Halastana Web

When comes to advertising your website the easiest most effective way to do this is using online marketing strategies.

Online marketing consists of utilizing networking technologies, Web 2.0 platforms, and utilizing information services.

There are a vast array of different ways to market things using the Internet but the most exciting thing about marketing your product on the Internet is cost.

Most of your marketing muscle is done in transit when people visit websites, leave comments, and share data.

The Internet is full of Sprite is anxious getting better. Even when the Internet first came out and people started utilizing the leverage networking strategies, the impact was still very potent. Imagine what will be like in five years.

online marketing can be easy but it’s also a skill set that you can utilize to leverage the power of word-of-mouth.

The cool thing about online marketing is something as simple as telling a friend about an article or sending a link to somebody can become a potent traffic targeting strategy.

Utilizing search engine optimization is also a powerful strategy that uses information websites to target visitors to your marketing page. More often than not even the simplest Internet marketing strategy yields incredible results.

Internet marketing is also very easy learn and there’s a lot of information about it all over the web.

Today I want to talk about something that was in our original mock ad that may seem incidental, but the way it was
handled, is GUARANTE-ED to lower your response.

You can check out that original ad, and even print
out a copy of it, right here:

http://www.kingofcopy.com/tips/real_estate_ad_071505.htm

At the bottom of the ad, there was a sort of “disclosure”
that said “This report is courtesy of Peter Butera, ReMax
ACR. Not intended to solicit properties currently listed
for sale. Copyright © 1997.”

First of all, if you can get away without having any kind of
disclosure, than by all means, don’t put one in.

Sometimes though, the newspaper requires you to include them
because they want to have “some” kind of indication that
what you’re reading really isn’t “news” — at least, not
news published by the paper themselves anyway.

But if you HAVE to include something like the writer
included… the very WORST thing he could have done is to
put down that the copyright (c) was from 1997.

That’s was ages ago!

People want to read “news”, not “olds”.

This is a HUGE red flag that’s screaming “OLD ADVERTISEMENT
RUNNING OVER AGAIN.”

If you HAVE to put that disclosure in, your response is
going
to be MUCH higher, changing “some-thing” in the text so you
can modify that copyright date to read “(c) current year”.

See, there are dozens of little things like this you must
consider when you’re putting a display ad together.

Missing one of them may or may not sink you, but missing all
of them, unless you’re in a rabid marketplace with an
amazing offer, surely will.

Now go sell something,

Craig Garber
http://www.KingOfCopy.com

P.S. Check out all the prior archives you’ve been
missing, right here at:
http://www.kingofcopy.com/tips/tiparchives.html

If you want to know how to consistently attract a steady stream of fresh new prospects, who are pre-qualified, eager, and excited about buying from you, then Craig Garber — recognized by his peers as America’s Top Direct-Response Copywriter — can show you exactly how to do this, step-by-step. Garber’s written winning promotions across a HUGE variety of industries and you can see them all for yourself on his website at http://www.kingofcopy.com

Multi-Level Marketing is alive and well in the United States and millions of Americans are involved in these businesses which they run from their home and even buy the products from them selves and for them selves.

Unfortunately all too often a multi-level marketer will embellish their own financial success in the business, as well as the reality of the attrition rates when building their down lines in sales presentations. In fact the Federal Trade Commission (FTC) has identified this as one area where consumers have encountered fraud and misrepresentation.

In an official report from the FTC on proposed rule changes for business opportunities, multi-level marketing companies and Franchises the FTC states;

“Indeed, complaints against pyramid marketing companies consistently ranked among the top 20 injury categories reported in consumer fraud complaints to the Commission.91 For example, during the period 1997 through 2005, pyramid marketing schemes ranked among the top 20 injury levels each year, except in 2003, as follows: State regulators report similar data. For example, a Florida business opportunity regulator noted that in his office, 60% of the written complaints received pertain to pyramid marketing companies. “They last about six months and they’re gone.” James, 20Nov97 Tr at 115-26. The State of Washington also reported a large number of pyramid marketing scheme complaints. See WA Securities, ANPR 117 at 2.”

YEAR RANK INJURY

1997 9th $352,769

1998 5th $1,858,787

1999 10th $2,011,012

2000 4th $12,632,132

2001 10th $10,685,083

2002 18th $9,685,722

2003 (not in top 20)

2004 18th $2,264,112

2005 17th $3,347,443

Well we can certainly see why authorities are worried about MLM Multi-level marketing companies and home based pyramid-marketing schemes. These new proposed rule changes may in fact address these issues, but no one is certain that the misrepresentation will stop. If you own an MLM business perhaps you might wish to comment at the FTC about this upcoming proposed rule change? Consider all this in 2006.

“Lance Winslow” - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/

If you’re a business owner, you probably spend quite a lot of your time at networking events. In fact, it may be the main way you try to get new clients. But do you ever feel that you could get more from these meetings? Do you actually get the results from your networking to justify the amount of time you put into it?

If you don’t find you get a lot of interest from the people you meet, it may be that you’re going about things the wrong way. You may need a new approach.

My own view is that you can’t go far wrong if you think of networking more like dating. The two activities have a lot in common ( although, I must admit, I’m relying on distant memory here ). Here are some things you need to think about.

1. What sort of person do you want to meet?

If your answer is ” anyone ” you risk wasting time talking to a lot of people who just aren’t going to be ” the one “. You also sound a bit desperate, to be honest. Not everyone is going to be your ideal client. Once you know who that is, you can be more choosy about who you talk to.

2. Where are you likely to meet them?

There are lots of places to meet people, but where will you find your ideal person - in a club, at evening classes, at the Bingo? Don’t just go to the first place you find, pick the event where you know the person you’re looking for is most likely to be.

3. Think about joining a dating agency so you can look through details of the other members.

Look at the members list of any group before joining if you can get hold of it ( ask for photographs if possible ). Also, look at the list of attendees before a meeting so you can make a beeline for the people you want to talk to.

4. Accept that it takes time to build a relationship.

Don’t expect too much too soon. People will need time to get to know and trust you and, in this case, you’re looking for a long term relationship, not a one - night stand.

5. Think of something interesting to say about yourself.

If someone asks you ” What do you do? ” don’t just say ” I’m a Financial Adviser ” or ” I’m a Consultant ” and expect them to swoon. Tell them what you do for people, how you help, the problems you solve. But don’t make things up to impress them, you’ll be found out sooner or later.

6. Don’t spend the whole time talking about yourself.

One secret for getting people to like you is to ask them about themselves. Be a great listener, not a great talker. People love talking about themselves, they don’t want to listen to you telling them how wonderful you are. Stop talking before they lose the will to live and ask a question. Prepare some good ones in advance so your mind doesn’t go blank. Avoid ” Do you come here often? ” or ” So what line of business are you in? ” Try to find something you both have in common.

7. Don’t be too pushy on your first date.

Just because someone shows an interest doesn’t mean you can bombard them with information about all your products or services. You’ll look too needy and that puts people off.

8. People always say they’ll ring, they never do.

Sad but true. Don’t rely on other people ringing you, make sure you get their number so you can call them. It’s much more important to get someone else’s business card than to give them your own. It gives you the initiative.

9. Keep your numbers in a little black book.

Set up a contact management system so you don’t lose the details of the people you meet. This might just be a card index or it might be sophisticated software. Whatever it is, have a system which you know how to use.

10. Keep in touch.

Do contact them again if you got on well, they want you to really. Call or write, refer back to your conversation and mention something they said. Send them an article about an interest they mentioned, it will show you were listening and you care about them. It’s amazing how many people go to networking events, then never follow up with the people they meet. Don’t expect ” love at first sight “, it takes several contacts before someone is likely to do business with you.

I hope that’s given you some ideas. Of course, you still have to remember the basics, such as dressing up a bit and cleaning your teeth, but that’s down to you.

And, of course, there is one big difference between networking and dating - with networking, you’re allowed to see lots of people at the same time!

Good luck.

About The Author

Alan Matthews is an experienced trained, coach and speaker specialising in communication skills for business owners. He is author of ” Do You Come Here Often? How To Get More Clients By Successful Networking ” and ” Secrets Of A Professional Speaker ” as well as numerous articles and reports, all available from http://www.trainofthought.org.uk.

alan@trainofthought.org.uk

There are a number of difficulties a beginning entrepreneur may encounter that can “torpedo” his business almost before he knows it. But the wise mail order dealer can sidestep some of the pitfalls of operating his own business by recognizing and avoiding the following common mistakes.

1. Figuring that the one “How-To” book, booklet, or report that you read about starting a mail order business told you everything you need to know. You never really stop learning about this business as long as you’re in it, and you need to continually seek out new information and advice from those more experienced than you.

2. Planning your entire business around only one product or service. It is best to have several different items to promote; give your customers a choice. And always have something to follow-up an order or inquiry with. It costs too much to obtain the names and addresses of potential customers to simply try to sell them one item, one time.

3. Spending too much of your advertising money on only one or two untested ads in only one or two untested publications. Start smart… test your ads (2 to 3 concurrent insertions) in a variety of publications that are likely candidates for the product or service you are selling. This means studying many different magazines, newspapers, adsheets, and so on to determine where your ad will best fit in and has the best chance of being seen by readers who will be interested in what you are offering.

4. Believing that your advertising only 3 or 4 times will be enough to establish your business and earn your fortune. There is one theory that states that people need to see your ad a minimum of 3 times before it makes an impression on them. Another theory states they must see it 7 times!

5. Failing to adequately “key” your ads so you know which ads in which publications are pulling inquiries or orders for you. Without this knowledge, you’ll continue to throw your money away by advertising in totally unsuitable and unresponsive publications.

6. Trying to sell a $10 or more item in a small space or classified ad. Not enough information comes across in a small advertisement; people won’t part with this kind of money on the basis of your 40 to 50 words. It is best to ask for inquiries and offer free information. Once you have the customer’s name and address, use your full size circulars, brochures, and sales letters to convince your customer of the benefits you are offering.

7. Not keeping adequate records on the customers who do respond to your ads. These people have demonstrated their interest and faith in your company and your product. If they have bought from you once, they may very well buy from you again. Keep track of their names, addresses, date of sale or inquiry, what ad(s) they responded to, item(s) bought from you and amount paid, and then mail your promotional pieces to them periodically. Your customer list can be one of your most valuable business tools.

8. Not using proper postage on your mailing pieces. You should weigh everything you’re mailing first class (an inexpensive postage scale cost about $6.00), and then affix the correct stamps. Most people overestimate how heavy their mailing piece is and put two first class stamps on an envelope that only weights one ounce. Wasteful habits at such a basic level in mail order can be the start of financial ruin.

9. Thinking that how your mailing piece looks doesn’t matter, it’s the content that counts. The content of any circular, program, report, booklet, etc., is of course important, but a poorly laid-out job, badly copied piece which is barely readable does a poor sales job, no matter what it says. The “look” you are presenting matters more than you may realize.

10. Believing that once you have your customer’s money, you have done your job. Always respond quickly. Mail out the order or requested information within 48 hours. Take care of any problems or complaints immediately; refund their money if they are dissatisfied with their purchase. Always give your customer more than he expects, and he’ll want to do business with you again in the future.

Copyright 2004 by DeAnna Spencer

Note to editors:
To show my appreciation to the editors that use my articles, I offer a free solo ad. Simply send an email to me by using the form on the contact me page on my website to tell me the url the article was used on or send me a copy of the ezine it was used in.

Are you content with your advertising budget?
Schedule a coaching session with Frugal Solutions Expert, DeAnna Spencer.
She will design an affordable online advertising plan for you.
Contact her by sending an email to deanna.spencer(at)gmail.com
Visit this small business resource for more information.

Recently I organized a promotional photo contest. Among the selections an image was titled ‘Confidence’. Overwhelmingly that photograph was chosen and ultimately became the winner. This made me stop and think about how most of us are influenced by the air of confidence.

Look around you; think about it. What is it that makes you want to emulate someone else? More than likely you are drawn to people who project confidence. Would you apply the principles gained at a conference or training session if the spokesperson didn’t impress you? When you attend a function is it the individual that meekly offers their hand to you that you wish to befriend or do you seek out the recognized leaders in the group? Of course, you should introduce yourself to all types of people, but how do you draw them to you? Confidence is the key!

How do you reach the point where you too possess the confidence that causes others to actively seek you out? There is a fine line between success and mediocrity and confidence can serve to bridge that gap.

So how do you develop your confidence? Knowing everything about your product or service certainly helps, but waiting until you ‘know it all’ can cost you valuable business building time. Begin with the basics. Practice. Yes the simple act of standing in front of a mirror and practicing what you want to say will allow you to improve your speaking ability.

Alternately, if you happen not to “know everything about your product or service” an excellent option is to show a sincere interest in the other person’s area of expertise. This will typically serve as a great icebreaker and make them more comfortable and sympathetic to your points when you get around to them.

Once you are comfortable with what you have to say it is time to begin looking in the mirror at how you present yourself. Take a good look. Is the person looking back at you someone you would like to get to know? How are you standing? Are you standing up straight and tall or are you just standing there looking back at yourself? Pull those shoulders back, think and act positively.

You have certainly heard it said, ‘Dress for success’. The style you dress in can either enhance your feeling of confidence or it can detract from it. When you wear clothes that are wrinkled and the wrong size you tell the world you are lazy, unsure of yourself and generally to be avoided. However, just the opposite is true of the individual that is well dressed, neatly pressed and groomed. You don’t have to wear Armani suits or fine jewelry, just dress in a neat, clean, attractive fashion. Ladies, that mini-skirt or suit that is just the teensiest small in the obvious places is not the way to portray your winning personality. Some of the best dressed women I have ever seen were office assistants in Santiago, the capital of Chile. None of them had much money nor were they dressed in expensive clothes, but they all fit trim figures into tastefully chosen clothes. After 30 years I still remember them.

Now that you have the posture and the right outfit you need to look at your unspoken language. Body language is the subtle art of communicating without speaking. What is your body language communicating to others? Are you telling them with the look in your eye or the way your posture that you are worth knowing? If not, I have a couple of simple suggestions for you.

Always look the person you are speaking to directly in the eyes. This tells them that you believe in what you are saying and that you respect them.
Another skill you might develop is the ability to create a connection by the simple act of conforming posture. As an illustration; if the person you desire to speak with is sitting with their right leg over their left, you do exactly the same. Allow them to become comfortable in that position and then ever so subtly switch your position. If they follow suit they are unconsciously bringing themselves into agreement with you. If they don’t, switch back to their position and try again.

There are numerous reference materials on the art of body language. I urge you to incorporate at least a few of these methods into your daily communication.

These simple practices will aid you in developing the confidence you desire. An air of confidence is not something that most of us are born with. It is a talent that successful people have learned and aptly utilize every day. Practice and begin developing your confidence with these simple techniques; then, go forth and win friends and influence people!

© Copyright 2005 Ginger Marks
Ginger Marks is the founder of DocUmeant, Your writing assistant. For more information, visit her website at http://www.documeant.net. She is also the Copy Editor for Ladies First Magazine. Ladies First Magazine online is your first stop for business articles, profiles and resources for and by female entrepreneurs, http://www.ladiesfirstmag.biz.

“If My Work is Good Enough, I Shouldn’t Have to Market, Right?”

Don’t you think that good work should speak for itself…that
if you’re good enough at what you do, you shouldn’t have to
hustle up business?

I’ve been working with a lot of really Smart People lately.
Physicists, Economists, Chemists, Electrical Engineers,
Programmers, Researchers and highly educated professionals of
many kinds. These folks are at the top of their game and
world-class contributors in their chosen field.

Here are some of things they’ve said to me about marketing:

“If you’re good, the money will come; we’re above the money
game.”

“It feels sleazy to have to sell our market impact…”

“Isn’t there an implied value to what we do? Why do we have to
market it?”

“Yes, I’m angry that I have to market. It’s not why I chose
this career.”

If you can relate to any of these statements, you’re not alone.
Even these really Smart People have to face the harsh reality
that great work can’t protect them from the “M Word”
(marketing). Whether you’ve taken an entrepreneurial route, or
work inside a large organization, marketing is a life skill
that’s essential for survival.

I remember fighting this reality early on in my professional
career, limping along and barely surviving as a business
because we were in denial about the reality of our situation:
that if we didn’t step up and figure out how to attract more
clients, we’d be out of business.

Of course it wasn’t until I was in a whole lot of pain (i.e.,
cash flow was a problem) that I changed my behavior. I had a
choice to make: figure out how to bring in more clients or
perish!

If you want to get your professional services understood,
valued, and used in the marketplace, ignoring this
responsibility is not an option. So as a Smart Person, do what
comes naturally: LEARN your way out of your problem.

We’re all on a learning curve about something, regardless of
PhDs, technical expertise, or years of professional success.
For many professionals, finding yourself at the bottom of the
Marketing Learning Curve is a frustrating experience. To make
matters worse, your target clients are on a steep learning
curve about the value of you and your work!

So the key is to move both yourself and your target clients up
the learning curve. And knowing how to market, then skillfully
applying this knowledge to your target audience is what will
get you there.

Here are the four stages you have to go through (picture a
staircase or ladder, with one stage on each level). In turn,
you can take your target clients through these stages to learn
about you and your firm:

Stage 1: Unconsciously Incompetent. In other words, you’re
clueless. This is when you don’t know what you don’t know. For
you, it could be not understanding the driving principles
behind effectively marketing a professional service…or the 5
P’s of marketing a professional service that you must follow,
in exact order, if you wish to be successful. For your target
clients, it could be that they don’t know you exist or that
they have no idea what problems you can help them solve.
Ignorance can be bliss, but it won’t get you more clients!

Stage 2: Consciously Incompetent. Now you’re anxious. You’ve
become aware of what you don’t know. Reading this article could
move you to this stage. Witnessing a colleague or competitor
win a contract that you missed out on could do it. For your
target clients, this could happen if you do a free or low-cost
assessment of their needs, or give them a short case study
illustrating other client successes that they’ve not been able
to achieve on their own. Bottom line: you’re more motivated to
close the gap between your current state (in pain) and your
desired state (pain-free and successful).

Stage 3: Consciously Competent. Armed with new knowledge,
you’re starting to feel more confident. With some effort,
coaching, courage to try new things, and small successes,
you’re starting to get better results for your efforts to
attract more clients. It still takes a conscious effort to do
the right things, but you’re on your way. For your target
clients, this stage means that they see “What’s In It For Them”
to do business with you, are confident that you can solve their
problem better than anyone else, trust that you’ll not let them
down, and see a clear path of action to get their needs met.
This is a good place to be, because it means there’s a good
chance that you’ll close the deal.

Stage 4: Unconsciously Competent. Like tying your shoes, this
is when it all feels natural and easy. You’re probably here in
your chosen field of expertise. With the right approach and
accumulated successes under your belt, you’ll get here in your
ability to attract more clients. Your target clients are here
only after they’ve gotten the results they want and can solidly
trust their relationship with you over the long haul. They
voluntarily and enthusiastically refer you to others. They
eagerly ask about and await your next solution or offer of how
to continue helping them. This is a blissful place to be and
will get you more clients than you ever thought possible!

Facing your “marketing reality” can be a tough pill to swallow.
To make this easier, give these things a try:

* Start with increasing your knowledge. Read some articles
about marketing in your particular field that you might not
normally bother with. Attend a talk or workshop about marketing
that typically wouldn’t make it into your schedule. Expose
yourself to new ideas and fresh knowledge. A good place to
start is my free articles at:

http://www.turningpointemarketing.com/free_resources/articles.html

* Next, pick one new thing that you’ve learned and schedule it
into your calendar to try. Start small, get some successes
under your belt, and keep moving. Aim for one new marketing
action every week.

* As you start experiencing better results from your actions,
you’ll notice a shift in how you feel toward marketing. It
won’t feel like such a burden. It’ll feel like a natural part
of what you do. It won’t be “someone else’s job.” You’ll
actually start to enjoy it (trust me, it can happen - I used to
HATE this stuff!).

* Be patient with yourself and with the process. You didn’t
become an industry expert overnight, nor will you become a
great marketer instantly. If you really want the freedom to do
the work you love, you’ve got to commit to the life skill of
funding your passion for the long haul.

* Don’t let naivet or arrogance stand in your way. Marketing
is not about hustling, twisting arms, misleading, or shameless
promotion. It is about sharing what you know with the right
target clients, in a way that they can understand and see the
value for themselves in the good work you do.

A very wise and successful business professional recently told
me the key to his success: being willing to do the tasks that
most other people aren’t willing to do - even if you don’t want
to do them. Marketing may not be as difficult as your chosen
profession, but it’s still a stretch for many of us. Your
willingness to try new things that most others won’t, already
puts you ahead.

(c) 2004 TurningPointe Marketing, Inc. All rights reserved.
Marketing educator, Kelly O’Brien, is creator of the “Create a
TurningPointe!” Marketing Bootcamp. To learn more about this step-by-step
program, and to sign up for FREE how-to articles and 20-page marketing
guide, visit http://www.turningpointemarketing.com

If you’re currently building a network marketing distributorship, what are your 2 biggest business challenges?

OK. Would you like to do something about them? I bet you would. And here’s the first thing you need to know:

These challenges are not your fault!

***The cards were stacked against you right from the start!***

You just didn’t know it. You didn’t realize it. And here is why they were stacked against you.

Let’s take a very close look at the network marketing business model, because that’s where you find the reason for network marketing business failure. You’re an entrepreneur, you’re here to make money, you’re in business. So it makes sense to look at the business model, doesn’t it?

What I’ve seen is that very often it’s your company’s business model that causes your problems, not you. Let me give you an example. I’m sure you’ve seen network marketing companies that brag about having a huge, multi-million dollar home office. They have pictures of it on the website, flash presentations, it’s on all the brochures. But the millions of dollars that paid for that building is money that you will never get back in your compensation plan.

In network marketing, the ONLY place that money is made, whether by the distributors or the company, is from the compensation plan. Your MLM company does not have another stream of income that generates money for them.

***Company Income Always And Only Comes From YOUR Compensation Plan***

So whatever spending you see, that is money that will not come back to you in the compensation plan.

But here’s where it really gets ugly. Your company’s beautiful building requires maintenance. They need a cleaning staff. It has to be painted, windows have to be maintained, bathrooms have to be maintained, these buildings get cleaned every night. They have a water bill, an electric bill, heating, air conditioning. They do everything necessary to make that building a showplace for the company.

***Who Is Paying That Monthly Bill?***

Where’s the money coming from?

Correct - it’s coming from your compensation plan. That is money that you will never receive in your check. It’s gone. That “stolen” income is a big reason for network marketing business failure.

Now … when do YOU plan on using that building?

Did I hear you say, “Never!”?

Exactly. You will never use that building, yet you are paying for it. And that’s not all. These bloated network marketing companies brag about their call center, and the hundreds of employees they have sitting there, ready to take your order, giving you the best possible customer service.

But every one of those people is a salaried employee. They get health benefits, maternity leave, vacation leave, sick leave. The company has sexual harrassment insurance. Those employees get bonuses over the years, raises. Each one works in an office at a desk, with a phone and computer.

That is a monthly bill.

***Who Is Paying THIS Bill?***

Exactly. YOU are! (Are you beginning to notice a nasty trend?) That’s more money again that will never come back to you in the compensation plan.

Now … where do you think THIS business model will go in the future? Do you think your company will have less expenses or more expenses?

Sure. It’ll be more. As the building gets older, it needs more maintenance. The longer people work there, the more salary they expect. As the business builds, they’ll outgrow the building … and, of course, build another new building!

Another good indicator of the heart of a company is, where is the warehouse located? Most cities have a warehouse district, very low-rent, low cost. It makes sense for businesses to keep their stock there. But most MLM companies have the warehouse right next to their big new building. Why? Because it’s more impressive, and they can say, “Look at us! Look what we’ve done!”

***Who Pays For That Extra Expense?***

Yes, of course. It is you.

So what’s the solution? The key is to find a streamlined MLM business … one that doesn’t feel the need to put on a gaudy show with YOUR money! I’ll talk more about that in just a moment.

First, let me give you an example of how this high-overhead business model affects YOUR ability to build your business.

I’m thinking of 3 different companies right now. They all market the same product, a multi-vitamin pack. It’s an awesome product, flat-out works, and all 3 companies market the identical formula, identical raw ingredients. Except Company #3 has also added to the formula a chelated enzyme to allow you to digest & absorb nutrients better.

Now would you agree with me, that to produce that product, same quantity, same quality, same formula, the cost of production for those companies is within pennies of each other?

Of course it is.

Well, Company #1 markets the 30-day supply of that vitamin pack for $117. So do you think you’re going to be able to retail that to someone? Do you know anybody who would gladly pay you $117 for a 30-day supply of a multi-vitamin pack, regardless of how great it is?

I’ll bet you don’t. It’ll be tough, for sure. So therefore, you’re going to have a challenge to retail that product.

Company #2 sells the same formula for $108. It’s still expensive. You’re still going to have a challenge retailing that.

Company #3, which has the same formula, with the added chelated enzyme, so you can digest & absorb it better, sells it for $39.95. Now, I ask you, is that affordable? Do you think you know people who may purchase that product from you?

Absolutely.

***The Business Model Drives The Behavior***

So what kind of behavior do these different business models create in the field? Here’s what happens.

People who market the more expensive products spend their time recruiting. This is where the money is made for them. There’s no money in retailing for them, because nobody’s going to pay that high price for that product.

So what do they have to do? They have to recruit, recruit, recruit.

And what happens after you join them? When they sponsor you into the business, they have no time to work with you! You’re in, they got the commission, and they have to move on to recruit the next person. They don’t have time to work with you because their business is built on recruiting, since they can’t possibly retail products. This is a big reason for your network marketing business failure.

Now, do you have any idea why Company #3 can afford to sell the same formula, with the added chelated enzyme for better digestion, better absorption, at $39.95? Why do you think they can do that?

“They must not have the overhead.”

Exactly. They have way less overhead than the other 2 companies. Their warehouse is in the warehouse district. No multi-million dollar home office. They take 97% of their orders automated over the internet, so they need very few actual employees.

***Company 3 Has Just a Small Fraction of The Overhead of Company 1 or Company 2***

So it’s a more distributor-friendly business model.

I’ve found that 92% of the population doesn’t like to sell and doesn’t want to be sold to. How aggressive do you think you have to be to move a box of a 30-day supply of a multi-vitamin pack at $117 each?

Pretty darned aggressive, don’t you think?

And let me ask you this. Who do you think is buying this? You don’t know anybody who’d buy it. I sure don’t know anybody who’d spend $117 for it. But they sell plenty of it. Who do you think is buying it?

It’s the distributors. The distributors are buying it. Why? Because they have to qualify to get their bonus check. That’s the only reason they’re buying it. This pricing doesn’t create a retailing behavior.

***A Real Example Of How To Use An MLM Product***

Do you know anybody who suffers from a blood-sugar disorder like hypoglycemia or diabetes?

OK. This person that you know, do you think they might know 5 or 10 other people who also suffer from diabetes?

Yes, they probably would.

OK. Well, do you think they might be interested in a product that could help them rebuild the pancreas and possibly take them off insulin or at least cut down their insulin? Do you think they’d be interested in a product like that?

I bet they would. Do you think they can afford to pay $19.95 for that product?

Sure they could. In fact, if you had that product, you could even afford to gift that to the right people, using it more or less as advertising, couldn’t you?

OK. Now what would you rather have? Would you rather have people coming to your website, purchasing this product for $19.95, all these different people sharing with each other, or would you rather be in one of those first 2 companies, trying to market a $117 multi-vitamin pack? Which one makes sense to you?

Sure. The diabetic product. And look again, why can this company afford to do this?

Because they’re streamlined. It creates a retailing behavior. You can do business this way. Anybody can purchase products at this price, because it’s affordable. Does that make sense?

Of course.

***But There’s Another Big Surprise!***

This is really interesting - guess which company of those 3 pays more to the distributor in the compensation plan and requires fewer people to get yourself to a $10,000 a month income?

Yes, it’s Company #3. How is it they can do that?

That’s right. Less overhead. And now you’re starting to get the picture. You’re understanding why it’s so tough for you to make money in network marketing.

Next question. As time goes on and the bloated business model of Company 1 & 2 continues, what is going to happen?”

Let me tell you what MUST happen. They’ll have to raise the price of the products and pay less in the compensation plan. It has to happen. There’s no other source of money for them, so there’s no other way to pay for increased expenses. They’ve created a monster that they can’t control. The only thing they can do to keep it going is to keep feeding it.

And this is where you’ll end up paying $4 for a bar of soap, $20 for a bottle of shampoo, $100 for some liquid nutritional. There are MLM companies out there right now where you can find those prices.

***Where Have The MLM Giants Gone?***

And it will get worse & worse over time. That’s why companies flat-line. You know the famous names of the big-time, old-line companies … they are flatlined.

So what do they do? They go into new countries. They open new countries, because they cannot compete in the US anymore. Their product prices are too high, their pay plan is too inadequate. Their US business & distributor base just falls by the wayside.

I recently read about a well-known nutrition juice. The article had a lot of stories of people making money. The company has an absolutely gorgeous building, all decorated in Tahitian motif. The building temperature is maintained high to be the same temperature as it is in Tahiti! They have a beautiful waterfall, a fountain in the foyer with their nutrition juice pouring out of it!

And what is this company doing to make money? They’re opening up restaurants where they’ll serve food & their juice. Now where is THAT money coming from? It’s coming out of the compensation plan, and distributors are paying for it.

They say they’re doing it to generate leads which will go to certain leaders in the company … which means that if any reps benefit, it will be the heavy hitters - the ones who’ve already built big. It’s just a way of transferring money from the part-time rep to the company and the heavy hitters … leading to many more people experiencing network marketing business failure.

You can look for product prices to increase and rep compensation to decrease. That’s the problem when your overhead is sky-high.

The network marketing business model truly does drive the behavior in the field.

Michael Dlouhy is the expert on network marketing business models and compensation plans. You need to start in the right position in MLM, and Michael will show you how. Visit AskMichaelDlouhy.com