Over the last 10yrs I have been involved in alot of mlm,network marketing ,and other various online adventures.
I have never really had success in any of them,but that is not to say you cant. Knowledge is always the key to success so I hope that you can gain something from this blog.
Monday, July 27, 2009
Pandora’s Box has been opened and we will never be able to close it.
Incest.
A finite group of people who are traded like cattle from one company to another every 9 to 12 months.
They were once called junkies, but the infection has spread to people above that description.
Network Marketing has become obsessed with “timing”, “pre-launches”, and “the next big thing”, but the cause behind that obsession is what truly scares me. I’ll explain why shortly, but all you need to realize is that…
Pandora’s Box has been opened and we will never be able to close it.
Why? What’s causing this gruesome condition?
The Answer Is Simple…
The number of new people coming into MLM each year is now drastically out of proportion with the number of new company start ups.
Thousands of new MLM’s launch every year thanks to the internet. You can literally start your own company from your bedroom if you want.
But there are only so many people to go around.
Welcome to the world of the Pre-Launch. A company’s only chance to catch the attention of networkers, and steer them away from their current opportunity with the promise of “getting in on the ground floor.”
Before you know it, the game has started AGAIN. This time around a company that promises to be the biggest and best with their new patented Wonder Vitamin 2000 that will change the world.
Networkers inevitably flock to it by the ten’s of thousands trying to “get in on top”.
And if they don’t, it doesn’t matter because another shiny new MLM will launch in about 9-12 months, and when it does, and the music stops, the people at the bottom scramble to find their seat in the chain, destroying their old company from the bottom up in the process.
This has resulted in a vicious cat fight between these companies over a dwindling supply of warm bodies, complete with name calling, back-stabbing, and an endless supply of lawsuits.
Make no mistake about it… In network marketing, people are the commodity that is traded, and YOU are very valuable.
The “B-Zone” is Gone and
Took Your Residual Income With It!
Before the internet, organizations and companies were protected by an information buffer zone which shielded them from this onslaught of people, opinions, competitors, and ads.
It’s this buffer zone that allowed relationships to be built, skills to be learned, and loyalties to strengthened.
But the internet destroyed it in the blink of an eye.
It happens all the time...
You're sitting pretty on top of a fairly large organization. You think you've finally found that "residual" pot of income gold at the end of the rainbow.
You're making about $20,000 a month. You quit your job 5 months ago, bought a new house, that new sports car you've always wanted, and paid off all your debt.
Life is good...
Then one day, the company changes their compensation plan just a little bit.
One of your leaders is NOT happy about it. They decide to move to another company, and with one click of a mouse... With one single email to his list of a few thousand recipients upline, downline and side-line... He basically destroys dozens of people's businesses, cutting their checks in half or even worse... Including yours.
The income you're relying on to pay the mortgage, invest for retirement, and put your kids through school literally vanishes overnight.
If something similar to this scenario hasn't happened to you yet... It will.
It's a sobering thought when you realize that your lively-hood in an MLM business is completely dependent upon strangers you've never met.
You don't know their long-term plans. You don't know about their family problems, and you don't know what they'll do next, yet your check is dependent upon them and thousands of others just like them because you simply cannot earn a full-time living on your own personal efforts with an MLM compensation plan. It's not designed for that.
This wasn't a problem in the past, but it is today.
You see, the internet is a tool that allows communication at a level that has never been seen by the world before, where opinions, rumors, promotions, and advertisements can now spread across the globe faster than you can blink your eye.
Massive revenues can be gained or lost in days for a company with nothing more than a well placed negative opinion report on the search engines.
Downlines can be destroyed overnight by false rumors or leaders who jump ship.
Distributors have instant access to an endless supply of tools, systems, leaders, training, opinions, and sales pitches which continuously plant seeds of doubt, and distract them with promises of better, faster, and easier.
Competing ads can be flaunted on the very door-step of a company’s search engine results.
And There’s Nothing You Can Do About It.
The very moment your new distributor feels frustration… Feels trapped… Feels failure… He or she will instantly open up to the endless supply of alternatives filling their inboxes on a daily basis with the very thing that will cure their pain – and ‘poof’, they are gone.
There is no long-term commitment because networkers are only as loyal as his or her options, and thanks to the internet, their options are now endless and one click away.
If you’re a leader in the industry, you know exactly what I’m talking about and from this point forward, it’s never going to stop.
For better or worse, this is the new reality of network marketing.
How The Game Is Played Today:
The first and most critical observation to note is that the very economics of MLM are changing. The cost of sponsoring a new rep in the cold market continues to spiral upward, while the actual return and “life time value” of that rep continues to decline.
We are faced with the fact that…
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Full page ads in an industry magazine that cost $500 eight years ago, now costs $3,000.
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Email marketing is dead, and the ability to advertise in a massive, targeted, and affordable way died with it.
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You will be forced to recruit everyday for the lifespan of your business just to combat the constant attrition that will plague your organization.
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The all important practice of retailing has become taboo, putting 90%+ of the focus and attention of the business on recruiting instead of customer acquisition which is where the long-term, stable money is found.
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The industry holds less and less appeal to the white collar business professional who has a hard time seeing how he/she’s going to quickly replace a six-figure income peddling vitamins and fruit juice.
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Systematic team training has become next to impossible as new systems pop up from different leaders within the same company every 30 days, which promise to be the answer for the struggling newbie.
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Instead of focusing on the development of personal skills and a single system, an “I’ll try this for a few weeks”, lottery mentality for lead sources, websites, and magical tools that will “build the business for you”, has taken over.
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