Why do most MLM firms fail? This one's easy...
But why do successful MLM operations fail? These are the firms who have proper software, good management, solid products, a growing distributor base... why do these operations fail? The #1 answer is poor training programs! Sure, their opportunity briefings and sales materials are great, they have good-looking talented leaders who seem to know what they're doing, they've got good legal representation and are keeping out of trouble... then why is the activity-ratio going down and the fall-out ratio going up? They never spent the time to develop the sales force they had -- into serious network marketers. Now they're left with an ever-shrinking group of consumers as all the builders leave for a new more exciting deal.
Why do 90% of all MLM operations flatten out, lose their momentum, or witness a decline in their sales volume after 2-3 years ? Because real duplication never occurred.
Why didn't duplication occur? Because your distributors were not taught the skill-sets necessary to survive as a professional network marketer. They did not really learn the "art" of "closing" a prospect or getting referrals, or sponsoring long-distance, or using voice mail, etc...
Why didn't your distr.'s learn the skills they needed to sponsor new people and sell your products when you had so many training events? Because 95% of your training events were disguised as opportunity meetings with a training event slapped on the back. They were hosted by well-intentioned, good-looking, successful, articulate individuals who inspired or motivated the group.
What's wrong with inspiring or motivating people? It's a vital ingredient to overall success, but it's only half of the success formula. Enthusiasm wares off over time... it doesn't last, it's only temporary! In order to build a rock solid sales force who's loyalty is invincible to raiders, in order to secure a team of individuals who will remain active buying your products each month, sponsor new people, and try to win contests... then you have to build an army of highly skilled career professional network marketers. They need real scripts, not just a "go get 'em tiger!" yelp.
How come 70% of your monthly sales volume occurs in the last week of the month?
Who are your distributors "accountable" too? Do they work all alone by themselves trying to figure out how to run their businesses? It really doesn't matter how much training materials you print, the only thing that matters is, what data gets installed! Your sales force can only use what they have embedded in their brains. It doesn't matter what they heard you or your leaders "say", if they can't use that information to sponsor, retail or train... am I right?!
When a distributor spends all his/her time, money and effort to attend one of your regional or national conventions, do they know "more" money-making strategies than they did before they left their home. In other words, are they any more prepared to sponsor, sell or train after your event, or are they just $2,000 poorer and a lot more "motivated" to take action? Then why does sales volume soar after a convention, and then decline back to normal?
If you randomly picked 20 distributors from your sales force, brought them up to the front of the room and had them "pitch" your business opportunity to all of us in attendance, how good of a job do you think they would do? Would you be proud of what they said, or would you hide under your chair with embarrassment? My guess is that they would do an average job at best. It's no wonder companies fall apart. The owners are so far away from the field that they never understand, until it's to late, that their distributor force was built on sand. You never witness how poorly your distributors are trained because these people fall out of your firm and you only see all the new excited people at your events. When this pool of fresh blood dries up, you usually have too much overhead, to much debt, to much inventory, to much staff and not enough revenue. Like the Titanic, all the success you witnessed in your endeavors lead you to believe in your "press releases", that reported you were "unsinkable". Your brain is screaming, "we've done it before, we can make it"... but this only compounds the problem, and like the captain of his ship, many do not survive.
All of this could have been avoided, tens of millions of dollars could have been saved or made... if only you had built an army of professional network marketers while you had the chance. Well, we at PowerLine Systems are one of the only generic training operations that have a decade of experience solving these problems "before" they occur! Our products and services are endorsed by most of the greatest minds in the industry. David is the "originator" of tools that build distributors into craftsmen, tradesmen, and professionals at what they do. Are you ready to develop a world-class training operation as an "insurance policy" for the future... or are you o.k. just the way you are? We'll be happy to assist you should you seek professional proven assistance....
May God bless your distributors and your operation.
Dave Klaybor, Pres.
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