about hooking up with a nutcase who can't control himself."
Example:
"Hey Nicole, how's it going? So, what are you doing right now? Uh huh, yep, that's great... Saaay, I'm gonna swing by real quick and drop off a video for you to watch about an unparalleled opportunity that's sweeping the nation! Then, since you're obviously going to watch the tape right away - because I can tell you're so excited - and since it's about a 20 minute drive from your place to mine, I'm going to call you immediately when I get home and answer any questions that you're sure to have about the tape. Sound good? Great! I'll be right over!"
These are the kind of antics that give network marketing a bad name.
You know why it's so hard to pick up the phone and call your friend about your Tuesday night meeting? Because she doesn't give a rip about your business! In fact, no one does! They couldn't care less and you know it. They're just listening to be polite. That's why you have to psyche yourself up to do it.
But what about this 'proven' business plan? Haven't other people gotten rich in multi-level marketing using it? You know the whole deal about showing people the plan, inviting them to your meetings, getting referrals... all that good stuff? Listen, building your downline using the whole warm market, 'just-get-'em-to-the-meeting' approach may have worked 40 years ago when Amway was just kicking things off - but not today. People have wised up to these sneaky (and often times deceptive) tactics and have been "cocooning" themselves for years. They're sick of it. No one wants to go to a meeting where everyone is breathing down their neck to get them to sign up.
No comments:
Post a Comment