Where most “multi-level network marketing” fails
by February 23rd, 2008 Patrick GreerAlmost all of my life I have been exposed to some form of multi-level network marketing. The most famous or rather infamous networking company is Amway which I think is know today in the United States as Quixtar under their holding company. In recent years network marketing has become the venue of many companies that sell health food, cosmetics and telecommunications, etc.
Despite the complaints I have had over the years about this method of marketing I am not opposed to the idea it’s just that too many of these ventures fail in their approach. The most obvious disturbing thing to me about Amway/Quixtar is a “cult-like” devotion they expect from their distributors. That’s the most obvious but it hit me the other day what disturbs me more than anything about almost any company that tries to market their products this way. Are you ready? They are not focused. It seems that before I have had any chance to start using or buying a product on a frequent basis the distributor is trying get me to sign up as a distributor myself! The reason for this is they will get a cut of any sales their down line makes. Once again I am not opposed to this method of marketing. I’m opposed to trying to be sold on selling a product before I have had the chance to be a consumer that is advocate of the product. It’s like asking someone to marry you on the first date. If you product is as great as you say it is then give me some time to fall in love with it.
Now before you think I am being overly negative I want to tell you about a company that does it right. Avon. My grandmother sold Avon for many years after she retired and did very well. She had many customers all over town and even had the guts to sell Avon to an annoying telemarketer who interrupted her on the phone one day! Avon is great about cultivating customers who love their products and from what I have seen their distributors don’t make creating a downline the priority. They make their products the priority.
I just finished a series on branding and this is definitely a “branding” issue. Are you selling people on the opportunity of promoting your company or are you focused on your product? Is your product or service so compelling that others will want to sell it for you or woud desire to be your employee?
Why do so many “multi-level network marketing” companies put so much energy in selling the opportunity to sell their product and less in actually selling the product? Do you sell and innovate your products and services that can “sell themselves” or are you putting more energy in “selling your company?” Even if your business is not using a network marketing model do you you use the same strategies when talking to other? Do you talk more about your “business” or do you extol the great products and services your business provides?
February 26th, 2008 at 3:28 am
The reason that so many people sell the opportunity is, in most cases that IS the real product of the network marketing company. To be bluntly honest with you, no network marketing product I’ve ever come across in my years has ever had the emotional appeal that the opportunity for income does, so in just about every case the marketer turns to the most powerful and persuasive emotional appeal for the masses of the audience, and as the direction of most marketing online for network marketing shows the appeal is the opportunity.
That’s why . . .
I’ve been in both positions, selling the product and selling the opportunity, and although you may not like the push when someone presents the opportunity the truth backed up my hard figures is that the opportunity sells about 10 to 1 to the product, so that’s why marketers do it.
I’d love to hear your thoughts . . .
To the top,
Daegan
February 26th, 2008 at 7:37 am
I certainly understand the opportunity sells. People will buy into something if their is something in it for them. We all like to think we will get a big return on our investments so it’s only natural to be drawn to such things but I always have to ask myself three questions;
1.) If they product they are selling is so good why do they not talk about it any more than they do?
2.) How come more people are not doing this?
3.) How long to most people stick with selling the product and opportunity?
Like I said, some companies are doing it right. I know some people in my networking groups who really love their products and that is the primary topic of conversation.