Posts Tagged ‘network marketing’

Criteria to Consider when Starting a New Business

A friend of mine recently laid down a $1000 bet with a network marketer from another company.  They were sitting in the patio area of Panera Bread.  Christy said, “I’ll bet you $1000 that I can get more new customers in the next thirty minutes here than you can.”  He responded,” That’s not fair.  I have a high end skin care product and you have consumables.”  Christy responded, “That’s right, my company offers over 400 products people need and use every day.”  “Which one of us do you think will make more money?”  He swallowed hard and replied, “You will.”

 

Major Criteria

 

  1.  How much do you believe in the product?  Far too many people have started small businesses with visions of dollar signs in their eyes.  Blinded by the green and gold lights (money and gold), they plunked down their cash and plunged into business.

 

After a few rejections, there will be rejections in every business, they were discouraged.  “This doesn’t work.  They lied to me.”  Consider that it may not be the business, but the reason for starting it which caused the problem

 

Believe in the product you are promoting.  Focusing on the money alone will not take you through the rough spots.  EVERY successful entrepreneur as well as every unsuccessful one will attest to the fact that there are rough spots.  There will be bad days.  There will be “sure fire deals” that go south.

 

  1.  What problem does the product solve?  If you are basing your entire future on a “pet rock,” you may want to reconsider.  It could be a fun fad for a short time, but little or no market duration.  There are probably some of you reading this who don’t know that a “pet rock” product actually existed for a very short time span.  Case in point – it didn’t last.  It was fun but did not really solve any problem.  In tight economic times, consumers choose food instead of pet rocks.

 

  1.  How large is the market segment which has that specific problem and is willing to pay for a solution?  There are a tremendous number of terrible speakers promoting themselves; we receive requests every week at our local Rotary club.  Some have an important message, but their presentation skill is so terribly lacking that the message is lost by boring the audience.  Do they need a presentation coach?  Yes desperately.  Will they pay for a professional coach?  Some believe they do not need a coach.  Others believe that asking their mother how they are doing is good enough.  Still others say the price is too high for their budget.  A small percentage invest in themselves and improve.

 

Look carefully at your target market.  You will not contract with everyone who needs your service.  Will you reach a sufficient number on a consistent basis to meet your income needs and goals?

 

  1. Consistency is important.  Refer to the opening $1000 bet.  Repeat orders are important.  When you have a product consumers need to repeatedly order, you will make more money.  If your only product was a central vacuum system for your home, one purchase and you are seeking a new customer.  Granted, you receive a nice commission for that one sale.

 

High dollar network marketing companies promote the $1000, $5,000 and $10,000 commissions; remember those green and gold lights?  The catch is continuing to find a steady stream of purchasers who are willing to spend $2,000 to $20,000.  Most high dollar network marketing companies also build in a residual component; everything hinges on the steady stream of purchasers.  Unfortunately, statistics show that only three percent of high dollar network marketers achieve success; only a small percentage of those earn the “big bucks” for more than a few months.  Look carefully at yourself and your product to determine if you believe you will produce a sufficient income over a sustained period of time.

 

In our example of the $1000 bet, consumers will continue to purchase shampoo, cleaning products, toothpaste etc. regardless of the economy.

 

  1. Compensation Plan.  You probably did not start a business just to fill time; your goal was to make money.  How easy is the compensation plan to understand?  One company I reviewed had such a complicated plan with variations and intricacies that few understood it and even fewer could explain it.  Look for a clear plan which you understand, you can explain and you will earn commensurate with the time and effort you expend.

 

Back in the early days of pay-per-click advertising, the money was flowing out as fast as or faster for the marketing than it was flowing in from sales.  Look seriously at your compensation.  You are in business to make a profit.

 

Other factors also exist such as the ethics and integrity of the company owners and leaders, knowing you are helping people as well as making money and feeling that you are proud to attach your name to your motivation as well as your results.  Do you have or can you acquire the expertise to effectively present the company and its products?

 

Red Flags

 

How long has the company been in existence?  What is the growth rate of the company; if people are leaving in similar numbers as new people are arriving, that is a red flag.

 

How often has the compensation plan changed?

 

No company will please 100% of the people 100% of the time. Read the complaints on the internet; what is the percentage in comparison to the size of the company?

 

Before succumbing to the green and gold lights, look carefully at the product, the problem solved, the market size, the market sustainability, and the net compensation (income after expenses).  Find a company which meets your criteria for success.

 

For guidance in selecting the best company to fit your goals, talent and time, contact me at Elaine@Elaine4Success.com.  I’m happy to help

Words Linger

Words create memories – good or bad

How important are the words you put in print?  We hear about blogging, social media comments and even writing marketing copy.  Your written words are actually more important than your spoken words.

 

Spoken words may be forgotten, but the written word is permanent.  Once you hit “send” or “submit,” those words are available to be found forever.

 

Private?  Think again.

 

That funny party picture you posted as a joke is available also.  I hear some of you saying, “no, I posted in my private setting.  That posting will never be public.”  Wrong.  Regardless of the privacy setting, if someone wants to find it badly enough, they will.  If even one person re-tweets or copies the picture or text, it is now public.

 

True story

 

A young woman was so proud of her body building contest results that she posted the picture on her Facebook page.  If you know anything about those contests, you know that the attire makes a string bikini look prudish. What seems like harmless fun in her 20s may come back to haunt her.  Would you want a “nearly nude” picture of yourself on the internet for your parents, children and your boss to see?

 

Words come back to bite you

 

Be conscious of the words you write.  You are representing yourself and your company with each comment.  This is the age of the spontaneous comment.  It only takes a second to hit “send” but the results remain

 

Am I trying to scare you into not posting on the internet?  Absolutely not.  I’m posting this right now.

 

Another true story

 

Two individuals in an organization chose to escalate their disagreement into a public display.  Feelings were hurt, words were written which in retrospect should never have been said.  The repercussions are still being felt throughout the organization seven months later.  A disagreement which could have been solved quietly has mushroomed into a major disruption.  The entire organization is suffering.

 

Once written words become public, they may be retracted, but they are not removed from memories.

 

Words linger

 

.Why is writing important in your organization?  Your marketing copy is obviously public.  It represents your company.  The image you project in your marketing materials must be positive, but it must also be honest.

 

There is a common expression throughout network marketing and other media to “fake it until you make it.”   The catchphrase was originally designed to create a feeling of success; by acting “as If” you have already achieved the desired level of success, you will trick your sub conscious into making that your reality.  The problem is that when that statement goes public, others do not know whether it is an internal statement or the truth.  97% of people fail in network marketing.  Perhaps some entered the business with a false sense of probability.

 

Be aware of the consequences of your spoken words and your written words not only on yourself but also on others.

 

For more keys to a successful spoken or written presentation, contact Elaine Love at Elaine@Elaine4Success.com or www.Elaine4Success.com.  If you want to take your communication from Now to WOW, implement this simple key.  Want more keys to success for yourself and your company?  Hire Elaine Love as your coach, corporate trainer or keynote speaker.

 

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”Elaine spoke to our top leaders from 8 states, she gave us new and positive ways to connect with people
which is EXACTLY what we wanted. Thanks Elaine”
-Tom Fajardo, State Farm