So, You Wanna Run Your Own Network Marketing Company? Or.. Your Direct Sales Operation Isn't Going Like It Should... Or.. No Matter What You Do.. Your Company Is Slowly Losing Sales!

In the competitive environment of the mature MLM industry, a lack of knowledge can cost you your business.

How much has it cost you personally for what you know today? Plenty I'm sure.

Let me share a true story with you... I asked the President of a network marketing company, "How is it that you are so successful?" "By making knowledgeable decisions," the owner replied. "Where did you get the knowledge?"I asked. "Experience" he snapped. "Where did you get the experience?" I persisted. "Poor decisions!" he stated with authority. I asked him to estimate how much it cost him to learn how to operate and build his $180 million a year company... he didn't hesitate as he quipped "$600 MILLION and counting"! He said he wished that he could have gone to a Multi-Level Marketing University,  or worked with a person who had Network Marketing expertise as he was building his operation. He said he was guilty of an over-extended ego, too much pride to delegate responsibility, to frugal to pay for expert advice and just to over-confident that he would succeed. This was a very mature response from such a successful man. He said he thought his business experience, in other areas of marketing, would transfer over to the MLM world easily... he says this was his first major mistake. He wished he could have been better prepared with a proper EDUCATION to build his MLM company. He insists that it cost him: Many wasted years of his life Unnecessary mental stress and pressure Losing valued relationships with friends and family Hundreds of millions of dollars, and Much embarrassment as he stumbled forward feeling his way through an industry he thought he could easily conquer.

 

As a ten year veteran consultant, I've become an MLM statesman by years of asking successful,(as well as defeated), MLM entrepreneur's powerful questions about their experiences. Like a research scientist, I discovered what drove company sales forward and/or what made revenues stagnate or drop?

Only after my careful evaluation of hundreds of MLM company "case-studies" could I offer others meaningful solutions and insight. There are MLM secrets most people will never discover during the life span of their Network project.

Without this knowledge,
you too will go through the growing pains mentioned above.

Only by doing the 18 points addressed later in this article, will you become lucky enough to be that 1 in 50 companies that survive.

The majority of MLM owners haven't been able to research the industry before they launched. Although most will show you a few distributor kits, refer to the bottles of product on their shelves, motion towards the handful of videos stacked near the VCR and reference a few compensation plans they've looked over in the past 1-3 years... they couldn't show you any proof that they had done their homework in depth. The industry survival-ratio, as well as the way many MLM companies are "designed" and run are a testament to the lack of pre-planning.

My peers and I have multi-level expertise because we have dedicated our lives to acquire the knowledge every company owner/administrator needs to know. In today's mature MLM market, in order to beat the failure-rate odds that are: 49 out of 50 MLM firms will not make it.

If the documents you receive help you make one good decision, assists you in gaining one good contact, offers you one great idea, or finds you a solution to one major problem... it could be worth millions of dollars and reduce your stress-level dramatically. It's amazing that new owners launching network companies are afraid to spend money to educate themselves. Yet they demand their distributor's pay for and attend training classes or purchase many business tools the company creates. Most of this training is "Average" at best.

How would you define a network marketing company as being successful? Well, 1st it must be said that if the owner is happy, then he/she is a success.

But the MLM marketplace defines it another way. History and hundreds of case studies of successful operations indicates that an MLM firm could easily be grossing $5M/month within 3-5 years... and be grossing $10-30M/month within 5-10 years. If a company is still grossing less than $1M/month after years in business, it's doing something wrong... or perhaps it's owners prefer operating as smaller MLM operation. Many people like running a small mom/pop business... but these days, this can be very dangerous. All companies must keep growing in order to stay in business, otherwise you're a candidate for "raiders"... and raiding experts are talking to your distributors everyday. If they are successful, your company could lose 20-40% gross income in one quarter alone. In today's mature market, a company could be out of business in 4 to 18 months ... if it doesn't know how to handle the situation properly.

Whether you're an owner/administrator of a veteran company, or just starting out... in today's competitive market there are many weak areas in MLM operations that must be improved, removed, edited, enhanced or modified in order for your firm to compete in today's MLM world.
1996 was the first huge surge in new MLM company launches. There are 10-14 real MLM operations starting every WEEK! All these companies are competing for a limited pool of entrepreneur's. If you think there an "unlimited" amount of potential prospects you're wrong. Our industry has stabilized at least 10-12 million distributors. Rod Cook estimates that about 40k distributors leave and about 45k+ enter the industry each month. Leaders of network marketing operations must receive training in the following areas in order to compete and survive. Most MLM operations are weakest in the following areas. Most operations fail to:

Create a compelling company "STORY"... The company story will never be right unless the company is "DESIGNED" properly... Most MLM firms do not have the proper PRODUCT MIX, and/or have products with the wrong mark-up ratio to pay their comp plans. Most MLM operations improperly sell money as their #1 product, they focus to much on the compensation plan... Most MLM firms do not focus on PRODUCT and DISTR. RESULTS... Most MLM firms do not know how to handle "RAIDERS"... Most do not know how to make win-win "offers" or create deals that will attract and keep MLM leaders, and most never know who to give a deal to, currently most MLM owners get ripped-off in this area when they never understood it's importance to their success... Most mature companies loose their leaders, ending in litigation... Many company owners think they are invincible, they're not in control of their ego's, they do not delegate properly... Most companies have poorly named their firm, their products and have poor to average sales aids and/or company forms... Most distributor kits are worthless and do not work to perform the task they were created to fulfill... Most compensation plans are too complicated, and do not pay the right people the right money at the right time... Most companies go international too soon, most firms have to go overseas because they're USA plan isn't working well anymore... Most MLM firms do not use industry vendors often enough or listen to the advice they receive... Most operations fall-out ratio is too high and their activity-ratio's are too low. Attempts to improve these figures usually work short-term and then hurt the company long-term... Most MLM conventions, regional events, conference calls and home office tours do not maximize their potential... Communication systems between the company and the distributor and communications with the firms customers for the most part are very weak never reaching their true potential...

 

David provides companies and entrepreneur's with marketing advice that immediately increases sales. Klaybor researches Network Marketing Operations, analyzes their problems and provides innovative solutions. As the former President of 2 MLM firms and the VP of 2 others... Dave is uniquely qualified to help you with your company as well. DK writes a column in the #1 MLM publication in the world... He was a member of NSA - the National Speakers Association... the NNFA - National Natural Foods Association... and Professional MLM-Network Marketing Association's. Captain Dave's teaching technologies earned him feature and cover story articles in many major publications over the last 15 years. He has given over a 1,000 wealth-building seminars in 17 countries. Some of David's clients represent companies like: Fuller Brush, Rexall, Conklin, Team-Up, TPN, Matol, Nutramerica, Loadstar, Morganies, Bodywise, Nu-Skin, Amway, Team-up, Healthy Outlook, Shaklee, HerbaLife, Life Plus, Free Life, Omni, Enrich, Alliance, NSA, Quorum, and lots more!

 

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