So, You Wanna
Run Your Own Network Marketing Company?
Your Direct Sales Operation
Isn't Going Like It Should...
No Matter What You Do..
Your Company Is Slowly Losing Sales!
The Network Marketing
Industry has Matured...
Today, Education ISN'T Just for Distributor's !
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
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
|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.
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
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
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
- 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
- Most MLM firms do not know how to handle
- 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...
In summary, wouldn't you agree that
education is not just for distributors... MLM companies need to focus on internal
executive training, then evaluate themselves and all aspects of company operations... Then
make improvements to the points made in #'s 1-18 above. Now you know what has to be done
in order to build your company to $600M/year.
Good Luck In Your Endeavors.
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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